Operation
❯
Automate operation - Robotization
❯Order-controlled production
Large Companies
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Order-controlled production
For:
Customer, producing companies, brokerGoal:
OtherProblem addressed
The objective is to enable automatic supplier contracting for optimized
utilization of manufacturing capabilities at suppliers, and novel degrees of
flexibility in contract manufacturing, and to enable (mass) customized customer
ordering.
Scope of use case
Automatic distribution of production jobs across dynamic supplier networks
Description
Use case description taken from References [127], [128] and
[129]. Many contemporary products are changing at an ever-
increasing rate. Whereas up until just recently, smartphone
displays were flat, the first curved displays are already on the
market. The array of materials used in the automotive sector
is also continually expanding from aluminium to high-
strength steels and even fibre-reinforced plastics, today
many types of materials are used.
Innovation and product cycles are getting shorter all the
time, and new production technologies are putting pressure
on manufacturing companies to react more and more rapidly
and make quick investment decisions regarding both
consumer goods and investment goods. In order to confront
this trend and avoid lengthy investment decisions,
companies are starting to increase the network of their production capabilities beyond their own company
boundaries.
Key aspects:
The Order-Controlled Production application scenario
describes a flexible manufacturing configuration. Owning a
network of production capabilities and capacities that
extend beyond factory and company boundaries, this
company can quickly adapt to a changing market and order
conditions, and thereby make the best use of capabilities and
capacities of existing production facilities. In this way the
potential provided by a network to other factories out-side
of the companys own facilities is used to align the companys
own portfolio and especially its production to quickly
changing customer and market demands. Specifically,
manufacturing chains are optimized for various parameters,
such as cost and time.
At its core, order-controlled production is based on
standardization of the individual process steps on the one
hand and the self-description of production facility
capabilities on the other. This standardization allows for
automated order planning, allocation and execution, thereby
considering all production steps and facilities required. This
helps to combine individual process modules much more
flexibly and quickly than previously possible, and to make
use of their specific capabilities.
In this respect, companies offer their available production
capacities to other companies and thereby increase the
utilization of their own machinery. Other companies may
access these capacities as needed, thereby temporarily
expanding their own production spectrum. In so doing,
available production capacities are utilized better and order
fluctuations can be smoothed out. The goal is to facilitate
linking external factories into a companys production
process and make it as automated as possible. In particular,
the order placement process required for this is expected to
be executed automatically.
Effect on value chains:
Todays relatively rigid and separately negotiated
relationships between companies along the value chain
would be transformed into a largely fragmented and
dynamic value chain network that changes as required by the
individual order. This applies both horizontally over the
entire manufacturing process as well as vertically, with
regard to production depth. Manufacturing companies focus
on value-added steps that distinguish them significantly
from other competitors. The possibility of creating fast and
global client-manufacturer relationships can lead to
unexpected competitive situations, because companies may
change their role from order to order. Dynamically
integrating production capacities would lead to better
machine utilization and, as a result, diminishing demand for
machinery suppliers.
Value added for participants: On the one hand, manufacturing companies would be able to
automatically expand their production capabilities and
capacities ad hoc in line with demand, by utilizing external
production modules. No investment is required. This enables
companies to react very flexibly to changing market and
customer demands. On the other hand, companies offering
their machines on the market can optimize their utilization
rates.