Variability reduction through operations reversal

Article Abstract:

Reversing operations or processes in a manufacturing facility has been observed to be an effective method for reengineering a manufacturing process or supply chain through the reduction of product variability. There are a number of situations where operations reversal is appropriate. These are when the resulting beginning stage has more probable options, the option probabilities are almost the same for both features provided by the two stages but the number of choices in the first stage is less than the next one, the first stage requires a longer process time than the next one if the features added in the two stages are equal, the features added in the first stage is less than the next one assuming that leadtimes are the same, and the first stage has a longer leadtime but the value-added per process time is less than or equal to the value-added for the next stage.

Design and construction, Manufacturing processes, Manufacturing

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Manufacturing flexibility: methods for measuring the impact of product variety on performance in process industries

Article Abstract:

The effects of adding product variety on the performance of manufacturers were investigated. The objective was to find out whether a mismatch in strategy alignment will prevent a strategy of increased product variety in the process industries from creating a sustained competitive advantage with respect to sales growth, profitability and market share. Results showed that proper alignment between marketing and manufacturing strategy allows firms to gain a competitive advantage by adding product variety. Increasing product variety can have negative effects on costs and profit margins when marketing and manufacturing strategies are not aligned. Methods for measuring the impact of manufacturing flexibility and performance were proposed.

Production Management, Marketing Management, Research, Product management

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Modelling the costs and benefits of delayed product differentiation

Article Abstract:

Redesign of products and processes enables the stages of the production process where a common process is employed to be prolonged. This allows for the delay of the point of product differentiation to manage expanding product variety and high customer service provision. A simple model that incorporates the costs and benefits related to this redesign strategy is developed and applied to examine special cases based on real examples. These special cases allow for the formalization of three different product/process redesign methods: standardization, modular design and process restructuring. Special theoretical cases for the characterization of the optimal point of product differentiation are developed.

Models

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