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A modularised typology for flow design based on decoupling points - a holistic view on process industries and discrete manufacturing industries
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.
2016 (English)In: Production planning & control (Print), ISSN 0953-7287, E-ISSN 1366-5871, Vol. 27, no 16, 1344-1355 p.Article in journal (Refereed) Published
Abstract [en]

Management of production activities covers a wide range of decisions. In this paper, a modularised approach is suggested that, through configuration, generates a case-specific flow design. The approach is based on identification of decision categories that are generic and fundamental in the flow design, covering both discrete manufacturing industries and process industries. Each decision category identifies a unique property of the flow which changes at a particular point: this is termed a decoupling point. A three-dimensional modularised typology is developed by combining three different decision categories. Cases from the steel industry and the tooling industry are used to illustrate how the typology can be applied. The modularised approach provides a typology for the application of both qualitative and quantitative methods for flow management, including planning, control and performance management.

Place, publisher, year, edition, pages
TAYLOR & FRANCIS LTD , 2016. Vol. 27, no 16, 1344-1355 p.
Keyword [en]
Typology; decoupling point; planning and control; process industry; modularisation
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
URN: urn:nbn:se:liu:diva-132245DOI: 10.1080/09537287.2016.1220649ISI: 000384468200004OAI: oai:DiVA.org:liu-132245DiVA: diva2:1039369
Note

Funding Agencies|Swedish Foundation for Strategic Research [PIC-LI]; Process Industrial IT and Automation (PiiA) - VINNOVA; Swedish Energy Agency, Formas; Swedish industry [2014-05110]

Available from: 2016-10-24 Created: 2016-10-21 Last updated: 2016-12-19
In thesis
1. Sales and operations planning based on a modularized view of supply chains: Supporting process industries and discrete manufacturing industries
Open this publication in new window or tab >>Sales and operations planning based on a modularized view of supply chains: Supporting process industries and discrete manufacturing industries
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The purpose of this dissertation is to propose a framework for sales and operations planning (S&OP), which is based on a modularized view of supply chains. The framework should support both process industries and discrete manufacturing industries in their quest for performance. S&OP has been highlighted in this framework due to its essential role in integrating different functions within a company and integrating a company with its supply chain partners (referred to as horizontal integration), and linking different planning levels in a company (referred to as vertical integration). As an integrator, S&ÖP influences companies’ performance.

Originally, S&OP was developed as a generic process but still in line with the requirements of discrete manufacturing industries. The specific requirements of process industries have not been emphasized in this process to the same extent. In order to suggest a modularized S&OP framework for both process industries and  discrete manufacturing  industries, a systematic literature review is performed to understand the specific characteristics of S&OP in process industries. As a result, the importance of continuity/discontinuity of materials and its influence on the required production processes are highlighted. This indicates that the production process in process industries is actually a hybrid of continuous production and discrete production, whereas the discrete manufacturing industries often only deploy discrete production. Continuous production has specific characteristics that would be beneficial to include in the S&OP process; nonetheless, this is in contrast to the view in the literature that considers S&OP a generic process. Generic here means that S&OP is independent of the context in terms of, for example, the industry in which it is implemented. This issue is investigated in this dissertation by identifying the requirements, which can be considered in the S&OP of process industries as add-ons to the generic S&OP. In addition to this, two other concepts addressing the properties of the production process are identified as important in planning and control, including S&OP. One addresses the level of repetitivity of the production process in response to the market demand, and the other concerns the trigger of the production flow. The three concepts are related to three different types of decoupling points and are the basis for a typology developed herein that provides a modularized view of supply chains. The application of the typology to S&OP leads to a modularized S&OP framework applicable to both process industries and discrete manufacturing industries. The modularized view of supply chains has been long emphasized as an effective and efficient way to support companies’ performance and their competitive position. The typology and the S&OP framework are developed through conceptual research methods.

To study how the modularized S&ÖP framework is related to companies’ performance measures, different performance measures (including sustainable performance measures) at the S&OP level are extracted from the literature. The performance measures are then classified according to the typology, and linked to strategic performance attributes. Aligning performance measures at S&OP levels and strategic performance attributes would help in enhancing companies’ performance. Sustainable performance measures are included in this classification to provide additional support for companies’ performance. Finally, this approach in classification of  performance measures is studied in four case companies, and the empirical performance measures are linked to the companies’ strategic performance attributes and competitive strategies. The results of this empirical study have, to some extent, verified the results from the classification of performance measures based on the literature.

This dissertation contributes to the development of knowledge in S&OP. First, it identifies three key concepts in planning and control of manufacturing companies. Second, it investigates how S&OP should be tailored to the specific characteristics of companies and their supply chains. The modularized S&OP framework developed in this dissertation is based on the three identified concepts. This framework provides a foundation for fulfilling the supply chains needs by suggesting decision-making processes, planning techniques, and performance measures for different modules. More specifically, this work investigates how S&OP should be designed and implemented in process industries, which has not been extensively studied before. Third, this dissertation shows how S&OP level performance measures can be selected in line with the specific characteristics of supply chains. Finally, by integrating the sustainable performance measures in the S&OP process, this dissertation expands the scope of S&OP and its potential in supporting companies’ performance.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2017. 83 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1803
Keyword
Sales and operations planning, Decoupling point, Performance measure, Process industry, Discrete manufacturing industry
National Category
Production Engineering, Human Work Science and Ergonomics Environmental Management Business Administration Other Engineering and Technologies not elsewhere specified Other Mechanical Engineering
Identifiers
urn:nbn:se:liu:diva-133243 (URN)10.3384/diss.diva-133243 (DOI)9789176856437 (ISBN)
Public defence
2017-02-03, ACAS, A-huset, Campus Valla, Linköping, 13:15 (English)
Opponent
Supervisors
Available from: 2016-12-15 Created: 2016-12-15 Last updated: 2016-12-19Bibliographically approved
2. A Framework for Sales and Operations Planning in Process Industries
Open this publication in new window or tab >>A Framework for Sales and Operations Planning in Process Industries
2014 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis studies Sales and Operations Planning (S&OP) in process industries. S&OP is a planning process which has a role of balancing demand and supply at an aggregate level. S&OP has traditionally been considered as a generic process meaning that it is independent from the context of the industry in which it is implemented. Process industries do; however, have specific characteristics which affect their planning and control processes, including S&OP. Therefore, the aim in this thesis is to reconcile these two contradictory stances and furthermore investigate how the specific properties in process industries should be included into an S&OP framework. Such a differentiated framework aims to support process industries to design/implement their S&OP process based on their unique requirements in relation to their markets, products and processes while it also takes into account the specific characteristics regarding the continuous production. Consequently, the process industries would realize the expected benefits from S&OP process to a greater extent.

The study starts with a literature review on S&OP in process industries in order to build the knowledge foundation for subsequent studies. The results show that the underlying difference between process industries and discrete industries is the object continuity which affects the selection of production processes including resources. Thus, process industries are often hybrids in the sense that their production processes include both continuous production, when the transformed object (material) is continuous, and discrete production when the object (material) turns into discrete products after the discretization point. In other words, process industries deploy both continuous production and discrete production while discrete industries use only discrete production. The specific characteristics of process industries are actually related to the continuous production part and influence the planning processes as well. As the result of this study, the continuous production characteristics that can affect the S&OP process are identified.

In the continuation of the thesis and in order to provide a typology for planning and control purposes, the object type (continuous and discrete) is combined with two other dimensions i.e. mode type (onetime, intermittent and continuous) and driver type (customer order driven and forecast driven) into a planning and control typology. The mode type addresses the repetitivity of the flow and the driver type takes into account the trigger of the flow. Each dimension has a transition point – i.e. the discretization point for the object type, mode interface point for the mode type and customer order decoupling point for the driver type – and represents a hybrid situation since different production environments are required before and after each transition point. The typology aims to illustrate how each dimension affects the planning and control issues as well as how the dimensions are interrelated and how this combination influence the managerial decisions. The typology integrates the concepts from both process industries and discrete industries and thus, is applicable for both.

Thereafter the typology is applied to the S&OP process and an integrated framework is suggested based on the three dimensions with specific focus on process industries. In this framework, the effects of hybridities within each dimension and cross-hybridities between the dimensions on the S&OP process are also considered. The importance of hybridities and cross-hybridities lies in the fact that the planning of the hybrid systems is a complex task due to the varying managerial decisions before and after the transition points. Finally, implementation steps for the suggested S&OP framework are outlined for the process industries in order to position themselves in the framework, identify the implementing procedures, and obtain potential benefits based on the differentiated S&OP process.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2014. 45 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1667
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-106709 (URN)10.3384/lic.diva-106709 (DOI)LiU-TEK-LIC 2014:100 (Local ID)978-91-7519-301-4 (ISBN)LiU-TEK-LIC 2014:100 (Archive number)LiU-TEK-LIC 2014:100 (OAI)
Presentation
2014-06-11, ACAS, A-huset, Campus Valla, Linköpings universitet, Linköping, 13:15 (English)
Opponent
Supervisors
Available from: 2014-05-19 Created: 2014-05-19 Last updated: 2016-12-19Bibliographically approved

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