RESEARCH NEWS
Greater collaboration to tackle manufacturing challenges
mitigate adverse effects of disruptions . A network of factories can cope with sudden changes in demands , disruptions in supplies and other unforeseen events much better than the same set of factories when they are run independently . It also offers more opportunities for learning and knowledge transfer .
Image : Shutterstock . com .
A greater exchange of information and collaboration is needed to tackle current global challenges in manufacturing , such as the increase of information density in products and the increasing interconnectedness of the manufacturing process , according to research from Vlerick Business School , Georgetown University and Singapore Management University .
The researchers state that these two challenges raise several key questions for manufacturers who are searching for answers on how to deal with them . Standard manufacturing strategies are no longer enough to overcome these challenges , say the researchers , who have also highlighted five capabilities that are needed if manufacturers are to respond to these challenges in their factories .
This research was conducted by Ann Vereecke , Professor of Operations Management at Vlerick Business School ; Professor Kasra Ferdows , Georgetown University , USA ; and Professor Arnoud De Meyer , Singapore Management University . They wanted to understand the key challenges currently facing manufacturers , and how they can be overcome .
To do so , they created a framework based on the implications of these two recent trends . By using this framework , the researchers were able to identify specific approaches for manufacturers to overcome these key challenges . The five capabilities that companies can utilise for manufacturing to give them a competitive edge , according to the researchers , are :
1 . Expanding their view Companies need to look beyond the traditional walls of manufacturing and integrate better into their immediate surroundings , connecting to larger numbers of their stakeholders to reduce potential adverse environmental , social and regulatory effects . Final assembly plants may also need to be located close to consumption to be in sync . with the customers and to enhance responsiveness and reduce transportation .
2 . Utilising new technologies Companies need to deploy new processes and technologies as quickly as possible if they are to get one step ahead . To implement these seamlessly and efficiently , companies need to be more open than usual to internal or external partners .
3 . Selling solutions , not products There needs to be a greater focus on developing new capabilities to support , help or even lead the shift from providing “ products ” to providing “ solutions ”. Many customers are shifting from buying the product to buying the experience of using the product .
4 . Leveraging intracompany networks Organisations must leverage their own global manufacturing network to
5 . Building effective ecosystems Companies must look to work effectively in intercompany networks and ecosystems . A shift to solutions , not products , demands more collaboration with the ecosystem partners , not only in daily operations but also when innovating and creating new value for the customer .
However , the researchers say that it is not possible to excel in all five of these capabilities . Focusing on a small number of them is enough to create a competitive advantage in comparison to companies who are simply using more traditional methods of boosting production .
Professor Ann Vereecke explained : “ While manufacturers cannot ignore development of any of these capabilities , trying to excel in all of them would spread their resources and attention too thinly , reducing their chances of developing distinctive superiority in any one of them . While some of these capabilities partly support and reinforce each other , a company benefits from clarifying which of these capabilities must be developed or deepened further to turn its manufacturing into a competitive weapon .”
The researchers say that these findings have important implications for manufacturing executives who can no longer have an purely internal view when it comes to manufacturing . These managers need to hone their skills in understanding what consumers want , and communicate this with senior management . They also need to improve their knowledge of technology and how to utilise the abundance of data available to them “ if they want to become the leader of the pack , and not just part of the peloton .”
For further details of the research , email Peter Remon at BlueSky Education ( peter @ bluesky-pr . com ). n