Collaborative Design of SupplyNetworks

Professor Nikolay MehandjievAlliance Manchester Business School, University of Manchester, UK

http://mehandjiev.eu/

Newcastle, 26th June 2018

Context of work – case studies

Scope of work

OEM

Tier 1 Suppliers

(Systems and Modules)

Tier 2 Suppliers

(Automotive Components)

Tier 3 Suppliers

(Raw Materials, Standard Parts)

Traditional Hierarchy

But also direct interactionsbetween OEM and Tiers 2and 3

Galb

raith

,D

esig

nin

gO

rganiza

tios,

3rd

ed.

Motivation of work

1. OEMs need to reduce number of partners they coordinate whilst retaining

innovation

2. Need for rapid assembly of teams of SMEs:

• To pool together capabilities to bid for complex contracts

• To pool together capacities to handle peaks in demand

3. Need to change teams and supply networks to respond to:

• Changes in requirements or technologies

• Changes in demand

• Performance issues

4. Need to support SME Associations to coordinate the formation and adaptation

of such teams.

These needs were always there, but are now amplified by Industry 4.0 trends

DIGICOR Case Study

DIGICOR Decentralised Agile Coordination Across SupplyChains (http://digicor-project.eu/)

Collaborative Design Approach

1. Collaboration: Advisory System and People

2. Collaboration between different companies

• Hierarchical Allocation of Goals

• Bottom-up team-building to deliver a result

Collaborative Design Approach

Knowledge-based system,

using ontological

knowledge of domain

Supports five key operations on a team collaboration model

1. Recursive decomposition of goals

2. Allocation of responsibilities for goals (chose a supplier/ a team which can deliver the goal)

3. Operationalisation - deciding how to achieve a goal via a process

4. Decomposing a process

5. Discretionary Step Definition allows goal-driven process selection at run-time

page 8

Not only Aerospace – Automotive ScenarioBusiness Opportunity – Invitation to tender for Category L7Evehicle with L*Ltd, A*Ltd.

They decide to focus ondeveloping a PowerTrainsystem.

page 9

Analyse Business Opportunity

The system uses knowledge from the car structure repository to produce adecomposition of PowerTrain involving Frames, Wheel Suspension,PowerTrain Management and Wheel Hub Motor System.

Car StructureRepository

PowerTrain

Frames

Wheel Suspension

PT Management

Wheel Hub Motor System

page 10

Assign preferred suppliers, use bundling

• R*Ltd is preferred supplier for Frames, they can also do Wheelsuspension so the system chooses them in preference, thus reducingnecessary coordination between team members through bundling. C*Ltdis assigned to deliver power train management system.

PowerTrain

Frames

Wheel Suspension

PT Management

Wheel Hub Motor System

R*LtdR*Ltd

R*Ltd

C*Ltd

The system lackssuppliers who can dowheel hub motor system

page 11

Innovative Solutions Module

The Innovative Solutions Module

PT Management

Wheel Hub Motor System

C*Ltd

WHM Management C*LtdC*Ltd

GracoSystem Integration

Graco

SI can doAssembly

Frame!

Assembly FrameGraco

Motor

What about amotor?

S.Ltd

page 12

Incremental Team Building

PowerTrain

Frames

Wheel Suspension

PT Management

Wheel HubMotor System

WHM Management

Assembly Frame

Motor

R*Ltd

C*Ltd

Graco

S.Ltd

Moving to next phase, we need to add extraroles to handle logistics services betweenpartners, and some roles to handlesupplying lightweight rods for the frames.

Logistics toPowerTrainAssembler

Lightweight Rodsfor Assembly Frames

{Excel, DHL}

{ChiDong, VA, SlowCo}

Graco

Supporting Collaborative VEs

ATA Specialty Technology Material

Capabilities

Characteristics Actor

has

Makes operationalisationdecision

Goal Process

Call-for-Tender

is is

Plan & ManageDesign &Develop

Buy Make Deliver

Document

TenderDecomposition Contract

Business LogicBill of Materials

Planning &Management

Goal

Design anddeveloping

GoalMaking Goal

DeliveringGoal

embedded-in

Item

Product Service

Human

Time

Materials

Resources

Distance

Job Schedule

ETO

MakeMTO

MTS

Target Region

Certifications

Contract Type Requirementsmeet

Rules

decompose

Company

BuyingGoal

Team

responsibility

References

1. N. Kazantsev, G. Pishchulov, N. Mehandjiev, P. Sampaio. “Formation of Demand-Driven Collaborations betweenSuppliers in Industry 4.0 Production Networks”. In: R.W. Grubbström, H.H. Hinterhuber, J. Lundquist (Eds.) PrePrints,20th International Working Seminar on Production Economics, Innsbruck, February, 2018, pp. 255-266.

2. S. Cisneros-Cabrera, A. Ramzan, P. Sampaio, N. Mehandjiev, “Digital Marketplaces for Industry 4.0: A Survey andGap Analysis”, In Working Conference on Virtual Enterprises, Cham: Springer, 2017, pp.18-27

3. N. Mehandjiev, F. Lecue, M. Carpenter and F. Rabhi. Cooperative Service Composition. In Advanced InformationSystems Engineering, ed. J. Ralyté, X. Franch, S. Brinkkemper, and S. Wrycza, 111-126, Springer, 2012.eScholarID:178924 | DOI:10.1007/978-3-642-31095-9_8

4. U. Inden, N. Mehandjiev, L. Mönch, P. Vrba. (2013) Towards an Ontology for Small Series Production. In Proc.HoloMAS’2013, Lecture Notes in Computer Science LNCS

5. Nikolay Mehandjiev, Paul Grefen (eds) (2010), Dynamic Business Process Formation for Instant Virtual Enterprises.Springer Advanced Information and Knowledge Processing. May 2010. ISBN: 978-1-84882-690-8

6. P. Grefen, H. Eshuis, N. Mehandjiev, G. Kouvas, G. Weichhart (2009), "Internet-Based Support for Process-OrientedInstant Virtual Enterprises," IEEE Internet Computing, vol. 13, no. 6, pp. 65-73, Nov./Dec. 2009,doi:10.1109/MIC.2009.96

7. N. Mehandjiev, I.D. Stalker, M. Carpenter (2009). Recursive Construction and Evolution of Collaborative BusinessProcesses. In Ardagna, Mecella and Yang, ed. Business Process Management Workshops. Lecture Notes inBusiness Information Processing. Vol 17. pp. 573-584. Springer

8. P. Grefen, N. Mehandjiev, G. Kouvas, G. Weichhart, & H. Eshuis (2009), Dynamic Business Network ProcessManagement, Computers in Industry, Vol 60 Issue 2, Feb 2009

9. A. Karageorgos, N. Mehandjiev, A. Hämmerle and G. Weichhart (2003), Agent-based optimisation of logistics &production planning, Engineering Applications of AI. Vol 16 pp 335- 348, Elsevier, 2003.