CIRP Encyclopedia of Production Engineering

601 Pages·2015·27.907 MB·English

by  Luc Laperrière, Gunther Reinhart (eds.)

L
Logistic Curves Usually, the actual procurement process is
decoupled from the production via a warehouse
PeterNyhuis of raw and/or semifinished goods. In order to
Institutf€urFabrikanlagenundLogistik,Leibniz guarantee a strong logistic performance, this
Universit€atHannover,Garbsen,Germany store is supposed to ensure a high service level
withaminimumdeliverydelaywhileatthesame
timemaintainingaslittlestockaspossibleinorder
Synonyms to keep the logistic costs down. As the Storage
Operating Curves (Lutz 2002; Gl€assner 1995;
Productionoperatingcurves Nyhuis 1996) show, these targets are to some
extent contradictory. In this case, the logistic
objective “stocklevel”isalsothecontrolledvar-
Definition iablewhichcan,forexample,besetviathereor-
derpointintheERPsystem.Whenthestocklevel
Logistic Operating Curves (LOC) qualitatively ishigh,ahighservicelevelandminimumdelivery
and quantitatively depict the interaction between delay are to be expected since all of the stored
logisticobjectivesintheformofcurves. partsaregenerallyavailable.Astheaveragestock
leveldecreases,fewerofthedemandsonthestore
ExtendedDefinition canbemet.Asaresult,theservicelevelsinksand
The company’s internal supply chain comprises themeandeliverydelayincreases.
the core processes: source, make, and deliver In the field of production, the logistic objec-
(Fig. 1, upper). Each of these core processes tives“throughputtime”and“schedulereliability”
focuses on different logistic objectives. These (logisticperformance)aswellas“utilization”and
objectives to some extent both contradict and “WIP”(logisticcosts)areofkeyimportance.The
complement one another. A field of tension is Production Operating Curves show that when
createdbetweenlogisticperformanceandlogistic there is a high WIP level, the output rate and
costs(Fig.1,middle).Findinganoptimumwithin with that the utilization of a workstation is for
thisfieldofconflictisimpossibleforcompanies. the most part independent of the WIP. Should
They have to position themselves in the field of the WIP, however, fall below a certain value,
tension between the logistic objectives. Among utilization problems arise due to a temporary
otheruses,LogisticOperatingCurvesprovidean lack of work. In comparison, the throughput
excellent tool for accomplishing this (Fig. 1, time grows for the most part proportional to the
lower). increasingWIP.Shortthroughputtimesasaresult
#CIRP2016
TheInternationalAcademyforProductionEngineeringetal.(eds.),CIRPEncyclopediaofProduction
Engineering,DOI10.1007/978-3-642-35950-7_7-3
2 LogisticCurves
source
Core Process make deliver
Service Level (SERL) Schedule Compliance (SC)
Logistic Throughput Time (TTP)
Delivery Delay (DD) Delivery Time (TD)
Performance
Work in Process (WIP)
Logistic Costs Stock Level (SL) Finished Goods Stock (SF)
Output Rate (ROUT)
Storage Operating Curves Production Operating Schedule Compliance
Curves Operating Curves
ROUT
Logistic
Operating SERL SC
TD
Curves
SF
TTP
DD
SL WIP Delivery Time Buffer
LogisticCurves,Fig.1 Coreprocesses,objectives,andexemplaryLogisticOperatingCurves
oflowWIParealsogenerallyrelatedtominimal distributionofthelatenessisconstantinthepre-
variance.Fromtheperspectiveofthesubsequent ceding production area, the schedule compliance
production areas, the greater planning certainty decreases(Schmidtetal.2013).
arisingfromthiscausesgreaterschedulereliabil-
ity(NyhuisandWiendahl2009).
Ifweassumeamake-to-stockproductionwhen TheoryandApplication
discussingthedistributioncoreprocess,theStor-
age Operating Curves, already outlined above in TheLogisticOperatingCurvesareimpactmodels
regardtoprocurement,canbeapplied.Incompar- derivedeitherfromdeductiveordeductive/exper-
ison,withamake-to-orderproduction,thelogistic imental modeling. They depict interactions
objectives from the perspective of performance betweenlogisticobjectives.Theirmathematically
are high schedule compliance and short delivery calculated progression is dependent on various
times, whereas from the cost perspective the parameters. If the parameters change, the shape
objective is a small store of finished orders, that oftheoperatingcurveadjusts.Thisallowslogistic
is, completed orders should only wait briefly measures to be evaluated with the aid of the
before being shipped to the customer. In this LogisticOperatingCurves.
case, the controlled variable is the delivery time The shape of the Storage Operating Curves is
buffer.Ifalargerdeliverytimebufferisselected, dependentonboththefluctuatingdemandsonthe
the majority of promised delivery dates can be storeoutputsideaswellasthereplenishmenttime
met.Thedeliverytimebufferalsodirectlyimpacts andthequalityofthesupplier’sdelivery(i.e.,with
thedeliverytimeextendingitbythesameamount. regardtoquantityandduedate).Forexample,the
Moreover, a very large number of orders will be greater the supplier’s due date reliability, the
completedbeforetheactualplanneddeliverydate, steeperistheslopeoftheServiceLevelOperating
subsequently giving rise to a bigger store of fin- Curve.Thismeansthat,comparedtoinitialstate,a
ished products. As can be seen in the Schedule lower stock level is required to ensure a desired
ComplianceOperatingCurves,withshorterdeliv- servicelevel.
erytimebuffers,thedeliverytimesandthestores Anumberofparameters,forexample,techni-
offinishedproductsalsodecrease.Whenthestatic caldisruptions,loadvariance,capacityflexibility,
LogisticCurves 3
LogisticCurves,
Fig.2 Applicationareas
forLogisticOperating
Curves
orlot sizes,among others, aretaken into consid- having to expect noteworthy breaks in the mate-
eration by the Production Operating Curves. rialfloworalossofoutput.Whenapplyingthem
Logistic measures that impact these parameters withintheframeofproductionplanningandcon-
can thus be evaluated based on the changes in trol, the system parameters such as the delivery
theoperatingcurves. timebuffer,safetystock,orthroughputtimescan
The Schedule Compliance Operating Curves be derived and set in agreement with the goals.
are determined by the distribution of the output Depictingthelogisticobjectivesinadiagramalso
latenessoftheprecedingproductionstage.Logis- makes it possible to determine which of them
ticmeasuressuchasthoseforimprovingthedue should be weighted the most depending on the
datereliabilityorfornarrowingthedistributionof current operating and/or market situation as well
theduedatereliabilitydirectlyimpacttheshapeof asdependingonthesystemspecificconditions.At
theScheduleComplianceOperatingCurves.Thus thesametime,itcanbeshownhowthechangesin
withlessvarianceinthelateness,ashorterdeliv- the parameters impact the logistical quality
erytimebufferisoccasionallynecessaryinorder indicators.
torealizeadefinedtargetduedatecompliance. Shoulditturnoutthatthesettargetvaluesare
A variety of possible applications for the not attainable without supporting measures, the
LogisticOperatingCurvesarisefromtheconnec- operating curves can be drawn upon according
tionsdemonstratedhere.Thesearesummarizedin tothepossibilitiesintroducedhereforreinforcing
Fig. 2. Since the Logistic Operating Curves and evaluating planning activities and thus work
describe the correlations between the logistic asanaidinstabilizingtheprocesscertainty.Thus
objectives and the possibility of influencing alternative, implementable planning and control
them, they represent an ideal foundation for strategiescanbeevaluatedandselectedaccording
increasingandmonitoringthecertaintyandcapa- tologisticcriteria.LogisticOperatingCurvescan
bility of logistic processes in an enterprise. The alsobedirectlyintegratedintoplanningandcon-
Logistic Operating Curves can thus be drawn trol methods (e.g., lot sizing, scheduling, order
upon for evaluating processes within the frame release). Moreover, applying them provides con-
of monitoring logistic process in enterprises par- tinual, method-based support for orienting the
ticularlyintheproductionaswellasforderiving planning and control on the logistic objectives.
potential. They show, for example, which When designing production processes, Logistic
throughput times and WIPlevel canbe achieved Operating Curves can be implemented as an aid
with the existing structural conditions without to resolving diverse problems. They can, for
4 LogisticCurves
example, assist in evaluating alternative References
manufacturingprinciples(inviewoflogistics)or
new logistic concepts, determining the customer Gl€assner J (1995) Modellgest€utztes Controlling der
beschaffungslogistischen Prozesskette [Model-based
decouplingpointorplanningthelayout.Thebasis
controlling of the purchasing process-Chain]. VDI,
forallofthementionedapplicationsisaLogistic D€usseldorf(inGerman)
Positioning which provides the target values and Lutz S (2002) Kennliniengest€utztes Lagermanagement
thus also represents a link between all of the [Characteristic diagram-based stock-management].
VDI,D€usseldorf(inGerman)
individualfunctions.
NyhuisP(1996)Lagerkennlinien–einModellansatzzur
Unterst€utzung des Beschaffungs- und Bestandscon-
trollings [Stock characteristics – a model-based
approach for purchasing and inventory controlling].
Cross-References In:BaumgartenH,HolzingerD,R€uhleH,Sch€aferH,
StabenauH,WittenP(eds)RKW-HandbuchLogistik
▶ChangeableManufacturing [TheGermanproductivityandinnovationcentre:logis-
▶Factory tics handbook]. Erich Schmidt, Berlin, pp 5066/
1–5066/30(inGerman)
▶Logistics NyhuisP,WiendahlH-P(2009)Fundamentalsofproduc-
▶MachineTool tionlogistics–theory,toolsandapplications.Springer,
▶Manufacturing Berlin
▶ManufacturingSystem SchmidtM,BertschS,NyhuisP(2013)Schedulecompli-
anceoperatingcurvesandtheirapplicationindesigning
▶Production thesupplychainofametalproducer.ProdPlanControl
▶System ManagOper25(2):123–133
CIRPEncyclopediaofProductionEngineering
DOI10.1007/978-3-642-35950-7_14-5
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Industrial Product-Service System
HorstMeier*andHenningLagemann
Fakult€atf€urMaschinenbau/Lehrstuhlf€urProduktionssysteme,Ruhr-UniversityBochum,Bochum,Germany
Synonyms
Integrated product-service offering (IPSO); Integrated solutions; Product-service system (PSS);
Technical product-service system (technical PSS)
Definition
An industrial product-service system (IPS2) is characterized by the integrated and mutually deter-
mined planning, development, provision, and use of products and services including immanent
software.IPS2areofferedinbusiness-to-businessmarkets;theyaddressindustrialapplicationsonly.
An IPS2 represents a knowledge-intensive socio-technical system (Meier et al. 2010).
AnIPS2isacustomizedsolution,whichcomprisesproducts,services,andimmanentsoftwarein
anintegratedmannerinordertodeliveraparticularvalueinsteadofapurefunctionalitytoindustrial
customers. Hence, an IPS2 aims at replacing product-focused business strategies by use-oriented
strategies. Consequently, all physical and nonphysical components of IPS2 need to be planned,
developed, and operated together, considering all interdependencies between the components.
During the provision of IPS2, provider abilities need to be adaptable to dynamically changing
customer requirements (Meier et al. 2010).
Theory and Application
History and Related Research
TheoldestknownexampleofanIPS2isthesteamenginedevelopedandofferedbyJamesWattand
Matthew Boulton from 1775 onward. Instead of selling steam engines, they assembled and
maintained the steam engine free of charge and derived their profits from the customers’ annual
savings compared to the previous, less efficient steam engine, which had a much higher coal
consumption.
Inliterature,theparadigmchangetowardproduct-serviceintegrationoriginatesfromtheresearch
on the servitization of manufacturing, which was initialized by Vandermerwe and Rada in 1988.
They described servitization as the increased offering of “fuller market packages or “bundles” of
customer-focusedcombinationsofgoods,services,support,self-service,andknowledge,”inwhich
“serviceisbeginningtodominate”(VandermerweandRada1988).Duringthelasttwodecades,the
development of manufacturers to service providers has received an increasing attention in various
scientific disciplines. Hence, a multitude of terms has emerged in different scientific fields to
describe the concept of integrated products and services: product-related services, integrated
solutions, customer solutions, dematerialization, integrated product-service offering, extended
*Email:[email protected]
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products, and functional products. The topic has also becomemore important from the perspective
oflifecyclemanagement.Inthiscontext,uncertaintiesandrisksduetoastrongerserviceorientation
and long-term partnerships are of great importance (Erkoyuncu et al. 2011).
In German literature, the terms leistungssystem, hybrides produkt, hybride wertschöpfung,
verbundsystem, and hybride Leistungsb€undel describe the same idea.
The term product-service system (PSS) originates from Scandinavian research on the social,
economic, and environmental sustainability of product-service combinations. In 1999, Goedkoop
etal.publishedtheirdefinitionofaproduct-servicesystem:“AProductServicesystem(PSsystem)
is a marketable set of products and services capable of jointly fulfilling a user’s need.” Their
approach was followed by a multitude of definitions, but a consistent definition of the term
product-service system (PSS) does not exist. Some authors address business-to-business markets,
others business-to-consumer markets. The different approaches reveal different understandings of
therelativeimportanceofproductsandservicesandoftheenvironmentalimprovementsthatcanbe
realized with the help of PSS (Goedkoop et al. 1999; Mont 2002; Meier et al. 2010).
Although the research on PSS initially was mostly driven by environmental improvements, the
focus has shifted more on engineering and business-related aspects of product-service integration.
AccordingtoTukker,PSShasapotentialtoenhanceenvironmentalsustainability,butonlyifsucha
potential has been exposed during a PSS’s development, which may not always be achievable
(Tukker2004).Inaveryrecentpublication,Lindahletal.(2014)quantitativelyshowedthatPSScan
improve environmental aspects with the help of three case studies. Lindahl et al. (2014) argue that
three enablers play an important role in enhancing the sustainability of PSS: (1) development of
innovative technology, (2) desire to form deeper relationships with customers, and (3) increased
asset utilization.
Asidefromenvironmentalbenefits,thedifferentiationfromcompetitorsduetocustomizedoffers
and the increase of profit margins are associated with PSS as well (Goedkoop et al. 1999; Mont
2002; Baines et al. 2007). An analysis of such advantages revealed that offering PSS demands an
appropriate amount of financial resources, high organizational and management skills, as well as a
systematicdevelopment.Furthermore,itisofparticularimportancetoknowacustomer’sbusiness,
which means to distinguish between customers who really ask for novel, nontraditional business
offers and those who are advised best to focus on a product-centered business model (Goedkoop
et al. 1999; Mont 2002; Tukker 2004; Baines et al. 2007).
FromtheresearchareaofPSSwithastrongfocusonsustainability,theresearchfieldofindustrial
product-servicesystems(IPS2)hasdeveloped.AsopposedtoPSS,IPS2areconfinedtobusiness-to-
business markets and focus on highly complex investment goods such as machine tools, industrial
cranes, or aircraft engines (Meier et al. 2010). Research on IPS2 is particularly aimed at providing
methods and tools for the planning, development, and operation of IPS2 with regard to specific
businessmodelsindifferentfieldsofapplication.Itisahighlyinterdisciplinaryresearchareawitha
strong focus on the life cycle-oriented engineering of integrated products and services.
Services Versus Products
Whereas it is a common understanding that the notion “product” describes a physical artifact, in
serviceresearch,acommonlyaccepteddefinitionofthetermservicedoesnotexist.Nonetheless,the
majorityofauthorsexplainserviceswiththeaidofseveralconstitutivecharacteristics,whichresult
from three service dimensions: the capability, process, and result dimension. With regard to the
capability dimension, a service is understood as the ability and willingness of a provider to deliver
the service. Therefore, unlike physical goods, services are considered intangible, which is the first
constitutivecharacteristicusedtodefineaservice.Withreferencetotheprocessdimension,aservice
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is characterized by its simultaneous consumption and production as well as by the integration of
externalfactors. Examples forsuchfactors arecustomer’spersonnel, goods,rights,orinformation.
In this regard, the term “external” points up that a service’s provider is never part of its customer’s
company. Hence, the “inseparability” of service production and consumption (also described as
uno-actu-principle) and the “integration of external factors” result from the process dimension.
Resulting from the inseparability and the integration of the external factor is the perishability of
services, which means that a service cannot be stored. The definition of the notion service, which
follows from the result dimension, is the most discussed one. While some authors argue that a
serviceresultsintangibleandintangibleoutputs,otherspersistthataservicehasanintangibleoutput
only. The “heterogeneity” of service processes is strongly determined by the integration of the
external factors. In services marketing literature, intangibility, heterogeneity, inseparability, and
perishability are referred to as the IHIP characteristics of service (Fitzsimmons and Fitzsimmons
2006).
Life Cycle Phases of IPS2
DifferentlifecycleconceptshavebeenintroducedforIPS2inordertodescribeandsystematizethe
characteristics and activities of IPS2 (e.g., Aurich et al. 2004). According to Meier and Boßlau
(2012), the life cycle of IPS2 consists of five phases: planning, development, implementation,
operation, and closure. This life cycle concept supports an iterative understanding – e.g., repeated
phases of planning and development can occur in case of changing customer requirements during
IPS2 operation (see Fig. 1).
The planning and development of IPS2 bears great challenges due to its interdisciplinary and
integrativenature.Incontrasttothecurrentsituationinmostcompanieswhichofferproduct-related
services, services within IPS2 have to be designed simultaneously with the product, as they are an
integralpartofthesolution(Maussangetal.2009).AgenericPSSdevelopmentprocessmodelhas
end of business
relationship
training
closure availability planning
quality
productivity
tooling
safety ramp up
real virtual
operation development
implemen-
tation
Fig.1 LifecycleofanIPS2(MeierandBoßlau2012)
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Fig.2 GenericPSSdevelopmentprocessmodel(M€ullerandStark2010)
been developed by M€uller and Stark (2010), which is based on the classic V-model of systems
engineering processes (Fig. 2). The development process, which consists of subsequent and
simultaneous activities, is subdivided in different levels of detail. After having identified the
customer needs on the market/customer/environment level during IPS2 planning, the concept
modelandthebusinessmodelaredevelopedsimultaneouslytodescribethewayinwhichcustomer
valueisgeneratedwithout confiningtospecifictechnicalsolutions.This levelischaracterized bya
strong integration of products, services, and software. However, on the subsystem level, domain-
specificmethodsandtoolsarerequiredforthesimultaneousdesignofproductandservicemodules.
Animportantsoftwaretool,whichhasbeendevelopedtosupportserviceengineeringwithinIPS2
development, is the service CAD system (Arai and Shimomura 2004). This tool provides the
possibilityofdesigning,visualizing,evaluating,simulating,andreviewingserviceprocesseswithin
IPS2. Its underlying concept is based on the widespread service blueprinting method.
AnoverviewoverdifferentmethodsandtoolsthatprovidesupportduringIPS2designisgivenby
Shimomura and Akasaka (2013). The authors therein subdivide the design process in the phases
“value analysis,” “embodiment,” and “evaluation.” The tools and methods, which have been
developed or are currently being developed, are integrated into the scheme according to the phase
and the perspective (customer, business, and environmental) they address. Examples of those
methods and tools are the persona/scenario analysis, the PS system simulator, and the service
FMEA (Shimomura and Akasaka 2013).
TheIPS2developmentphaseendswiththeimplementationoftheIPS2.Thetasksduringthisphase
includethemanufacturingofproducts,logisticalprocesses,andtheprovisionofresourcestoperform
the delivery processes during IPS2 operation. These resources are provided by the IPS2 network,
consisting of the IPS2 provider, the customer, and a multitude of suppliers. The network partners
deliverproducts, services, orIPS2 moduleseither totheIPS2 provider ordirectly tothecustomer.
A particular challenge during IPS2 implementation and IPS2 operation is to define the required
resourcecapacity,becausevariousfactorsresultinhighlevelsofdemandandsupplyuncertaintyin
service delivery (Erkoyuncu et al. 2011). IPS2-specific business models allow the IPS2 provider to
gain in-depth knowledge regarding expected service demands and to have greater responsibility in
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operating and initiating IPS2 delivery processes. Hence, they provide possibilities of reducing
uncertainties during IPS2 operation. IPS2-specific flexibility options (e.g., utilization of alternative
processes, alternative resources, and partial substitution of product and service shares) present
possibilities of matching capacity supply to demand and guaranteeing the effective and efficient
IPS2 delivery.
Finally,attheendoftheIPS2lifecycle,theIPS2closureendsthecontractualrelationshipbetween
a provider and its customer.
IPS2 Business Models
TheofferingofIPS2enablesinnovativebusinessmodels,whicharebeneficialtoboththecustomer
and the IPS2 provider.IPS2 businessmodels are ofdynamic nature. Theycan change several times
overtheIPS2lifecycle.Businessmodelsconsistofvariouspartialmodels,e.g.,thevaluemodel,the
architectureofvaluecreation,theorganizationalmodel,theriskdistribution,andtherevenuemodel
(Meier and Boßlau 2012; Rese et al. 2012).
The core of each business model is the value model. Tukker (2004) clarified the shifting of
ownership between a provider and its customer by introducing product-oriented services,
use-oriented services, and result-oriented services. Whereas in the context of product-oriented
servicesthebusinessmodelisstillgearedtowardthesalesofproductswithsomeadditionalservices,
in the context of use-oriented services, the product stays in the ownership of the provider. In this
regard, the product itself is made available to one or even several customers in a different,
nontraditional form. In the case of result-oriented services, the provider and its customer agree on
acertainresultwithoutspecifyingaparticularproduct.Inlinewiththis,theunderlyingvaluemodels
areusuallycharacterizedasfunctionoriented,availabilityoriented,andresultoriented(Fig.3).The
type of value model is characteristic for the type of relationship between the IPS2 provider and
customer, with various consequences for production responsibility, supply of operating personnel,
service initiative, ownershipoftheproduct,supply ofmaintenance personnel,andservice turnover
(Rese et al. 2012).
Fig.3 IPS2operationandbusinessmodels(Tukker2004)
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Cross-References
▶Product Life Cycle Management
▶Sustainability
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