Production Systems and Supply Chain Management in Emerging Countries: Best Practices . Gonzalo Mej´ıa • Nubia Velasco Editors Production Systems and Supply Chain Management in Emerging Countries: Best Practices Selected Papers from the International Conference on Production Research (ICPR) Editors GonzaloMej´ıa NubiaVelasco UniversidaddelosAndes Dept.ofIndustrialEngineering Bogota´ Colombia ISBN978-3-642-26003-2 ISBN978-3-642-26004-9(eBook) DOI10.1007/978-3-642-26004-9 SpringerHeidelbergNewYorkDordrechtLondon LibraryofCongressControlNumber:2012940258 #Springer-VerlagBerlinHeidelberg2012 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped.Exemptedfromthislegalreservationarebriefexcerpts inconnectionwithreviewsorscholarlyanalysisormaterialsuppliedspecificallyforthepurposeofbeing enteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthework.Duplication ofthispublicationorpartsthereofispermittedonlyundertheprovisionsoftheCopyrightLawofthe Publisher’s location, in its current version, and permission for use must always be obtained from Springer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyrightClearanceCenter. ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. Whiletheadviceandinformationinthisbookarebelievedtobetrueandaccurateatthedateofpublication, neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityforanyerrorsor omissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,withrespecttothe materialcontainedherein. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Preface Manufacturing is the soul of a region’s economy. In an increasingly ‘flat’ world, manufacturing organizations across the world are faced with a diverse range of challenges that are different for each region of our globe. For example, U.S. and European manufacturers are battling high labor costs, an aging workforce and governmentswithoutpro-activemanufacturingstrategies.ManufacturersinChina are faced with high inflation and a strengthening currency. Their counterparts in Indiahavethechallengeofestablishingtheirglobalcredibilityintermsofreliabil- ityandquality.InLatinAmerica,manufacturinghastraditionallyflown‘underthe radar’exceptinBrazil. Today’s‘flat’worldhasallowedorganizationsinthedifferentemergingregions of the world to communicate in a more streamlined fashion. It has also allowed differentorganizationtointegrate.ConsiderthenewBoeing787Dreamliner.This longawaitedairplanealsohappenstobethemosttechnologicallyadvancedismade mostly of composites and promises to transform the future of aviation. Equally notably, it has already changed aviation manufacturing paradigms. For example, the company has outsourced 70% of the production of the Dreamliner to 50 different manufacturers (or partners across 135 sites in four different continents. Forexample, the wings are made inJapan, the wingtipsinKorea, the Horizontal Stabilizer in Italy, the landing gear in the U.K, the cargo doors in Sweden, the rudder from China and the fairing in Canada. According to Scott Strode, a Vice PresidentatBoeing,“the787notonlywillrevolutionizeairtravels,itrepresentsa new way of building airplanes”. Just as importantly, the design and production database utilized (made by Dassault, France) allows these geographically distributed sites to be continuously linked so everyone works from the same set ofdrawings.TheBoeing787Dreamlinerproductionstrategypointstotheneednot only for globally competitive manufacturing facilities, but also on robust supply chains that can (and may need) to bypass traditional infrastructural channels. For example,Boeingredesignedafew747sintoDreamliftersthatflythecomponents intothefinalassemblyplantsinWashingtonStateandSouthCarolina. Theneedforarobustproductionandsupplychainstrategyishighlightedbythe fact that despite their close attention to detail, executives attribute the long and v vi Preface embarrassingdelaysintheproductionoftheDreamlinertothenumberofsuppliers and the supply chain. The story of the Boeing 787 has received much press and media attention. In fact, most media reports and archival case studies in manufacturingfocusonhighprofile,multi-billiondollarcompanies. However,thefactremainsthatthebulkofmanufacturingdoneworld-wideisat small and medium sized companies. These companies, who have traditionally confined their footprint to national or regional boundaries are now facing global challenges,bothintermsofcompetitivenessfromtheircounterpartsingeographi- callydispersedregionsacrosstheglobeandalsocostpressures. Thisbookconsistsofcarefullychosenchaptersanddrawnfrompaperspresentedat theInternationalConferenceofProductionResearchAmericasRegionheldinBogota in July 2011. The conference papers have been expanded to document relevant archivalknowledgeandspecificallyaddresstheneedsoftheseenterprisesdescribed above.Thebookisdividedintofoursections.Thefirstsectionfocusesonthedifferent dimensions of operations management. It consists of three papers describing challengesfacedbycompaniesinSpain,TurkeyandColombia.Thesecondsection detailsthedifferentaspectsofplanningforrobustsupplychainsandlogistics.While papersinthissectionaredevelopedfromchallengesfacedbyColombiaorganizations, thespecificsolutionmethodologiesadvocatedcanbeextrapolatedandimplemented globally.Forexample,Colombiaisone ofthe world’s largestexporters offlowers. While flowers are beautifuland a simpleexpressionofjoy,thechallengesfaced in theirhandlinganddistributionarecomplexsincetheyarefragileandhaveashortshelf life.Fourdiverseenvironmentsaredetailedhere–flowerdistribution,patienttransfers betweenfacilities,pedestrianinteractionsinanintersectionandfinally,anemergency callcenter.ThethirdsectionismorespecificinaddressingchallengesofProduction PlanningandScheduling.Thestrengthofthisbookisthediversityofenvironments thatitrepresentsandinthissectiontoo,multipleenvironmentsareaddressedinclud- ing manufacturing, vehicle routing, a cash supply chain, and lastly, embedded systems.Finallythelastsectiondetailsthreecasestudiesincludingthepharmaceutical industry,industry-universityinteractionsinlowtechnologybasedorganizationsand finallyatraditionalmachineshopthathassuccessfullydealtwithlayoutchallenges utilizingleanmanufacturingprinciples. Thisbookwillfillagapinarchivedknowledgeandhelpsmallandmediumsized organizationsfacethemultipleglobalchallengesthatarethrustuponthem.Iwould liketocongratulatetheeditorsandtheauthorsindevelopingthisimportantpublication. Sincerely BopayaBidanda ErnestRothProfessorofIndustrialEngineering andDepartmentChair,SwansonSchoolofEngineering ProfessorofBusinessAdministration, KatzGraduateSchoolofBusiness UniversityofPittsburgh Pittsburgh,PA Contents PartI OperationManagement 1 EffectofLeanManufacturingPracticesonNon-financial PerformanceResults:EmpiricalStudyinSpanishSheltered WorkCenters . . .. . . .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 3 JuanA.Marin-Garcia,PaulaCarneiro,andCristo´balMiralles 2 AnInformationApproachtoDerivingDomesticWaterDemand: AnApplicationtoBogota´,Colombia . . . .. . . .. . . .. . . .. . . .. . 25 RicardoBonillaandRobertoZarama 3 TheIronandSteelSectorandEconomicGrowth:Evidence fromTurkey . . . .. . . .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 45 UmutG€und€uz PartII LogisticsPlanning 4 AStudyofCargoReceiptLogisticsforFlowerExportation atElDoradoInternationalAirportinBogota´ D.C. .. . . .. . . .. . 61 Elie´cerGutie´rrez,FrankBallesteros,andJose´ FidelTorres 5 Multi-objectiveOptimizationforInterfacilityPatientTransfer . . 81 W.J.Guerrero,N.Velasco,andC.A.Amaya 6 AMulti-agentSimulationModelofaSignalizedIntersection ConsideringInteractionBetweenPedestriansandVehicles . . .. . 97 H.HoyosandJ.Torres 7 OptimizingResourcesInvolvedintheReception ofanEmergencyCall .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 115 P.Guaracao,D.Barrera,N.Velasco,andC.A.Amaya vii viii Contents PartIII ProductionPlanningandScheduling 8 VehicleRoutingNowadays:CompactReviewand EmergingProblems . .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 141 NacimaLabadieandChristianPrins 9 OptimalProductionPlanforaStochasticSystemwith RemanufacturingofDefectiveandUsedProducts . .. . . .. . . .. . 167 O.S.SilvaFilho 10 StochasticOptimizationofaCashSupplyChain . . .. . . .. . . .. . 183 HectorHerna´nToroDiazandAndresFelipeOsorioMuriel 11 FromEmbeddedSystemsRequirementstoPhysical Representation:AModel-BasedMethodologyinAccordance withtheEIA-632Standard .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 201 CarlosGomez,PhilippeEsteban,Jean-ClaudePascal, andFernandoJimenez PartIV CaseStudyinSMES 12 TechnologicalDevelopmentintheProductionProcesses ofSmallandMediumEnterprisesinthePharmaceuticalSector inBogota´,Colombia . .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 225 BibianaM.VallejoandClaraE.Plazas 13 SmallFirmsandSearchStrategiestoAccessExternal KnowledgefromUniversities:AnEmpiricalApproach inLow-TechFirms . . .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 239 Jose-LuisHervas-Oliver,Joan-JosepBaixauli,andBernardoPerez 14 ImplementationofLeanManufacturingPrinciples inaColombianMachineShop:LayoutRedesign andTheoryofConstrains . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 257 GonzaloMej´ıaandDianaCarolinaRam´ırez Index . . .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . 275 Part I Operation Management Chapter 1 Effect of Lean Manufacturing Practices onNon-financialPerformanceResults:Empirical Study in Spanish Sheltered Work Centers JuanA.Marin-Garcia,PaulaCarneiro,andCristo´balMiralles Abstract Lean Manufacturing’s effect on companies’ non-financial indicators of hasbeenstudiedasawhole,withoutisolatingthespecificeffectsofeachofthesub- scalesofLeanProduction.Theaimofthispaperistocontributetofillingthisgap byanalyzingdatafromSpanishshelteredworkcenters(n ¼ 92),afterconfirming thatLeanProductioninthissectordoesnotappeartobewellexplainedbysecond- orderfactors.Theresultsseemtoconfirmthat13ofthe20sub-scalesanalyzedhave a positive effect on the performance results, although only six of these sub-scales (shortset-uptimes,managementinvolvementincontinuousimprovement,training, teamwork, communication and client relationships) had sufficient effect to be statistically significant. Each of these sub-scales individually explains between 4%and13%ofthevarianceinperformances. 1.1 Introduction Operational management systems evolve as firms make changes to become more efficient or to protect their markets (Fullerton and McWatters 2001; Swink et al. 2005).LeanProductionisaresponsetothemarketpressuresthatfirmsexperience and is one of the most studied models in the scientific literature (Shah and Ward 2003;DoolenandHacker2005). J.A.Marin-Garcia(*)(cid:129)C.Miralles ROGLE–Department,Organizacio´ndeEmpresas,UniversitatPolite`cnicadeVale`ncia,Edificio 7D,CaminodeVeras/n,46022Valencia,Spain e-mail:[email protected].;[email protected]. P.Carneiro Ph.D.Department,Organizacio´ndeEmpresas,UniversidadPolite´cnicadeValencia,Edificio7D, CaminodeVeras/n,46022Valencia,Spain e-mail:[email protected]. G.Mej´ıaandN.Velasco(eds.),ProductionSystemsandSupplyChain 3 ManagementinEmergingCountries:BestPractices, DOI10.1007/978-3-642-26004-9_1,#Springer-VerlagBerlinHeidelberg2012