An Investigation of Product Modularity and Supply Chain Performance at the Product Design Stage

Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan

The benefit of integrating product design decisions and supply chain design decisions has been noticed by researchers. This integration can provide better communication between design teams and operations groups. Accordingly, potential supply chain risks can be highlighted before the launch of a new product. Modularization is one of the most critical product design and supply chain design decisions because it will determine the assembly sequence and potential suppliers of the product in the supply chain execution. However, the impact of modularity level on supply chain performance is still unclear. The objective of this study is to tackle this issue. The proposed method covers product design functions and supply chain design functions, hence the product design decisions and supply chain design decisions can be considered simultaneously. The supply chain performance of all design concepts is comprehensively investigated so as to analyze the impact of modularity on supply chain performance regarding lead-time and cost. The results show that increased modularity is advantageous for the time-based performance of supply chain network whereas decreased modularity demonstrates superiority on cost performance.

2011 ◽  
Vol 133 (2) ◽  
Author(s):  
Ming-Chuan Chiu ◽  
Gül Okudan

Supplier selection is one of the key decisions in supply chain management. Companies need not only to make the “make” or “buy” decisions but also differentiate across potential suppliers in order to improve operational performance. Product design is an engineering based activity that realizes the customer requirements into functions of a new product. Many studies have pointed out that the integration of product and supply chain is a key factor for profitability and efficiency. However, most studies address supply chain performance after freezing the design of the product; only a few studies discuss when and how to incorporate supply chain decisions during product design. This paper presents a graph theory based optimization methodology to tackle this problem. The supplier selection issue is considered by evaluating its impact on both internal (e.g., ease of assembly) and external (e.g., transportation time) enterprise performances, which are aggregated as supply chain performance at the conceptual design stage. A case study in the bicycle industry demonstrates the advantages of this methodology. The presented mathematical programming formulation enables simultaneous optimization of both product design and supply chain design during the early design stages.


Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan

Today supply chain management has become one of the crucial factors for gaining and sustaining a competitive advantage. Enterprises that can more effectively manage their supply chain network have a higher likelihood of success in the marketplace. To this end, companies need not only make the “make” or “buy” decisions but also differentiate across potential suppliers in order to improve operational performance, and hence, supplier selection is one of the key decisions aiding effective supply chain management. Many studies have also pointed out that the integration of product and supply chain is a key factor for profitability and efficiency. However, prior studies mostly address supply chain performance after the creation of a new product; and only a few studies discuss when and how to incorporate supply chain decisions during product design. In the studies that cover product design, product family and product platform concepts are presented as enabling vehicles for mass customization, which require a considerable investment, and hence might be out of reach for small to medium size enterprises (SME). Accordingly, there is a need to develop a methodology that can consider manufacturability and supply chain issues at the product design stage. This paper presents a graph theory based optimization methodology to tackle this problem. The supplier selection issue is considered by evaluating its impact on both engineering (e.g., process planning) and operational performance (e.g., cost and time), which are then aggregated as the supply chain performance at the conceptual design stage. A case study in the bicycle industry demonstrates the advantages of this methodology. The synchronized structure of the supply chain and the product design results in simultaneous optimization of both design and supply chain decisions during the early design stages.


Author(s):  
Amit Chandak ◽  
Sumit Chandak ◽  
A. Dalpati

Due to rapid globalization, an introduction of Goods and Services Taxes (GST), ban on BS-III vehicles, and rapid technological advancement creates new dimensions for the automobile industry in India especially for those who come in the category of small and medium enterprise (SMEs).In the current changing scenario victorious execution of supply chain management (SCM) practices can provide competitive leverage to Automobile manufacturers over their rivals particularly those who are poorly implemented supply chain management practices. This paper takes two main SCM practices, i.e. supply chain flexibility (SCF) and supply chain strategy (SCS).Against this background, this paper acknowledged 5 success factors (SFs) for supply chain flexibility and 3 success factors (SFs) for supply chain strategy for proper implementation of SCM practices in the Automobile industry, and studied their impact on three factors of supply chain performance (SCP), and thereby on firms performance. The top management of any industry is focused on their core strength with commitment, long-term vision and provides resources for supply chain, and thereby developing effective and efficient SCS emerged as the most significant SFs. To measure the impact on supply chain performance, the author carefully measures different SFs of SCS related to customer-oriented strategy, innovation strategy and agile supply chain strategy on cost performance, logistics performance and customer satisfaction performance. Similarly to access the impact on supply chain performance, carefully measure different SFs of SCF on cost performance, logistics performance and customer satisfaction performance. Results are analyzed by testing research propositions using standard statistical tools.  


Author(s):  
Vildan Ozkir

This chapter introduces the impact of competitive strategy on strategic supply chain network design decisions. The aim of increasing competitive advantage forces firms to deal with multiple conflicting objectives. Since supply chains are affiliate networks including multiple parties, accomplishing a solitary objective corresponds to an inadequate effort to maintain the sustainability of supply chain. The overall integrity and sustainability of the supply chain can be provided by satisfying the expectations of each parties. The loyalty in the supply chain is achieved by offering distinguished service among suppliers and customers rather than delivering almost same services. This can only be achieved through network design models by taking into account multiple conflicting objectives. The firm's competitive strategy defines a particular set of objectives to achieve specific goals on these performance attributes. This chapter examines the main problem domains in SC design, strategic performance measures, and recent literature on single/multiple objective models.


Author(s):  
Ming-Chuan Chiu ◽  
Gu¨l E. Okudan

Design for supply chain has become an essential consideration while designing a new product. Previous studies have pointed out that early supplier involvement can contribute to the success of the product development and enhance the competitive advantage of the enterprise. However, most of the studies coordinating supplier selection and supply chain configuration make these decisions during the detail design stage, which is the last phase of product design. This research aims to investigate the supply chain scenarios for their relevant performance at the conceptual design stage. The performance of different supply chain scenarios, centralized and decentralized, are compared and discussed. The results show that the decentralized supply chain scenario is advantageous for the time performance of supply chain network whereas the centralized supply chain scenario demonstrates superiority on cost performance.


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