Framework for Delivery Reliability in European Machinery and Equipment Industry

Today-s manufacturing companies are facing multiple and dynamic customer-supplier-relationships embedded in nonhierarchical production networks. This complex environment leads to problems with delivery reliability and wasteful turbulences throughout the entire network. This paper describes an operational model based on a theoretical framework which improves delivery reliability of each individual customer-supplier-relationship within non-hierarchical production networks of the European machinery and equipment industry. By developing a non-centralized coordination mechanism based on determining the value of delivery reliability and derivation of an incentive system for suppliers the number of in time deliveries can be increased and thus the turbulences in the production network smoothened. Comparable to an electronic stock exchange the coordination mechanism will transform the manual and nontransparent process of determining penalties for delivery delays into an automated and transparent market mechanism creating delivery reliability.

• G. Schuh
• A. Kampker
• A. Hoeschen
• T. Jasinski

• delivery reliability
• machinery and equipmentindustry
• non-hierarchical production networks
• supply chainmanagement

[1] A. Gunasekaran, L. Forker, and B. Kobu "Improving operations
performance in small company," International Journal of Operations &
Production Management, vol. 20, no. 3, pp. 316-335, 2000.
[2] A. Ghobadian, and D. Gallear, "Total quality management in SMEs,"
OMEGA, vol. 24, no. 1, pp. 83-100, 1996.
[3] G. Reinhart, and M. Bredow, "Kooperationsgestaltung in
Productionsnetzwerken," in 5th Conference Vernetzt planen und
produzieren, Chemnitz, 2006, pp. 241-244.
[4] Eurostat. (2008 March 01) Industrial turnover - Manufacturing (Online).
Available: ec.europa.eu/eurostat/
[5] Verband deutscher Maschinen- und Anlagenbauer (VDMA),
Maschinenbau in Zahl und Bild. Frankfurt: VDMA Verlag, 2008
[6] D. Jones, "Creating lean solutions (Published Conference Proceedings
style)," in 2nd Lean Management Summit, Aachen, 2005, pp. 17-28.
[7] G. Schuh, A. Kampker, C. Narr, T. Potente, and P. Attig,
"myOpenFactory," International Journal of Computer Integrated
Manufacturing, 2nd ed. vol. 21, no. 2, p. 215, 2007.
[8] A. R. Voegle, and M. P. Zeuch, Supply network management.
Wiesbaden: Gabler-Verlag, 2001, ch. 2.
[9] G. Schuh et al., Effizient, schnell und erfolgreich. Frankfurt: VDMA
Verlag, 2007, pp. 60-62.
[10] H. P. Wiendahl, G. Cleminskfa, and C. Begemanna, "A systematic
approach for ensuring the logistic process reliability of supply chains,"
CIRP Annals - Manufacturing Technology, vol. 52, no. 1, pp. 375-380,
2003.
[11] G. E. Akerlof, "The market for lemons: Quality uncertainty and the
market mechanism," Journal of Economics, vol. 84, no. 3, pp. 488-500,
1970.
[12] K. Johansen, M. Comstocka, and M. Winroth, "Coordination in
collaborative manufacturing meganetworks: A case study," Journal of
Engineering and Technology Management, vol. 22, no. 3, pp. 226-244,
2005.
[13] M. He, A. Rogers, X. Luo, and N.R. Jennings, "Designing a successful
trading agent for supply chain management," in 5th International Joint
Conference on Autonomous Agents and Multiagent Systems, Hakodate,
2006, pp. 1159-1166.
[14] G. Schuh et al., Effiziente Auftragsabwicklung mit myOpenFactory.
München: Carl Hanser Verlag, 2008, ch. 2.
[15] N. G. Mankiw, Principles of economics. South-Western: Thomson
Learning, 2004.