Book on electronics manufacturing

Dynamics of agile manufacturing in electronics industry – a product availability based approach

 

Helo Petri T: Dynamics of agile manufacturing in electronics industry - a product availability based approach

Keywords: Agile manufacturing, product availability, and system dynamics.

 

ABSTRACT

Agile manufacturing has been defined as the capability of surviving and prospering in the competitive environment of changes by reacting quickly to markets. The external uncertainties are related to demand volume, production mix, and technological changes. These problems challenge especially in the electronics industry, where short life cycles emerge with high fluctuations. The aim of this study is to deepen the understanding of management of volatile demand, operationalise the concept of agile manufacturing and to recognise the enabling factors for agility/flexibility. The research problem is to examine ways to analyse and improve agility in electronics manufacturing in terms of response, flexibility and costs. The problem is made operational into two research questions. Firstly, the thesis aims to study agility measurement by examining the cost effect of response, and secondly, to analyse empirically whether enabling factors depend from production type.

 

The research approach is to model a generic production system by using system dynamics. To apply the proposed framework and verify the system dynamic models an application in a three stage supply chain is demonstrated. Thereafter, a number of electronics manufacturers are analysed from agility/flexibility point of view. Finally, some descriptive case studies from electronics manufacturing industry are used to illustrate the uncertainties and enabling factors for agility. The cases differ from each other by production volume, product mix and product life cycle.

 

Operationally agility is ability to operate in uncertainty whilst maintaining stable level of productivity and appropriate external product availability. The conclusion of this study is that agility can be achieved in different ways, concerning the parameters related to volume, mix and life cycle. Practically this means that companies operating in different markets and with different responsibilities have different kind of uncertainties and for this reason different enabling factors. The results of this study suggest appreciating the value of time and building the supply chain on this basis of product availability. Practically this means valuing the shared the risk within the supply chain.

 

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ISBN 951-683-912-6.