Implications of automation in engineer-to-order production: a case study

Abstract

In order to retain a certain level of production in Norway, suppliers to the Norwegian maritime industry need to lower their production costs. Automation is generally an effective way of achieving this in standardized high-volume, low variety production. However, manufacturing companies in the Norwegian maritime industry typically supply capital-intensive, advanced and customized products in low volumes. In this engineer-to-order production situation, manual labor is traditionally preferred over automation. Nonetheless, such companies increasingly automate parts of their production. This paper presents a case of a supplier that has chosen to automate its welding operations, the implications and determinants of this decision.

Keywords

Engineer-to-order (ETO) / Automation / Maritime industry / Case study

References

[1] NHO (2007) Trøndelag i verden næringslivets hovedorganisasjon trøndelag. In: The 3rd international workshop of advanced manufacturing and automation,Trondheim, Norway, 27 Nov 2013

[2] Maritim21 (2010) En bærekraftig maritim forsknings- og innovasjonssatsing: kunnskapsnav og infrastruktur. http://www.maritim21.no/wp-content/uploads/2009/12/M21-Rapport-Kunnskapsnav-og-infrastruktur-v1.pdf

[3] Groover MP. Automation, production systems, and computer-integrated manufacturing, 2008, New Jersey: Prentice Hall Press

[4] Teknologirådet (2013) Made in Norway? Hvordan roboter, 3D-printere og digitalisering gir nye muligheter for norsk industri. http://www.steampdf.com/view/made-in-norway-hvordan-roboter-3d-printere-og-digitalisering-gir-nye-muligheter-for-norsk-industri-26777572.html

[5] Lindström V, Winroth M. Aligning manufacturing strategy and levels of automation: a case study. J Eng Technol Manag, 2010, 27: 148-159.

[6] Chung CA. Human issues influencing the successful implementation of advanced manufacturing technology. J Eng Technol Manag, 1996, 13: 283-299.

[7] Mehrabi MG, Ulsoy AG, Koren Y, et al. Trends and perspectives in flexible and reconfigurable manufacturing systems. J Intell Manuf, 2002, 13: 135-146.

[8] Granlund A, Jackson M. Azevedo A. Managing automation development projects: a comparison of industrial needs and existing theoretical support. Advances in sustainable and competitive manufacturing systems, 2013, Berlin: Springer 761-774.

[9] Small MH. Planning, justifying and installing advanced manufacturing technology: a managerial framework. J Manuf Technol Manag, 2007, 18: 513-537.

[10] Friedler N, Salonen A, Johansson C (2013) The automation equipment acquisition process–experienced users’ perspective. In: the 22nd International Conference on Production Research, Iguazu

[11] Ordoobadi SM, Mulvaney NJ. Development of a justification tool for advanced manufacturing technologies: system-wide benefits value analysis. J Manuf Technol Manag, 2001, 18: 157-184.

[12] Banakar Z, Tahriri F. Justification and classification of issues for the selection and implementation of advanced manufacturing technologies. World Acad Sci Eng Technol, 2010, 65: 341-349.

[13] Fernandes R, Gouveia JB, Pinho C. Product mix strategy and manufacturing flexibility. J Manuf Syst, 2012, 31: 301-311.

[14] Yin RK. Case study research: design and methods, 2009, Thousand Oaks, CA: Sage Publications Inc

[15] Eisenhardt KM. Building theories from case study research. Acad Manag Rev, 1989, 14(4): 532-550.

[16] Greenwood DJ, Levin M. Introduction to action research: social research for social change, 2007, Thousand Oaks: Sage

[17] Gummesson E. Qualitative methods in management research, 2000, Thousand Oaks: Sage Publications

[18] Bertrand J, Muntslag D. Production control in engineer-to-order firms. Int J Prod Econ, 1993, 30: 3-22.

[19] Amaro G, Hendry L, Kingsman B. Competitive advantage, customisation and a new taxonomy for non make-to-stock companies. Int J Oper Prod Manag, 1999, 19: 349-371.

[20] Wortmann J. Production management systems for one-of-a-kind products. Comput Ind, 1992, 19: 79-88.

[21] Olhager J. Strategic positioning of the order penetration point. Int J Prod Econ, 2003, 85: 319-329.

[22] Porter K, Little D, Peck M, et al. Manufacturing classifications: relationships with production control systems. Integr Manuf Syst, 1999, 10: 189-199.

[23] Hicks C, McGovern T, Earl CF. A typology of UK engineer-to-order companies. Int J Logist, 2001, 4: 43-56.

[24] Wacker JG, Miller M. Configure-to-order planning bills of material: simplifying a complex product structure for manufacturing planning and control. Prod Inven Manag J, 2000, 41: 21

[25] Wikner J, Rudberg M. Integrating production and engineering perspectives on the customer order decoupling point. Int J Oper Prod Manag, 2005, 25: 623-641.

[26] McGovern T, Hicks C, Earl CF. Modelling supply chain management processes in engineer-to-order companies. Int J Logist Res Appl, 1999, 2: 147-159.

[27] Hicks C, McGovern T, Earl C. Supply chain management: a strategic issue in engineer to order manufacturing. Int J Prod Econ, 2000, 65: 179-190.

[28] Little D, Rollins R, Peck M, et al. Integrated planning and scheduling in the engineer-to-order sector. Int J Comput Int Manuf, 2000, 13: 545-554.

[29] Stavrulaki E, Davis M. Aligning products with supply chain processes and strategy. Int J Logist Manag, 2010, 21: 127-151.

[30] Rahim ARA, Baksh MSN. The need for a new product development framework for engineer-to-order products. Eur J Innov Manag, 2003, 6: 182-196.

[31] Caron F, Fiore A. “Engineer to order” companies: how to integrate manufacturing and innovative processes. Int J Proj Manag, 1995, 13: 313-319.

[32] Gosling J, Naim MM. Engineer-to-order supply chain management: a literature review and research agenda. Int J Prod Econ, 2009, 122: 741-754.

[33] Muntslag DR. Profit and risk evaluation in customer driven engineering and manufacturing. Int J Prod Econ, 1994, 36: 97-107.

[34] Hicks C, Braiden P. Computer-aided production management issues in the engineer-to-order production of complex capital goods explored using a simulation approach. Int J Prod Res, 2000, 38: 4783-4810.

[35] Krajewski L, Wei JC, Tang LL. Responding to schedule changes in build-to-order supply chains. J Oper Manag, 2005, 23: 452-469.

[36] Pandit A, Zhu Y. An ontology-based approach to support decision-making for the design of ETO (engineer-to-order) products. Automat Constr, 2007, 16: 759-770.

[37] Elfving JA, Tommelein ID, Ballard G. Consequences of competitive bidding in project-based production. J Purch Supply Manag, 2005, 11: 173-181.

[38] Danese P, Romano P. Improving inter-functional coordination to face high product variety and frequent modifications. Int J Oper Prod Manag, 2004, 24: 863-885.

[39] Terwiesch C, Loch CH. Managing the process of engineering change orders: the case of the climate control system in automobile development. J Prod Innov Manag, 1999, 16: 160-172.

[40] Minhas S, Lehmann C, Städter J et al (2011) Reconfigurable strategies for manufacturing setups to confront mass customization challenges. In: the 21st International Conference on Production Research (ICPR 21), Stuttgart, Germany

[41] Pan Z, Polden J, Larkin N, et al. Recent progress on programming methods for industrial robots. Robot Comput Integr Manuf, 2012, 28: 87-94.

[42] Johansson R, Robertsson A, Nilsson K, et al. Sensor integration in task-level programming and industrial robotic task execution control. Ind Robot Int J, 2004, 31: 284-296.

[43] Forge S, Blackman C (2010) A helping hand for Europe: the competitive outlook for the EU robotics industry. EUR-Scientific and Technical Research Reports, Publications Office of the European Union

[44] Essers M, Vaneker T. Developing concepts for improved efficiency of robot work preparation. Procedia CIRP, 2013, 7: 515-520.

[45] Lozano-Perez T. Robot programming. Proceedings of the IEEE, 1983, 71(7): 821-841.

[46] Rossano GF, Martinez C, Hedelind M et al (2013) Easy robot programming concepts: an industrial perspective. In: 2013 IEEE International Conference on Automation Science and Engineering (CASE), pp 1119–1126

[47] Neto P, Mendes N. Direct off-line robot programming via a common CAD package. Robot Autonom Syst, 2013, 61(8): 896-910.

[48] Larkin NP, Milojevic A, Pan Z et al (2011) Offline programming for short batch robotic welding. In: The 16th International Conference on the Joining of Materials, Denmark

[49] Chen H, Sheng W. Transformative CAD based industrial robot program generation. Robot Comput Integr Manuf, 2011, 27: 942-948.

[50] Wang J, Zhang H, Fuhlbrigge T (2009) Improving machining accuracy with robot deformation compensation. In: IEEE/RSJ International Conference on Intelligent Robots and Systems, pp 3826–3831

[51] Tan KK, Huang S, Zhang Y, et al. Distributed fault detection in industrial system based on sensor wireless network. Comput Stand Interfaces, 2009, 31: 573-578.

[52] Da Silveira G, Borenstein D, Fogliatto FS. Mass customization: literature review and research directions. Int J Prod Econ, 2001, 72: 1-13.

[53] Liana SY, Hecker RL, Landers RG. Machining process monitoring and control: the state-of-the-art. J Manuf Sci Eng, 2004, 126: 297-310.

[54] Blackstone JH, Cox JF (eds) (2010) APICS Dictionary. American Production & Inventory Control Society, Incorporated

[55] Frohm J, Lindström V, Bellgran M (1998) A model for parallel levels of automation within manufacturing. In: the 18th International Conference on Production Research

[56] Parasuraman R, Sheridan TB, Wickens CD. A model for types and levels of human interaction with automation. IEEE Trans Syst Man Cybern A, 2000, 30: 286-297.

[57] Winroth M, Safsten K, Stahre J. Automation strategies: existing theory or ad hoc decisions?. Int J Manuf Technol Manag, 2007, 11: 98-114.

[58] Säfsten K, Winroth M, Stahre J. The content and process of automation strategies. Int J Prod Econ, 2007, 110: 25-38.

[59] Beckman SL, Rosenfield DB. Operations strategy, competing in the 21st Century, 2008, New York: McGraw-Hill

[60] Wickens CD, Mavor AS, Parasuraman R. The future of air traffic control: human operators and automation, 1998, Washington DC: National Academies Press

[61] Endsley MR. Level of automation effects on performance, situation awareness and workload in a dynamic control task. Ergonomics, 1999, 42: 462-492.

[62] Frohm J. Levels of automation in production systems, 2008, Göteborg: Chalmers University of Technology

[63] Parasuraman R, Riley V. Humans and automation: use, misuse, disuse, abuse. J Human Factors Ergon Soc, 1997, 39: 230-253.

[64] Kalpakjian S, Schmidt SR. Manufacturing, engineering and technology SI, 2010, Singapore: Prentice Hall

[65] Wadhwa RS. Flexibility in manufacturing automation: a living lab case study of Norwegian metalcasting SMEs. J Manuf Syst, 2012, 31(4): 444-454.

[66] Bellgran M, Säfsten K. Production development: design and operation of production systems, 2010, Berlin: Springer.

[67] Sarkis J. Evaluating flexible manufacturing systems alternatives using data envelopment analysis. Eng Econ, 1997, 43: 25-47.