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Complexity in high-tech manufacturing

Funder: Netherlands Organisation for Scientific Research (NWO)Project code: 439.16.121

Complexity in high-tech manufacturing

Description

High-tech systems are produced in a joint effort of some hundred teams of highly specialized engineers employed by the system integrator and dozens of suppliers. Because of the sheer size and complexity of the supply chain, it is impossible to oversee the entire operation. Instead, the process is somehow orchestrated by sharing information and coordinating the production planning between upstream teams that produce a subcomponent of the system and downstream teams that need it. Each team decides on its own operations according to this bilateral coordination and information sharing. From all bilateral coordination and decisions together thus emerges the responsiveness, resilience, and cost effectiveness of the overall supply chain. Three complementary work packages together aim to improve this global supply chain performance via concrete improvements to the local planning and coordination process: 1. Coordinated production planning in high-tech supply chains aims to improve the production planning and forecast sharing capabilities of individual actors. Planning models in WP1 are local. To ensure improvement of the global supply chain we complement it with 2. An agent-based model for high-tech supply chains, which develops an accurate and detailed descriptive model of the entire supply chain for understanding and explaining the connection between local decisions and global performance. 3. Emergent behavior and resilience in stochastic processing networks: Practitioners prefer easy-to-understand analytical rules for production planning and capacity allocation that perform well on supply chain level. Using probabilistic scaling techniques, this WP develops such rules based on an abstraction of the detailed supply chain models.

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