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Developing distributed manufacturing strategies from the perspective of a product-process matrix

Author

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  • Kumar, Mukesh
  • Tsolakis, Naoum
  • Agarwal, Anshul
  • Srai, Jagjit Singh

Abstract

In today's highly competitive global business landscape, customers demand personalised products and responsive distribution systems, hence fuelling the concept of Distributed Manufacturing (DM) as a paradigm that suggests the geographical distribution of manufacturing systems adjacent to the markets enable ‘production on demand’. To this end, the objective of this research is to explore the DM concept to inform firms about the dynamically changing manufacturing environment, along with the emerging opportunities, and support business stakeholders in implementing DM-oriented strategies to achieve digitalisation, personalisation, and localisation. More specifically, the present research builds upon the Dynamic Capability Theory (DCT) and conducts semi-structured interviews with a panel of 16 experts from the Fast-Moving Consumer Goods, Automotive, and Engineering industries to develop 12 exploratory industry cases. Our analysis highlights three strategies that companies can adopt to implement DM and realise shorter lead times and personalised product offerings, namely: (i) small-scale DM; (ii) in-house decoupled manufacturing; and (iii) outsourced decoupled manufacturing. However, the economic viability of the DM concept is identified as a significant barrier to relinquish the traditional centralised economies-of-scale. This research contributes by applying the DCT to the DM concept to advocate the viability and sustainability of manufacturing systems in the era of Industry 4.0. Pertaining to the originality of this research, limited work is available on the applicability of DM in industries, from the DCT perspective, to accomplish competitive advantages in the dynamic environment of manufacturing.

Suggested Citation

  • Kumar, Mukesh & Tsolakis, Naoum & Agarwal, Anshul & Srai, Jagjit Singh, 2020. "Developing distributed manufacturing strategies from the perspective of a product-process matrix," International Journal of Production Economics, Elsevier, vol. 219(C), pages 1-17.
    • Handle: RePEc:eee:proeco:v:219:y:2020:i:c:p:1-17
    DOI: 10.1016/j.ijpe.2019.05.005
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    7. Lőrincz, László & Losonci, Dávid & Demeter, Krisztina & Granát, Marcell, 2023. "Digitalizáció és üzleti teljesítmény - hazai feldolgozóipari tapasztalatok [Digitalisation and business performance - focusing on Hungarian manufacturing firms]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 82-102.

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