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Reconciling process flexibility and standardization: a case study in the automotive industry

Author

Listed:
  • Anis Assad Neto

    (Pontifícia Universidade Católica Do Paraná)

  • Jessyca Sampaio

    (Renault Do Brasil)

  • Silvana Pereira Detro

    (Federal University of Parana)

  • Fernando Deschamps

    (Pontifícia Universidade Católica Do Paraná)

  • Eduardo Alves Portela Santos

    (Pontifícia Universidade Católica Do Paraná)

  • Eduardo de Freitas Rocha Loures

    (Pontifícia Universidade Católica Do Paraná)

Abstract

In the automotive industry, short-term changes in the product mix can be executed in an attempt to better react to customers’ immediate needs and preferences. These modifications impact confirmed orders sent to suppliers via material requirement planning (MRP) and may lead to supply shortages. Supply chain stakeholders can respond to these modifications in a plethora of ways to avoid shortages. However, the process of deciding on the appropriate response is not easily standardized due to the high level of flexibility and subjectivity required to deal with each specific situation. Based on an automotive manufacturer in the State of Paraná—Brazil, we propose a decision support system (DSS) to guide supply chain stakeholders during the process of deciding on how to respond to short-term material requirement modifications. Flexibility is ensured by the occurrence of “decision points” in the process model, which guide a process instance through specific paths based on a mix of simple rules as well as the Analytic Hierarchy Process (AHP). The DSS has its application demonstrated by a series of simulated scenarios. Through the standardization of a flexible process driven by subjective factors, this work aims to achieve: (i) a better understanding of the cost versus risk trade-offs that complicate standardized decision making within automotive supply processes; and (ii) an artifact capable of providing standardization without hindering the flexibility requirements for this class of processes.

Suggested Citation

  • Anis Assad Neto & Jessyca Sampaio & Silvana Pereira Detro & Fernando Deschamps & Eduardo Alves Portela Santos & Eduardo de Freitas Rocha Loures, 2021. "Reconciling process flexibility and standardization: a case study in the automotive industry," Operations Management Research, Springer, vol. 14(3), pages 507-524, December.
    • Handle: RePEc:spr:opmare:v:14:y:2021:i:3:d:10.1007_s12063-021-00230-y
    DOI: 10.1007/s12063-021-00230-y
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    References listed on IDEAS

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    1. Buzacott, John A., 2000. "Service system structure," International Journal of Production Economics, Elsevier, vol. 68(1), pages 15-27, October.
    2. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    3. Ho, William & Ma, Xin, 2018. "The state-of-the-art integrations and applications of the analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 267(2), pages 399-414.
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    Cited by:

    1. Federica Costa & Matthias Thürer & Alberto Portioli-Staudacher, 2023. "Heterogeneous worker multi-functionality and efficiency in dual resource constrained manufacturing lines: an assessment by simulation," Operations Management Research, Springer, vol. 16(3), pages 1476-1489, September.

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