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Framework for integrating intelligent product structures into a flexible manufacturing system
(2023)
Increasing individualisation of products with a high variety and shorter product lifecycles result in smaller lot sizes, increasing order numbers, and rising data and information processing for manufacturing companies. To cope with these trends, integrated management of the products and manufacturing information is necessary through a “product-driven” manufacturing system. Intelligent products that are integrated as an active element within the controlling and planning of the manufacturing process can represent flexibility advantages for the system. However, there are still challenges regarding system integration and evaluation of product intel-ligence structures. In light of these trends, this paper proposes a conceptual frame-work for defining, analysing, and evaluating intelligent products using the example of an assembly system. This paper begins with a classification of the existing problems in the assembly and a definition of the intelligence level. In contrast to previous approaches, the analysis of products is expanded to five dimensions. Based on this, a structured evaluation method for a use case is presented. The structure of solving the assembly problem is provided by the use case-specific ontology model. Results are presented in terms of an assignment of different application areas, linking the problem with the target intelligence class and, depending on the intelligence class of the product, suggesting requirements for implementation. The conceptual frame-work is evaluated by utilising a case study in a learning factory. Here, the model-mix assembly is controlled actively by the workpiece carrier in terms of transferring the variant-specific work instructions to the operator and the collaborative robot (cobot) at the workstations. The resulting system thus enables better exploitation of the poten-tials through less frequent errors and shorter search times. Such an implementation has demonstrated that the intelligent workpiece carrier represents an additional part for realising a cyber-physical production system (CPPS).
Because of a high product and technology complexity, companies involve external partners in their research and development (R&D) processes. Interorganizational projects result, which represent temporary organizations. In these projects heterogenous organizations work closely together. Since project work is always teamwork, these projects face due to their characteristic’s major challenges on an organizational, relational, and content-related collaboration level. Thus, this paper raises the following research question: “How can a project team be supported on an organizational, relational, and content-related level in an interorganizational new product development setting?” To answer this research question, an explorative expert study was set up with two digital workshops using the interactive presentation tool Mentimeter. The results show that a cooperative innovation culture could support project teams on an organizational and relational level in the future in minimizing predominant problems. Moreover, it supports project teams for example in a functional communication. Furthermore, 18 values of a cooperative innovation culture result which are for example openness and transparency, risk and failure tolerance or respect. On a content-related level the results show that an adaptable tool which promotes creativity and collaboration method as well as content-related input support could be beneficial for problem-solving in an interorganizational new product development setting in the future. Because the tool can guide product developers through the process with suitable creativity and collaboration methods, can give content-related input and can enable interactive interchange on a table-top. Future research could mainly focus on the connection of the cooperative innovation culture and the tool since these potentially influence each other.
In a recently developed study programme at Reutlingen University, which focuses on practical orientations, an innovative product with solid company references is to be defined and realised by student teams. On the basis of this product, all subjects of the business engineering study programme “Sustainable Production and Business” are taught. By focusing on three main paths of future skills that have been developed by NextSkills to analyse upcoming social changes, global challenges and fields of work that are innovation-driven and agile, the new study programme aims to create responsible leaders who will shape global businesses respectfully. Thereby, different TRIZ tools help to support students in developing their own products with a focus on sustainability and pay off on the future skills enhancement. Further, students get to know TRIZ tools in an unbiased way, unburdened by too much theory, and are thus continuously supported in the progressing product development process that accompanies their studies. Hence, students perceive TRIZ on the one hand as a method to develop sustainable products and, on the other hand, to find sustainable solutions for everyday problems. The knowledge and positive experiences gained in this way should then arouse curiosity for the TRIZ class at the end of the study programme. The students can graduate with a TRIZ Level 1 certificate. Thereby, as many students as possible are introduced to the TRIZ methods, and the TRIZ tool is spread widely.
The members of the European TRIZ Campus (ETC) have been learning from and working together with many honorable members of MATRIZ Official for many years and feel very connected to the official International TRIZ Association.
To further spread the TRIZ methodology and TRIZ teaching in the European area in the past 12 months the ETC has put a lot of thought in how making TRIZ accessible to a broader audi-ence and getting more professionals in touch with the methodology was one of the focal points.
To this end, we have developed new formats such as the "Trainer Day" to support trainers on their way into practice. We have drawn up detailed quality guidelines for the teaching of the TRIZ methodology, which are intended to provide orientation for the design of training classes and docu-mentation. We strive for exchange with representatives of "neighbouring" methods such as Six sigma, Lean, DFMA and Design Thinking to indicate synergies and added value among methods and approaches of different kinds. We are testing formats for community building, in order to connect users of all places more strongly with the TRIZ methodology through communication and information of-fers. If TRIZ users feel alone in their organizations, the exchange outside their organi-zation helps them to keep up with the TRIZ methodology. Moreover, the ETC strives to increase the ability to communicate the benefits of TRIZ-usage inside organizations. We discuss, how to reach teachers and students of all age, to make them the unique way of inventive thinking accessible.
In our paper we want to give other MATRIZ Official members insights and share our experi-ences and best practices with our fellow MO members.
Facing ever-looming climate change, studying the drivers for individuals' Information Systems (IS) Use to reduce environmental harm gains momentum. While extant research on the antecedents of sustainable IS Use has focused on specific theories, interventions, contexts, and technologies, a holistic understanding has become increasingly elusive, with a synthesis remaining absent. We employ a systematic literature review methodology to shed light on the driving antecedents for sustainable IS Use among individual consumers. Our results build on findings of 29 empirical studies drawn from 598 articles retrieved from our premier outlets and a forward/backward search. The analysis reveals six salient complementary antecedents: Relief, Empowerment, Default, User-centricity, Salience, and Encouragement. We recommend considering these concepts when developing, deploying, promoting, or regulating digital technologies to mitigate individual consumers' emissions. Along with memorable and implementable concepts, our theoretical framework offers a novel conceptualization and four promising avenues for researchers on sustainable IS Use.
The proliferation of smart technologies transforms the way individual consumers perform tasks. Considerable research alludes that smart technologies are often related to domestic energy consumption. However, it remains unclear how such technologies transform tasks and thereby impact our planet. We explore the role of technological smartness in personal day-to-day tasks that help create a more sustainable future. In the absence of theory, but facing extensive changes in everyday life enabled by smart technologies, we draw on phenomenon-based theorizing (PBT) guidelines. As anchor, we refer to task endogeneity related to task-technology fit theory (TTF). As infusion, we employ theory on public goods. Our model proposes novel relations between the concepts of smart autonomy and -transparency with sustainable task outcomes, mediated by task convenience and task significance. We discuss some implications, limitations, and future research opportunities.
Smart factories, driven by the integration of automation and digital technologies, have revolutionized industrial production by enhancing efficiency, productivity, and flexibility. However, the optimization and continuous improvement of these complex systems present numerous challenges, especially when real-world data collection is time-consuming, expensive, or limited. In this paper, we propose a novel method for semi-automated improvement of smart factories using synthetic data and cause-effect-relations, while incorporating the aspect of self-organization. The method leverages the power of synthetic data generation techniques to create representative datasets that mimic the behaviour of real-world manufacturing systems. These synthetic datasets serve together with the cause-and-effect relationships as a valuable resource for factory optimization, as they enable extensive experimentation and analysis without the constraints of limited or costly real-world data. Furthermore, the method embraces the concept of self organization within smart factories. By allowing the system to adapt and optimize itself based on feedback from the synthetic data, cause-effect-relationships, the factory can dynamically reconfigure and adjust its processes. To facilitate the improvement process, the method integrates the synthetic data with advanced analytics and machine learning algorithms as well as and the cause-and-effect relationships. This synergy between human expertise and technological advancements represents a compelling path towards a truly optimized smart factory of the future.
Production planning and control are characterized by unplanned events or so-called turbulences. Turbulences can be external, originating outside the company (e.g., delayed delivery by a supplier), or internal, originating within the company (e.g., failures of production and intralogistics resources). Turbulences can have far reaching consequences for companies and their customers, such as delivery delays due to process delays. For target-optimized handling of turbulences in production, forecasting methods incorporating process data in combination with the use of existing flexibility corridors of flexible production systems offer great potential. Probabilistic, data-driven forecasting methods allow determining the corresponding probabilities of potential turbulences. However, a parallel application of different forecasting methods is required to identify an appropriate one for the specific application. This requires a large database, which often is unavailable and, therefore, must be created first. A simulation-based approach to generate synthetic data is used and validated to create the necessary database of input parameters for the prediction of internal turbulences. To this end, a minimal system for conducting simulation experiments on turbulence scenarios was developed and implemented. A multi-method simulation of the minimal system synthetically generates the required process data, using agent-based modeling for the autonomously controlled system elements and event-based modeling for the stochastic turbulence events. Based on this generated synthetic data and the variation of the input parameters in the forecast, a comparative study of data-driven probabilistic forecasting methods was conducted using a data analytics tool. Forecasting methods of different types (including regression, Bayesian models, nonlinear models, decision trees, ensemble, deep learning) were analyzed in terms of prediction quality, standard deviation, and computation time. This resulted in the identification ofappropriate forecasting methods, and required input parameters for the considered turbulences.
The fifth generation of mobile communication (5G) is a wireless technology developed to provide reliable, fast data transmission for industrial applications, such as autonomous mobile robots and connect cyber-physical systems using Internet of Things (IoT) sensors. In this context, private 5G networks enable the full performance of industrial applications built on dedicated 5G infrastructures. However, emerging wireless communication technologies such as 5G are a complex and challenging topic for training in learning factories, often lacking physical or visual interaction. Therefore, this paper aims to develop a real-time performance monitoring system of private 5G networks and different industrial 5G devices to visualise the performance and impact factors influencing 5G for students and future connectivity experts. Additionally, this paper presents the first long-term measurements of private 5G networks and shows the performance gap between the actual and targeted performance of private 5G networks.
Since its first publication in 2015, the learning factory morphology has been frequently used to design new learning factories and to classify existing ones. The structuring supports the concretization of ideas and promotes exchange between stakeholders.
However, since the implementation of the first learning factories, the learning factory concept has constantly evolved.
Therefore, in the Working Group "Learning Factory Design" of the International Association of Learning Factories, the existing morphology has been revised and extended based on an analysis of the trends observed in the evolution of learning factory concepts. On the one hand, new design elements were complemented to the previous seven design dimensions, and on the other hand, new design dimensions were added. The revised version of the morphology thus provides even more targeted support in the design of new learning factories in the future.
The market for indoor positioning systems for a variety of applications has grown strongly in recent years. A wide range of systems is available, varying considerably in terms of accuracy, price and technology used. The suitability of the systems is highly dependent on the intended application. This paper presents a concept to use a single low-cost PTZ camera in combination with fiducial markers for indoor position and orientation determination. The intended use case is to capture a plant layout consisting of position, orientation and unique identity of individual facilities. Important factors to consider for the selection of a camera have been identified and the transformation of the marker pose in camera coordinates into a selectable plant coordinate system is described. The concept is illustrated by an exemplary practical implementation and its results.
The increase in product variance and shorter product lifecycles result in higher production ramp-up frequencies and promote the usage of mixed-model lines. The ramp-up is considered a critical step in the product life cycle and in the automotive industry phases of the ramp-up are often executed on separated production lines (pilot lines) or factories (pilot plants) to verify processes and to qualify employees without affecting the production of other products in the mixed-model line. The required financial funds for planning and maintaining dedicated pilot lines prevent small and medium-sized enterprises (SMEs) from the application. Hence, SMEs require different tools for piloting and training during the production ramp-up. Learning islands on which employees can be trained through induced and autonomous learning propose a solution. In this work, a concept for the development and application which contains the required organization, activities, and materials is developed through expert interviews. The results of a case study application with a medium-sized automotive manufacturer show that learning islands are a viable tool for employee qualification and process verification during the ramp-up of mixed-model lines.
Development of an IoT-based inventory management solution and training module using smart bins
(2023)
Flexibility, transparency and changeability of warehouse environments are playing an increasingly important role to achieve a cost-efficient production of small batch sizes. This results in increasing requirements for warehouses in terms of flexibility, scalability, reconfigurability and transparency of material and information flows to deal with large number of different components and variable material and information flows due to small batch sizes. Therefore, an IoT-based inventory management solution and training module has been developed, implemented and validated at Werk150 – the Factory on campus of the ESB Business School. Key elements of the developed solution are smart bins using weight mats to track the bin’s content and additional sensors and buttons which are connected to an IoT – Hub to collect data of material consumption and manual handling operations. The use of weight mats for the smart bins offers the possibility to measure the container content independent of the specific component geometry and thus for a variety of components based on the specific component weights. The developed solution enables focusing on key for success elements of the system to provide synchronization of the flow of materials and information resulting an increase of flexibility and significantly higher transparency of the material flow. AIbased algorithms are applied to analyse the gathered data and to initiate process optimizations by providing the logistics decision makers a profound and transparent basis for decision making. In order to provide students and industry visitors of the learning factory with the necessary competences and to support the transfer into practice, a training module on IoT-based inventory management was developed and implemented.
Circular economy aims to support reuse and extends the product life cycles through repair, remanufacturing, upgrades and retrofits, as well as closing material cycles through recycling. To successfully manage the necessary transformation processes to circular economy, manufacturing enterprises rely on the competency of their employees. The definition of competency requirements for circular economy-oriented production networks will contribute to the operationalization of circular economy. The International Association of Learning Factories (IALF) statesin its mission the development of learning systems addressing these challenges for training of students and further education of industry employees. To identify the required competencies for circular economy, the major changes of the product life cycle phases have been investigated based on the state of the science and compared to the socio-technical infrastructure and thematic fields of the learning factories considered in this paper. To operationalize the circular economy approach in the product design and production phase in learning factories, an approach for a cross learning factory network (so called "Cross Learning Factory Product Production System (CLFPPS)") has been developed. The proposed CLFPPS represents a network on the design dimensions of learning factories. This approach contributes to the promotion of circular economy in learning factories as it makes use of and combines the focus areas of different learning factories. This enables the CLFPPS to offer a holistic view on the product life cycle in production networks.
The world is becoming increasingly digital. People have become used to learning and interacting with the world around them through technology, accelerated even further by the Covid-19 pandemic. This is especially relevant to the generation currently entering education systems and the workforce. Considering digital aids and methods of learning are important for future learning. The increasing online learning needs open the case for integrating digital learning aspects such as serious gaming within education and training systems. Learning factories fall amongst the education and training systems that can benefit from integration with digital learning extensions. Digital capabilities such as digital twins and models further enable the exploration of integrating digital serious games as an extension of learning factories. Since learning factories are meant for a range of different learning, training, and research purposes, such serious games need to be adaptable across stakeholder perspectives to maximize the value gained from the time and cost invested into such design and development. Research into the development of adaptive serious games for multiple stakeholder perspectives must first determine whether such development can be developed that reaches the objectives set for different included stakeholder perspectives. The purpose of this research is to investigate this at the hand of the practical development of a digital adaptive serious game for stakeholder perspectives.
Product engineering and subsequent phases of product lifecycles are predominantly managed in isolation. Companies therefore do not fully exploit potentials through using data from smart factories and product usage. The novel intelligent and integrated Product Lifecycle Management (i²PLM) describes an approach that uses these data for product engineering. This paper describes the i²PLM, shows the cause-and-effect relationships in this context and presents in detail the validation of the approach. The i²PLM is applied and validated on a smart product in an industrial research environment. Here, the subsequent generation of a smart lunchbox is developed based on production and sensor data. The results of the validation give indications for further improvements of the i²PLM. This paper describes how to integrate the i²PLM into a learning factory.
Governments and public institutions increasingly embrace digital opportunities to involve citizens in public issues and decision making. While public participation is generally seen as an important and promising venture, the design of the participation processes and the utilized digital infrastructure poses challenges, especially to the public sector. Instead of limiting conceptual guidance and exchange to one domain, we therefore develop a taxonomy for digital involvement projects that unites the domains of e-participation, citizen science and crowd-X. Embedded in a design science research approach, we follow an iterative design process to elaborate the key characteristics of a digital involvement project based on the participation process, its individuals and digital infrastructure. Through evaluating the artifact in a focus group with domain practitioners, we find support for the usefulness of our taxonomy and its ability to provide guidance and a basis for discussion of digital involvement projects across domains.
The 17 SDGs, as agreed upon by the international community, are designed to be implemented across all levels of human activity. Alongside the level of international politics, this also includes the local levels, national politics, wider society, and the economic sphere. Many channels are called on to further implementation, including the transfer of technology to developing and emerging countries. As the patent holders, this must include the active participation of companies. While the literature examines the important role of technology transfer in North-South business-to-business (B2B) partnerships, studies on the technology transfer between European and African companies are scarce. Therefore, in this study we use original data from 26 interviews conducted with managers engaged in sales partnerships between German manufacturers and their distributors in African markets to examine the existence and forms of technology transfer. We find that training and marketing excellence are the predominant forms of technology transfer and based on that suggest a refinement of established frameworks on B2B technology transfer.
The dawn of the 21st Century has witnessed a tremendous increase in trade pacts among nations, resulting in renewed hopes for sustainable enterprise development in emerging economies worldwide. Ghana and other sub-Saharan African (SSA) countries have signed onto several North-South and South-South free trade agreements with the hope of strengthening their presence in the international trade arena, and to promote economic growth in SSA. For over two decades, however, very little has changed, and many have dashed their high hopes as enterprises continue to struggle in SSA. Not even the African Continental Free Trade Agreement (AfCFTA) could renew the hopes of sceptics. Several studies opined that enterprises in SSA could improve their domestic and international competitiveness by establishing mutually beneficial partnerships with their counterparts from the Global North and South. This study delved into the issues that affect North-South and South-South business collaborations and recommends key success factors that could help promote mutually beneficial cross-border business partnerships. The research includes both literature and empirical information on the key success factors of business partnerships between African enterprises as well as between African enterprises and firms from the Global North. We approached the study qualitatively using a phenomenological research design. Research participants included important stakeholders in Africa and Europe's international trade and sustainable enterprise development ecosystem. The study identified several challenges with the current business collaborations and recommended new ways of making such partnerships more beneficial.
The fifth mobile communications generation (5G) can lead to a substantial change in companies enabling the full capability of wireless industrial communication. 5G with its key features of providing Enhanced Mobile Broadband, Ultra-Reliable and Low-Latency Communication, and Massive Machine Type Communication will support the implementation of Industry 4.0 applications. In particular, the possibility to set-up Non-Public Networks provides the opportunity of 5G communication in factories and ensures sole access to the 5G infrastructure offering new opportunities for companies to implement innovative mobile applications. Currently there exist various concepts, ideas, and projects for 5G applications in an industrial environment. However, the global rollout of 5G systems is a continuous process based on various stages defined by the global initiative 3rd Generation Partnership Project that develops and specifies the 5G telecommunication standard. Accordingly, some services are currently still far from their final performance capability or not yet implemented. Additionally, research lacks in clarifying the general suitability of 5G regarding frequently mentioned 5G use cases. This paper aims to identify relevant 5G use cases for intralogistics and evaluates their technical requirements regarding their practical feasibility throughout the upcoming 5G specifications.
The aim of this paper is to show to what extent Artificial Intelligence can be used to optimize forecasting capability in procurement as well as to compare AI with traditional statistic methods. At the same time this article presents the status quo of the research project ANIMATE. The project applies Artificial Intelligence to forecast customer orders in medium-sized companies.
Precise forecasts are essential for companies. For planning, decision making and controlling. Forecasts are applied, e.g. in the areas of supply chain, production or purchasing. Medium-sized companies have major challenges in using suitable methods to improve their forecasting ability.
Companies often use proven methods such as classical statistics as the ARIMA algorithm. However, simple statistics often fail while applied for complex non-linear predictions.
Initial results show that even a simple MLP ANN produces better results than traditional statistic methods. Furthermore, a baseline (Implicit Sales Expectation) of the company was used to compare the performance. This comparison also shows that the proposed AI method is superior.
Until the developed method becomes part of corporate practice, it must be further optimized. The model has difficulties with strong declines, for example due to holidays. The authors are certain that the model can be further improved. For example, through more advanced methods, such as a FilterNet, but also through more data, such as external data on holiday periods.
Industrial practice is characterized by random events, also referred to as internal and external turbulences, which disturb the target-oriented planning and execution of production and logistics processes. Methods of probabilistic forecasting, in contrast to single value predictions, allow an estimation of the probability of various future outcomes of a random variable in the form of a probability density function instead of predicting the probability of a specific single outcome. Probabilistic forecasting methods, which are embedded into the analytics process to gain insights for the future based on historical data, therefore offer great potential for incorporating uncertainty into planning and control in industrial environments. In order to familiarize students with these potentials, a training module on the application of probabilistic forecasting methods in production and intralogistics was developed in the learning factory 'Werk150' of the ESB Business School (Reutlingen University). The theoretical introduction to the topic of analytics, probabilistic forecasting methods and the transition to the application domain of intralogistics is done based on examples from other disciplines such as weather forecasting and energy consumption forecasting. In addition, data sets of the learning factory are used to familiarize the students with the steps of the analytics process in a practice-oriented manner. After this, the students are given the task of identifying the influencing factors and required information to capture intralogistics turbulences based on defined turbulence scenarios (e.g. failure of a logistical resource) in the learning factory. Within practical production scenario runs, the students apply probabilistic forecasting using and comparing different probabilistic forecasting methods. The graduate training module allows the students to experience the potentials of using probabilistic forecasting methods to improve production and intralogistics processes in context with turbulences and to build up corresponding professional and methodological competencies.
Job advertisements are important means of communicating role expectations for management accountants to the labor market. They provide information about which roles of management accountants are sought by companies or which roles are expected. However, which roles are communicated in job advertisements is unknown so far. Using a large sample of 889 job ads and a text-mining approach, we show an apparent mix of different role types with a strong focus on a rather classic role: the watchdog role. However, individuals with business partner characteristics are more often sought for leadership positions or in family businesses and small and medium-sized enterprises (SMEs). The results challenge the current role discussion for management accountants as business partners in practice and some academic fields.
Especially, if the potential of technical and organizational measures for ergonomic workplace design is limited, exoskeletons can be considered as innovative ergonomic aids to reduce the physical workload of workers. Recent scientific findings from ergonomic analyses with and without exoskeletons are indicating that strain reduction can be achieved, particularly at workplaces with lifting, holding, and carrying processes. Currently, a work system design method is under development incorporating criteria and characteristics for the design of work systems in which a human worker is supported by an exoskeleton. Based on the properties of common passive and active exoskeletons, factors influencing the human on which an exoskeleton can have a positive or negative effect (e.g. additional weight) were derived. The method will be validated by the conceptualization and setup of several work system demonstrators at Werk150, the factory of ESB Business School on campus of Reutlingen University, to prove the positive ergonomic effect on humans and the supporting process to choose the suitable exoskeleton. The developed method and demonstrators enable the user to experience the positive ergonomic effects of exoskeletal support in lifting, holding and carrying processes in logistics and production. The new work system design method will contribute to the fact that employees can pursue their professional activity longer without substantial injuries or can be used more flexibly at different work stations. Also new work concepts, strategies and scenarios are opened up to reduce the risk of occupational accidents and to promote the compatibility of work for employees. A training module is being developed and evaluated with participants from industry and master students to build up competence.
The early involvement of experiences gained through intelligence and data analysis is becoming increasingly important in order to develop new products, leading to a completely different conception of product creation, development and engineering processes using the advantages that the dedication of the digital twin entails. Introducing a novel stage gate process in order to be holistically anchored in learning factories adopting idea generation and idea screening in an early stage, beta testing of first prototypes, technical implementation in real production scenarios, business analysis, market evaluation, pricing, service models as well as innovative social media portals. Corresponding product modelling in the sense of sustainability, circular economy, and data analytics forecasts the product on the market both before and after market launch with the interlinking of data interpretation nearby in real-time. The digital twin represents the link between the digital model and the digital shadow. Additionally, the connection of the digital twin with the product provides constantly updated operating status and process data as well as mapping of technical properties and real-world behaviours. A future-networking product, by embedded information technology with the ability to initiate and carry out one's own further development, is able to interact with people and environments and thus is relevant to the way of life of future generations. In today's development work for this new product creation approach, on one hand, "Werk150" is the object of the development itself and on the other hand the validation environment. In the next step, new learning modules and scenarios for trainings at master level will be derived from these findings.
Process risks are omnipresent in the corporate world and repeatedly present organizations with the challenge of how to deal with these risks. Efforts in trying to analyze and prevent these risks are costly and require many resources, which do not always bring the desired added value. The goal of this work is to determine how a benefit-oriented resource allocation can be made for risk-oriented process management. For this purpose, the following research question is posed: "How can systematic prioritization decisions regarding risk-oriented process management be made?” To answer it, an evaluation procedure is developed which assesses processes based on their characteristics regarding potential risk disposition as well as entrepreneurial relevance. For this purpose, requirements for such a procedure are first collected and used to define selection criteria for it. After the detailed analysis of known selection and evaluation procedures, one of them is selected and used for further development. Next steps include the definition of relevant criteria for the evaluation of the processes by examining process characteristics regarding their suitability for process evaluation. The focus here lies on characteristics that provide indications of the risk disposition and business relevance of processes. The result of this approach is a scoring model with a criteria catalog consisting of 15 criteria according to which a process is evaluated. The evaluation result is presented both numerically and in a matrix. This enables the comparison of several processes and a derived prioritization of those for a more in-depth risk analysis. The application of this approach will ensure a benefit-oriented allocation of resources in the management of process risks and increased process reliability.
Production systems are becoming increasingly complex, which means that the main task of industrial maintenance, ensuring the technical availability of a production system, is also becoming increasingly difficult. The previous focus of maintenance efforts on individual machines must give way to a holistic view encompassing the whole production system. Against this background, the technical availability of a production system must be redefined. The aim of this publication is to present different definition approaches of production systems’ availability and to demonstrate the effects of random machine failures on the key figures considering the complexity of the production system using a discrete event simulation.
The time has come : application of artificial intelligence in small- and medium-sized enterprises
(2022)
Artificial intelligence (AI) is not yet widely used in small- and medium-sized industrial enterprises (SME). The reasons for this are manifold and range from not understanding use cases, not enough trained employees, to too little data. This article presents a successful design-oriented case study at a medium-sized company, where the described reasons are present. In this study, future demand forecasts are generated based on historical demand data for products at a material number level using a gradient boosting machine (GBM). An improvement of 15% on the status quo (i.e. based on the root mean squared error) could be achieved with rather simple techniques. Hence, the motivation, the method, and the first results are presented. Concluding challenges, from which practical users should derive learning experiences and impulses for their own projects, are addressed.
Demand forecasting intermittent time series is a challenging business problem. Companies have difficulties in forecasting this particular form of demand pattern. On the one hand, it is characterized by many non-demand periods and therefore classical statistical forecasting algorithms, such as ARIMA, only work to a limited extent. On the other hand, companies often cannot meet the requirements for good forecasting models, such as providing sufficient training data. The recent major advances of artificial intelligence in applications are largely based on transfer learning. In this paper, we investigate whether this method, originating from computer vision, can improve the forecasting quality of intermittent demand time series using deep learning models. Our empirical results show that, in total, transfer learning can reduce the mean square error by 65 percent. We also show that especially short (65 percent reduction) and medium long (91 percent reduction) time series benefit from this approach.
The imparting of knowledge and skills in STEM education, especially under the influence of the Covid-19 pandemic, is increasingly taking place online and through digital formats. The partially asynchronous instruction eliminates, on the one hand, the social relation in the learning process and, on the other hand, the direct experience with physical objects. Here, the digital learning systems provide learning tools and controls to support the learning process on a general basis. Existing methods for simulating physical objects (digital twins) are also used to a minimal extent. The following approach presents a learning system framework that enables individualized learning, including all dimensions (social, physical). Implementing a concept that uses a personalized assistance system to orchestrate the individual learning steps enables efficient and effective learning. Applying the learning system framework exemplifies the STEM education at Reutlingen University in the logistics learning factory Werk150.
In times of climate change and growing urbanization, the way food is produced and consumed also changes. Meanwhile, digitization is transforming farming practices, which also applies to the domestic growing of crops. More and more so-called smart home farms (SHF) are finding their way into private households. This paper conceptualizes the unique nature of enabled smart services and their underlying technology. Following an inductive interpretive approach, this study explores the antecedents of smart home farming practices. Our sample consists of eleven actual smart home farmers. We found six constructs to be of salient importance: expected outcomes related to harvesting, positive feelings, and sustainability; a combination of one's affinity for green and novel technologies; and the smartness and visibility of the enabled services. In the outlook, we present some preliminary thoughts for testing our qualitative findings.
Since project managers still face problems in managing interorganizational R&D projects, it is a promising approach to manage these projects project-culturally-aware. However, an important prerequisite for a project-culture-aware management is that the involved individual organizations pursue a collaborative strategy. Therefore, our article provides a conceptual approach including a new tool, the Collaborative Iron Triangle, which supports both project sponsors and managers in different phases of the collaboration process to pursue a collaborative strategy in interorganizational R&D projects.
Recently, blockchain-based tokens have earned an important role in fields such as the art market or online gaming. First approaches exist, which adopt the potentials of blockchain tokens in supply chain management to increase transparency, visibility, automation, and disintermediation of supply chains. In context, the tokenization of assets in supply chains refers to the practice of creating virtual representations of physical assets on the blockchain. Solutions in supply chain management based on the tokenization of assets vary in terms of application objectives, token types, asset characteristics, as well as the complexities of supply chain events to be mapped on the blockchain. Currently, however, no review exists that summarizes the characteristics of blockchain-based tokens and their scope of applications. This paper provides a clear terminological distinction of existing blockchain token types and therefore distinguishes between fungible tokens, non-fungible tokens, smart non-fungible tokens, and dynamic smart non-fungible tokens. Subsequently, the token types are classified regarding their traceability, modifiability, and authorization to evaluate suitability for mapping assets in supply chains. Given the potential of blockchain in supply chain management, the results of the review serve as a foundation for a practical guide supporting the selection process of suitable token types for industrial applications.
Blockchain is a technology for the secure processing and verification of data transactions based on a distributed peer-to-peer network that uses cryptographic processes, consensus algorithms, and backward-linked blocks to make transactions virtually immutable. Within supply chain management, blockchain technology offer potentials in increasing supply chain transparency, visibility, automation, and efficiency. However, its complexity requires future employees to have comprehensive knowledge regarding the functionality of blockchain-based applications in order to be able to apply their benefits to scenarios in supply chain and production. Learning factories represent a suitable environment allowing learners to experience new technologies and to apply them to virtual and physical processes throughout value chains. This paper presents a concept to practically transfer knowledge about the technical functionality of blockchain technology to future engineers and software developers working within supply chains and production operations to sensitize them regarding the advantages of decentralized applications. First, the concept proposes methods to playfully convey immutable backward-linked blocks and the embedment of blockchain smart contracts. Subsequently, the students use this knowledge to develop blockchain-based application scenarios by means of an exemplary product in a learning factory environment. Finally, the developed solutions are implemented with the help of a prototypical decentralized application, which enables a holistic mapping of supply chain events.
This article explores the question of how sustainability and labour law are interrelated. The modern world of work is characterised by the growing social and environmental responsibility of companies. Especially in the post-COVID era, sustainability also plays an increasingly important role in the corporate context, which is also noticeable in the so-called ‘war for talent’. Achieving personal career goals is no longer enough for employees today. Corporate values and in particular the so-called ESG criteria (Environment, Social, Governance) are thus also becoming increasingly important in the employment relationship and in corporate reporting requirements. In terms of social sustainability, labour law instruments can, for example, promote the creation of a discrimination-free working environment, the introduction of flexible working time models or the protection of whistleblowers. From an ecological perspective, labour regulations are also suitable for implementing ‘green mobility’ and other measures to reduce companies’ ecological footprints. Working from home, which experienced a huge boom during the COVID-19 pandemic, is also sustainable, especially from an ecological point of view. Appropriate consideration of these sustainable work tools in future corporate social responsibility (CSR) strategies not only creates a competitive advantage but can also be beneficial in recruitment.
Imagine a world in which the search for tomorrow's trends of (software) products is not subject to a long and laborious data search but is possible with a single mouse click. Through the use of artificial intelligence (AI), this reality is made possible and is to be further advanced through research. The study therefore aims to provide an initial overview of the young research field. Based on research, expert interviews, company and student surveys, current application possibilities of AI in the innovation process (defined as Smart Innovation), existing challenges that slow down the further development are discussed in more detail and future application possibilities are presented. Finally, a recommendation for action is made for business, politics and science to help overcome the current obstacles together and thus drive the future of Smart Innovation.
Imagine a world in which the search for tomorrow's trends is not subject to a long and laborious data search but is possible with a single mouse click. Through the use of artificial intelligence (AI), this reality is made possible and is to be further advanced through research. The study therefore aims to provide an initial overview of the young research field. Based on research, expert interviews, company and student surveys, current application possibilities of AI in the innovation process (defined as Smart Innovation), existing challenges that slow down the further development are discussed in more detail and future application possibilities are presented. Finally, a recommendation for action is made for business, politics and science to help overcome the current obstacles together and thus drive the future of Smart Innovation.
Prior to the introduction of AI-based forecast models in the procurement department of an industrial retail company, we assessed the digital skills of the procurement employees and surveyed their attitudes toward a new digital technology. The aim of the survey was to ascertain important contextual factors which are likely to influence the acceptance and the successful use of the new forecast tool. What we find is that the digital skills of the employees show an intermediate level and that their attitudes toward key aspects of new digital technologies are largely positive. Thus, the conditions for high acceptance and the successful use of the models are good, as evidenced by the high intention of the procurement staff to use the models. In line with previous research, we find that the perceived usefulness of a new technology and the perceived ease of use are significant drivers of the willingness to use the new forecast tool.
Forecasting demand is challenging. Various products exhibit different demand patterns. While demand may be constant and regular for one product, it may be sporadic for another, as well as when demand occurs, it may fluctuate significantly. Forecasting errors are costly and result in obsolete inventory or unsatisfied demand. Methods from statistics, machine learning, and deep learning have been used to predict such demand patterns. Nevertheless, it is not clear for what demand pattern, which algorithm would achieve the best forecast. Therefore, even today a large number of models are used to forecast on a test period. The model with the best result on the test period is used for the actual forecast. This approach is computationally and time intensive and, in most cases, uneconomical. In our paper we show the possibility to use a machine learning classification algorithm, which predicts the best possible model based on the characteristics of a time series. The approach was developed and evaluated on a dataset from a B2B-technical-retailer. The machine learning classification algorithm achieves a mean ROC-AUC of 89%, which emphasizes the skill of the model.
Forecasting demand is challenging. Various products exhibit different demand patterns. While demand may be constant and regular for one product, it may be sporadic for another, as well as when demand occurs, it may fluctuate significantly. Forecasting errors are costly and result in obsolete inventory or unsatisfied demand. Methods from statistics, machine learning, and deep learning have been used to predict such demand patterns. Nevertheless, it is not clear for what demand pattern, which algorithm would achieve the best forecast. Therefore, even today a large number of models are used to forecast on a test period. The model with the best result on the test period is used for the actual forecast. This approach is computationally and time intensive and, in most cases, uneconomical. In our paper we show the possibility to use a machine learning classification algorithm, which predicts the best possible model based on the characteristics of a time series. The approach was developed and evaluated on a dataset from a B2B-technical-retailer. The machine learning classification algorithm achieves a mean ROC-AUC of 89%, which emphasizes the skill of the model.
So-called cloud-based management information systems are a fairly new phenomenon in management accounting in recent years. Quite a few companies (and especially their business managers and management accountants) do not always work via the cloud, but with hybrid solutions or on-premise solutions of ERP software such as SAP or Oracle, but often still with "manual" solutions such as Microsoft Excel.
This paper takes a holistic view on an IP-traceability process in interorganizational R&D projects, as a particular Open innovation mode, aiming at showing different technologies which can be used in the front and backend of a traceability process and discussing these technologies in terms of their suitability for data from creativity processes in these projects. To achieve this goal a two-stage literature review on different technologies in the context of traceability was conducted. Then, criteria were derived from the characteristics of data from creativity processes and of interorganizational R&D projects, with which the resulting technologies were discussed. At the end, recommendations regarding suitable technologies for tracing individual creativity artifacts in interorganizational R&D projects were given.
According to several surveys and statistics, the great majority of companies previously not accustomed to automation are piloting solutions to automate business processes. Those accustomed to automation also attempt to introduce more of it, focusing on automation-unfriendly processes that remained manual. However, when the decision on what and whether to automate is not trivial for evident reasons, even industry leaders may get stuck on an overwhelming question: where to begin automating? The question remains too often unanswered as state-of-the-art methods fail to consider the whole picture. This paper introduces a holistic approach to the decision-making for investments in automation. The method supports the iterative analysis and evaluation of operative processes, providing tools for a quantitative approach to the decision-making. Thanks to the method, a large pool of processes can be first considered and then filtered out in order to select the one that yields the best value for the automation in the specific context. After introducing the method, a case study is reported for validation before the discussion.
Forecasting intermittent and lumpy demand is challenging. Demand occurs only sporadically and, when it does, it can vary considerably. Forecast errors are costly, resulting in obsolescent stock or unmet demand. Methods from statistics, machine learning and deep learning have been used to predict such demand patterns. Traditional accuracy metrics are often employed to evaluate the forecasts, however these come with major drawbacks such as not taking horizontal and vertical shifts over the forecasting horizon into account, or indeed stock-keeping or opportunity costs. This results in a disadvantageous selection of methods in the context of intermittent and lumpy demand forecasts. In our study, we compare methods from statistics, machine learning and deep learning by applying a novel metric called Stock-keeping-oriented Prediction Error Costs (SPEC), which overcomes the drawbacks associated with traditional metrics. Taking the SPEC metric into account, the Croston algorithm achieves the best result, just ahead of a Long Short-Term Memory Neural Network.
Evaluation of human-robot order picking systems considering the evolution of object detection
(2022)
The automation of intralogistic processes is a major trend, but order picking, one of the core and most cost-intensive tasks in this field, remains mostly manual due to the flexibility required during picking. Reacting to its hard physical and ergonomic strain, the automation of this process is however highly relevant. Robotic picking system would enable the automation of this process from a technical point of view, but the necessity for the system to evolve in time, due to dynamics of logistic environments, faces operations with new challenges that are hardly treated in literature. This unknown scares potential investors, hindering the application of technically feasible solutions. In this paper, a model for the evaluation of the additional cost of training of automated systems during operations is presented, that also considers the savings enabled by the system after its evolution. The proposed approach, that considers different parameters such as capacity, ergonomics and cost, is validated with a case study and discussed.
Compared to the automotive sector, where automation is the rule, in many other less standardized sectors automation is still the exception. This could soon hurt the productivity of industrialized countries, where the unemployment is low and the population is aging. Phenomena like the recent downfall in productivity, due to lockdowns and social distancing for prevention of health hazards during the COVID19 pandemic, only add to the problem. For these reasons, the relevance, motivation and intention for more automation in less standardized sectors has probably never been higher. However, available statistics say that providers and users of technologies struggle to bring more automation into action in automation-unfriendly sectors. In this paper, we present a decision support method for investment in automation that tackles the problem: the STIC analysis. The method takes a holistic and quantitative approach tying together technological, context-related and economic input parameters and synthetizing them in a final economic indicator. Thanks to the modelling of such parameters, it is possible to gain sensibility on the technological and/or process adjustments that would have the highest impact on the efficiency of the automation, thereby delivering value for both technology users and technology providers.
Digitalization increases the pressure for companies to innovate. While current research on digital transformation mostly focuses on technological and management aspects, less attention has been paid to organizational culture and its influence on digital innovations. The purpose of this paper is to identify the characteristics of organizational culture that foster digital innovations. Based on a systematic literature review on three scholarly databases, we initially found 778 articles that were then narrowed down to a total number of 23 relevant articles through a methodical approach. After analyzing these articles, we determine nine characteristics of organizational culture that foster digital innovations: corporate entrepreneurship, digital awareness and necessity of innovations, digital skills and resources, ecosystem orientation, employee participation, agility and organizational structures, error culture and risk-taking, internal knowledge sharing and collaboration, customer and market orientation as well as open-mindedness and willingness to learn.
The blockchain technology represents a decentralized database that stores information securely in immutable data blocks. Regarding supply chain management, these characteristics offer potentials in increasing supply chain transparency, visibility, automation, and efficiency. In this context, first token-based mapping approaches exist to transfer certain manufacturing processes to the blockchain, such as the creation or assembly of parts as well as their transfer of ownership. However, the decentralized and immutable structure of blockchain technology also creates challenges when applying these token-based approaches to dynamic manufacturing processes. As a first step, this paper investigates existing mapping approaches and exemplifies weaknesses regarding their suitability for products with changeable configurations. Secondly, a concept is proposed to overcome these weaknesses by introducing logically coupled tokens embedded into a flexible smart contract structure. Finally, a concept for a token-based architecture is introduced to map manufacturing processes of products with changeable configurations.
While there has been increased digitization of private homes, only little has been done to understand these specific home technologies, how they serve consumers, among other issues. “Smart home technology” (SHT) refer to a wide range of artifacts from cleaning aids to energy advisors. Given this breadth, clarity surrounding the key characteristics and the multi-faceted impact of SHT is needed to conduct more directed research on SHT. We propose a taxonomy to help outline the salient intended outcomes of SHT. Through a process involving five iterations, we analyzed and classified 79 technologies (gathered from literature and industry reports). This uncovered seven dimensions encompassing 20 salient characteristics. We believe these dimensions/characteristics will help researchers and organizations better design and study the impacts of these technologies. Our long-term agenda is to use the proposed taxonomy for an exploratory inquiry to understand tensions occurring when personal and sustainability-related outcomes compete.
Global, competitive markets which are characterised by mass customisation and rapidly changing customer requirements force major changes in production styles and the configuration of manufacturing systems. As a result, factories may need to be regularly adapted and optimised to meet short-term requirements. One way to optimise the production process is the adaptation of the plant layout to the current or expected order situation. To determine whether a layout change is reasonable, a model of the current layout is needed. It is used to perform simulations and in the case of a layout change it serves as a basis for the reconfiguration process. To aid the selection of possible measurement systems, a requirements analysis was done to identify the important parameters for the creation of a digital shadow of a plant layout. Based on these parameters, a method is proposed for defining limit values and specifying exclusion criteria. The paper thus contributes to the development and application of systems that enable an automatic synchronisation of the real layout with the digital layout.
Coopetitive endeavors offer valuable strategic options for firms. Yet, many of them are failure-prone as partners must balance collective and private interest. While interpartner trust is considered central for alliance success, paradoxically, the role and dynamics of trust is still not understood. We synthesize a computational model, capturing relational dynamics of an alliance, encompassing coevolution of trust, partner contributions, and (relative) alliance interactions. Analyzing alliance dynamics using simulation we find and explore a tipping boundary, separating a regime of alliance failure and success. We identify implications for collaborative (aspirations) and private strategies (openness). Our analyses reveal that strategies informed by a static mental model of partner trust, contributions, and openness tend to yield subpar alliance results and hidden failure-risk. We discuss implications for management theory.
Today's logistics systems are characterized by uncertainty and constantly changing requirements. Rising demand for customized products, short product life cycles and a large number of variants increases the complexity of these systems enormously. In particular, intralogistics material flow systems must be able to adapt to changing conditions at short notice, with little effort and at low cost. To fulfil these requirements, the material flow system needs to be flexible in three important parameters, namely layout, throughput and product. While the scope of the flexibility parameters is described in literature, the respective effects on an intralogistics material flow system and the influencing factors are mostly unknown. This paper describes how flexibility parameters of an intralogistics system can be determined using a multi-method simulation. The study was conducted in the learning factory “Werk150” on the campus of Reutlingen University with its different means of transport and processes and validated in terms of practical experiments.
The production environment experiences copious challenges, but likewise discovers many new potential opportunities. To meet the new requirements, caused by the developments towards mass-customization, human-robot-cooperation (HRC) was identified as a key piece of technology and is becoming more and more important. HRC combines the strengths of robots, such as reliability, endurance and repeatability, with the strengths of humans, for instance flexibility and decision-making skills. Notwithstanding the high potential of HRC applications, the technology has not achieved a breakthrough in production so far. Studies have shown that one of the biggest obstacles for implementing HRC is the allocation of tasks. Another key technology that offers various opportunities to improve the production environment is Artificial Intelligence (AI). Therefore, this paper describes an AI supported method to improve the work organization in HRC in regards to the task-allocation. The aim of this method is to build a dynamic, semi-autonomous group work environment which keeps not just employee motivation at a high level, but also the product quality due to a decreased failure rate. The AI helps to detect the perfect condition in which the employee delivers the best performance and also supports at identifying the time when the worker leaves this optimal state. As soon as the employee reaches this trigger event, the allocation of the tasks adapts based on the identified stress. This adaptation aims to return the employee to the state of the optimal performance. In order to realize such a dynamic allocation, this method describes the creation of a pool with various interaction scenarios, as well as the AI supported recognition of the defined trigger event.
Manufacturing companies are confronted with external (e.g. short-term change of product configuration by the customer) and internal (e.g. production process deviations) turbulences which are affecting the performance of production. Predefined, centrally controlled logistics processes are limiting the possibilities of production to initiate countermeasures to react in an optimized way to these turbulences. The autonomous control of intralogistics offers a great potential to cope with these turbulences by using the respective flexibility corridors of production systems and applying intelligent logistic objects with decentralized decision and process execution capabilities to maintain a target-optimized production. A method for AI-based storage-location- and material-handling-optimization to achieve performance-optimized intralogistics system through continuous monitoring of performance-relevant parameters and influencing factors by using AI (e.g. for pattern recognition) has been developed. To provide the basis to investigate and demonstrate the potentials of autonomously controlled intralogistics in connection with turbulences of production and in combination with AI, an intelligent warehouse involving an indoor localization system, smart bins, manual, semi-automated/collaborative and autonomous transport systems has been developed and implemented at Werk150, the factory on campus of ESB Business School (Reutlingen University). This scenario, which has been integrated into graduate training modules, allows the analysis and demonstration of different measures of intralogistics to cope with turbulences in production involving amongst others storage and material provision processes. The target fulfilment of the applied intralogistics measures to master arising turbulences is assessed based on the overall performance of production considering lead times and adherence to delivery dates. By applying artificial intelligence (AI) algorithms the intelligent logistical objects (smart bin, transport systems, etc.) as well as the entire logistics system should be enabled to improve their decision and process execution capabilities to master short-term turbulences in the production system autonomously.
Teaching at assembly workstations in production in SMEs (small and medium sized companies) often does not take place at all or only insufficiently. In addition to the lack of technical content, there are also aggravatingly incorrect movement sequences from an ergonomic point of view, which "untrained" people usually automatically acquire. An AI based approach is used to analyze a definite workflow for a specific assembly scope regarding the behavior of several employees. Based on these different behaviors, the AI gives feedback at which points in time, work steps and movement’s particularly dangerous incorrect postures occur. Motion capturing and digital human model simulation in combination with the results of the AI define the optimized workflow. Individual employees can be trained directly due to the fact that AI identifies their most serious incorrect postures and provide them with a direct analogy of their “wrong” posture and “easy on the joints posture”. With the assistance of various test persons, the AI can conduct a study in which the most frequently occurring incorrect postures can be identified. This could be realized in general or tailored to specific groups of people (e.g. "People over 1.90m tall must be particularly careful not to make the following mistake...). The approach will be tested and validated at the Werk150, the factory of the ESB Business School, on the campus of the Reutlingen University. The new gained knowledge will be used subsequently for training in SMEs.
Classification model of supply chain events regarding their transferability to blockchain technology
(2021)
The blockchain technology represents a decentralized database that stores information securely in immutable data blocks. Regarding supply chain management, these characteristics offer potentials in increasing supply chain transparency, visibility, automation, and efficiency. In this context, first token-based mapping approaches exist to transfer certain supply chain events to the blockchain, such as the creation or assembly of parts as well as their transfer of ownership. However, the decentralized and immutable structure of blockchain technology also creates challenges. In particular, the scalability, storage capacity, and the special requirements for storage formats make it currently impossible to map all supply chain events unrestrictedly on the blockchain. As a first step, this paper identifies important supply chain events for different use cases combining blockchain technology and supply chain management. Secondly, the supply chain events are classified in terms of their expected technical properties and their relevance for the respective use case. Finally, the identified supply chain events are evaluated regarding their transferability to blockchain technology and a classification model is introduced.
The seamless fusion of the virtual world of information with the real physical world of things is considered the key for mastering the increasing complexity of production networks in the context of Industry 4.0. This fusion, widely referred to as the Internet of Things (IoT), is primarily enabled through the use of automatic identification (Auto-ID) technologies as an interface between the two worlds. Existing Auto-ID technologies almost exclusively rely on artificial features or identifiers that are attached to an object for the sole purpose of identification. In fact, using artificial features for the purpose of identification causes additional efforts and is not even always applicable. This paper, therefore, follows an approach of using multiple natural object features defined by the technical product information from computer-aided design (CAD) models for direct identification. By extending optical instance-level 3D-Object recognition by means of additional non-optical sensors, a multi-sensor automatic identification system (AIS) is realised, capable of identifying unpackaged piece goods without the need for artificial identifiers. While the implementation of a prototype confirms the feasibility of the approach, first experiments show improved accuracy and distinctiveness in identification compared to optical instance-level 3D-Object recognition. This paper aims to introduce the concept of multisensor identification and to present the prototype multi-sensor AIS.
Ambitious goals set by the European Union strategy towards the emission reduction of multimodal logistic chains and new requirements for intermodal terminals set by the evolution of customer needs, contribute to a shift in the driver for the infrastructure development: from economy of scale to economy of density. This paper aims to present an innovative method for designing a process oriented technology chain for intermodal terminals in order to fulfill these new demanding requirements. The results of the case study of the Zero Emission Logistic Terminal Reutlingen are presented, highlighting how this particular context enables the design and development of a modular concept, paving the way for the generalization of the findings towards the transfer to similar contexts of other European cities.
Reacting to ever-changing business environments, in the last decade complex systems of systems accomplished giant leaps forward leading to great technological flexibility. However, this dimension of flexibility is often limited by the rigidity of super-ordinated planning systems. Especially when hybrid teams of automated and human resources are in place, the dynamic assignment of tasks taking into account ergonomics remains a challenge. After exposing a gap in the state of the art on the topic, this paper presents an approach to include ergonomics in dynamic resource allocation models. Combining and complementing existing approaches, the presented method monitors the actual ergonomic burden of the resources during a shift and it provides a linear optimization model to steer the resource allocation process.
Distributed ledger technologies such as the blockchain technology offer an innovative solution to increase visibility and security to reduce supply chain risks. This paper proposes a solution to increase the transparency and auditability of manufactured products in collaborative networks by adopting smart contract-based virtual identities. Compared with existing approaches, this extended smart contract-based solution offers manufacturing networks the possibility of involving privacy, content updating, and portability approaches to smart contracts. As a result, the solution is suitable for the dynamic administration of complex supply chains.
The planning and control of intralogistics systems in line with versatile production systems of smart factories requires new approaches and methods to cope with changing requirements within future factories. The planning of intralogistics can no longer follow a static, sequential approach as in the past since the planning assumptions are going to change in a high frequency. Reasons for these constant changes are amongst others external turbulences like rapidly changing market conditions, decreasing batch sizes down to customer-specific products with a batch size of one and on the other hand internal turbulences (like production and logistic resource breakdowns) affecting the production system. This paper gives an insight into research approaches and results how capabilities of intelligent logistical objects (intelligent bins, autonomous transport systems etc.) can be used to achieve a self-organized, cost and performance optimized intralogistics system with autonomously controlled process execution within versatile production environments. A first consistent method has been developed which has been validated and implemented within a scenario at the pilot factory Werk150 at the ESB Business School (Reutlingen University). Based on the incoming production orders, the method of the Extended Profitability Appraisal (EPA) covering the work system value to define the most effective work system for order fulfilment is applied. To derive the appropriate intralogistics processes, an autonomous control method involving principles of decentralized and target-oriented decision-making (e.g. intelligent bins are interacting with autonomously controlled transport systems to fulfil material orders of assembly workstations) has been developed and applied to achieve a target-optimized process execution. The results of the first stage research using predefined material sources and sinks described in this paper is going to set the basis for the further development of a self-organized and autonomously controlled method for intralogistics systems considering dynamic source and sink relations. By allowing dynamic shifts of production orders in the sense of dynamic source and sink relations the cost and performance aims of the intralogistics system can be directly aligned with the aims of the entire versatile production system in the sense of self-organized and autonomously controlled systems.
Learning factories on demand
(2021)
Learning Factories are research and learning environments that demonstrate new concepts and technologies for the industry in a practical environment. The interaction between physical and virtual components is a central aspect. The mediation and presentation usually occur directly in the learning factory and are thus limited in time and concerning the user group. A learning factory- on-demand- can be provided by dividing and virtualizing the individual components via containers and microservices. This enables both local operation and operation hybrid cloud or cloud systems. Physical components can be mapped either through standardized interfaces or suitable emulators. Using the example of the Learning Factory at Reutlingen University (Werk150), it will be shown how different use cases can be made available utilizing software-based orchestration, thus promoting broader and more independent teaching.
Planning of available resources considering ergonomics under deterministic highly variable demand
(2020)
In this paper, a method for hybrid short- to long-term planning of available resources for operations is presented, which is based on a known or deterministically forecasted but highly variable demand. The method considers quantitative measures such as the performance and the availability of resources, ergonomically relevant KPI and ultimately process costs in order to serve as a pragmatic planning tool for operations managers in SMEs. Specifically, the method enables exploiting the ergonomic advantages of available flexible automation technology (e.g. AGVs or picking robots), while assuring that these do not represent a capacity bottleneck. After presenting the method along with the necessary assumptions, mainly concerning the availability of data for the calculations, we report a case study that quantifies the impact of throughput variability on the selection of different process alternatives, where different teams of resources are used.
Companies are becoming aware of the potential risks arising from sustainability aspects in supply chains. These risks can affect ecological, economic or social aspects. One important element in managing those risks is improved transparency in supply chains by means of digital transformation. Innovative technologies like blockchain technology can be used to enforce transparency. In this paper, we present a smart contract-based Supply Chain Control Solution to reduce risks. Technological capabilities of the solution will be compared to a similar technology approach and evaluated regarding their benefits and challenges within the framework of supply chain models. As a result, the proposed solution is suitable for the dynamic administration of complex supply chains.
The supply of customer-specific products is leading to the increasing technical complexity of machines and plants in the manufacturing process. In order to ensure the availability of the machines and plants, maintenance is considered as an essential key. The application of cyber-physical systems enables the complexity to be mastered by improving the availability of information, implementing predictive maintenance strategies and the provision of all relevant information in real-time. The present research project deals with the development of a cost-effective and retrofittable smart maintenance system for the application of ultraviolet (UV) lamps. UV lamps are used in a variety of applications such as curing of materials and water disinfection, where UV lamps are still used instead of UV LED due to their higher effectiveness. The smart maintenance system enables continuous condition monitoring of the UV lamp through the integration of sensors. The data obtained are compared with data from existing lifetime models of UV lamps to provide information about the remaining useful lifetime of the UV lamp. This ensures needs-based maintenance measures and more efficient use of UV lamps. Furthermore, it is important to have accurate information on the remaining useful lifetime of a UV lamp, as the unplanned breakdown of a UV lamp can have far-reaching consequences. The key element is the functional model of the envisioned cyber-physical system, describing the dependencies between the sensors and actuator, the condition monitoring system as well as the IoT platform. Based on the requirements developed and the functional model, the necessary hardware and software are selected. Finally, the system is developed and retrofitted to a simulated curing process of a 3D printer to validate its functional capability. The developed system leads to improved information availability of the condition of UV lamps, predictive maintenance measures and context-related provision of information.
Rising consumption due to a growing world population and increasing prosperity, combined with a linear economic system have led to a sharp increase in garbage collection, general pollution of the environment and the threat of resource scarcity. At the same time, the perception of environmental protection becomes more sensitive as the consequences of neglecting sustainable business and eco-efficiency become more visible. The Circular Economy (CE) could reduce waste production and is able to decouple economic growth from resource consumption, but most of the products currently in use are not designed for the reuse-forms of the CE. In addition, the decision-making process of the End of-Usage (EoU) products regarding the following steps has further weaknesses in terms of economic attractiveness for the participants, which leads to low return rates and thus the disposal is often the only alternative.
This paper proposes a model of the decision-making process, which uses machine learning. For this purpose, a Machine Learning (ML) classification is created, by applying the waterfall model. An artificial neural network (ANN) uses information about the model, use phase and the obvious symptoms of the product to predict the condition of individual components. The resulting information can be used in a downstream economic and ecological evaluation to assess the possible next steps. To test this process comprehensive training data is simulated to train the ANN. The decentralized implementation, cost savings and the possibility of an incentive system for the return of an end-of-usage product could lead to increased return rates. Since electronic devices in particular are attractive for the CE, laptops are the reference object of this work. However, the obtained findings are easily applicable to other electronic devices.
Because of saturated markets and of the low profit margins in the sales of cars, car manufacturers focus more and more on profitable product related services. This paper deals with the question how to classify product related services in the automotive industry and which characteristic product related services are offered to the end-users (consumers) in a standardized format. Two research studies on the provided product related services in 2010 und 2017 by 15 car manufacturers and 20 exemplary automotive brands in Germany revealed that the application degree by the OEM (original equipment manufacturers) in these years increased considerably. While in 2010, the average range of services only amounted to 33%, the value in the automotive industry increased until 2017 to 57%.
Digital technologies are moving into physical products. Smart cars, connected lightbulbs and data-generating tennis rackets are examples of previously “pure” physical products that turned into “digitized products”. Digitizing products offers many use cases for consumers that will hopefully persuade them to buy these products. Yet, as revenues from selling digitized products will remain small in the near future, digitized product manufacturers have to look for other sources of benefits. Producer-side use cases describe how manufacturers can benefit internally from the digitized products they produce. Our article identifies three categories of such use cases: product-, service-, and process-related ones.
Increasing flexibility, greater transparency and faster adaptability play a key role in the development of future intralogistics. Ever-changing environmental conditions require easy extensibility and modifiability of existing bin systems. This research project explores approaches to transfer the Internet of Things (IoT) paradigm to intralogistics. This allows a synchronization of the material and information flow. The bin is enabled by the implementation of adequate hardware and software components to capture, store, process and forward data to selected system subscribers. Monitoring the processes in the intralogistics by means of the smart bin system ensures the implementation of appropriate actions in case of defined deviations. By using explorative expert interviews with representatives from the automotive and pharmaceutical industries, seven practical application scenarios were defined. On this basis, the requirements of smart bin systems were examined. For each individual case of application, a system model was created in order to obtain an overview of the system components and thus reveal similarities and differences. Based on the similarities of the system models, a general requirement profile was derived. After the hardware components of the bin system had been determined, a utility analysis was carried out to find the adequate IoT software. The utility analysis was conducted with a focus on data acquisition and data transfer, data storage, data analysis, data presentation as well as authorization management and data security. The results show that there is great interest in easily expandable and modifiable bin systems, as in all cases, the necessary information flow in the existing bin system has to be improved by means of new IoT hardware and software components.
The global demand for individualized products leading to decreasing production batch sizes requires innovative approaches how to organize production and logistics systems in a dynamic manner. Current material flow systems mainly rely on predefined system structures and processes, which result in a huge increase of complexity and effort for system and process changes to realize an optimized production and material provision of individualized products. Autonomous production and logistics entities in combination with intelligent products or logistic load carriers following the vision of the “Internet of Things” offer a promising solution for mastering this complexity based on autonomous, decentralized and target size-optimized decision making and structure formation without the need for predefined processes and central decision-making bodies. Customer orders are going to prioritize themselves and communicate directly with the required production and logistics resources. Bins containing the required materials are going to communicate with the conveyors or workers of the respective intralogistics system organizing and controlling the material flow to the autonomously selected workstation. A current research project is the development of a collaborative tugger train combing the potential of automation and human-robot collaboration in intralogistics. This tugger train is going to be integrated into a self organized intralogistics scenario involving individualized customer orders (low to high batch sizes). To classify the application of self-organization within intralogistics systems, a criteria catalogue has been developed. The application of this criteria catalogue will be demonstrated on the example of a self-organization scenario involving the collaborative tugger train and an intelligent bin system.
The 21st century: an era where emojis and hashtags find their way into every sentence, where taking selfies, live tweeting and mining bitcoin are the norm, and where Insta-culture dictates what we say and do. This is the era into which the digital native was born. With so many changes in every aspect of our lives, how is it that one of the most influential aspects, our education, has remained unchanged? Our education system not only fails to appeal to today’s students, but more importantly, it fails to equip them with the skills required in the 21st Century. It is thus of no surprise that industries feel graduates entering the workplace lack skills in critical thinking, problem solving and self-directed learning. AI, machine learning and big data: Tools and mechanisms we so eagerly incorporate to create smart factories yet are hesitant to use elsewhere. Gamification and games have shown great results in education and training; with most research suggesting a stronger focus on personalization and adaptation. When combined with analytics and machine learning, the potential of games is yet to be realized. A real-time adaptive game would not only always present an appropriate degree of challenge for the individual but would allow for a shift in focus from the recitation of facts, to the application of information filtered to solve the particular problem at hand. South Africa, a country faced with a severe skills gap, could benefit greatly from games. If used correctly, they may just offer a desperately needed contribution toward equipping both current and future employees with the skills needed to survive in the 21st century. This paper explores the feasibility of using such games for enhanced knowledge dissemination and the upskilling of the workforce.
Due to Industry 4.0, the full value creation has the chance to undergo a fundamental technological transformation, the realisation of which, however, requires the commitment of every company for its own benefit. The new approaches of Industry 4.0 are often hardly evaluated, let alone proven, so that SMEs in particular often cannot properly estimate the potentials and risks, and often waiting too long with the migration towards Industry 4.0. In addition, they often do not pursue an integrated concept in order to identify possible potentials through changes in their business models. . As part of the research project "GEN-I 4.0 – Geschäftsmodell-Entwicklung für die Industrie 4.0” ", the ESB Business School at Reutlingen University of Applied Sciences and the Fraunhofer Institute for Industrial Engineering and Organization FHG IAO were engaged by the Baden-Württemberg Foundation from 2016 to 2018 to develop tools and an approach how the local economy can develop digital business models for itself in a methodical, beneficial and targeted manner. Through international analyses and interviews GEN-I 4.0 gained and concretized the knowledge required for the evaluation and selection of solutions and approaches for the transfer to develop digital business models. Together with the know-how of the project partners on Industry 4.0 and business model development, the findings were incorporated into the development of two software tools with which SMEs are shown the potentials of Industry 4.0 for their individual business model, online and in selfassessment, and given a comprehensive structured, concrete approach to development, as well as their individual risk. Users of the tools are supported by the selected platform for the networking of different players to implement innovative business models accompanied by coaching concepts for the companies in the follow-up and implementation of the assessment results.
Changing requirements and qualification profiles of employees, increasingly complex digital systems up to artificial intelligence, missing standards for the seamless embedding of existing resources and unpredictable return on investments are just a few examples of the challenges of an SME in the age of digitalisation. In most cases there is a lack of suitable tools and methods to support companies in the digital transformation process in the value creation processes, but also of training and learning materials. A European research project (BITTMAS - Business Transformation towards Digitalisation and Smart systems, ERASMUS+, 2016-1 DE02-KA202-003437) with international partners from science, associations and industry has addressed this issue and developed various methods and instruments to support SMEs. Within the scope of a literature search, 16 suitable digitalisation concepts for production and logistics were identified. In the following, a learning platform with a literature database with multivariable sorting options according to branches and keywords of digitalisation, a video gallery with basic and advanced knowledge and a glossary were created in order to provide the user with consolidated and structured specialist knowledge. The 16 identifying concepts for transforming value-added processes in the context of digitalisation were transferred to a learning platform using developed learning paths in coaching and training to online course modules including test questions. A maturity model was developed and implemented in a self assessment tool for the analysis to identify the potential of digitalisation in production and logistics in relation to the current technological digitalisation level of the company. As a result, the user receives one or more of the 16 potential digitalisation concepts suggested or the delta for the necessary, not yet available enabler technologies is presented as a spider diagram. For a successful implementation of the identified suitable digitalisation concepts in production and logistics, a further tool was developed to identify supplementary requirements for all company divisions and stakeholders in relation to the "digital transformation" in the form of a self-evaluation. This paper presents the methods and tools developed, the accompanying learning materials and the learning platform.
The paper studies the deciding parameters that influence business students' selection of internships in Germany. The findings are based on literature research and a survey amongst students and company representatives and asks to rate the importance of 24 different aspects of internships. The benefits and negative impacts of internships on students, companies and universities are discussed in detail. The results of different demographic groups are compared.
Rapidly growing population and increasing amount of shipments induced by the e-commerce are two of the main reasons for the constantly rising urban freight traffic. Cities are therefore overwhelmed by a growing stream of goods and the available infrastructure, shared between people and goods traffic, often reached its maximum capacity. Phenomena such as traffic congestion, pollution and lack of space are direct consequences of this trend and their impact on the quality of life in the city is not negligible. City administrations are keen to evaluate innovative city logistics concepts and adopt alternative solutions, to overcome the challenges posed by such a dynamic environment, constrained in existing infrastructure. In this paper, a heuristic method based on the utility analysis is presented. Thanks to a modular approach accounting for stakeholders´ requirements, possible different scenarios and available technologies, the development of new city logistic concepts is supported. The proposed method is then applied to a case study concerning the city of Reutlingen (Germany). Results are presented and a brief discussion leads to the conclusion.
Powered by e-commerce and vital in the manufacturing industry, intralogistics became an increasingly important and labour-intensive process. In highly standardized automation-friendly environments, such as the automotive sector, most of efficiently automatable intralogistics tasks have already been automated. Due to aging population in EU and ergonomic regulations, the urge to automate intralogistics tasks became consistent also where product and process standardization is lower. That is the case of the production line or cell material supply process, where an increasing number of product variants and individually customized products combined with the necessary ability of reacting to changes in market conditions led to smaller and more frequent replenishment to the points of use in the production plant and to the chaotic addition of production cells in shop floor layout. This led in turn to inevitable traffic growth with unforeseeable related delays and increased level of safety threats and accidents. In this paper, we use the structured approach of the Quality Interaction Function Deployment to analyse the process of supply of assembly lines, seeking the most efficient combination of automation and manual labour, satisfying all stakeholders´ requirements. Results are presented and discussed.
In standardized sectors such as the automotive, the cost-benefit ratio of automation solutions is high as they contribute to increase capacity, decrease costs and improve product quality. In less standardized application fields, the contribution of automation to improvements in capacity, cost and quality blurs. The automation of complex and unstructured tasks requires sophisticated, expensive and low-performing systems, whose impact on product quality is oftentimes not directly perceived by customers. As a result, the full automation of process chains in the general manufacturing or the logistic sectors is often a sub optimal solution. Taking the distance from the false idea that a process should be either fully automated, or fully manual, this paper presents a novel heuristic method for design of lean human-robot interaction, the Quality Interaction Function Deployment, with the objective of the “right level of automation”. Functions are divided among human and automated agents and several automation scenarios are created and evaluated with respect to their compliance to the requirements of all process´ stakeholders. As a result, synergies among operators (manual tasks) and machines (automated tasks) are improved, thus reducing time-losses and increasing productivity.
Indoor localization systems are becoming more and more important with the digitalization of the industrial sector. Sensor data such as the current position of machines, transport vehicles, goods or tools represent an essential component of cyber physical production systems (CCPS). However, due to the high costs of these sensors, they are not widespread and are used mainly in special scenarios. However, especially optical indoor positioning systems (OIPS) based on cameras have certain advantages due to their technological specifications. In this paper, the application scenarios and requirements as well as their characteristics are presented and a classification approach of OIPS is introduced.
This paper addresses what we call the investment question: under what plausible circumstances, if any, can variable renewable energy (VRE, and solar photovoltaic (PV) in particular) be a good investment? Although VRE has been growing rapidly world-wide, it is generally subsidized. Under what cost and market conditions can solar PV flourish without subsidy? We employ solar insolation and market price data from the U.S. and from Germany to gain insight into the investment question. We find that unsubsidized solar PV is or may soon be a justifiable investment, but that market arrangements may play a crucial role in determining success. We end by sketching a proposal that amounts to a reformed capacity market that would afford participation of solar PV.
A shift in attitudes to purchasing departments can be perceived. No longer is the chief goal solely to reduce costs; the procurement function is assuming strategic relevance in the business model, leveraging the supplier as a foundation for innovation. The knowledge accumulated by suppliers is accessed over the journey of long-term partnerships to streamline business practice. Businesses are finding themselves in increasingly competitive environments, and thus need to address inefficiencies in supplier management. “Procurement 4.0” is a concept used in discussing digitalisation in business processes, referring to the process of supplier relationship management and optimisation. This model and its application to supplier relationship management will be the focus of this article. Realising the efficiencies to be obtained in buyer-supplier relationships through “Procurement 4.0” will be explored, primarily through an emphasis on digitalisation of the relationship between the procurement department and supplier.
Milk-run systems are becoming more and more popular when it comes to in-plant material supply. Planning and dimensioning such a system poses challenges, which are difficult to overcome, especially in scenarios characterized by a large number of hard constraints and by well-established processes. This paper is set to ease the task of the planner by presenting an innovative flexible method for the planning and dimensioning of in-plant milk-run systems in high constrained scenarios. After an overview on tugger train systems and existing planning methods, an extensive description of the new method will be given. The new method proposed will be critically analyzed and discussed before suggesting forthcoming research.
Latest advancements in new technologies have made it possible to fully automate the in-plant material flow of small load carriers between the warehouse and the production or assembly line. However, none of methods available in literature fully addresses the planning and dimensioning problem of a logistic system based on these new autonomous technologies. This paper is set to present a method to estimate the fleet size of the new logistic system. After an overview on the state of the art, the method based on combinatorics and probability theory will be explained. A short discussion and suggestions for forthcoming research will conclude the paper.
The high system flexibility necessary for the full automation of complex and unstructured tasks leads to increased technological complexity, thus to higher costs and lower performance. In this paper, after an introduction to the different dimensions of flexibility, a method for flexible modular configuration and evaluation of systems of systems is introduced. The method starts from process requirements and, considering factors such as feasibility, development costs, market potential and effective impact on the current processes, enables the evaluation of a flexible systems of systems equipped with the needed functionalities before its actual development. This allows setting the focus on those aspects of flexibility that add market value to the system, thus promoting the efficient development of systems addressed to interested customers in intralogistics. An example of application of the method is given and discussed.
The high system flexibility necessary for the full automation of complex and unstructured tasks leads to increased complexity, thus higher costs. On the other hand, the effectiveness and performance of such systems decrease, explaining the unfulfilled potential of robotcs in sectors such as intralogistics, where the benefits of a robotic solution rarely justify its costs. Taking the distance from the false idea that a task should be either fully automated, or fully manual, this aper presents a method for design of a lean human-robot interaction (HRI) withe the objective of the "right level of automation", where functions are divided among human and automated agends, so that the overall process gains in performances and/or costs. ... The 10 progressive steps of the method are presented and discussed with reference to their graphical tool: the House of Quality Interaction.
In 2016, German car manufacturer the Audi Group (AUDI AG) was working on an expanding array of digital innovations. The goals of these innovations varied, and included strengthening customer- and employee-facing processes, digitally enhancing existing products, and developing new, potentially disruptive business models. Audi’s IT unit was critical to each of these efforts. Based on personal interviews with 11 IT- and non-IT executives at Audi, this case examines the different ways in which digitization can help to enhance and transform an organization’s processes, products, and business models. The case also highlights the challenges that arise as large companies “digitize.”
Recent digital technologies like the Internet of Things and Augmented Reality have brought IT into companies’ core products. What were previously purely physical products are becoming hybrid or digitized. Despite receiving a lot of recent attention, digitized products have only seen a slow uptake in businesses so far. In this paper, we study the challenges that keep companies from realizing the desired impacts of digitized products and the practices they employ to address these challenges. To do so, we looked at companies from a set of industries that are highly affected by digital transformation, but at the same time hesitant to move to a more digitized world: the creative industries. Based on a literature review and twelve interviews in creative industries, we developed a conceptual model that can serve as a basis for formulating testable hypotheses for further research in this area.
This paper models the political budget cycle with stochastic differential equations. The paper highlights the development of future volatility of the budget cycle. In fact, I confirm the proposition of a less volatile budget cycle in future. Moreover, I show that this trend is even amplified due to higher transparency. These findings are new evidence in the literature on electoral cycles. I calibrate a rigorous stochastic model on public deficit-to-GDP data for several countries from 1970 to 2012.
IT platforms as the foundation of digitized processes and products are vital in a digital economy. However, many companies’ platforms are liabilities, not strategic assets because of their complexity. Consequently, companies initiate IT complexity reduction programs. But these technology-centric programs at best provide temporary relief. Soon after, companies’ platforms become just as complex as before. Based on four case studies, we identify three non-technical drivers of platform complexity: (1) Lacking awareness of consequences business decisions have on platform complexity, (2) Lacking motivation to avoid platform complexity, (3) Lacking authority to protect platforms from complexity. We propose measures to address these drivers that can help achieve more sustainable impact on platform complexity: (1) Removing information asymmetries between those creating complexity and those dealing with complexity, (2) Redefining incentives to include long-term effects on platform complexity, (3) Redressing power imbalances between those who create complexity and those who have to manage it.
The success of an autonomous robotic system is influenced by several interdependent factors not easily identifiable. This paper is set to lay the foundation of a new integrated approach in order to deeply examine all the parameters and understand their contribution to success. After introducing the problem, two cutting edge autonomous systems for the process of unloading of containers will be presented. Then the STIC analysis, a recently developed method for modelling and interpreting all the parameters, will be introduced. The preliminary results of applying such a methodology to a first study case, based on one of the two systems available to the authors, will be shortly presented. Future research is in the end recommended in order to prove that this methodology is the only way to efficiently and effectively mitigate the risk that stops potential users from investing in autonomous systems in the logistics sector.
Real estate markets are known to fluctuate. The real estate market in Stuttgart, Germany, has been booming for more than a decade: square-meter price hit top levels and real estate agents claim that market prices will continue to increase. In this paper, we test this market understanding by developing and analyzing a system dynamics model that depicts the Stuttgart real estate market. Simulating the model explains oscillating behavior arising from significant time delays and endogenous feedback structures – and not necessarily oscillating interest rates, as market experts assume. Scenarios provide insights into the system's behavior reacting to changes exogenous to the model. The first scenario tests the market development under increasing interest rates. The other scenario deals with possible effects on the real estate market if the regional automotive economy suffers from intense competition with new market players entering with alternative fuel vehicles and new technologies. With a policy run we test market structure changes to eliminate cyclical effects. The paper confirms that the business cycle in the Stuttgart real estate market arises from within the system's underlying structure, thus emphasizing the importance of understanding feedback structures.
Strategic alliances have become important strategic options for firms to achieve competitive advantage. Yet, there are many examples of alliance failures. Scholars have studied this phenomenon and identified many reasons for alliance failure, including lack of trust between the partnering firms. Paradoxically, the concept of trust is still not fully understood, specifically how and under what conditions trust comes to break down within the broader process of alliance building. We synthesize a process model that describes the “alliance capability”, including trust, openness, partner contributions, and relational rents. We then translate this framework into a formal simulation model and analyze it thoroughly. In analyzing trust dynamics we identify and explore a tipping boundary, separating a regime of alliance failures and successes. We apply our core findings to openness strategies – decisions about how much knowledge to share with partners. Our analyses reveal that strategies informed by a static mental model of trust, contributions, and openness, under undervalue openness. Further, too little openness risks early failure due to the being trapped in a vicious cycle of trust depletion.
Digitization will require companies to fundamentally reengineer their sales processes. Adapting the concept of value selling to the digital age will enable them to deliver superior value to their customers. Specifically, social selling will provide them with an answer to the ever-increasing complexity of customer journeys. This article, based on a survey among 235 German companies, assesses the status quo and outlines opportunities. Moreover, it introduces a novel approach for developing well-grounded social selling metrics.
In an exploratory study about online communication of large and medium-sized B2B companies from the German state of Baden-Württemberg, their message content communicated via websites, and their websites' appeal for international prospects has been analyzed. It revealed many basic content items absent, making the site less attractive for further exploration, and difficult or international prospects to enter into a dialog, become leads, and possible customers. The subsequent survey elicited organizational backgrounds, available resources, and objectives for online communication. It could trace deficiencies back to a lack of understanding of the importance of digital communication for lead generation, and the customer journey in general, absence of a communication strategy, lack of urgency, and lack of resources to implement desired changes and additions to communication content.
Electronic word-of-mouth (eWoM) communication plays an increasingly important role in modern business. The underlying concept of word-of-mouth (WoM) communication is well researched and has proved highly significant in respect of its impact on customers purchase behavior. However, due to the advent of digital technologies, decision-making among customers is progressively shifting to the online world. Consequently, eWoM has received a lot of attention from the academic community. As multiple research papers focus on specific facets of eWoM, there is a need to integrate current research results systematically. Thus, this paper presents a scientific literature analysis in order to determine the current state-of-the-art in the field of eWoM. Five main research areas were analyzed, supporting the need for further eWoM studies and providing a structured overview of existing results.
Efficiency in supply chain risk management (SCRM) is a major topic in industries with serial production and a complex supply chain due to limited management and financial resources. A high number of possible risk situations and intertwined processes create a more challenging environment for resource allocation. Managers cannot perform SCRM in all possible supply chain areas and hence have to decide where available resources should be utilised for highest possible risk reduction. This makes it important to quickly and systematically evaluate input and output relationships among risk mitigation actions to determine which actions are deployed first for efficient risk level reduction. This paper introduces a new SCRM method based on the failure mode and effects analysis (FMEA) in order to perform an efficiency-oriented risk action prioritisation. By considering the cost-benefit evaluation of identified risk mitigation actions for each assessed risk and by determining the implementation effort for risk mitigation actions, also considered as the cost for realising a specific risk action the method allows finding those risk and risk mitigation actions, which are most efficient for risk reduction and should be implemented first in the process of risk steering.
Gamification, the use of game elements for non-gaming purposes, may just make a huge impact on education, a contribution the world in general and South Africa in particular, desperately needs. In today’s fast-paced work environment, there is not only a severe skills shortage, but also a great need for graduates with practical knowledge - students that are not purely “book smart”. Didactic teaching habits have created an education realm in which reciting facts is more often than not what gets students to pass. Learning factories are physical, operational factories that serve as exemplary and realistic hands-on learning environments and provide an important step towards more industry-prepared graduates. Top universities around the world are establishing such environments and are showing superb results. This paper explores the potential benefit of applying gamification in such a setting to enhance the learning environment even further, and provide opportunities for training otherwise difficult to teach topics, such as shop floor management.
During the first years of their employment, the graduates are a liability to industry. The employer goes an extra mile to bridge the gap between university-exiting and profitable employment of engineering graduates. Unfortunately some cannot take this risk. Given this scenario, this paper presents a learning factory approach as a platform for the application of knowledge so as to develop the required engineering competences in South African engineering graduates before they enter the labour market. It spells out the components of a Stellenbosch University Learning Factory geared towards production of engineering graduates with the required industrial skills. It elaborates on the didactics embedded in the learning factory environment, tailor-made to produce engineers who can productively contribute to the growth of the industry upon exiting the university.
Increasingly volatile market conditions and manufacturing environments combined with a rising demand for highly personalized products, the emergence of new technologies like cyber-physical systems and additive manufacturing as well as an increasing cross-linking of different entities (Industrie 4.0) will result in fundamental changes of future work and logistics systems. The place of production, the logistical network and the respective production system will underlie the requirements of constant changes and therefore sources and sinks of logistical networks have to obey the versatility of (cyber-physical) production systems. To cope with the arising complexity to control and monitor changeable production and logistics systems, decentralized control systems are the mean of choice since centralized systems are pushed to their limits in this regard. This paradigm shift will affect the overall concept under which production and logistics is planned, managed and controlled and how companies interact and collaborate within the emerging value chains by using dynamic methods to generate and execute the created network and to allocate available resources to fulfill the demand for customized products. In this field of research learning factories, like the ESB Logistics Learning Factory at ESB Business School (Reutlingen University), provide a great potential as a risk free test bed to develop new methods and technical solutions, to investigate new technologies regarding their practical use and to transfer the latest state of knowledge and specific competences into the training of students and professionals. Keeping with these guiding principles ESB Business School is transferring its existing production system into a cyber-physical production system to investigate innovative solutions for the design of human-machine collaboration and technical assistance systems as wells as to develop decentralized control methods for intralogistics systems following the requirements of changeable work systems including the respective design of dynamic inbound and outbound logistic networks.
It is assumed that more education leads to better understanding of complex systems. Some researchers claim, however, find indications that simple mechanisms like stocks and flows are not well understood even by people who have passed higher education. In this paper, we test people’s understanding of complex systems with the widely studied stock-and-flow (SF) tasks (Booth Sweeney and Sterman 2000). SF tasks assess people’s understanding of the interplay between stocks and flows. We investigate SF failure of domain experts and novices in different knowledge domains. In particular, we compare performance on the original study’s Bathtub task with the square wave pattern (Booth Sweeney and Sterman 2000) with two alternative cover stories from the engineering and business domains on different groups of business and engineering students from different semesters. Further, we show that, while engineering students perform better than business students, with progressing in higher education, students seem to lose the capability of dealing with simple SF tasks from domains other than their field. We thus find hints on déformation professionelle in higher education.
The financial crisis of 2007-2010 was probably one of the greatest, most lustrous black-swan events that people of our generation(s) will experience – and at its heart, it was a dynamic phenomenon. It is stated in the vision of the System Dynamics Society that we aspire to transform society by influencing decision-making. Yet, it seems as if system dynamics did not play any significant role in this crisis: we did not examine the markets, we did not provide insights to banks, and we did not warn governments or the people. In our presentation we describe the dynamics involved in a housing bubble, and describe what made the last one different. With the insights gained from this exercise we conclude that, from a system dynamics perspective, the dimension of the financial crisis of 2007-2009 was eminently foreseeable, which will lead us to pose the following question: where were we as a field while this crisis was unfolding, why were we not active players? We present a range of potential answers to this question, hoping to provoke some reflection… and maybe some (re)action.