Abstract
There has been a paradigm shift in how businesses manufacture products. Inter-firm manufacturing is a relatively new paradigm. This paper examines inter-firm manufacturing and presents an analytical framework in the light of a circular economy and green supply chain management. In developed countries, industry leadership is associated with manufacturing. Industry leaders are taking measures to encourage and prioritize manufacturing and establish new economies and business ecosystems across various industry sectors. This may be in the area of Information and communication technologies, pharma industries, 3D printing, food industries, housing, energy and utilities, businesses and financial services, and media. Today, various industries are shifting towards eco-friendly and sustainable businesses that align with circular economies and green supply chain management. For that purpose, a different analysis, one that associates performance metrics with an exergy analysis of industries in alignment with a circular economy and green supply chain management is necessary.
TopIntroduction
Manufacturing around the world depends on the optimization of costs and profits, logistics and supply chain management, product portfolio management and standardization. Manufacturing is a way to improve economic growth rates for countries. Making of products and services in the internet economy is going through phenomenal transformations. Technology has the capacity to significantly transform the designing and manufacturing of products. It also has the capacity to transform various service sectors. The business ecosystem of product accessories and product portfolio management are also supported by numerous small and medium industries. Many research publications have been written on the technology transformation of products and services e.g., transformative, frugal and reverse engineering (Wooldridge, 2010; Christensen, 1997; Raynor and Christensen 2003; Immelt et al., 2009).
Technologies and inventions have resulted in the creation of new products, upgrades, new processes and services that add economic value or good. New material sciences for additive manufacturing (AM), new AM methods and sensor integration into products are also recent advancements. Advanced composites in material science with enhanced performance are now being used in weight-sensitive applications in the aerospace industries, automobile industries and sports equipment (Spowart et al., 2018). Brands like Nike have involved customers on NikeID, an online shopping portal that lets customers customize shoe designs before purchase. Nike also encourages customers to generate ideas on product improvements and customization of Nike products. iPod sports kits and sensors have been used in Nike shoes for workout-based voice feedback and songs to motivate runners. Lego toys is another example of how value co-creation has facilitated and sourced customer’s independent creativity and fanbase for co-creativity and mass customization of Lego products on its websites. It has even encouraged youngsters in the age group of 4-12 year olds to engage in the customization and personalization of products for manufacturing of their co-designs (Roser et al., 2009). In the challenge of the product design process, production teams successfully resolved (1) identification and selection of the raw materials, (2) selection of technologies, (3) prototype production, (4) testing, (5) preparation of quality management procedures and documentation, (6) design of the production technology, (7) supply chain and logistics systems management, (8) making of the transport and storage equipment, and (9) outsourcing (HARTVÁNYI et al., 2023).
Key Terms in this Chapter
Lean Production: An adaptation of mass production that prizes quality and flexibility.
Project: A unique, one-time operation or effort.
Value Co-Creation: Co-Creating and customizing products with branded firms.
Green Supply Chain Management (GSCM): “GSCM encompasses a set of environmental practices that encourage improvements to the environmental practices of two or more organizations within the same supply chain”. Green supply chain management (GSCM) involves sustainable environmental processes built into conventional supply chains — from manufacturing to operations to end-of-life management — incorporating the principle of reduce, reuse, recycle, reclaim and degradable.
Value: The creation of value for the customer is an important aspect of supply chain management.
Services: Acts, deeds or performances that provide value to the customer.
Circular Economy: It is a change to the model in which resources are mined, made into products, and then become waste. A circular economy reduces material use, redesigns materials and products to be less resource intensive, and recaptures “waste” as a resource to manufacture new materials and products. (United States Environmental Protection Agency)
Project: The one-of-a-kind production of a product to customer order that requires a long time to complete and a large investment of funds and resources.
Supply Chain Management: Managing the flow of information, products, and services across a network of customers, enterprises, and supply chain partners.
Channels: The number of parallel servers.
Productivity: The ratio of output to input.
Outsourcing: Purchasing goods and services that were originally produced in-house from an outside supplier.
Logistics: The transportation and distribution of goods and services.
Reliability: The probability that a given part or product will perform its intended function for a specified period of time under normal conditions of use.
Procurement: Purchasing goods and services from suppliers.
Operations: A function or system that transforms inputs into outputs of greater value.
Production Design: The phase of product design concerned with how the product will be produced
Infrastructure: The physical support structures in a community, including roads, water and sewage systems, and utilities.
Rapid Prototyping: Quickly testing and revising a preliminary design model.
Inventory Insurance: Against supply chain uncertainty held between supply chain stages.
Matrix Organization: An organizational structure of project teams that includes members from various functional areas in the company.
Key Performance Indicators: A set of measures that help managers evaluate performance in critical areas.
Standardization: Using commonly available parts that are interchangeable among products
Reverse Engineering: Carefully dismantling and inspecting a competitor’s product to look for design features that can be incorporated into your own product.
Process: A group of related tasks with specific inputs and outputs.
Goods: Tangible objects that can be created and sold at a later date.
Product Lifecycle Management: Managing the entire lifecycle of a product
Efficiency: how well a machine or worker performs compared to a standard output level.
Sustainability: The ability to meet present needs without jeopardizing the needs of future generations.
Eco-Labeling: A seal of approval for environmentally safe products
Capacity: The maximum capability to produce.
Decision Analysis: A set of quantitative decision-making techniques to aid the decision maker in dealing with decision situations in which uncertainty exists.