Strategy

Plant operators are getting more and more aware that operating costs are usually exceeding acquisition costs. For that reason there is an increased interest in methods like Life Cycle Costing (LCC) and Total Cost of Ownership (TCO). Weakness of these methods is their exclusive focus on costs. Because they do not allow differentiating benefits of various machines and plants, a holistic evaluation is difficult. The concept developed by the Institute of Production Engineering and Machine Tools (IFW) is concentrating on that issue, extending the Life Cycle Costing by a benefit assessment of investments.

The continuing change of producer markets towards buyer markets has a strong impact on the competition between manufacturing enterprises. As a strategic answer collaborative networks such as virtual corporations, virtual enterprises or virtual factories have been discussed since the beginning of the 90ies of last century. Many models and concepts supporting the life cycle of such organisations - consisting of the creation, operation and dissolution phases - have been presented. An important aspect in the creation phase is strategic planning. This phase is supported by concepts of long-term networks like industrial clusters or regional networks which act as a virtual breeding environment and which enable the short-term creation of virtual organisations. Especially this phase needs support of strategic planning which can be seen as a part of the strategic management process. This paper shows that such virtual breeding environments can be seen as complex systems and how system oriented ...

The development of changeable factory concepts influences the site competitiveness of producing companies. The impact of the underlying factory structure, the factory layout, and the logistics on the operating efficiency of a factory concept is unquestioned. The influence of future production technologies or products on the factory concept, however, is often neglected. In a cooperative project a new method has been derived which allows a holistic coordination of all three elements factory, technology and product.

Integrating products and services to customized hybrid products can help firms to differentiate from their competitors. The essential value proposition of such bundled offerings can comprise usage-based selling (e.g. of machines) combined with guaranteed availability or the operation of customers’ complex production factors such as a complete assembly line. Operational efficiency is no longer sufficient for achieving long term success with hybrid products. Rather it is the way of interaction with customers which provides new opportunities for value creation. In the context of hybrid products the way of creating value for customers changes from a purely transactional view to a relational process. Accordingly, this paper addresses this change from a process-oriented perspective.

The development of value propositions is key for leverage technological intelligence. Meaningful and sustaining attributes for differentiation are able to contribute significantly to long term growth if they are based on a value oriented business model. Well known from Service Industries, customer integration could be applied to other industries for product development, too. Associated risks can be detected and subsequently managed.

Strategic product planning and strategic technology planning is more important than ever. This planning is based upon the anticipation of market and technology developments. The article shows how new technologies are taken up and how they can be combined to coherent technology strategies. These help the companies to further develop the product range and to position themselves advantageously in the competition of tomorrow. A consistent example from the automotive lighting engineering underlines the high feasibility of the methodology.

Today continuous planning is a prerequisite for competitiveness. Methods are required, that allow the handling of complexity in rapidly changing and complex networks. Model based methods provide insight in these networks and therefore help realizing advantages in competition. The vision of a modeling plant for building the required models effectively and in an industrial scale and concepts for long term usage of models will make model-based methods attractive for the industry. The validation of planning results using a model will advance the quality of planning and thereby create advantages in competition.

industrial enterprises to permanently develop new strategies to differentiate themselves from their competitors. Besides product innovations, services complementing these products are increasingly used for differentiation purposes. But only the right combination of different services forming a service portfolio allows successful service offering. Therefore, a systematic engineering approach is required to compose a service portfolio that fits to a company’s potentials as well as to customer requirements. However, until today this aspect of service engineering is not continuously and systematically supported.

Processes of profound change are taking place in industrial manufacturing and the service sector, both nationally and internationally. If they are to be or remain competitive, enterprises must be able to adapt and evolve. These new demands are creating particular potentials for planning service providers to apply and offer their know-how as a service worldwide. Above all, the opportunity resulting from supplying services for the complete factory life cycle can be used to develop new customers and markets. Strategic marketing also enables a network of SME to carry out projects worldwide.

The start-up of production and logistics equipment in a production system is embedded in a superior start-up management. This has to manage the different types of ramp-ups in a value-added network efficiently regarding to products, processes and equipment. Planning uncertainties and multifaceted faults increase the equipment manufacturer’s cost and effort substantially, often lead to delays, partially to delayed start-ups, and tie the system manufacturer longer than planned on the ground. Due to these reasons, a holistic and integrated start-up management is required. Thus, the start-up process accelerates and the competitiveness of all involved companies improves significantly.