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EXC 128:  Integrative Production Technology for High-Wage Countries

Subject Area Production Technology
Term from 2006 to 2018
Project identifier Deutsche Forschungsgemeinschaft (DFG) - Project number 25065172
 
Competition between manufacturing companies in high-wage and low-wage countries typically occurs within two dimensions: the production-oriented economy and the planning-oriented economy. Low-wage countries' productions focus on economies-of-scale, while high-wage countries try to combine scale and scope. Within the second dimension - the planning-oriented economy - companies in high-wage countries optimise processes with sophisticated, investment-intensive planning systems and production systems while companies in low-wage countries implement simple, robust value-stream-oriented process chains. To achieve a sustainable competitive advantage for production in high-wage countries, it is not sufficient to achieve a better position within one of the dichotomies "scale versus scope" and "planning-orientation versus value-orientation". The research questions must aim at the resolution of both dichotomies.
The cluster of excellence targets at increasing the competitiveness of German production science.
Overall solution hypothesis is the next step of integrating production technology. Industry in high-wage countries has found its competitive advantage in mature markets in individualising and customising products, which leads - despite efficient single processes - to a loss of economies-of-scale in the overall value chain. Through modularity and configuration logics for both products and production systems as well as advanced production technologies this dichotomy between economies-of-scope and economies-of-scale can be resolved. For some products the approach to solve the dichotomy between planning- and value-orientation is the hybridisation of production systems that aims at integrating different production processes, technologies and materials.
Additional hypothesis for solving this dichotomy are production systems based on mechanisms of self-optimisation, which can be developed and operated especially in high-wage countries with its highly skilled workforce. Integrative planning particularly in combination with high product variety requires high planning efforts. Hypothesis is the continuous virtualisation of production systems that aims at solving both dichotomies through increasing the number of plannable alternatives and reducing ramp-up activities combined with increasing first-time-right. Basis for all four hypotheses is the development of a production theory that comprises holistic description, interpretation and design models for production systems and ensures the efficient utilisation of all production resources.
DFG Programme Clusters of Excellence
 
 

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