Impact of New Technology and Sourcing Practices in Managing Manaufacturing Flexibilities

Abstract

Fast and dramatic changes in customer expectations, competition, and technology are creating an increasingly uncertain environment. To respond, manufacturers are seeking to enhance flexibility across the manufacturing system. Manufacturing flexibility has been heralded as a major competitive tool for manufacturing organizations to provide with the ability to change levels of production rapidly, to develop new products more quickly and more frequently, and to respond more rapidly to competitive threats and can be achieved through a variety of techniques and methods. The study has been conducted with an objective to assess the relative impact of new technology and sourcing practices on different flexibilities for the trade off associated with the strategic choice between different methods of achieving manufacturing flexibilities. The research has been carried out using flexible system methodology. The problem has been conceptualized as an S-A-P – L-A-P (Situation-Actor-Process – Learning-Action-Performance) paradigm. Various phases of the study have been to: clarifying the context through a detailed review of the literature; understanding and assessing the situation by conducting a survey of various manufacturing organizations of north India, using a peculiarly designed questionnaire; assessing the actor’s capability by critically assessing the case studies in few of the surveyed organizations; synthesis of the learning issues of survey and case studies; developing a management process to achieve the projected requirements of managing manufacturing flexibility; and finally recommending a systematic implementation plan for depicting the technology-sourcing-flexibility relationships at tactical and strategic level. The findings suggest that the adoption of IT enabled systems and infrastructural technology has helped the organizations to manage the manufacturing flexibilities needs effectively. Further, strategic sourcing (including joined knowledge contribution, creation of synergy and integrative interface with system suppliers) and manufacturing technology competence has significantly influenced the achievement of manufacturing flexibility at tactical and strategic level.