Production Systems and Supply Chain Management in Emerging Countries: Best Practices

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Production Systems and Supply Chain Management in Emerging Countries: Best Practices . Gonzalo Mejía Nubia Velasco Editors Production Systems and Supply Chain Management in Emerging Countries: Best Practices
Production Systems and Supply Chain Management in Emerging Countries: Best Practices . Gonzalo Mejía Nubia Velasco Editors Production Systems and Supply Chain Management in Emerging Countries: Best Practices Selected Papers from the International Conference on Production Research (ICPR) Editors Gonzalo Mejía Nubia Velasco Universidad de los Andes Dept. of Industrial Engineering Bogotá Colombia ISBN ISBN (ebook) DOI / Springer Heidelberg New York Dordrecht London Library of Congress Control Number: # Springer-Verlag Berlin Heidelberg 2012 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer Science+Business Media ( Preface Manufacturing is the soul of a region s economy. In an increasingly flat world, manufacturing organizations across the world are faced with a diverse range of challenges that are different for each region of our globe. For example, U.S. and European manufacturers are battling high labor costs, an aging workforce and governments without pro-active manufacturing strategies. Manufacturers in China are faced with high inflation and a strengthening currency. Their counterparts in India have the challenge of establishing their global credibility in terms of reliability and quality. In Latin America, manufacturing has traditionally flown under the radar except in Brazil. Today s flat world has allowed organizations in the different emerging regions of the world to communicate in a more streamlined fashion. It has also allowed different organization to integrate. Consider the new Boeing 787 Dreamliner. This long awaited airplane also happens to be the most technologically advanced is made mostly of composites and promises to transform the future of aviation. Equally notably, it has already changed aviation manufacturing paradigms. For example, the company has outsourced 70% of the production of the Dreamliner to 50 different manufacturers (or partners across 135 sites in four different continents. For example, the wings are made in Japan, the wing tips in Korea, the Horizontal Stabilizer in Italy, the landing gear in the U.K, the cargo doors in Sweden, the rudder from China and the fairing in Canada. According to Scott Strode, a Vice President at Boeing, the 787 not only will revolutionize air travels, it represents a new way of building airplanes. Just as importantly, the design and production database utilized (made by Dassault, France) allows these geographically distributed sites to be continuously linked so everyone works from the same set of drawings. The Boeing 787 Dreamliner production strategy points to the need not only for globally competitive manufacturing facilities, but also on robust supply chains that can (and may need) to bypass traditional infrastructural channels. For example, Boeing redesigned a few 747s into Dreamlifters that fly the components into the final assembly plants in Washington State and South Carolina. The need for a robust production and supply chain strategy is highlighted by the fact that despite their close attention to detail, executives attribute the long and v vi Preface embarrassing delays in the production of the Dreamliner to the number of suppliers and the supply chain. The story of the Boeing 787 has received much press and media attention. In fact, most media reports and archival case studies in manufacturing focus on high profile, multi-billion dollar companies. However, the fact remains that the bulk of manufacturing done world-wide is at small and medium sized companies. These companies, who have traditionally confined their footprint to national or regional boundaries are now facing global challenges, both in terms of competitiveness from their counterparts in geographically dispersed regions across the globe and also cost pressures. This book consists of carefully chosen chapters and drawn from papers presented at the International Conference of Production Research Americas Region held in Bogota in July The conference papers have been expanded to document relevant archival knowledge and specifically address the needs of these enterprises described above. The book is divided into four sections. The first section focuses on the different dimensions of operations management. It consists of three papers describing challenges faced by companies in Spain, Turkey and Colombia. The second section details the different aspects of planning for robust supply chains and logistics. While papers in this section are developed from challenges faced by Colombia organizations, the specific solution methodologies advocated can be extrapolated and implemented globally. For example, Colombia is one of the world s largest exporters of flowers. While flowers are beautiful and a simple expression of joy, the challenges faced in their handling and distribution are complex since they are fragile and have a short shelf life. Four diverse environments are detailed here flower distribution, patient transfers between facilities, pedestrian interactions in an intersection and finally, an emergency call center. The third section is more specific in addressing challenges of Production Planning and Scheduling. The strength of this book is the diversity of environments that it represents and in this section too, multiple environments are addressed including manufacturing, vehicle routing, a cash supply chain, and lastly, embedded systems. Finally the last section details three case studies including the pharmaceutical industry, industry-university interactions in low technology based organizations and finally a traditional machine shop that has successfully dealt with layout challenges utilizing lean manufacturing principles. This book will fill a gap in archived knowledge and help small and medium sized organizations face the multiple global challenges that are thrust upon them. I would like to congratulate the editors and the authors in developing this important publication. Sincerely Bopaya Bidanda Ernest Roth Professor of Industrial Engineering and Department Chair, Swanson School of Engineering Professor of Business Administration, Katz Graduate School of Business University of Pittsburgh Pittsburgh, PA Contents Part I Operation Management 1 Effect of Lean Manufacturing Practices on Non-financial Performance Results: Empirical Study in Spanish Sheltered Work Centers... 3 Juan A. Marin-Garcia, Paula Carneiro, and Cristóbal Miralles 2 An Information Approach to Deriving Domestic Water Demand: An Application to Bogotá, Colombia Ricardo Bonilla and Roberto Zarama 3 The Iron and Steel Sector and Economic Growth: Evidence from Turkey Umut G und uz Part II Logistics Planning 4 A Study of Cargo Receipt Logistics for Flower Exportation at El Dorado International Airport in Bogotá D.C Eliécer Gutiérrez, Frank Ballesteros, and José Fidel Torres 5 Multi-objective Optimization for Interfacility Patient Transfer.. 81 W.J. Guerrero, N. Velasco, and C.A. Amaya 6 A Multi-agent Simulation Model of a Signalized Intersection Considering Interaction Between Pedestrians and Vehicles H. Hoyos and J. Torres 7 Optimizing Resources Involved in the Reception of an Emergency Call P. Guaracao, D. Barrera, N. Velasco, and C.A. Amaya vii viii Contents Part III Production Planning and Scheduling 8 Vehicle Routing Nowadays: Compact Review and Emerging Problems Nacima Labadie and Christian Prins 9 Optimal Production Plan for a Stochastic System with Remanufacturing of Defective and Used Products O.S. Silva Filho 10 Stochastic Optimization of a Cash Supply Chain Hector Hernán Toro Diaz and Andres Felipe Osorio Muriel 11 From Embedded Systems Requirements to Physical Representation: A Model-Based Methodology in Accordance with the EIA-632 Standard Carlos Gomez, Philippe Esteban, Jean-Claude Pascal, and Fernando Jimenez Part IV Case Study in SMES 12 Technological Development in the Production Processes of Small and Medium Enterprises in the Pharmaceutical Sector in Bogotá, Colombia Bibiana M. Vallejo and Clara E. Plazas 13 Small Firms and Search Strategies to Access External Knowledge from Universities: An Empirical Approach in Low-Tech Firms Jose-Luis Hervas-Oliver, Joan-Josep Baixauli, and Bernardo Perez 14 Implementation of Lean Manufacturing Principles in a Colombian Machine Shop: Layout Redesign and Theory of Constrains Gonzalo Mejía and Diana Carolina Ramírez Index
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