Information Exchange in Global Production Networks: Increasing Transparency by Simulation, Statistical Experiments and Selection of Digitalization Activities

Abstract

Today, companies of all industries are part of global production networks. They have a variety of performance relationships with suppliers and customers. Digitalization offers the potential to exchange more information between the partners of global production networks. This may improve operational performance. Especially within the three business processes order management, quality problem solving and engineering change management, a targeted increase in transparency promises a better handling of disruptions and an increase in robustness. This paper presents a simulation-based methodology for modeling production and business processes as well as information exchange in global production networks. Following the principles of Design of Experiment (DoE), screening test plans first carve out the impact of disruptions and information exchange on the performance of the production network. This is followed by the determination of the disruption-robust information exchange using Taguchi-experiments. Starting from the actual state of information exchange, digitalization activities to increase transparency are finally determined. The activities consist of the implementation of digitalization technologies and the stronger linkage of information systems. The paper ends with an application of the methodology to a global production network for plastic-metal components in the automotive supplier industry.