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Elastic manufacturing: provisioning and deprovisioning production capacity to vary product volume and mix

Accepted version
Peer-reviewed

Type

Article

Change log

Authors

Sousa-Zomer, TT 
Minshall, T 

Abstract

jats:sec<jats:title content-type="abstract-subheading">Purpose</jats:title>jats:pAdvancements in responsive manufacturing have been supporting companies over the last few decades. However, manufacturers now operate in a context of continuous uncertainty. This research paper explores a mechanism where companies can “elastically” provision and deprovision their production capacity, to enable them in coping with repeated disruptions. Such a mechanism is facilitated by the imitability and substitutability of production resources.</jats:p></jats:sec>jats:sec<jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title>jats:pAn inductive study was conducted using Gioia methodology for this theory generation research. Respondents from 20 UK manufacturing companies across multiple industrial sectors reflected on their experience during COVID-19. Resource-based view and resource dependence theory were employed to analyse the manufacturers' use of internal and external production resources.</jats:p></jats:sec>jats:sec<jats:title content-type="abstract-subheading">Findings</jats:title>jats:pThe study identifies elastic responses at four operational levels: production-line, factory, company and supply chain. Elastic responses that imposed variable-costs were particularly well-suited for coping with unforeseen disruptions. Further, the imitability and substitutability of manufacturers helped others produce alternate goods during the crisis.</jats:p></jats:sec>jats:sec<jats:title content-type="abstract-subheading">Originality/value</jats:title>jats:pWhile uniqueness of production capability helps manufacturers sustain competitive advantage against competitors during stable operations, imitability and substitutability are beneficial during a crisis. Successful manufacturing companies need to combine these two approaches to respond effectively to repeated disruptions in a context of ongoing uncertainties. The theoretical contribution is in characterising responsive manufacturing in terms of resource heterogeneity and resource homogeneity, with elastic resourcing as the underlying mechanism.</jats:p></jats:sec>

Description

Keywords

Cloud computing, COVID-19, Flexible manufacturing, Resource based view (RBV), Supply chain resilience

Journal Title

International Journal of Operations and Production Management

Conference Name

Journal ISSN

0144-3577
1758-6593

Volume Title

Publisher

Emerald
Sponsorship
EPSRC (via University of Nottingham) (EP/T024429/1)
Engineering and Physical Sciences Research Council (EP/R024367/1)
Department for Business, Energy and Industrial Strategy (EP/V062123/1)
ESRC (via University of Manchester) (R125208)