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RERUN
RECODE International Symposium - Future Visions of
Manufacturing: Customisation, Redistribution and Technology
5-6 June, 2017
2
The Project Team: Who We Are
Prof Aris Syntetos
(Principal Investigator)
Prof Mohamed Naim Dr Ying Liu
The Academic Team
Dr Borja Ponte Dr Shixuan
3
Our Partners
Industry partners
3
The Project Team: Who We Are
4
4
Policy advisors
4
Our Partners
The Project Team: Who We Are
1. Background and motivation
5
Evolving from the traditional production model…
Source: Adapted from the
Centre for Resource Efficient
Manufacturing Systems (REMS)
1. Background and motivation
6
… into an emerging circular model.
Source: Centre for Resource Efficient
Manufacturing Systems (REMS)
1. Background and motivation
7
Remanufacturing
value is estimated at
$43 billion in the US
(USITC, 2012) and
EURO 30 billion in
the EU (ERN, 2015).
Source: innovateuk.org
1. Background and motivation
The environmental opportunity.
Source: University of Augsburg,
and Yale University
1. Background and motivation
9
“For businesses,
remanufacturing is about
retaining the value of products
and a client base”
Source: Lavery and Pennell (2013)
11
1. Background and motivation
CLOSED-LOOP CONTEXT
Two external sources of
uncertainty: demand and returns
Bill of materials and bill of
returns
TRADITIONAL CONTEXT
One external source of
uncertainty: demand
Bill of materials
Opportunity
Challenge
2. Research goals
Vision of the Project
To create a sustainable and resilient
world where remanufacturers and their
closed-loop networks have ‘visibility’
of returns and reflect such information
into circular economy compatible
inventory and production control
systems.
14
2. Research goals
Re
R u
N
15
2. Research goals
1. We aim to explore how
returns forecasting impacts
on the dynamic performance
of closed-loop supply chains.
This entails considering a ‘two-tailed’
uncertainty problem (demand and
returns), which has been barely picked
up by academic research.
16
2. Research goals
2. We aim to investigate how
informatics (cyber-physics, IoT,
Big Data) may contribute to a
better understanding of closed-
loop systems.
No studies have been found to address what data are
relevant to efficient inventory and production
management and how such data and any insights
uncovered can be interfaced with and then incorporated
into solving the problem.
17
2. Research goals
No studies to-date look at how returns forecasting and
the replenishment rules can be integrated in a systemic
way to optimise inventory and production management.
3. . We aim to design a systemic
solution based on the concept of
holons, given the integrated
nature of the supply chain.
The solution must be resilient to uncertainties and
disturbances, including the ‘two-tailed’ uncertainty.
18
3. The Project Plan
WP1:
Empirical
grounding of
research
• Aimed at identifying the streams of information
through which uncertainty manifests itself and thus
appreciate what forecasting approaches are most relevant
and how current systems models can be appropriately
expanded to capture uncertainty.
WP2: Theory
development
and empirical
testing
• Aimed at developing new theory on returns
forecasting and systems modelling in the
presence of uncertainty, and assess such
theoretical propositions (independently) for their
empirical validity.
WP3: ‘What if?’
analysis and
integrated
solution
• Aimed at establishing a suite of archetype
holons of forecasting and inventory &
production control for remanufacturing and
to ensure the practical relevance of our
propositions.
WP4:
Dashboard for
direct impact
• Aimed at developing a
dashboard for practical
applications and being generic
enough for wider exploitation by
the remanufacturing sector.
19
4. What the theory tells us
Modelling a generic structure of a closed-loop supply chain.
Order Receipt Finished products
Demand
D
Manufacturing
Order Receipt Finished products
DemandTarget
inventory
D
Manufacturing
Order Receipt Finished products
DemandForecastTarget
inventory
D
Manufacturing
Order Receipt Finished products
DemandForecastTarget
inventory
D
Work In
Progress
Target
WIP
Manufacturing
Order Receipt Finished products
DemandForecastTarget
inventory
D
Work In
Progress
Target
WIP
Manufacturing
D
Consumption
ReturnsD
Remanufacturing
Order Receipt Finished products
DemandForecastTarget
inventory
D
Work In
Progress
Target
WIP
Manufacturing
D
Consumption
ReturnsD
Remanufacturing
What’s in the pipeline?
-20
-15
-10
-5
0
5
10
15
20
25 1
4
7
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
55
58
61
64
67
70
73
76
79
82
85
88
91
94
97
100
103
106
109
112
115
118
121
124
127
130
133
136
139
142
145
148
151
154
Impact of returns pipeline visibility on the
'bullwhip' effect
Demand Orders (no pipeline information
Orders (some pipeline information) Orders (more pipeline information)
RERUN
Thank you for your attention.
We’re open for collaboration.
I can be contacted on:
NaimMM@Cardiff.ac.uk

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Re Run Project

  • 1. RERUN RECODE International Symposium - Future Visions of Manufacturing: Customisation, Redistribution and Technology 5-6 June, 2017
  • 2. 2 The Project Team: Who We Are Prof Aris Syntetos (Principal Investigator) Prof Mohamed Naim Dr Ying Liu The Academic Team Dr Borja Ponte Dr Shixuan
  • 3. 3 Our Partners Industry partners 3 The Project Team: Who We Are
  • 4. 4 4 Policy advisors 4 Our Partners The Project Team: Who We Are
  • 5. 1. Background and motivation 5 Evolving from the traditional production model… Source: Adapted from the Centre for Resource Efficient Manufacturing Systems (REMS)
  • 6. 1. Background and motivation 6 … into an emerging circular model. Source: Centre for Resource Efficient Manufacturing Systems (REMS)
  • 7. 1. Background and motivation 7 Remanufacturing value is estimated at $43 billion in the US (USITC, 2012) and EURO 30 billion in the EU (ERN, 2015). Source: innovateuk.org
  • 8. 1. Background and motivation The environmental opportunity. Source: University of Augsburg, and Yale University
  • 9. 1. Background and motivation 9 “For businesses, remanufacturing is about retaining the value of products and a client base” Source: Lavery and Pennell (2013)
  • 10. 11 1. Background and motivation CLOSED-LOOP CONTEXT Two external sources of uncertainty: demand and returns Bill of materials and bill of returns TRADITIONAL CONTEXT One external source of uncertainty: demand Bill of materials Opportunity Challenge
  • 11. 2. Research goals Vision of the Project To create a sustainable and resilient world where remanufacturers and their closed-loop networks have ‘visibility’ of returns and reflect such information into circular economy compatible inventory and production control systems.
  • 13. 15 2. Research goals 1. We aim to explore how returns forecasting impacts on the dynamic performance of closed-loop supply chains. This entails considering a ‘two-tailed’ uncertainty problem (demand and returns), which has been barely picked up by academic research.
  • 14. 16 2. Research goals 2. We aim to investigate how informatics (cyber-physics, IoT, Big Data) may contribute to a better understanding of closed- loop systems. No studies have been found to address what data are relevant to efficient inventory and production management and how such data and any insights uncovered can be interfaced with and then incorporated into solving the problem.
  • 15. 17 2. Research goals No studies to-date look at how returns forecasting and the replenishment rules can be integrated in a systemic way to optimise inventory and production management. 3. . We aim to design a systemic solution based on the concept of holons, given the integrated nature of the supply chain. The solution must be resilient to uncertainties and disturbances, including the ‘two-tailed’ uncertainty.
  • 16. 18 3. The Project Plan WP1: Empirical grounding of research • Aimed at identifying the streams of information through which uncertainty manifests itself and thus appreciate what forecasting approaches are most relevant and how current systems models can be appropriately expanded to capture uncertainty. WP2: Theory development and empirical testing • Aimed at developing new theory on returns forecasting and systems modelling in the presence of uncertainty, and assess such theoretical propositions (independently) for their empirical validity. WP3: ‘What if?’ analysis and integrated solution • Aimed at establishing a suite of archetype holons of forecasting and inventory & production control for remanufacturing and to ensure the practical relevance of our propositions. WP4: Dashboard for direct impact • Aimed at developing a dashboard for practical applications and being generic enough for wider exploitation by the remanufacturing sector.
  • 17. 19 4. What the theory tells us Modelling a generic structure of a closed-loop supply chain.
  • 18. Order Receipt Finished products Demand D Manufacturing
  • 19. Order Receipt Finished products DemandTarget inventory D Manufacturing
  • 20. Order Receipt Finished products DemandForecastTarget inventory D Manufacturing
  • 21. Order Receipt Finished products DemandForecastTarget inventory D Work In Progress Target WIP Manufacturing
  • 22. Order Receipt Finished products DemandForecastTarget inventory D Work In Progress Target WIP Manufacturing D Consumption ReturnsD Remanufacturing
  • 23. Order Receipt Finished products DemandForecastTarget inventory D Work In Progress Target WIP Manufacturing D Consumption ReturnsD Remanufacturing What’s in the pipeline?
  • 24. -20 -15 -10 -5 0 5 10 15 20 25 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 106 109 112 115 118 121 124 127 130 133 136 139 142 145 148 151 154 Impact of returns pipeline visibility on the 'bullwhip' effect Demand Orders (no pipeline information Orders (some pipeline information) Orders (more pipeline information)
  • 25. RERUN Thank you for your attention. We’re open for collaboration. I can be contacted on: NaimMM@Cardiff.ac.uk

Editor's Notes

  1. Brother – printers and peripherals Panalpina – logistics service provider moving to service productisation – use product services in their portfolio 3D printing and assembly, air and ocean freight. Logistics manufcaturign services.
  2. WRAP – waste and resources action programme – registered charity
  3. The starting point of the ReRuN project is the existence of a huge potential for remanufacturing (both in the UK and worldwide), which can be understood as a stepping-stone towards environmental and financial sustainability.
  4. The financial opportunity Remanufacturing may also represent a key competitive advantage for businesses. Although remanufacturing may tend to increase labour costs, it will substantially reduce input costs, which would increase absolute indicators and even more relative metrics.
  5. Traditional open-loop – many companies now have a god handle on internal and supply side uncertainties, JIT / lean / TQM, mainly doing well with PPC systems and responding to customer demands. Closed-loop context – the supply side has great uncertainty with respect to volume, timing and quality of returns. From design for manufacture to design for remanufacture. Design not just of the product, but the PPC systems and supply chain or network.
  6. Readiness, Sense, Respond, Recover – Sustain Complex interweaving of capabilities - robustness, flexibility, agility and leanness (doing all those previous things efficiently)
  7. Bullwhip – from 2:1  0.128:1  0.126:1 (so pipeline information gains you substantive benefits but only marginal if there is additional information available) Production on-costs – 200:1  1.03:1 (again, substantive cost benefits in the first instance but only marginal with additional information) So we want more information but how much more? Information is not necessarily free.