Abstract

The initial issue of complexity management in companies is the identification of the drivers of complexity. However, current literature lacks methods for assisting practitioners in the initial identification of such drivers. This paper, therefore, presents a novel framework for assisting practitioners with identifying complexity drivers in manufacturing companies. The framework uses a generic value chain and a generic product structure as its two dimensions. Multiple workshops are then conducted with company representatives across different value chain fields focusing on two main parts: First, surveys are used to assign complexity ratings to different generic product structure elements. Secondly, the complexity ratings are elaborated on by workshop participants. The process provides valuable insights into the perceived complexity drivers. The framework is then verified through a case study in the process industry. Based on the case study, multiple complexity drivers were identified across both value chain fields and product structure elements. The case study findings show that the framework facilitates practitioners in identifying organization-wide perceived complexity drivers. The framework contributes to both industry and research by addressing a neglected aspect of complexity management. It achieves this by providing a comprehensive and structured approach for the initial identification of complexity drivers across product elements and value chain fields.

Highlights

  • Globalized markets, increasingly heterogeneous customer requirements, and demands for lower costs are factors pressuring the competitiveness of traditional manufacturing companies [1]

  • Since this paper focuses on the identification of complexity drivers in industry, all identified papers have been analyzed as follows: First, the identified papers are reviewed concerning the repeatability of the methods presented, as this is considered an important factor for applicability by practitioners

  • Examples of complexity drivers mentioned for the “Bottle” subsystem includes long changeovers when changing between bottle formats in production and high inventory space taken up by bottles when compared with their consumption rate in production

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Summary

Introduction

Globalized markets, increasingly heterogeneous customer requirements, and demands for lower costs are factors pressuring the competitiveness of traditional manufacturing companies [1]. These factors have resulted in increased external complexity for manufacturers. Companies have increased the complexity of their own operations to accommodate these changed conditions [1, 2], often resulting in increased costs and reduced performance [3]. Such costs are identified across organizations in supply chain management [3, 4], production systems [5, 6], and various internal projects [7, 8]. Identification of complexity drivers is, critical for the subsequent operationalization and quantification of the complexity costs incurred for the company [1], and investigating this perspective forms the motivation of this paper

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