Designing and Operating Supply Networks and their Components

1
Designing and Operating Supply Networks and their
Components

• Mike James-Moore
• Carlos Mena

2
Contents

• Background
• Some Current and Past Research Programmes
• Future Areas of Interest
• Complexity in Supply Networks
• Centralised vs. Decentralised Systems
• Multi-agent systems
• Possible Collaboration

3
Warwick Manufacturing Group

• A stand alone group within the Faculty of Science
• Established 1980 by Professor Sir Kumar
  Bhattacharyya
• In partnership with leading industrial partners -
  Rover, Lucas, British Aerospace, GKN, Short
  Bros., RR Aero Engines, this has changed over
  time and now includes companies such as
  Airbus,Astra Zeneca and Ford Premium Automotive
  Group
• Mission
• To improve competitiveness through the
  application of value adding innovation, new
  technologies and skills deployment

4
Some past WMG Programmes

• Time Compression
• Development and application of analytical tools
• Demand Chain
• A new model for Construction supply chains
• WMG / Tavistock Institute
• WMG / SBAC Aerospace benchmarking group
• Supply chain relationships in aerospace
  initiative
• Future Working structures
• 1-1 relationships
• The Complexities of Product Definition
• WMG / Cranfield / LSE

5
Some Current WMG Programmes

• Supply Chain Cost Effectiveness and Swift Service
• WMG / Cranfield
• Collaborative Commerce Marketplace
• Intelligent Contracts Lotiss
• International Automotive Research Centre 20
  research projects
• Supply Networks (Tennant)
• UK Lean Aerospace Initiative
• 4 Universities and 44 aerospace companies
• DTI National B2B Centre
• Sun/PTC Collaborative Product Commerce Centre
• BAE Systems - Integrated Aeronautical Engineering

6
Future Research Thinking -The Technology Led
Company

• Customer Need and Rapid Response
• Supply Networks
• Virtual Control
• Technology Acquisition
• Design
• The need to plan and act strategically - globally
  and locally
• Sectors incl Aerospace, Automotive,
  Construction, Equipment, Food and Drink,
  Medical/Healthcare, ICT, Process

7
Problems in Supply Networks

• Linear dynamics have bottomed out
• Partnership is a myth
• Sharing of risk and rewards
• The assumption that a chain "Driver" is the mover
  and shaker does not stand up because
• The real boss is the amorphous "consumer"
• Players in more than one chain (mixed loyalties /
  selfish motives)
• Central control is ineffective (Elephants rarely
  pirouette)
• Misalignment between people making policy and
  people executing policy

8
Potential Solutions

• Information Flow
• Use IT to keep everyone informed
• Decentralise Control
• Each player can make their own plans / decisions
• Risk / Reward sharing
• Realistic contributions for realistic rewards
• Intelligent Contract - automatic modification
  when unforeseen events occur
• Performance Measurement
• Measure the effectiveness of the entire network
• Align actions to Policy
• Make response automatic, i.e.. use intelligent
  agents

9
Where are Supply Networks Going
Uncertainty
Complexity
10
Suitable Strategies
Planning
Self - Organisation
Control
Uncertainty
Simplification
Automation
Complexity
11
Multi-Agent Technology

• Agents are computer programs
• Agents are part of a larger community of agents
• Agents can perform some activities autonomously
• Agents mutually influence each other
• Agents negotiate with each other and / or with
  humans
• Each agent acts on behalf of a stakeholder in the
  problem domain
• Millions of agents interact and can exhibit
  emergent properties

12
A changing Paradigm

• Conventional
• Systems
• Hierarchical
• Lines of command
• Centralised decisions
• Instructions
• Predictability
• Top-down design
• Control Complexity

• Multi-agent
• Systems
• Network of agents
• Negotiation
• Distributed decisions
• Learning
• Self-organisations
• Evolutionary design
• Living with complexity

13
Supply Network Applications

• Network Design
• Location
• Routes
• Planning and Scheduling
• Production
• Projects
• Manufacturing
• Real-time
• Adaptive / Flexible
• Capacity Management
• Equipment / Crews

• Simulation
• Supply networks components
• Procurement
• Supplier Selection
• Bidding (Auctions)
• Logistics / Distribution
• Vehicle Routing
• Combine with RFID
• Maintenance
• Fault detection / correction

14
The Challenges

• Acceptance
• Multi-agent systems can be unpredictable
• How to deal with this unpredictability
• Holistic measures for a self-organising system
• Complexity
• How to incorporate the relevant complexity into
  the computer system
• Technology
• Continuously changing

15
Possible Collaboration

• The challenges to demonstrate the reality and the
  benefits of such an approach are significant and
  could not be accomplished through one university
• WMG would be pleased to support a grand challenge
  bid led by Cambridge incorporating some of these
  ideas
• Supply is now a global phenomenon
• Members of Global Logistics Research Initiative
  (GLORI)
• Alliances with interested overseas universities
  (US, Germany, Sweden, Mexico, Netherlands,
  Singapore, Hong Kong)