A Workflow Based Management System for Virtual Teams in Production Networks

The overall objective of this research project is the development and evaluation of a flexible and cooperative management system within SME based production networks for the ramp-up process. Inter-organizational processes of six previous ramp ups were analyzed and documented in flow charts. Highlevel executives and domain-experts of the production nets developed in moderated focus-groups standardized steps and phases of the ramp-up processes and agreed on one common reference workflow. The reference workflow is the basis for the further development of the inter-organizational management of virtual project teams supported by an IT-assisted workflow management system. 1. Production ramp-up as a factor of competition A fast and stable production ramp-up is an essential factor of competition in dynamic market situations to gain financial advantages through the roll out of new or modified products to the market. Under the market condition of steady increasing product varieties, simultaneously reduced manufacturing depth, outsourcing of functions and strategic alliances with suppliers increasing costs of coordination and cooperation emerge (Lei & Hitt, 1995). During the ramp-up process, these are expressed through ramp-up delays, fluctuations in the ramp-up process and late costintensive changes. As enterprises move from “pooled interdependence” of workflows to “sequential” and eventually to “reciprocal” interdependence, cause-effect relations become much more complicated and tenuous (Brass, 1985). The commonly used solutions in the automotive industry to manage complex production networks focus on a strict standardization of the process stages of the workflow in a stable work environment. Usually the Original Equipment Manufacturer (OEM) determines the type of 1 Efficient ramp-up management within SME based customer-supplier-relationships (ELAN). Joint project of the Chair of Production Systems (LPS) and the Chair of Work and Organizational Psychology (A&O) of Ruhr-University Bochum. Funded by Ministry of Education and Research of the Federal Republic of Germany, project execution by Forschungszentrum Karlsruhe. standardization of the workflow, kind of production planning and scheduling, and quality control. In exchange of the requirements for suppliers to meet mandatory demands on production and quality procedures and schedules, the production network offers a stable work and market environment (Snell, 1992). Under flexible product-market variation, i.e the degree of breadth and change in a firm’s products or markets, particularly small and medium sized enterprises (SME) pursue multiple and at times conflicting goals. To deal with complexity and ambivalence in the market, SMEs develop adaptable workflows, and use more buildin flexibility in the operations planning and IT operating systems. Among other reasons, these resources support the ability for flexibility and innovation of SMEs to adapt to market changes (Nadler, Gerstein & Shaw, 1992). Particularly employees of small and medium sized enterprises have a greater work autonomy, decision latitude and flexibility in task planning and scheduling due to a smaller division of labor. Though the OEM usually dominates production network by size, capital and higher division of labor, i.e. specialized functions, business relations with SMEs are based on a strategic partnership. Therefore, the management of production networks with SME partners needs to take into account adaptable workflows, flexible operations planning, less specialized functions and IT-systems diversity. On the other hand, net partners have to agree on a common reference workflow, satisfy scheduled dates of production planning and meet quality standards (Ring & van de Ven, 1992). The overall objective of the research project is the development and evaluation of a flexible and adaptive Workflow Management System (WFMS) particularly for SME based production networks. The domain to be managed is the ramp-up process. The goals of this approach are: (1) to shorten ramp-up time, (2) to improve product quality and (3) to reduce costs. The ramp-up phase is part of the product development process, which can be divided into product planning, construction, prototyping, initial batch, ramp-up and batch production (Baumgarten & Risse, 2001). The ramp-up traditionally begins with the Start of Production (SOP) and ends when the ridgeline for batch production has been met (see figure 1). To speed up the ramp-up time, the ramp-up process can be cut down, the start of production shifted forward and/or the ramp-up process stabilized. For each measure, former decisions in production development influence the shape of the ramp-up phase. Thus, the overall time and costs for the ramp up process depends on the entire previous product development process. From a work-organizational perspective, production ramp-ups are temporary projects of net partners who coordinate and execute interdependent tasks. Employees of different enterprises with different background of disciplines and functions cooperate in a cross-organizational production network. Planning and coordination of these virtual project teams is a challenging task. Implications of organizational behavior have to be foreseen and taken into account (Cascio, 1999). In comparison to an inter-organizational collaboration in ramp-ups in a stable work environment, standardization of the process stages of the net workflow is blurred and tenuous, coordination mechanisms are less distinctive, and tasks are accomplished with non-compatible IT-systems (Martins, Gilson & Maynard, 2004). As a rule, inter-organizational project responsibility is allocated onto many shoulders. In addition, implicit collaboration rules and common work standards are less developed. One reason for this is the virtual character of the project, i.e. face-to-face meetings are quite rare (Espinosa, Lerch und Kraut, 2004). – Shift forward of Start of Production SOP (1) – Cut down on ramp-up time (2) – Stabilisation of ramp-up process (3) Objective: Fast ramp-up