Allocation of Manufacturers through Internet-based Collaboration for Distributed Process Planning

The pursuit of lower cost, shorter time-to-market, and better quality has led to a shift toward global production in today’s competitive business environment. This shift, however, forces manufacturing enterprises to have separate design houses and manufacturing facilities. In general, design houses are located in the same regions as customers to enable them to respond to the rapidly changing demands of customers. By contrast, manufacturing facilities can be placed in regions in which production costs are lower. However, this physical and logical separation between designers and manufacturers (or between upstream manufacturers and downstream manufacturers) raises various integration issues. The present paper addresses two of these issues: the framework for representing the data necessary to communicate requirements and objectives of the designer, and the methodology for utilizing such data to optimize the business objectives related to production cost and quality. The proposed representation, collaboration framework, and methodology will enable design houses and manufacturing facilities to realize the benefits of global production and to accommodate the management of loosely integrated supply chains.