Layout Design and Reconfiguration in a Collaborative Manufacturing Network

Overview & Synopsis

This study explores strategic agility of an automotive corporate group and its influence on facility layouts and operational performance. Strategic agility is viewed here as a firm’s strategic intent to achieve agile operations through collaboratively deploying the layouts of a set of facilities, driven by a management focus on improving its responsiveness and adaptability to customers’ requirements. Our “collaborative multi-facility layout problem” involves the physical organization of departments between and inside several facilities geographically dispersed, that collaborate in manufacturing a complex product in a given time window. The model proposed in this work allows us to analyse the benefits of new horizontal collaboration forms with respect to several objectives, namely costs (material handling inside and between facilities, re-layout) and adjacency between departments. A case study of a first tier supplier in the automotive industry shows the applicability potential of the approach to real-life problems. The results show that horizontal collaboration among the facilities can positively influence the performance of the corporate group as a whole, and that of each firm individually.