Flexible Value Chain Systems and Global Optimums

We are in a technology, i.e. Industry 4.0, era that production processes, production paths and resource management are no longer in human management, and that  machines and IT systems are able to determine the best way for them through transparent and fair decision support systems in which proper  algorithms  and  global optimums can be used as a base.

Agile and Flexible Value Chain Systems

In these days in which the competition is increasing day by day, the rising demand for optional customized products brings to light the need for a shorter Product Life Cycle. As is known, Product Life Cycle is an approach that stores, controls in an electronic environment all the information  related to the engineering, production and maintenance of a product, and puts it into service of the users.

In order to meet the requests arising from changing customer expectations, the need  for Value Chain Systems to be more adaptable, agile and flexible,  as well as its being in an optimizable structure for capital increase is rapidly increasing. According to this,  suppliers are obliged to offer flexible services that can spread their investments to wide customer range, and moreover,  they  also must be flexibly integrated with  these value chains through  a secondary modularization outcome.

And yet again, the importance of data dominance

With this new approach, costs will decrease,  limits will be set for  transactions and certain expenses,  thus the Buyer-Supplier interaction will become more complex. Here, at this point,  we see in this example  how valuable role  data will be taking .  It is very important that we have full command of the data, inventory, resources i.e. all  things that we have, in order not to have any problem in this  structure in future industry where these complex and special works will be done.

We are in a period where near-realistic numerical simulations, value chain plannings and execution can be done!

As for today, with the investments made in IT technologies,  even in the customized  product demands  it has become possible to do near-realistic numerical simulations, value chain plannings and  execution which could lead to derive all the information about the final product- namely all information about the engineering data, the product specs,  the design and model, process parameters and operational data,  by getting the necessary information from the Bill of Materials (BOM) and Work Breakdown Structures (WBS) and it is continuing  to develop.

Author: Ahmet Savaş Göktürk