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DARPA ULTRALOG Final Report - Industrial and Manufacturing ...

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the fly- as a consortium of widely dispersed organizations to cater to the needs of a single<br />

customer. Thus organizations consist of series of opportunistic alliances among several focused<br />

organizational entities to address particular market opportunities. For manufacturing<br />

organizations to operate effectively in this environment of dynamic, virtual alliances, products<br />

must have modular architectures, processes must be well characterized <strong>and</strong> st<strong>and</strong>ardized,<br />

documentation must be digitized <strong>and</strong> widely accessible, <strong>and</strong> systems must be interoperable.<br />

Automation <strong>and</strong> intelligent information processing is vital for diagnosing problems during<br />

product realization <strong>and</strong> usage, coordination, design <strong>and</strong> production schedules, searching for<br />

relevant information in multi-media databases. These trends exacerbate the challenges of<br />

coordination <strong>and</strong> collaboration as the number of product realization networks increase, <strong>and</strong> so<br />

does the number of partners in each network.<br />

Inventory is unwise approach to dealing with highly changing market dem<strong>and</strong> <strong>and</strong> short life<br />

cycle products. Information is an appropriate substitute for inventory. Information about the<br />

material lead-time from different suppliers can be used for planning the material arrival, instead<br />

of building up inventory. The dem<strong>and</strong> information can be transmitted to the manufactures on a<br />

timely basis, so that the orders can be fulfilled with less inventory costs. In fact it is widely<br />

realized, that the successful integration of the entire supply chain process depends heavily on the<br />

availability of accurate <strong>and</strong> timely information that can be shared by all members of the supply<br />

chain. Supply chain management now increasingly relies on Information Technology as discussed<br />

below.<br />

3.2 Information Technology in Supply Chain Management<br />

Information technology with its capability of providing global reach <strong>and</strong> wide range of<br />

connectivity, enterprise integration, micro autonomy <strong>and</strong> intelligence, object <strong>and</strong> networked<br />

oriented computing paradigms <strong>and</strong> rich media support; has been key enabler for the management<br />

of future manufacturing enterprises. It is vital for eliminating collaboration <strong>and</strong> coordination<br />

costs, <strong>and</strong> to permit rapid setup of dynamic information exchange networks. Connectivity<br />

permits involvement of customers <strong>and</strong> other stakeholders in all aspects of manufacturing.<br />

Enterprise integration facilitates seamless interaction among global partners. Micro autonomy <strong>and</strong><br />

intelligence permit atomic tracking <strong>and</strong> remote control. New software paradigms enable<br />

distributed, intelligent <strong>and</strong> autonomous operations. Distributed computing facilitates quick<br />

localized decisions without loosing vast data gathering potential <strong>and</strong> powerful computing<br />

capabilities. Rich media support, which includes capabilities like digitization, visualization tools<br />

<strong>and</strong> virtual reality, facilitate collaboration <strong>and</strong> immersion.<br />

Many improvements have occurred in supply chain management because IT enables changes to<br />

be made in inventory management <strong>and</strong> production, dynamically. It assists the managers in coping<br />

up with uncertainty <strong>and</strong> lead-time through improved collection <strong>and</strong> sharing of information<br />

between supply chain nodes. The success of an enterprise is now largely dependent on how its<br />

information resources are designed, operated <strong>and</strong> managed, especially with the Information<br />

technology emerging as a critical input to be leveraged for significant organizational productivity.<br />

However, the difficulty arises when trying to design an information system that can h<strong>and</strong>le the<br />

information needs of supply chain nodes to allow efficient, flexible <strong>and</strong> decentralized supply<br />

chain management. The main hurdle in efficiently using information technology is the lack of our<br />

underst<strong>and</strong>ing of the organizational, functional <strong>and</strong> evolutionary principles of supply chains.<br />

Recognizing supply chains as CAS, can however lead to novel <strong>and</strong> effective ways to<br />

underst<strong>and</strong> their emergent dynamics. It has been found that many of the diverse looking CAS<br />

share similar characteristics <strong>and</strong> problems <strong>and</strong> thus can be tackled through similar approaches.<br />

While at present networks are largely controlled by humans; the complexity, diversity <strong>and</strong><br />

geographic distribution of the networks, makes it necessary that the networks maintain<br />

themselves in a sort of evolutionary sense, just as biological organisms do (Maxon 1990).<br />

Similarly, the problem of coordination, which is a challenge in supply chains, has been routinely

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