Investigating the effect of non-assembled product kits on the resource efficiency of process chains

De Wet, Pieter (2017-12)

Thesis (MEng)--Stellenbosch University, 2017.

Thesis

ENGLISH ABSTRACT: In order for manufacturing suppliers to stay competitive in the global market, innovative and resource-efficient process chains need to be a part of the manufacturing strategy. Global megatrends are macroeconomic and geostrategic forces that shape our world. Thus, the manufacturing industry must adapt to benefit from these opportunities or risk being left behind. These rapid advancements are changing the way in which we approach the manufacturing of products. The nature of products, the change in consumer demand, the economics of production and the economics of the supply chain have led to a fundamental shift in the way that companies do business. There is an increased demand for customisation and personalisation from customers. IKEA is one example of a company successfully benefitting from the use of non-assembled product kits and do-it-yourself (DIY) products. The ‘IKEA effect’ shows that people tend to place more value on products that they created themselves, even if these products are mundane and not unique; customers are satisfied if the products are fun to build, or customised. A firm’s competitive advantage is sustained only by transforming its resources into customer-valued products, services and DIY experiences through various operational capabilities. Therefore, the aim of this research was to investigate the effect of non-assembled product kits on the resource efficiency of process chains. The research objectives included the design of a framework to determine this effect on the process chain as well as determining the advantages and disadvantages of using non-assembled product kits. Case studies of IKEA furniture, Dell computers and bamboo bicycle kits were used to understand the market for non-assembled product kits. This information was used to develop a framework to be used by companies to determine the impact of incorporating non-assembled product kits on the resource efficiency of their process chains. A bamboo bicycle was manufactured to aid in the development of equations to be used by the framework. A titanium satellite was manufactured and used as a validation study to determine the accuracy of the framework. The results were compared to traditional products and illustrated by using graphs that showed the comparison in terms of cost, time, waste, quality and energy consumption. The results illustrate that the use of non-assembled product kits has more advantages than selling fully assembled products. The value chain for non-assembled product kits has an impact on every stage of the traditional value chain. The newly developed framework illustrates the effect of converting an existing product to a non-assembled product kit. The results are not a specific value but give the investigating company an indication of the effect of using non-assembled product kits on the resource efficiency of the given process chain for its product. A bamboo bicycle was validated and showed a decrease of 24% for the total manufacturing time. The only setback being the 30% decrease in quality control due to the assembly step being outsourced to the customer.

AFRIKAANSE OPSOMMING: Vir vervaardigingsleweransiers om mededingend in die globale mark te bly, moet innoverende en hulpbrondoeltreffende proseskettings deel van die vervaardigingstrategie wees. Globale megatendense is die makro-ekonomiese en geostrategiese kragte wat vorm aan ons wêreld gee. Daarom moet die vervaardigingsbedryf aanpas om voordeel uit hierdie geleenthede te trek of die risiko loop om agter te bly. Hierdie snelle vorderings verander die manier waarop ons die vervaardiging van produkte benader. Die aard van produkte, veranderings in verbruikersvraag, die ekonomie van produksie en die ekonomie van die aanbodketting het gelei tot ’n fundamentele skuif in die manier waarop maatskappye sake doen. Daar is ’n verhoogde vraag na doelgemaaktheid en verpersoonliking by kliënte. IKEA is een voorbeeld van ’n maatskappy wat met sukses voordeel trek uit die gebruik van niegemonteerde produkboustelle en selfgemaakte produkte. Die “IKEA-effek” toon dat mense geneig is om meer waarde te heg aan produkte wat hulle self geskep het, selfs al is hierdie produkte alledaags, nie uniek nie, pret om te bou of doelgemaak. ’n Firma se mededingende voordeel word volgehou alleen deur die omskepping van sy hulpbronne in kliënt gewaardeerde produkte, dienste en doen-dit-self-ervarings deur verskeie bedryfsvermoëns. Daarom is die fokus van hierdie studie om die effek van niegemonteerde produkboustelle op die hulpbrondoeltreffendheid van proseskettings te ondersoek. Die navorsingsdoelwitte sluit in die ontwerp van ’n raamwerk om hierdie effek op die prosesketting te bepaal, asook om die voordele en nadele van die gebruik van niegemonteerde produkboustelle vas te stel. Gevallestudies van IKEA-meubels, Dell Computers en bamboesfietsboustelvervaardigers word gebruik om die mark vir niegemonteerde produkboustelle te verstaan. Dit word gebruik om ’n raamwerk te ontwikkel waarmee maatskappye kan bepaal watter impak die inkorporering van niegemonteerde produkboustelle op hulle proseskettings se hulpbrondoeltreffendheid het. ’n Bamboesfiets is vervaardig om te help met die ontwikkeling van vergelykings wat in die raamwerk gebruik word. ’n Titaniumsatelliet is vervaardig en gebruik as ’n stawingstudie om die akkuraatheid van die raamwerk te bepaal. Die resultate word met tradisionele produkte vergelyk en geïllustreer deur grafieke te gebruik wat die vergelyking ten opsigte van koste, tyd, vermorsing, gehalte en energieverbruik aandui. Die resultate illustreer dat die gebruik van niegemonteerde produkboustelle meer voordele inhou as die verkoop van volledig gemonteerde produkte. Die waardeketting vir niegemonteerde produkboustelle het ’n impak op elke stadium van die tradisionele waardeketting. Die nuut ontwikkelde raamwerk illustreer die effek van die omskepping van ’n bestaande produk in ’n niegemonteerde produkboustel. Alhoewel die resultate nie ’n spesifieke waarde bied nie, gee dit die ondersoekmaatskappy ’n aanduiding van die effek wat die gebruik van niegemonteerde produkboustelle op die hulpbrondoeltreffendheid van sy produk se bepaalde prosesketting het.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/102755
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