Management of Buffer Systems in Automotive Stabilized Production Networks – A Qualitative Analysis

Abstract

Automotive manufacturers are operating in global and cross-linked production networks. From a productions and logistics point of view they act as consignors and consignees of material, components and car bodies within these networks. The demand for customized cars, rapidly changing market environments, local market regulations and technology leaps force companies to orient their operational activities towards more flexible and resilient production strategies. One promising method to deal with the evolving complexity, uncertainty and volatility is to establish a stabilized production system. This concept requires several prerequisites, above all a high degree of stability in the production process. Buffers are allocated to perform multiple functions in order to provide stability. Opposing objectives of stakeholders, unfavorable infrastructural settings and the lack of an integral planning process can be an obstruction towards effective buffer allocation in production networks. If not applied in an integrated approach considering all functions buffer capacity can lead to an adverse effect on the overall performance. Misaligned buffers lower the efficiency, reduce the flexibility and increase the complexity of production systems. This article presents trade-off observations and challenges system designers are confronted with during the allocation of buffers in stabilized production networks. The most significant trade-off is between the two competing objectives of stability and throughput. Best practice on how to implement buffers and manage the arising trade-off are presented.