Elastic manufacturing: provisioning and deprovisioning production capacity to vary product volume and mix

• Published in: International journal of operations & production management 2024-10, Vol.44 (11), p.1861-1885
• Main Authors: Rama Murthy, Sudhir, Sousa-Zomer, Thayla Tavares, Minshall, Tim, Velu, Chander, Kazantsev, Nikolai, McFarlane, Duncan
• Format: Article
• Language: English
• Subjects: Assembly lines; Competition; Competitive advantage; Context; COVID-19; Disruption; Elastic analysis; Factories; Flexibility; Heterogeneity; Homogeneity; Manufacturers; Manufacturing; Pandemics; Plant layout; Product mixes; Production capacity; Provisioning; Supply chains; Uncertainty; Ventilators
• ISSN: 0144-3577; 1758-6593
• DOI: 10.1108/IJOPM-02-2023-0129

PurposeAdvancements in responsive manufacturing have been supporting companies over the last few decades. However, manufacturers now operate in a context of continuous uncertainty. This research paper explores a mechanism where companies can “elastically” provision and deprovision their production capacity, to enable them in coping with repeated disruptions. Such a mechanism is facilitated by the imitability and substitutability of production resources.Design/methodology/approachAn inductive study was conducted using Gioia methodology for this theory generation research. Respondents from 20 UK manufacturing companies across multiple industrial sectors reflected on their experience during COVID-19. Resource-based view and resource dependence theory were employed to analyse the manufacturers' use of internal and external production resources.FindingsThe study identifies elastic responses at four operational levels: production-line, factory, company and supply chain. Elastic responses that imposed variable-costs were particularly well-suited for coping with unforeseen disruptions. Further, the imitability and substitutability of manufacturers helped others produce alternate goods during the crisis.Originality/valueWhile uniqueness of production capability helps manufacturers sustain competitive advantage against competitors during stable operations, imitability and substitutability are beneficial during a crisis. Successful manufacturing companies need to combine these two approaches to respond effectively to repeated disruptions in a context of ongoing uncertainties. The theoretical contribution is in characterising responsive manufacturing in terms of resource heterogeneity and resource homogeneity, with elastic resourcing as the underlying mechanism.