The supplier and customer contribution to manufacturing flexibility

Abstract

Purpose This paper seeks to present the formulation of relationships involving different manufacturing flexibility elements related to the total chain of acquisition, processing and distribution in order to assess the level of flexibility practiced by Australian manufacturing industries. Design/methodology/approach A range of published works and a detailed data gathered from a wide range of Australian manufacturing industry through questionnaires are evaluated to determine how customer‐supplier relationships could have an impact on manufacturing flexibility and enhance the total chain of manufacturing. The main analysis tool used is logistic regression. The knowledge and analysis obtained are linked to evaluate the level of each type of flexibility as well as the impact of customer‐supplier flexibility on the total chain of manufacturing. Finally, a performance assessment framework is developed to connect the interlinking factors and contribution regarding customer, supplier, and manufacturing flexibility of Australian industries. Findings The relationships and correlation of data displayed would enhance the available body of knowledge on the total chain of manufacturing. Consequently, the relationships found in this paper can be used to support the overall flexibility assessment of manufacturing industries. In the paper, the current flexibility practices of Australian industries are assessed and a framework is suggested based on several elements taken into consideration. As the different elements under flexibility have suggested, the manufacturing flexibility of Australian industries as affected by customer‐supplier participation is found as medium. Suggestions for pursuing improvements are recommended. Research limitations/implications The main outcome of the research is to reveal that customer‐supplier relationship could significantly affect the flexibility level within the industries under different functional areas. As a result, to achieve the “real” flexibility of the system, flexibility has to be built into the total chain of acquisition‐processing‐distribution stages, not just focusing on the manufacturing aspects only. The flexibility framework developed in this paper would better assess the impact of customer‐supplier flexibility on the total chain of manufacturing and give more insights for analyzing the flexibility level of customers, suppliers, and manufacturers with data gathered across the globe. Originality/value The originality of the paper lies in its detailed analysis of the effect of supplier and customer contribution on manufacturing problems as well as developing a flexibility assessment framework to discuss its impact on the total chain of manufacturing. Its value to both body of knowledge and practitioners are emphasized in the paper.

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