Inter-operability framework towards virtual integration of SMEs in the manufacturing industry

Abstract

A Virtual Enterprise (VE), which is a dynamic and temporal network of independent companies, relies on an inter-operability framework to realise collaborative relationships with trading partners and to facilitate the virtual manufacturing processes. Investing in inter-operability in order to enhance information-sharing applications is a challenge to many Small and Medium-sized Enterprises (SMEs) that are planning to participate effectively in the VE. This paper reviews the major industry standards for the implementation of inter-operable systems and examines the decision factors for selecting the appropriate inter-operability specifications, with a focus on business connectivity, system scalability and information security. Based on the analysis, we outline a virtual integration infrastructure for SMEs that enables collaborative demand forecasting and production planning processes within the VE environment. This suggestion is further justified by a business case study.

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