Archetypes
Our research has led us to the following seven distinct distributed manufacturing archetypes, which are summarised in the table below along with their unique components.
Archetypes: Case Study
Indigenous
Indigenous manufacturing originates naturally in a region. The indigenous manufacturing model is based on individual small enterprises operating with a much smaller scale of capacity for the production of products (i.e. food, crafts) and/or services to satisfy local demands. The manufacturer is likely to become rooted, or “embedded”, in the local economy, through their specialist dependence on local skills, materials, suppliers, partner companies, research and so on.
Multi-domestic manufacturing
Within a global footprint, dispersed manufacturing sites were generally considered as having often limited international strategic contribution. In the more strategically elevated case, as “contributor” operations. In terms of the global–local trade-offs, the integration-responsiveness (IR) framework set out the competing needs for scale economies through integration and local responsiveness.
Loosely coupled ecosystem
This ecosystem is normally grouped by many suppliers with smaller manufacturers’ size, plus the network of interconnections, enable them to perfect small-lot manufacturing while iterating at incredible speed. Their operators—many former factory workers who have branched out into ownership—have mastered the ability to build high-quality products at low volumes and low cost, at extreme speed, using an eco-system of loosely coupled small to medium sized factories and individual experts.
Platform enabled ecosystem
Rather stay in a geographical region, this ecosystem takes advantage of the modern technologies and present themselves on the Internet platform. Through this way, participants become globally available.
Mini factory
Manufactory allows the manufacturer to move the mini size machinery to the exact place of need to produce product when needed. Through this way, the lead time is reduced, but the production capacity is also reduced since the machinery is in a smaller size. This model is perfect for the site where constantly require customized product with low demand but high emergency..
Portable factory
Similar to the Mini Factory, but the machinery is even smaller that can be moved around. This model is perfect for the situation where the demand is temporary and the logistics cost is high or high emergency.
Cloud-additive manufacturing
Cloud manufacturing is the concept of using manufacturing resources in a service-oriented way over the Internet. While additive manufacturing are making it possible to utilize resources ad-hoc as replacements for traditional manufacturing resources in case of spontaneous problems in the established manufacturing processes. In addition, 3D printer allows each individual can become the manufacturer.
Ownership
Distributed ownership refers to an product, design or even a section of the business is owned or run jointly by stakeholders, who then share its profits and benefits. This is driven by the concept of resource utilization/utilization or also known as circular economy.
Knowledge
One of the distinguishable characteristics of distributed manufacturing is the capability of mass customization, which is enabled by knowledge transferring and sharing.
Structure
Distributed structure refers to the external supply network structural as well as the internal organizational structure changes that are needed in order to facilitate distributed manufacturing.
Resource sharing/utilization
In distributed manufacturing, resources will be utilized maximumly through sharing. The ownership of the resources can have multiple ways.
Owner-based
The ownership of the resource remains to the OEM.
Joint-based
The ownership of the resource can be jointly owned by multiple parties.
Service-based
The ownership of the resource belongs to the 3rd party and the resources are provided as service.
New value proposition (PSS)
The product-service system (PSS), a means to enable collaborative consumption of both products and services, with the aim of pro-environmental outcomes, can provide new value proposition.
Product oriented
This is a PSS where ownership of the tangible product is transferred to the consumer, but additional services, such as maintenance contracts, are provided.
Use oriented
This is a PSS where ownership of the tangible product is retained by the service provider, who sells the functions of the product, via modified distribution and payment systems, such as sharing, pooling, and leasing.
Innovation
The innovation ideas or designs of the product or services.
Internal
The innovation ideas or designs are generated from the company internally.
Supply side
The innovation ideas or designs are generated from upper stream and suppliers.
Demand side
The innovation ideas or designs are generated from down stream and customer.
Peer
The innovation ideas or designs are generated from same level partners, peers or even competitors.
Collaboration & communication
How company achieve collaboration and communication in the supply chain.
Intra-company collaboration
The necessary collaboration is majorly done within the company between different departments.
External collaboration
The necessary collaboration is done within the related external stakeholders.
Virtual supply chains
A supply chain that is connected through electronic links and characterized by its inherent flexibility to quickly adopt and adapt to changes in the business environment.
Customization
How company modify their product or service to suit a particular individual or task.
Mass customization
Batch/modular personalized products, design and fabrication in hands of producer.
Bespoke fabrication
Tailored, individualized products, design and fabrication in hands of producer.
Mass fabrication
Unique products, design and fabrication in hands of user, shared designs.
Personal fabrication
Unique products, design and fabrication in hands of user in interaction with each other.
Flexibility
Flexibility is defined as the speed in which the supply chain responds to changes in demand and the business environment; this is in order to either create or preserve competitive advantage.
Push production
Push production is a production strategy that is considered to be the traditional method of manufacturing. It involves each process starts work when it receives product to work on, i.e. when work is ‘pushed’ towards it. It then passes this product onto the next process, starting their production.
Pull production
A method of production control in which downstream activities signal their needs to upstream activities. Pull production strives to eliminate overproduction
Supply chain integration direction
Supply chain integration direction is related to the dominance and criticality of the linkages upstream and downstream the supply chain.
Internal
Within the company across different apartment
Supplier
Toward upstream side
Technology system
Toward technology service provider side
Customer
Toward downstream side
Multi-dimension
Toward multiple direction
Geographic distribution
The level of the distribution in the manner of geography, or how close the manufacturing site to the customer.
Country-level
The production process can be completed within the country of where needed.
Region-level
The production process can be completed within the region of where needed.
Community-level
The production process can be completed within the community of where needed.
Neighbor-level
The production process can be completed within the neighbor of where needed.
On site
The production process can be completed on site of where needed.
Physical Process flow/Reverse logistics (Sustainability)
Base on the principle of “what’s light goes to the global and what’s heavy stays in local”, the manufacturing point get closer to the end customer. Although it increases the overall supply chain complexity, less physical/reverse logistics is needed. Hence achieve both financial and environmental sustainability.
Scotland whisky
Scotland whisky originates naturally in a region and roots in the local economy.
Car factories across globe
The car manufacturers are setting up factories across the world which close to the demand to avoid high transportation cost.
Supplier groups in Shenzhen, China
These smaller manufacturers’ size, plus their network of interconnections, enable them to perfect small-lot manufacturing while iterating at incredible speed. Their operators—many former factory workers who have branched out into ownership—have mastered the ability to build high-quality products at low volumes and low cost, at extreme speed, using an ecosystem of loosely coupled small to medium sized factories and individual experts. The result is a system that can take on the larger Shenzhen factories—and one that is extremely well suited to emerging modes of supply. The beneficiaries are any designers or brands, large or small, established or new, that want to jump in, iterate quickly and cheaply, and scale as needed to meet demand.
Open desk
The Open Desk provides a platform for the furniture designer, producer and customer to collaborate and finally achieve a triple wins situation.
Medicine factory at hospital
Hospital can employ mini factory on site to produce medicine, equipment base on prescription.
Unilever Nano Factory
Unilever Nano Factory provides the service of a mini factory in the portable container, so that the production process can actually happen in transportation or on site.
Hubs
The Hubs (originally known as 3D hub) provide the service of 3D printing manufacturing parts through sharing designs directly in the cloud.
| Main Body | Factors | Traditional DM | Emerging DM | |||||
|---|---|---|---|---|---|---|---|---|
| Indigenous manufacturing | Multi-domestic manufacturing | Loosely coupled ecosystem | Platform enabled ecosystem | Mini factory | Portable factory | Cloud-additive manufacturing | ||
| Ownership | Resource sharing/utilization | Owner-based | Owner-based Joint-based | Owner-based Service-based | Service-based | Owner-based Service-based | Service-based | Service-based |
| New value proposition (PSS) | Product oriented | Product oriented | Product oriented Use oriented | Product oriented | Product oriented Use oriented | Product oriented | Product oriented | |
| Knowledge | Innovation | Internal | Internal | Supply side Peer | Supply side Peer | Demand side | Demand side | Supply side Demand side |
| Collaboration & communication | Intra-company collaboration | Intra-company collaboration | External collaboration | External collaboration | Virtual supply chains | Virtual supply chains | Virtual supply chains | |
| Customization | Mass customization | Mass customisation | Bespoke fabrication | Bespoke fabrication | Mass fabrication | Mass fabrication | Personal fabrication | |
| Structure | Technology competence | Control: ICT, ERP, PLC Integration: Cyber-physical systems, IoT, Cloud Intelligence: AI, Cloud, Big data Smart: 3D printing, Block chain | ||||||
| Flexibility | Push production | Push production | Mix | Push production | Push production | Push production | Push production | |
| Supply chain integration direction | Internal | Supplier | Supplier | Technology system | Customer | Customer | Multi-dimension | |
| Geographic distribution | Region-level | Country-level | Region-level | Community-level | Neighbor-level | On site | On site | |
| Physical Process flow/Reverse logistics (Sustainability) | As the manufacturing point get closer to the end customer, less logistics/reverse logistics process and distance is required, hence achieve both financial and environmental sustainability | |||||||
| Example | Scotland whisky | Car factories across globe | Supplier groups in Shenzhen, China | Open desk | Medicine factory at hospital | Unilever Nano Factory | Hubs | |
What are the inhibitors of adoption of distributed manufacturing?
Technological
- The existing infrastructure may be incapable of supporting the “right” digital technologies required.
- Emerging digital tools can be confusing about their functionality and capability.
- Concerns about privacy and security arise as a result of the large volume of digital data being transformed.
- Only a few materials can be worked with 3DP equipment or used with lower manufacturing standards.
- Quality issues may arise as a result of many manufacturing points using diverse equipment and processes.
Organizational
- There are only a few DM training programmes available on the market right now.
- In the current market, there is a scarcity of DM expertise.
- Changing the existing centralised manufacturing will result in sunk costs and more difficult decision making.
- Customization or foregoing economies of scale will result in a higher price, which the consumer may not accept.
- Changes and transformations necessitate an initial investment.
- An emerging model may compel people to invest and test until they select the ideal fit model.
Environmental
- DM requires the collaboration of multiple stakeholders; pioneers may not benefit immediately due to the industry’s slow transition.
- Future market demand may not always correspond to the current plan and scope.
- There are no existing policies or regulations in place for DM.
- Multiple manufacturing points means more consumption? Results barely can be tested accurately.
- There is no tax reduction or similar compensation to assist SMEs or start-ups.
Relational
- Trust can be a critical issue in service-based relationships.
- Multiple points are involved in distributed manufacturing, which can possibly complicate the SC structure.
- Consumers lack the knowledge to be actively involved in design, hence an intermediary will be required.
- Data holds most of the value in business but in sharing economy, the ownership of the data may lead to conflict of interest.
- Lower entry barrier means more competitors in the market.
What are the enablers for adopting distributed manufacturing?
Environmental
- The smart city concept has been propagated as an enabler of localization, from a city perspective, such that supply and demand are fulfilled within urban boundaries.
- Consumers today is expecting more personalized product with limited waiting time.
Organizational
- Pay per use model can reduce up-front investments on IT and manufacturing infrastructure for SMEs.
- Participants have to step into the mindset of sharing, not only with supplier and partner, but even with competitors to create more value.
Technical
- Companies in regions without sufficient communication network coverage will find it difficult to participate in a further connected production.
- Technologies like big data and block chain enables a more secure and accurate data input for DM.
- Technologies like cloud, Internet of Things, and digital twin establish a connected manufacturing network for DM.
- Miniaturized unit processes and manufacturing equipment integration promote manufacturing technologies such as 3D printing and CNC mills.
Stakeholders map for a distributed manufacturing network
Operation Process
- OEMs: OEMs are the major stakeholder in DM as they will distribute the work toward end consumers.
- Material supplier: Material supplier has to involve in the network to seize the opportunity from the supply network disruption that DM will bring.
- Local manufacturer: SMEs can play an important role in DM as they are more localised and understand the needs and preference of the region.
User
- Designer: As individual user, designer can eventually create more value through open innovation and share knowledge in DM supply network.
- Consumer: Consumers receive numbers of benefits from DM and play the role of “prosumer”.
- Machine: Machines and equipment can also participate in DM without requiring too much human interaction due to sophisticated technologies such as IoT.
Service Provider
- Technology provider: Because DM might incorporate various high-tech components, such as blockchain, which is rarely provided by OEMs, a technology provider will eventually become a DM stakeholder.
- Platform provider: All above stakeholders will require a place/platform to communicate and collaborate. Some OEMs choose to develop their own platform but majority will still rely on platform providers.
- Logistics provider: Logistics is the string to connect all the dots in operation.
Environment
- Policy maker: DM is in a relatively immature environment where regulations and policies are not fully in place.
- Fund provider: DM offers a new business model and opportunities with a lower entry barrier. Funding sources are critical for the growth of SMEs.
- Academic Institution: On the one hand, the talents needed in the future may differ from those required today, thus academic institutions must plan for such changes ahead of time. On the other hand, DM research should not be halted in order to uncover new possibilities.
