Integrated Manufacturing and Service Networks (IMSNs) are an assemblage of companies formed with the primary goal of delivering value in terms of both goods and services to the customer through out the product life cycle - from cradle to the grave. Manufacturing-service integration will lead to information sharing between design, manufacturing and sales units of the manufacturer and the service centres. While the integration between design and manufacturing is very well studied, the subject of collaboration between manufacturing units and service centre received practically no attention.
In this paper, we present two models each with increasing complexity to elucidate the benefits of integration and alert against problems like bullwhip effect percolating from supply chains into IMSN. The first one is a conceptual model that captures the relationship between manufacturing and service networks and makes a case for coordination between the two entities. The second model, IMSN with single product, evidences the benefits of collaboration in a more realistic setting.
In all the above models, we make use of cause effect diagrams and system dynamic models to study the benefits of integration. We study the effect of reactive (feedback) and also the proactive (feedforward) use of information for service centre resource management.
Viswanadham, N. and Desai, Vijay, "A Study of Benefits of Information Sharing between Production Systems and Service Centers" (2004). ICEB 2004 Proceedings. 14.