COMPLEXITY IN MANUFACTURING SYSTEMS. DEFINITION AND MEASURE

The paper presents a framework for complexity in manufacturing systems. Two main sources of complexity are identified: variety - i.e. the number of elements (products, suppliers, technologies, etc.) to be managed - and relationships - among these elements and between them and the external environment -. Drivers and measures for both categories are singled out for five operative processes (sales and marketing, procurement and inbound logistics, production planning and execution, distribution and outbound logistics, new product development and process engineering). Moreover, efficiency performances for each process and effectiveness performances at the interface with suppliers and customers are identified and operationalized. Data collection through 14 extensive transversal case studies in the Italian household appliance industry provided the ground to apply the concepts and the metrics elaborated for complexity and performance measurement. Empirical findings are provided for the case of procurement process, showing significant differences in the behaviour of appliance OEMs and components suppliers