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Managing Product Variety in Automobile Assembly: The Importance of the Sequencing Point

Author

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  • Jayashankar M. Swaminathan

    (Kenan-Flagler Business School, University of North Carolina at Chapel Hill, Raleigh, North Carolina)

  • Thomas R. Nitsch

    (McKinsey & Company, Inc., Germany)

Abstract

In recent years, globalization of markets and increased consumer sophistication have led to an increase in the variety of products that customers demand and a consequent increase in the number of variants of any given product line that a manufacturer must supply. At the same time, an increasing number of companies have pushed the task of accommodating product variety up the supply chain to suppliers. This makes it increasingly difficult to understand where and how variety is accommodated. Based on our study of the automotive industry, we introduce the concept of a sequencing point, which we define as where component variants are placed in the sequence that final assembly requires. We discuss the implications of alternative sequencing-point-location strategy on management of product variety. For each strategy, we discuss associated trade-offs and provide short case studies.

Suggested Citation

  • Jayashankar M. Swaminathan & Thomas R. Nitsch, 2007. "Managing Product Variety in Automobile Assembly: The Importance of the Sequencing Point," Interfaces, INFORMS, vol. 37(4), pages 324-333, August.
    • Handle: RePEc:inm:orinte:v:37:y:2007:i:4:p:324-333
    DOI: 10.1287/inte.1060.0278
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    References listed on IDEAS

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    Cited by:

    1. Maximilian Stauder & Niklas Kühl, 2022. "AI for in-line vehicle sequence controlling: development and evaluation of an adaptive machine learning artifact to predict sequence deviations in a mixed-model production line," Flexible Services and Manufacturing Journal, Springer, vol. 34(3), pages 709-747, September.
    2. Boysen, Nils & Emde, Simon & Hoeck, Michael & Kauderer, Markus, 2015. "Part logistics in the automotive industry: Decision problems, literature review and research agenda," European Journal of Operational Research, Elsevier, vol. 242(1), pages 107-120.
    3. Quetschlich, Mathias & Moetz, André & Otto, Boris, 2021. "Optimisation model for multi-item multi-echelon supply chains with nested multi-level products," European Journal of Operational Research, Elsevier, vol. 290(1), pages 144-158.
    4. Taube, F. & Minner, S., 2018. "Resequencing mixed-model assembly lines with restoration to customer orders," Omega, Elsevier, vol. 78(C), pages 99-111.
    5. Marcel Lehmann & Heinrich Kuhn, 2020. "Modeling and analyzing sequence stability in flexible automotive production systems," Flexible Services and Manufacturing Journal, Springer, vol. 32(2), pages 366-394, June.
    6. Schmid, Nico André & Limère, Veronique & Raa, Birger, 2021. "Mixed model assembly line feeding with discrete location assignments and variable station space," Omega, Elsevier, vol. 102(C).

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