Journal
PRODUCTION PLANNING & CONTROL
Volume 33, Issue 9-10, Pages 907-924Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/09537287.2020.1837937
Keywords
Order fulfilment process; integration; complexity; tactical planning; engineer-to-order
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This study identifies key coordination mechanisms in engineer-to-order settings to mitigate the negative impact of complexity on demand-supply balancing. The findings suggest that formalized activity sequences, balanced team compositions, effective task designs, and supportive information systems have a positive effect on the decision-making and problem-solving activities.
Fulfilling customer orders in engineer-to-order (ETO) settings entails customization and, thus, greater complexity: detail and uncertainty. Tactical planning aims at demand-supply (DS) balancing by ensuring cross-functional integration (CFI), which incorporates coordination as one dimension. This study uses a case study approach to identify the key coordination mechanisms applied in the customer order fulfilment processes (COFPs) to mitigate the negative impact of complexity on DS balancing in four ETO-oriented settings. Within-case analyses identify the applied mechanisms, and a cross-case analysis elaborates on how they influence the detail and uncertainty in decision-making and problem-solving activities. Findings suggest a positive effect of formalized activity sequences, balanced team compositions, effective task designs and supportive information systems (ISs); and a positive (but contingent) effect of the other mechanisms. Future research may address other CFI dimensions (collaboration), statistically test the findings, or qualitatively deepen the understanding of the forms and impacts of individual mechanisms.
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