This study investigates the issue of managing quality during production ramp-ups in high-tech supply chains. It combines an in-depth case study of one particular high-tech supply chain setting with insights from the recently-emerging literature on behavioral operations and synthesizes these two into a system dynamics simulation model. Model analysis suggests that isolated and intuitively appealing quality management policies are likely to lead to suboptimal or even detrimental results. Of crucial importance is finding the balance between ramping up production rates sufficiently fast to capture short-lived market demand and avoiding to increasing production starts so high that workload levels in the supply chain move beyond the tipping point. This means that when workloads become too high, the entire supply chain can get bogged down in a vicious cycle of high workloads leading to low quality levels, which lead to high rework levels and hence to even higher workloads. Especially promising policies to be used in combination are, firstly, moderate production ramp-up rates that turn out to generate more timely output than overly aggressive production ramp-ups. Secondly, policies that leverage the expertise that can be gained from analyzing defective units that cannot be repaired easily downstream, as these may yield knowledge regarding hidden quality issues upstream

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Date created

• 2007 July 29-2007 August 2

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• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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298eed5a7fe199ac661be72f3a39f134

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0619e689ce89476bfd3b88323c5a9410

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23d738ba88f8333bc39725f9cb5bd0b8

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System Dynamic Society Records

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• This collection is part of the University Archives