Towards a Reduction of Uncertainty in Production System Design Decisions

A tenet of production system design is to increase a manufacturing company’s competitiveness by introducing novel processes, technologies, and products. However, uncertainties exist regarding the actual benefits that can be attained when novelty and change are introduced into a production system. Addressing this issue, this paper explores how manufacturing companies can reduce uncertainties that challenge production system design decisions when significant changes are introduced into the production system. A real-time case study at a Swedish manufacturing company that decided to change its existing product specific assembly system to a multi-product assembly one was performed. Empirical results identify uncertainties challenging production system design configuration, and the activities targeting reduction of uncertainty. To extend current theory, empirical case study data is synthesized with current findings in production system design decisions, and uncertainty reduction in product design decisions. The paper concludes that information acquisition, uncertainty prioritization, project member background, and complexity of change influence uncertainty reduction in production system design decisions. Managerial implications highlight the importance of information acquisition and a structured approach when reducing uncertainties necessary to achieve an efficient and effective production system design. Thus, academic approaches to uncertainty reduction could benefit manufacturing practice.