Researchers examine COVID-19 impact on manufacturing

Date:
September 24, 2020
Source:
University of Texas at Dallas
Summary:
A new study finds that manufacturing response to COVID-19 has
been largely reactive and uncoordinated, and many firms' crisis
communication plans do not include managing an infectious-disease
outbreak.



FULL STORY ========================================================================== Researchers at The University of Texas at Dallas have examined how manufacturers are -- or aren't -- pivoting successfully in response to
major manufacturing disruptions as a consequence of the COVID-19 pandemic.


==========================================================================
In a study published July 27 in IEEE Engineering Management Review,
two faculty members from the Naveen Jindal School of Management found
that manufacturing response to the disruption has been largely reactive
and uncoordinated, and many firms' crisis communication plans do not
include managing an infectious- disease outbreak.

The researchers identified the supporting enablers and competing barriers
of manufacturing repurposing within the context of disruption caused
by COVID-19.

The article offers practitioners and policymakers best practices for
pivoting successfully.

"The research was an eye-opener in terms of understanding the challenges
for manufacturers in dealing with such an abrupt, massive disruption,"
said Dr.

Ramesh Subramoniam, clinical associate professor of operations management
and one of the paper's co-authors.

"The COVID-19 pandemic brought everything to a standstill. Even
before that, supply chain disruption frequency had increased in recent
years. Establishing a resilient framework to meet such supply chain
disruptions is the immediate need for practitioners," he said.

Because of the extensive scope of disruption distributed across countries
and industries, pandemics are different from typical disruptions, which
are generally focused on specific industries or products, Subramoniam
said.



========================================================================== According to the International Labour Organization, approximately 47
million employers, representing some 54% of all employers worldwide,
operate businesses in the sectors hardest hit by COVID-19: manufacturing, accommodation and food services, wholesale and retail trade, and real
estate, business and administrative activities.

Manufacturing is expected to be one of the most severely affected sectors
in terms of the negative economic impact, said Dr. David Widdifield,
a co-author of the paper, clinical associate professor of operations
management and director of the Master of Science in Supply Chain
Management program.

"A sudden disruption, such as the pandemic, opened up questions on the
critical need for companies to reevaluate their existing supply chain
risk mitigation strategies -- this includes the sectors of manufacturing responsible for the mass production of personal protection equipment
(PPE) for health care workers," said Widdifield, who also serves as
assistant dean of graduate programs in the Jindal School.

The researchers surveyed employees of manufacturing firms. Completed
between June and July 2020, the study assessed online responses from 71 manufacturing practitioners across 39 facilities and six continents.

Some companies supplied critical equipment and devices needed by the
public and health care workers, oftentimes exploring new technologies.



========================================================================== Others found "repurposing and pivoting" -- the process of
manufacturers rapidly switching to a new product or process -- more challenging. Manufacturing repurposing includes adapting production plans, lines and capabilities to meet new demand goals.

"The research shows a lack of capability among some manufacturers to deal
with the increased demand for new products, such as medical devices,
while other manufacturers have the ability to pivot to a new normal," Widdifield said. "The study also brings forward the impact of digital technologies such as 3D printing, artificial intelligence and machine
learning, and how they prime organizations to respond faster and be more resilient to such rapid disruptions in the future." The study found:
* Almost all the organizations (94%) were operational during the
peak of
the pandemic. Of those, 56% were at full operations capacity,
and 44% were at partial capacity.

* Multiple manufacturing firms repurposed during the pandemic. Target
products included respirators and their components, medical PPE
and hand sanitizers.

* Repurposing was less likely and did not occur for several product
families, including mobile X-rays, surgical gloves, screening test
kits and other diagnostic equipment.

* Despite the increasing number of disruptions caused by epidemics,
natural
disasters and other large-scale regional and global events, many
firms' crisis communication plans do not specifically include
managing an infectious-disease outbreak.

The research also has implications for consumers, Subramoniam
said. Companies were tested on how well they took care of their employees during the pandemic.

"The average consumer should look at how companies responded to
the pandemic in treating them, their friends and relatives," he
said. "These are very strong indications of an organizational culture
and capability. Future employees want to work for such companies with
a strong culture of product and process innovation and growth, with
the employees as the core asset." Co-authors of the paper included
Dr. Okechukwu S. Okorie and Dr. Fiona Charnley of the University of
Exeter in England, and John Patsavellas and Dr.

Konstantinos Salonitis of Cranfield University in England.


========================================================================== Story Source: Materials provided by
University_of_Texas_at_Dallas. Original written by Brittany
Magelssen. Note: Content may be edited for style and length.


========================================================================== Journal Reference:
1. Okechukwu S. Okorie, Ramesh Subramoniam, Fiona Charnley, David
Widdifield, John Patsavellas, Konstantinos Salonitis. Manufacturing
in the time of COVID-19: An Assessment of Barriers and
Enablers. IEEE Engineering Management Review, 2020; 1 DOI:
10.1109/EMR.2020.3012112 ==========================================================================

Link to news story: https://www.sciencedaily.com/releases/2020/09/200924135327.htm

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