Summary of discussions on

“What is RDM, why RDM, and RDM in future manufacturing”

RDM cross-network meeting, 13 Sep 2016, Oxford

Features/attributes of RDM

-Changes in location, closer to customer (but realizing the differential considerations on location and/or scale across different components of a complex supply chain, and spanning across and between multiple scales: local-regional-national-global)

-Change in scale, smaller scale

-Shorter supply chains

-Personalisation/customisation of products and services

Aspects of innovation embraced by RDM

  • Innovative adoption of data/digital technology (across design, make, use and post-consumption)
  • Innovation in manufacturing technology (e.g. 3DP)
  • Innovation in product (change in value, customisation, personalisation, incorporating artistic features)
  • New organisational structures and business modelsinvolving different forms of competition, plurality in value proposition and life-cycle thinking
  • Emergence of a ‘system of systems’ with opportunities for integration (system components including those related to not only “fresh” manufacturing but also repair and remanufacture)

Elements that could be re-distributed

  • In terms of activities, virtually every part of the whole value chain – but will be shaped by specific activities, e.g. economics of scale
  • Forming (design, formulation, innovation)
  • Making
  • Distribution
  • Recycling
  • Accompanying activities are knowledge/information and human/employment, which would be also re-distributed.

Drivers/causes of RDM(partially overlapping with potential benefits)

  • Technology
  • Digital technologies (communication channels)
  • Additive manufacturing technology
  • Product value and identity
  • Customer values (attention to “Made in …” and “Made with …”)/demands/market fragmentation
  • Competitive differentiation between firms
  • Reduction of the risk of committed capital
  • Virtual/physical supply chains
  • Risk reduction through distributed and decentralised rather than concentrated and centralised sources of knowledge and production less liable to disruption
  • Supply chain streamlining, integration and simplification
  • Timing control (postponing) of manufacture
  • Meeting the challenge of capacity in a dynamic market

Potential benefitsof RDM

Note that a number of potential benefits e.g. would really depend on the conditions; RDM could lead to adverse effects under certain circumstances (e.g. environmental sustainability; product quality/safety; resilience)

  • Environmental and social sustainability
  • Environmental/resource sustainability (energy/water/emission/waste; roles in circular economy)
  • Regional socio-economic development, including employment (more, better jobs, upskilling), value capture/retaining, more balanced rural/urban economies
  • Better consumer satisfaction via better products (e.g. via personalisation, fresher product)
  • More socially and environmentally benign zoning/planning in urban areas
  • Business advantages
  • New business opportunitiesfor existing companies adopting RDM
  • Stimulus to vertical disintegration (entrepreneurs + start-ups potential opportunity to lead/innovate)
  • Bringing new business entities complementing the existing system
  • Striking a better balance between compromising pairs (e.g. adaptability vs. efficiency)

Issues

  • Uncertainties in RDM’s impact
  • Requiring product redesign to make a real impact (design for re-manufacturing)
  • Resilience - need to construct and sustain adaptive capacity to withstand, recover from and pre-empt disruptive change
  • Geographically extended & fragile supply chains
  • Product quality/safety/traceability
  • Efficiency and effectiveness – are the changes better than what’s there already?
  • Meeting RDM’s needs
  • Skill shortages
  • Standards for novel products and processes
  • Requirement of new physical space for new industry/player
  • Getting RDM off the ground
  • Inertia / switching costs to transfer from the current regime to RDM)
  • Economic values yet to be demonstrated
  • Need for RDM demonstrators (role of government)
  • It might be interesting to look at what RDM is NOT good for – are there commodified products that are not amenable to differentiation, personalisation, customisation?

Links to the bigger picture of future manufacturing

-Contributing to open innovation (closer/novel collaboration and knowledge transfer between multi nationals - SMEs – firms – consumers, for example, GE working with the custom car SME Local Motors)

-Promoting location-sensitive technologies (sensors/GPS/IoT)

-Contributing to the shaping of the landscape of manufacturing complexity (e.g. increasing extent of relying on IT/automation vs. developing the human economy; balancing efficiency and resilience)