Decision Sciences Journal
Volume 30, Number 4
Fall 1999
Modular Network Design: Using Information and Communication
Technology to Allocate Production Tasks in a Virtual Organization
Martijn R. Hoogeweegen
Multimedia Skills B.V., J. van Oldenbarneveltlaan 34-36, 3818
HB Amersfoort,
The Netherlands, email: hoogeweegen@mms-nl.nl;
Erasmus University, Rotterdam School of Management, P.O. Box
1738, 3000 DR Rotterdam, The Netherlands, email: m.hoogeweegen@fac.fbk.eur.nl
Wim J. M. Teunissen and Peter H. M. Vervest
Erasmus University, Rotterdam School of Management, P.O. Box
1738, 3000 DR Rotterdam, The Netherlands, email: w.teunissen@fac.fbk.eur.nl,
p.vervest@fac.fbk.eur.nl
René W. Wagenaar
Free University Amsterdam and KPN Research, Leidschendam, The
Netherlands, email: r.w.wagenaar@research.kpn.com
Abstract. The increased interest in customer service
and the trend towards customization gives rise to new organizational
forms such as the virtual organization. This paper introduces
the Modular Network Design (MND) approach to complement Mowshowitz’
(1997) theory of virtual organization. This theory focuses on
metamanagement of the virtual organization and consists of four
activities: (1) determine and analyze customer requirements,
(2) track the possibilities for satisfying these requirements,
(3) develop and allocate production tasks among the members of
the virtual organization, and (4) assess and adjust tasks and
allocation procedures. The MND approach elaborates on this theory
by breaking down both the requirements and the production tasks
into modular entities, and by measuring the performance of the
resulting virtual network in terms of operating costs and throughput
time. The major contribution of the MND approach lies in its
ability to support the assessment of alternative allocations
of production tasks among the members of a virtual organization,
using Information and Communication Technology (ICT) as enabler.
The assessment of such alternative designs is illustrated by
an application of MND in the air cargo industry. The results
show how the virtual organization and its members can realize
significant improvements in operating costs and throughput times
when applying ICT to link and reallocate their modular production
tasks in response to customized orders.
Subject Areas: Business Process Reengineering, Information
and Communication Technology, Networks, and Process Design. |