Science Research Management ›› 2020, Vol. 41 ›› Issue (6): 37-46.

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Mask dilemma and innovation for production and operation mode of public health products

Jiang Yusi1, Li Yuan2, Zhao Yapu2   

  1. 1. Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China; 2. School of Economics and Management, Tongji University, Shanghai 200092, China
  • Received:2020-03-15 Revised:2020-04-14 Online:2020-06-20 Published:2020-06-20
  • Contact: Yuan Li

Abstract: Since the outbreak of COVID 19, the demand for public health products including masks has surged and led to the serious imbalance between supply and demand. Facing the situation of "mask shortage", the society pays much attention to how to strengthen the coordination of the whole mask industry chain under the regulation and deployment of the government to ensure the rapid recovery of production and the expansion of production capacity. However, the extreme shortage of masks and passive responses all over the industry have exposed the deficiencies in the current mode of production and operation of masks that have not been paid enough attention to. To solve this problem, based on the value network theory, this paper constructs a theoretical framework of production and operation mode of public health products and discusses its basic elements, analyzes the limitations of the existing mode, and proposes a new mode of combining routine and emergency. With the increase of environmental uncertainty and fierce competition, the value chain relationships between different enterprises have evolved from traditional value chain which focuses on the transfer of value activities from upstream enterprises to downstream enterprises into the relationships of value network. The value network theory emphasizes the interaction of multiple subjects to respond to the value requirements and realizes the value creation through the innovation of products and production methods, so it can provide beneficial guidance for the production and operation mode of public health products. We first elaborate the characteristics of the four basic elements of production and operation mode based on value network theory—product characteristics, production mode, subject relationship and value requirements and analyze their limitations in meeting the demand under emergency. In terms of value requirements, enterprises usually have to meet the demand of market supply and government reserve, but they will be requisitioned by the government in emergency to accelerate targeted production to meet the urgent needs of public health. Regarding to product characteristics, current mask products are mainly disposable products. As a major mask-producing country, it is not difficult to achieve a balance of supply and demand for masks through mass production of disposable masks. However, the outbreak of the epidemic has led to a surge in demand for medical surgical masks which is hard to meet. As to production mode, masks are standardized functional products which are mainly produced through mass standardized production. The production mode has not changed after the outbreak since the manufacturers focus on the improvement of production capacity rather than the improvement of production methods. In terms of subject relationship, the subjects of mask production and operation mode include the upstream and downstream enterprises, the government and the public. Under normal circumstances, the relationship between the subjects followed market rules. Organizations, government reserves and public′s demand for masks were determined by market rules. After the outbreak, the government takes over the mask industry chain and regulates the production capacity and market price. Although the existing mode can meet the market-driven supply and demand relationship in ordinary times, the following serious problems exist in response to public health emergencies: the response speed is slow and the recovery of production capacity is blocked by raw material shortage, manpower shortage and logistics restrictions; bottlenecks in the upstream and downstream collaboration of the mask industry chain cause risks in mass production; in addition to protective functions, the social functions of masks, such as environmental protection and user experience, should be considered. In view of the problems existing in the current mode, we propose a new mask production and operation mode to balance the needs of different periods and elaborate the characteristics of the four basic elements: First of all, it is necessary to break through the thinking of separation between routine and emergency to realize their combination through industrial coordination, and ensure timely response to emergency needs. At the same time, environmental protection requirements and wearing comfort requirements should be considered. Secondly, it is necessary to promote product innovation and develop multi-use recyclable mask products that can meet various protection requirements. The development of new mask products will inevitably lead to the development of new materials and new technologies, and improve the value of the industrial chain. Thirdly, existing batch production mode should be upgraded and transformed through digital technology to develop intelligent production mode, and realize mass production customization of industrial chain and rapid transformation of product line. Relying on this production method, the enterprise produces the ordinary functional masks in accordance with the market rules and the government′s reserve requirements at ordinary times , and rapidly adjusts the product production through the intelligent production system to increase the production and supply of the reusable masks that can be used for many times in the emergency of public health. Finally, the coordination among the market (enterprises), the government and the public should be strengthened. In normal times, the government should optimize the structure of the stock of products and innovate in the way of stockpiling to realize the common reserve of government and people. The government should also guide the innovative production on the supply side of enterprises and the consumption and daily reserve on the demand side of the public through multiple interactions to cope with the sudden surge in demand. We propose specific suggestions for the transformation path from the old mode to the new one: Firstly, manufacturers should strengthen product innovation and improve product efficiency. Secondly, big data technology should be implemented to promote continuous innovation and upgrading of mask industry, and accelerate the development towards scale, intensification and high-end. Thirdly, China′s institutional advantages should be brought into full play, such as utilizing the government′s mobilization capacity to open up the domestic and international markets to realize the combination of routine and emergency. Fourthly, a new reserve mode of cooperation among the government, market and the public should be established to build a defense system for emergencies. Fifthly, a scientific distribution, rational use and standardized disposal mechanism of public health products including masks should be established.

Key words: production and operation mode, innovation, value network, combination of routine and emergency, transformation path