A taxonomy of international manufacturing networks

Abstract

Manufacturing firms with multiple product groups do not need to involve all factories in the production of all product groups. Some factories may specialize on a small set of products, while others participate in the manufacturing of a broader set of products. However, current theories on international manufacturing networks do not explain in detail how organizations design international manufacturing networks for different products or product groups involving different sets of factories. This research investigates 20 product group networks at five global manufacturing firms. We distinguish between three types of factories: component manufacturing factories, assembly factories, and integrated factories (having both component manufacturing and assembly). Furthermore, we identify four network types: linear, divergent, convergent, and mixed structures. These four types exhibit distinctly different characteristics in terms of key characteristics, factory roles, product types, process types, market types, sourcing, and key managerial challenges. Most networks are relatively small – on an average consisting of four factories and some contain a number of subnetworks that are self-sufficient in terms of material flow and serve separate market regions. We identify two new types of factory roles related to component manufacturing competences, which we call ‘strategic feeder’ and ‘full lead’.     

Improving operational plant performance in international manufacturing networks: the effects of integrative capabilities and plant roles

Abstract

This study adopts the resource-based view to examine how two integrative capabilities of a plant embedded in a manufacturing network enhance operational performance: the capability to connect with other plants in its manufacturing network (a networking capability, NC), and the capability to integrate manufacturing processes with new product development processes (a new product development capability, NPDC). Our model tests the indirect effect of NC on cost, quality, flexibility and delivery through NPDC. Furthermore, we test if the relationship between NC and NPDC depends on the strategic role of the plant. Using survey data from a sample of 521 plants, we confirmed the mediating effect of NPDC. However, the moderation effect was not confirmed. Our findings reveal that plants can deploy NPDC capabilities, fostered by NC, independently from their role in the network. This study contributes to the understanding of plant capabilities and plant roles in manufacturing networks.     

Measuring management quality in the factory

The last decade has seen a growing consensus that manufacturing matters. The factory as the producing unit is the core of the firm's manufacturing activities. However, even now, it is not agreed on or even fully understood what constitutes a well-managed factory. This article attempts to create a causal model of management quality in the plant, identifying key managerial levers for improving plant performance. The model is based on an integrated view of three core processes: supply chain, product and process development, and strategy deployment. We postulate that the joint performance of the three processes is determined by the quality with which they are managed. Management quality is operationalized as consisting of six types of action: delegation (or decentralization), integration (or coordination), measurement, employee participation, communication, and employee development.This management quality model has been applied to the design of the Top Usine 1995 Best Factory Award administered in cooperation with the French weekly L'Usine Nouvelle. Data collected from participating plants do substantiate our view that plant performance is substantially driven by management quality: the six management quality dimensions are shown to be statistically linked to performance improvement rates in the plant, and we provide further evidence of this link by detailing the case example of the award winner. Our survey also shows that supply management appears to be a common problem area for the factories participating in the Top Usine award, including the best ones.     

Multi-site aggregate production planning with multiple objectives: A goal programming approach

This paper addresses the problem of aggregate production planning (APP) for a multinational lingerie company in Hong Kong. The multi-site production planning problem considers the production loading plans among manufacturing factories subject to certain restrictions, such as production import/export quotas imposed by regulatory requirements of different nations, the use of manufacturing factories/locations with regard to customers' preferences, as well as production capacity, workforce level, storage space and resource conditions of the factories. In this paper, a multi-objective model is developed to solve the production planning problems, in which the profit is maximized but production penalties resulting from going over/under quotas and the change in workforce level are minimized. To enhance the practical implications of the proposed model, different managerial production loading plans are evaluated according to changes in future policy and situation. Numerical results demonstrate the robustness and effectiveness of the developed model.     

New views and visions on product structures

Abstract

The paper deals with different viewpoints in product structuring knowledge. Special interest is paid to a new viewpoint called control structure. The necessity for such a concept is based on the penetration of product oriented manufacturing systems (factories, workshops and cells) together with the related distribution of production management decision making. Control structure is an aggregated control oriented viewpoint on the product structure hiding the details of the work operations and materials requirements at the lower levels of decision making. Thus control structures are also intended for the integration and loosely coupled co-ordination of control units. The paper also strongly advocates the application of interactive graphics in the manipulation of product structure information. A practical system developed is demonstrated as a vehicle for implementing the concepts introduced.     

An approach to learning from both good and poor factory performance in a Kanban-based just-in-time production system

In a JIT manufacturing environment it may be desirable to learn from an archived history of data that contains information that reflects less than optimal factory performance. The purpose of this paper is to use rule induction to predict JIT factory performance from past data that reflects both poor (saturated or starved) and good (efficient) factory performance. Inductive learning techniques have previously been applied to JIT production systems (Markham et al. , Computers and Industrial Engineering, 34 , 717-726, 1998; Markham et al. , International Journal of Manufacturing Technology Management, 11 (4), 239-246, 2000), but these techniques were only applied to data sets that reflected a well-performing factory. This paper presents an approach based on inductive learning in a JIT manufacturing environment that (1) accurately classifies and predicts factory performance based on shop factors, and (2) identifies the important relationships between the shop factors that determine factory performance. An example application is presented in which the classification and regression tree (CART) technique is used to predict saturated, starved or efficient factory performance based on dynamic shop floor data. This means that the relationship between the variables that cause poor factory performance can be discovered and measures to assure efficient performance can then be taken.     

Improving supply chain responsiveness through Advanced Manufacturing Technology: the mediating role of internal and external integration

Abstract

Responsiveness is one of the key performance factors that firms need to face up to the challenges posed by today’s markets. Many manufacturing firms are investing in advanced manufacturing technology (AMT) with a view to improving competitiveness. However, empirical evidence shows that investments in AMT alone do not lead to improvements in performance. In this study, a model that links AMT implementation and responsiveness through internal integration and external integration is proposed. A sample of 441 Spanish industrial companies was used to test the model through structural equation modelling. The findings highlight that internal integration needs to be supplemented with external integration in order to ensure that the implementation of AMT will result in improved responsiveness. Supply chain managers should focus on integration within the supply chain – firstly internal and later external – to obtain returns on investments in AMT in the form of improved flexibility and more reliable and faster deliveries.     

EF-based strategies for productivity improvements at wet-etch stations

Abstract

In complex manufacturing environments, Cycle Time (CT) reductions obtained at critical production steps could generate considerable productivity improvements and lead to capacity increases at no investment costs. A wet-etch station operating in a real semiconductor manufacturing plant has been modelled to investigate the impact of different assignment strategies on CT performance. Assignment strategies based on the “Earliest Finish” (EF) concept have been developed and their productivity efficiency compared with a workload balance-based strategy. The EF-based strategies differ from each other for both computational complexity and amount of real-time information required. Encouraging results obtained for a high detail level EF strategy have inspired the development of conceptually similar strategies characterised by reduced implementation efforts. Fundamental implementation constraints, suggested by the manufacturing engineers familiar with the wet-etch station, have been taken into account throughout the different stages of this study. CT reductions ranging between 11% and 28% could be achieved at the modelled wet-etch station.     

Managing international manufacturing at plant and plant network levels – insights from five case studies

Abstract

In this study, we develop understanding of management of international manufacturing by a combined analysis of manufacturing firms’ plant networks and roles of individual plants within them. We elaborate the framework of Ferdows (1989 Ferdows, K. 1989. “Mapping International Factory Networks.” In Managing international manufacturing, edited by K. Ferdows, 3–21. Amsterdam, The Netherlands: Elsevier Publishers. [Google Scholar]) at plant and network levels by analyzing data collected from five plant networks of global manufacturing companies and propose an enhanced framework consisting of four main role types with eleven plant roles, which have implications on the network level. The findings give interesting and novel insights into management of international manufacturing; we conclude that plant roles are more complex than conventionally considered and understanding of international manufacturing requires elaborated analysis at both plant and network levels.     

Supply chain reconfiguration opportunities arising from additive manufacturing technologies in the digital era

Abstract

The aim of this study is to explore the impact of additive manufacturing (AM) technologies on the configuration opportunities of supply chains (SCs) within the digital manufacturing era. To this effect, we first conduct a critical taxonomy of existing research efforts and then propose an integrated decision-making process for the design and management of SCs defined by digital manufacturing technologies. Following, we provide an integrated framework for future SC reconfiguration opportunities arising from the adoption of AM on a supply network setting. Our analysis demonstrates the significant ramifications of AM techniques on SC configuration and sustainability performance as opposed to conventional value networks; however, existing research is evidently limited due to scope related challenges and the inherent complexity at the manufacturing echelon of the respective supply networks.     

The Impact of Complexity on Knowledge Transfer in Manufacturing Networks

Coordinating knowledge transfer within multi‐plant manufacturing networks is a challenging task. Using a computational model, we examine when it is beneficial to create production knowledge within a central unit, the “lead factory,” and transfer it to geographically dispersed plants. We demonstrate that the knowledge transfer generates a trade‐off between a positive cost‐saving effect due to fewer adaptations in each plant, and a negative transfer cost effect due to the costly knowledge transfer itself. The complexity of the production process moderates the performance implications of the knowledge transfer because it determines the relative strength of these two effects. For production processes with low complexity, knowledge transfer can engender superior network performance. Here, an optimal extent of knowledge transfer exists, and thus, a complete knowledge transfer is not performance maximizing. For production processes with medium and high levels of complexity, performance is reduced rather than enhanced through knowledge transfer so that it is optimal not to transfer any knowledge from the lead factory to the plants. While we analyze knowledge transfer within a manufacturing network, our results are transferable to other settings that consist of a knowledge sending and receiving unit.     

The company-wide effects of just-in-time manufacturing within an integrated materials handling system: a case study

Abstract

The paper describes the formulation of a cellular manufacturing methodology to allow the use of an automated guided vehicle system (AGVS) in a difficult environment. The resulting methodology allowed just-in-time operation on the factory floor. The methodology was also shown to provide benefits additional to those associated with AGV usage, namely increased integration of the manufacturing control departments of the organization, and increased efficiency of their MRP system.     

A routine-based framework implementing workload control to address recurring disturbances

Abstract

This research focuses on responsiveness in high variety manufacturing environments. To achieve it, the article proposes to develop Dynamic Response Capabilities (DRCs) of the manufacturing system defined as the abilities to readjust the planned operating parameters of workload, capacity, and lead time, in the wake of disturbances. To inform their development, built on the Workload Control theory, a routine-based framework is proposed. The framework supports an integrated approach for the implementation of adaptive decision-making routines for workload, capacity, and lead time readjustments at different stages in the order fulfilment process. Findings from two empirical cases show the appropriateness of the framework to develop and utilise DRCs in different settings of disturbances. Results of a simulation study, with one of the case companies, also shows the effectiveness of the framework to drive performance improvements in presence of recurring disturbances leading to demand variability.     

Reviewers

This paper reports the findings of a research study into the application of lean production methods to a traditional aerospace manufacturing organization. The approach taken to lean production is described, along with what worked and what did not. Two main stumbling blocks to the application were identified the redundancy programme and a lack of employee education in the concept and principles of lean production. A number of the methods of lean production were found not to be as effective as in the motor manufacturing environment, the reasons for this included the dominant position of the company and the customer demand characteristics. In addition, both management and the industrial workers found the transition from traditional manufacture to lean production was not easy to make.     

Redistributed Manufacturing and the Impact of Big Data: A Consumer Goods Perspective

Abstract

Digitalization and the growth of big data promise greater customization as well as change in how manufacturing is distributed. Yet, challenges arise in applying these new approaches in consumer goods industries that often emphasize mass production and extended supply chains. We build a conceptual framework to explore whether big data combined with new manufacturing technologies can facilitate redistributed manufacturing (RDM). Through analysis of 24 consumer goods industry cases using primary and secondary data, we investigated evolving manufacturing configurations, their underlying drivers, the role of big data applications, and their impact on the redistribution of manufacturing. We find some applications of RDM concepts, although in other cases existing manufacturing configurations are leveraged for high volume consumer goods products through big data analytics and market segmentation. The analysis indicates that the framework put forward in the paper has broader value in organizing thinking about emerging interrelationships between big data and manufacturing.     

Manufacturing Practices and Strategy Integration: Effects on Cost Efficiency,Flexibility, and Market‐Based Performance

Manufacturing plant managers have sought performance improvements through implementing best practices discussed in World Class Manufacturing literature. However, our collective understanding of linkages between practices and performance remains incomplete. This study seeks a more complete theory, advancing the idea that strategy integration and enhanced manufacturing capabilities such as cost efficiency and flexibility serve as intermediaries by which practices affect performance. Hypotheses related to this thesis are tested using data from 57 North American manufacturing plants that are past winners and finalists in Industry Week's“America's Best” competition ( Drickhamer, 2001 ). The results suggest that strategy integration plays a strong, central role in the creation of manufacturing cost efficiency and new product flexibility capabilities. Furthermore, strategy integration moderates the influences of product‐process development, supplier relationship management, workforce development, just‐in‐time flow, and process quality management practices on certain manufacturing capabilities. In turn, manufacturing cost efficiency and new product flexibility capabilities mediate the influence of strategy integration on market‐based performance. These findings have implications for practice and for future research.     

Cloud manufacturing system for sheet metal processing

Abstract

Cloud computing is changing the way industries and enterprises run their businesses. Cloud manufacturing is emerging as an approach to transform the traditional manufacturing business model, while helping the manufacturer to align production efficiency with its business strategy, and creating intelligent factory networks that enable collaboration across the whole enterprise. Many production planning and control (PPC) problems are essentially optimisation problems, where the objective is to develop a plan that meets the demand at minimum cost or maximum profit. Because the underlying optimisation problem will vary in the different business and operation phases, it is important to think about optimisation in a dynamic mechanism and in a number of interlinked sub-problems at the same time. Cloud manufacturing has the potential to offer decision support as a service and medium of communication in PPC. To solve these problems and produce collaboration across the supply chain, this paper provides an overview of the state of the art in cloud manufacturing and presents a model of cloud-based production planning and production system for sheet metal processing.     

The effect of supplier development on outsourcing performance: the mediating roles of opportunism and flexibility

Abstract

In this increasingly competitive business environment, firms utilise outsourcing as a strategic tool to leverage globally dispersed resources so that they may focus on their core competencies and improve efficiency. The more firms rely on outsourcing, the more they depend on their suppliers, and the more important it is to manage and develop suppliers in order to achieve and maximise the benefits of outsourcing. This paper explores the impact of supplier development on outsourcing performance. Structural equation modelling was used to analyse data collected from 213 manufacturing firms in China. The results indicate that supplier development has a strong direct positive impact on outsourcing performance, and that supplier development also leads to enhanced outsourcing performance through reducing outsourcing opportunism risk and improving outsourcing flexibility. In addition to making a contribution to current theories of outsourcing, our findings also provide outsourcing managers with practical understanding and insights about the role of supplier development in enhancing outsourcing performance.     

Computer integrated manufacturing applications in an automotive factory

Abstract

System integration is critical to development and implementation of CIM (computer integrated manufacture). This paper outlines the elements of the CIM system implementation strategy and deals with the representation of CIM implementation stages in TO FAS; which is a car manufacturing factory. In TOFA?, a pilot CIM project has been completed with success and other projects are in the development phase.     

Period batch control: Classic,not outdated

Period Batch Control was developed and first applied during the Second World War. The historic roots are discussed and the principles of this classic production planning approach explained, PBC compared to other production control concepts, and it is demonstrated that it may still be fruitfully applied, especially in combination with cellular manufacturing. It is therefore considered as a classic, but not outdated production planning concept.