Strategic Management of Global Manufacturing Networks: Aligning Strategy, Configuration, and Coordination

278 Pages·2014·11.43 MB·English

by  Thomas Friedli

Management for Professionals
Thomas Friedli
Andreas Mundt
Stefan Thomas
Strategic
Management
of Global
Manufacturing
Networks
Aligning Strategy, Confi guration,
and Coordination
Management for Professionals
Forfurthervolumes:
http://www.springer.com/series/10101
ThiSisaFMBlankPage
Thomas Friedli (cid:129) Andreas Mundt (cid:129)
Stefan Thomas
Strategic Management
of Global Manufacturing
Networks
Aligning Strategy, Configuration,
and Coordination
ThomasFriedli AndreasMundt
ITEM-HSG StefanThomas
UniversityofSt.Gallen REHAUGmbH
St.Gallen Murib.Bern
Switzerland Switzerland
IncollaborationwithRichardLu¨tzner
Selected parts of the text were translated from German by Astrid Jannke and Felix
Sherington-Kendall
ISSN2192-8096 ISSN2192-810X(electronic)
ISBN978-3-642-34184-7 ISBN978-3-642-34185-4(eBook)
DOI10.1007/978-3-642-34185-4
SpringerHeidelbergNewYorkDordrechtLondon
LibraryofCongressControlNumber:2014933697
#Springer-VerlagBerlinHeidelberg2014
Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart
of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations,
recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor
informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar
methodologynowknownorhereafterdeveloped.Exemptedfromthislegalreservationarebriefexcerpts
inconnectionwithreviewsorscholarlyanalysisormaterialsuppliedspecificallyforthepurposeofbeing
enteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthework.Duplication
ofthispublicationorpartsthereofispermittedonlyundertheprovisionsoftheCopyrightLawofthe
Publisher’s location, in its current version, and permission for use must always be obtained from
Springer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyrightClearanceCenter.
ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt
fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
While the advice and information in this book are believed to be true and accurate at the date of
publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor
anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with
respecttothematerialcontainedherein.
Printedonacid-freepaper
SpringerispartofSpringerScience+BusinessMedia(www.springer.com)
Acknowledgments
This book is the result of several years of research and numerous projects. Many
colleaguesandindustrypartnershavekindlycontributedtoandmadepossiblethis
book in the first place. In uncountable discussions with these persons, we have
challenged and refined our ideas and concepts and improved them thanks to the
knowledgeandexperiencesofallinvolvedpartners.
Therefore,oursincerethanksisowedtoallthosewhoparticipatedintheprojects
andcontributedtothedevelopmentofthemodels,frameworksandcontentsofthe
bookathand.Ourveryspecialthanksareduetoourdearcolleagues:
Daniel Bellm, Maria Fischl, Saskia Gu¨tter, Fabian Liebetrau, Dr. Maike Scherrer
andSimoneThomas.
We alsoliketoexpressourthankstoRichardLuetzner forhis contributionsto
the content and the realization of this book, as well as to Astrik Jannke and Felix
Sherrington-Kendallfortheirtranslationwork.
St.Gallen,Summer2013 ThomasFriedli
AndreasMundt
StefanThomas
v
ThiSisaFMBlankPage
Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 ImportanceofManufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2 StrategicManufacturingManagement . . . . . . . . . . . . . . . . . . . . 5
1.3 LimitsofExistingModels . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.4 CurrentBusinessClimateofManufacturingCompanies . . . . . . . 7
1.5 AimandStructureoftheBook . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.6 Summary .. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . . .. 13
2 DevelopmentofProductionManagement:FromSitetoNetwork
Optimisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.1 ManufacturingNetworksasPartofProductionManagement . . . 15
2.2 FromSitetoNetworkManagement . . . . . . . . . . . . . . . . . . . . . 17
2.3 ManagementApproachesatSiteLevel . . . . . . . . . . . . . . . . . . . 26
2.3.1 SiteLocationChoices . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.3.2 SiteRoles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2.3.3 LeanManufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
2.4 ManagementApproachesatNetworkLevel . . . . . . . . . . . . . . . 37
2.4.1 FrameworkModelsandManagementFrameworksfor
NetworkManagement . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2.4.2 QuantitativeDesignandOptimisationApproaches . . . . . 40
2.4.3 Strategic-QualitativeDesignandOptimisation
Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.4.4 CriticalEvaluationofExistingApproaches . . . . . . . . . . 42
2.5 Summary .. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . . .. 43
3 AReferenceFrameworkforNetworkDesign . . . . . . . . . . . . . . . . 45
3.1 Strategy . . . .. . . . .. . . .. . . . .. . . .. . . . .. . . . .. . . .. . . . .. 47
3.1.1 ManufacturingStrategy . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.1.2 NetworkStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.2 Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
3.2.1 NetworkStructure . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 51
3.2.2 Specialisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.2.3 Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.2.4 InternalSupplyChain . . . . . . . . . . . . . . . . . . . . . . . . . . 55
vii
viii Contents
3.3 Coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.3.1 Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
3.3.2 Coopetition . . . .. . . . .. . . . .. . . . .. . . .. . . . .. . . . .. 59
3.4 NetworkFIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
3.5 ThePARTSMethodforNetworkManagement . . . . . . . . . . . . . 64
3.6 Summary .. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . . .. 66
4 ClarificationoftheInitialStrategicSituation . . . . . . . . . . . . . . . . . 67
4.1 FromBusinesstoManufacturingStrategy . . . . . . . . . . . . . . . . . 67
4.2 ManufacturingandNetworkStrategy . . . . . . . . . . . . . . . . . . . . 69
4.2.1 ManufacturingStrategy . . . . . . . . . . . . . . . . . . . . . . . . . 69
4.2.2 NetworkStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
4.3 StrategyTypesinPractice . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
4.3.1 ManufacturingStrategy . . . . . . . . . . . . . . . . . . . . . . . . . 76
4.3.2 NetworkStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
4.4 StrategyAnalysisandDefinitionintheCaseofMechanical
EngineeringLtd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.5 Summary .. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . . .. 84
5 NetworkConfiguration . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. 85
5.1 Introduction . .. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .. . . 85
5.2 DesignoftheNetworkStructure . . . . . . . . . . . . . . . . . . . . . . . . 86
5.3 DesignoftheNetworkSpecialisation . . . . . . . . . . . . . . . . . . . . 88
5.4 DesignoftheSiteSpecialisation . . . . . . . . . . . . . . . . .. . . . . . . 90
5.5 DesignoftheNetworkResources . . . . . . . . . . . . . . . . . . . . . . . 95
5.6 DesignoftheInternalSupplyChainStructure . . . . . . . . . . . . . . 98
5.7 ConfigurationTypesinPractice . . . . . . . . . . . . . . . . . . . . . . . . 101
5.8 DesignoftheNetworkConfigurationintheCaseofMechanical
EngineeringLtd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
5.9 Summary .. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . . .. 111
6 NetworkCoordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
6.1 DesigningtheNetworkOrganisation . . . . . . . . . . . . . . . . . . . . . 113
6.2 CentralisationandStandardisationintheProductionNetwork . . . 116
6.2.1 FrameworkDevelopmentandDescription . . . . . . . . . . . 116
6.2.2 TheUnderlyingLogic . . . . . . . . . . . . . . . . . . . . . . . . . . 124
6.3 ResourceAllocationandSharingintheNetwork . . . . . . . . . . . . 128
6.3.1 FrameworkDevelopmentandDescription . . . . . . . . . . . 128
6.3.2 TheUnderlyingLogic . . . . . . . . . . . . . . . . . . . . . . . . . . 134
6.4 ManagementofNetworkFlows . . . . . . . . . . . . . . . . . . . . . . . . 137
6.4.1 FrameworkDevelopmentandDescription . . . . . . . . . . . 137
6.4.2 TheUnderlyingLogic . . . . . . . . . . . . . . . . . . . . . . . . . . 144
6.5 IncentiveMechanismsintheNetwork . . . . . .. . . . . .. . . . . . .. 147
6.5.1 FrameworkDevelopmentandDescription . . . . . . . . . . . 147
6.5.2 TheUnderlyingLogic . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Contents ix
6.6 CoordinationTypesinPractice . . . . . . . . . . . . . . . . . . . . . . . . . 158
6.7 DesignoftheNetworkCoordinationintheCaseofMechanical
EngineeringLtd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
6.7.1 CentralisationandStandardisation . . . . . . . . . . . . . . . . . 160
6.7.2 ResourceAllocationandSharing . . . . . . . . . . . . . . . . . . 163
6.7.3 InformationandKnowledgeSharing . . . . . . . . . . . . . . . 166
6.8 DesignoftheNetworkFITintheCaseofMechanical
EngineeringLtd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
6.9 Summary .. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . . .. 171
7 AnalysisandDesignofNetworksinPractice . . . . . . . . . . . . . . . . . 173
7.1 FromaManagementArchitecturetoanOptimisationProcess . . . 173
7.2 FoodLtd.:FormulationofaNetworkMission . . . . . . . . . . . . . . 179
7.2.1 NetworkAnalysisandTargetSetting . . . . . . . . . . . . . . . 179
7.2.2 ScenarioDevelopment . . . . . . . . . . . . . . . . . . . . . . . . . 183
7.3 Summary .. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . . .. 188
8 OutlookandSummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
8.1 InstitutionalisationoftheNetworkManagement . . . . . . . . . . . . 191
8.2 Summary .. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . . .. 194
AppendixA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
AppendixB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269