The strategic management of manufacturing networks

Abstract

Purpose -The purpose of this paper is twofold; first, to investigate whether the manufacturing specializations of network plants fulfilling similar strategic plant roles (Ferdows, 1997) are common in type. Second, to examine current strategic manufacturing network management practice and develop a map of this process. Design/methodology/approach -Three multisite manufacturing businesses participated in this case research. The first phase of the study consisted of an initial visit made to the headquarters of each firm to be briefed on its manufacturing network strategy and to collect company manufacturing performance data. Visits were then made to 11 network plants to collect site manufacturing performance data and to research the manufacturing specialization of each site and the degree of autonomy of its management team. The second phase of the research comprised a number of additional visits to the headquarters of one of the three case study firms to investigate the process employed to downsize its existing manufacturing network capacity in response to a significant decline in customer demand. Findings -Three common types of manufacturing specialization have been identified in the networks of plants studied and the case research findings have enabled the development of a process for manufacturing network strategy deployment.Research limitations/implications -The proposed process for the strategic management of a manufacturing network is based upon the findings of a single case study and thus the generalizability of the findings is limited. Practical implications -Auditing the manufacturing specialization of network sites is an essential preparatory procedure for determining a manufacturing network strategy. How this information is used to facilitate the management of manufacturing network configuration and coordination and for manufacturing network strategy deployment is detailed in the paper. Originality/value -A process map has been developed that includes a review of current network configuration and coordination policies, in combination, as these underpin manufacturing network strategy deployment. Such a process map has not been detailed previously in the literature.

Determinants in the adoption of new automobile modular platforms

“…The manufacturing network approach is the framework for analysing the key elements of manufacturing networks. It includes aspects relating to network organisation (configuration and coordination mechanisms), network outputs[4] and network capabilities[5], as well as relations among all these elements (Shi and Gregory, 1998; Colotla et al , 2003; Miltenburg, 2009; Feldmann et al , 2009; Ma et al , 2012; Szwejczewski et al , 2016). This literature points out that network performance depends, among other factors, on how firms organise their production networks; mainly, how the network is configured (e.g.…”

“…geographical dispersion) and how coordination is established within it (e.g. coordination mechanisms or knowledge transfer mechanisms) (Shi and Gregory, 1998; Rudberg and West, 2008; Cheng et al , 2011; Szwejczewski et al , 2016). Location aspects related to low production costs or new markets are derived from network configuration (dispersion).…”

“…In a context in which production is organised through manufacturing networks based on platforms, this production efficiency may be analysed in terms of the optimisation of manufacturing network outputs (Lampón and Cabanelas, 2014; Lampón et al , 2017). The manufacturing network approach is the theoretical framework that allows for the analysis of manufacturing network outputs and their relation with network organisation, specifically configuration and coordination mechanisms (Shi and Gregory, 1998; Rudberg and West, 2008; Feldmann et al , 2009; Cheng et al , 2011; Szwejczewski et al , 2016). Under this approach, scale and scope economies are traditionally considered to be the elements that define network performance, while operational flexibility represents network efficiency in terms of transferring production within the network.…”

Making manufacturing networks nimble

“…This review is based on “The strategic management of manufacturing networks” by Szwejczewski et al (2016). In reporting on three in-depth case studies, the authors analyze the manufacturing strategy and the manufacturing systems of a chosen number of network plants within the selected companies and, in doing so, develop a conceptual model of the process of strategic manufacturing network management to guide practitioners.…”

Coordination within International Manufacturing Networks: A Comparative Study of Three Industrial Practices

“…Consequently, different facets of IMN management have emerged. Examples include plant roles and the locations of production plants [5] [7] [8], network topologies [9], studies on IMNs from an strategic perspective [10] [11], balancing the configuration and coordination of manufacturing networks [12], learning and distribution processes within manufacturing networks [13].…”