Assuring materials availability during the production transfer process: Critical characteristics of the materials planning environment

Purpose: The MP (materials planning) environment sets the prerequisites for the MP process. Before and during PTS (production transfer and start-up) supply chain uncertainty of the MP environment increases, as the company goes from a known to an unknown situation. The purpose of this paper is to describe the impact of the MP environment on the MP process before and during PTS. Design/methodology/approach: A conceptual framework describing the MP environment before and during PTS is developed and applied to one case of outsourcing from Sweden to China. The framework is based on a literature review and further evaluated by both researchers and managers. Findings: A conceptual framework describing the dynamic MP environment before and during PTS has been developed compared to previously static MP environments descriptions. In addition, this framework proved to be useful in analysing the importance of various characteristics of the MP environment before and during PTS. Practical implications: The study highlights the importance of a proactive approach to materials availability when transferring production. The conceptual framework developed here can be used as a checklist to identify the characteristics of the MP environment that are most important to ensuring materials availability. Originality/value: The paper highlights the PTS when outsourcing, a substantial time frame with a large impact on success. This is an important contribution, given the focus of previous outsourcing research on strategic issues. Further, the paper demonstrates the differences between static and dynamic MP environments.

[1]  B. El-Khasawneh.  Challenges and remedies of manufacturing enterprises in developing countries , 2012 .

[2]  Sabina Fjällström,et al.  The Role of Information in Production Ramp-up Situations , 2007 .

[3]  R. Tulder,et al.  Antecedents and performance consequences of international outsourcing , 2005 .

[4]  Mike Gregory,et al.  Adapting manufacturing processes for international transfer , 1997 .

[5]  R. Verganti,et al.  Order overplanning with uncertain lumpy demand: A simplified theory , 1997 .

[6]  A. Beulens,et al.  Identifying sources of uncertainty to generate supply chain redesign strategies , 2002 .

[7]  Joseph V. Lillie,et al.  Outsourcing – a strategic move: the process and the ingredients for success , 2001 .

[8]  C. Terwiesch,et al.  Learning and process improvement during production ramp-up , 1998 .

[9]  Henrik Almgren,et al.  Start‐up of advanced manufacturing systems – a case study , 1999 .

[10]  Christian Terwiesch,et al.  International product transfer and production ramp-up: a case study from the data storage industry , 2001 .

[11]  A. Pettigrew.  WHAT IS A PROCESSUAL ANALYSIS. , 1997 .

[12]  Erika Marsillac,et al.  Global supply chain adaptations to improve financial performance , 2011 .

[13]  William L. Berry,et al.  Linking Systems to Strategy , 1992 .

[14]  M. Fisher.  What is the Right Supply Chain for Your Product , 1997 .

[15]  B. G. Dale,et al.  Sourcing from Less Developed Countries: A Case Study , 1987 .

[16]  Y. Frein,et al.  Coordination and demand uncertainty in supply chains , 2008 .

[17]  D. Leonard-Barton,et al.  Beating Murphy's Law , 1991 .

[18]  Carl Wänström,et al.  The impact of engineering changes on materials planning , 2006 .

[19]  Dmitrij Slepniov,et al.  Offshore Outsourcing of Production: An Exploratory Study of Process and Effects in Danish Companies , 2008 .

[20]  Robert B. Handfield.  What you need to know about sourcing from China , 2005 .

[21]  Mary J. Meixell,et al.  Global supply chain design: A literature review and critique , 2005 .

[22]  Carl Wänström,et al.  Assessing information quality in manufacturing planning and control processes , 2009 .

[23]  Per Medbo,et al.  Utilising the potential of combining local and global supply chains , 2010 .

[24]  F. Robert Jacobs,et al.  MANUFACTURING PLANNING AND CONTROL SYSTEMS FOR SUPPLY CHAIN MANAGEMENT , 2004 .

[25]  Y. K. Tse,et al.  Quality risk in global supply network , 2010, 2010 8th International Conference on Supply Chain Management and Information.

[26]  W. Klingenberg,et al.  A conceptual framework for outsourcing of materials handling activities in automotive: differentiation and implementation , 2010 .

[27]  Jean Hartley,et al.  Case study research , 2004 .

[28]  Henrik Almgren,et al.  Towards a framework for analyzing efficiency during start-up:: An empirical investigation of a Swedish auto manufacturer , 1999 .

[29]  Jirapha Liangsiri,et al.  Means for Transferring Knowledge in the Relocation of Manufacturing Units , 2010 .

[30]  Xavier Martin,et al.  Learning, Knowledge Transfer, and Technology Implementation Performance: A Study of Time-to-Build in the Global Semiconductor Industry , 2008, Manag. Sci..

[31]  J. Mentzer,et al.  Global supply chain risk management strategies , 2008 .

[32]  Harm Jan Steenhuis,et al.  Exploring the influence of technology size on the duration of production technology transfer implementation , 2005 .

[33]  Jacob Wijngaard,et al.  Complexity and uncertainty of materials procurement in assembly situations , 1996 .

[34]  Jan Olhager,et al.  Strategic positioning of the order penetration point , 2003 .

[35]  Christopher A. Voss,et al.  Case research in operations management , 2002 .

[36]  C. Karlsson.  The development of industrial networks: Challenges to operations management in an extraprise , 2003 .

[37]  Daniel Nordigården,et al.  Outsourcing in the Wood Product Manufacturing Sector A Combined Customer and Supplier Perspective , 2007 .

[38]  J. Fransoo,et al.  Implications of outsourcing on operations planning: findings from the pharmaceutical industry , 2010 .

[39]  Ashok Kochhar,et al.  A rule‐base for the specification of manufacturing planning and control system activities , 2002 .

[40]  Steven D. Eppinger,et al.  Special Issue on Design and Development: Sourcing By Design: Product Complexity and the Supply Chain , 2001, Manag. Sci..

[41]  Jeffrey W. Herrmann,et al.  Rescheduling Manufacturing Systems: A Framework of Strategies, Policies, and Methods , 2003, J. Sched..

[42]  Gabriel Szulanski.  The Process of Knowledge Transfer: A Diachronic Analysis of Stickiness , 2000 .

[43]  Hau L. Lee,et al.  Material Management in Decentralized Supply Chains , 1993, Oper. Res..

[44]  A. Fredriksson,et al.  Assessing consequences of low‐cost sourcing in China , 2009 .

[45]  Anna M K Fredriksson,et al.  Materials Supply and Production Outsourcing , 2011 .

[46]  Jagjit Singh Srai,et al.  A supply network configuration perspective on international supply chain development , 2008 .

[47]  K. Ferdows.  POM Forum: Transfer of Changing Production Know‐How , 2006 .

[48]  Justin J. P. Jansen,et al.  Inter- and Intra-Organizational Knowledge Transfer: A Meta-Analytic Review and Assessment of its Antecedents and Consequences , 2008 .

[49]  Joakim Wikner,et al.  Production planning and control tools , 2000 .

[50]  C. Galbraith.  Transferring Core Manufacturing Technologies in High-Technology Firms , 1990 .

[51]  Helena Forslund,et al.  The impact of forecast information quality on supply chain performance , 2007 .

[52]  Anette Brannemo,et al.  How does the industry work with sourcing decisions? Case study at two Swedish companies , 2006 .

[53]  Marjorie A. Lyles,et al.  Knowledge acquisition from foreign parents in international joint ventures: an empirical examination in the Hungarian context , 1996 .

[54]  Gabriel Szulanski.  Exploring internal stickiness: Impediments to the transfer of best practice within the firm , 1996 .

[55]  Dan Andersson,et al.  Logistics of low cost country sourcing , 2010 .

[56]  David L. Levy.  International Sourcing and Supply Chain Stability , 1995 .

[57]  K. Eisenhardt.  Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[58]  J. Smith,et al.  Item selection for global purchasing , 1999 .

[59]  Patrik Jonsson,et al.  The implications of fit between planning environments and manufacturing planning and control methods , 2003 .

[60]  H.L. Lee,et al.  Aligning Supply Chain Strategies with Product Uncertainties , 2002, IEEE Engineering Management Review.

[61]  Ram Narasimhan,et al.  Manufacturing agility and supply chain management practices , 1999 .

[62]  Sameer Kumar,et al.  A manufacturing decision framework for minimizing inventory costs of a configurable off-shored product using postponement , 2009 .

[63]  Stanley E. Fawcett,et al.  Strategic logistics in co-ordinated global manufacturing success , 1992 .

[64]  Mike Gregory,et al.  Tacit knowledge, the life cycle and international manufacturing transfer , 1997 .