Value Networks In Manufacturing

This book highlights innovative solutions together with various techniques and methods that can help support the manufacturing sector to excel in economic, social, and environmental terms in networked business environments. The book also furthers understanding of sustainable manufacturing from the perspective of value creation in manufacturing networks, by capitalizing on the outcomes of the European ‘Sustainable Value Creation in Manufacturing Networks’ project. New dynamics and uncertainties in modern markets call for innovative solutions in the global manufacturing sector. While the manufacturing sector is traditionally driven by technology, it also requires other managerial and organizational solutions in terms of network governance, business models, sustainable solution development for products and services, performance management portals, etc., which can provide major competitive advantages for companies. At the same time, the manufacturing industry is subject to a change process, where business networks play a major role in value-creating processes. By far the biggest challenge in this context is making value creation a sustainable process where economic, social, and environmental demands are met. Managing product and service-related business operations in manufacturing networks thus brings different challenges that cannot purely be resolved using traditional methods, and techniques. This book is an outcome of a European project funded by the European Commission, and performed by a dedicated R&D consortium comprised of some leading Research institutions and Industrial partners.

This congress proceedings provides recent research on leading-edge manufacturing processes. The aim of this scientific congress is to work out diverse individual solutions of "production at the leading edge of technology" and transferable methodological approaches. In addition, guest speakers with different backgrounds will give the congress participants food for thoughts, interpretations, views and suggestions. The manufacturing industry is currently undergoing a profound structural change, which on the one hand produces innovative solutions through the use of high-performance communication and information technology, and on the other hand is driven by new requirements for goods, especially in the mobility and energy sector. With the social discourse on how we should live and act primarily according to guidelines of sustainability, structural change is gaining increasing dynamic. It is essential to translate politically specified sustainability goals into socially accepted and marketable technical solutions. Production research is meeting this challenge and will make important contributions and provide innovative solutions from different perspectives.

In the last half of the twentieth century industry encountered a revolutionary change brought about by the harnessed power of seemingly ever-increasing capacity, speed and functionality of computers and microprocessors. This strength provided management and workers within industries with new capabilities for management, planning and control, design, quality assurance and customer support. Organized information flow became the mainstay of industrial companies. New tools and information technology systems emerged and evolved to enable companies to integrate the various departments (Design, Procurement, Manufacturing, Sales and Finance) within companies, particularly the lager ones, including international corporations. This was to give them a chance to meet new demands for product time to market, just in time supply of orders, and customer support. To the smaller company these changes were not so apparent. Neither the tools nor systems nor indeed their economic value seemed appropriate to them except for special cases. While all this was happening the structure of the larger companies began to disintegrate. Strong competitive pressures and globalization of the market place brought this about. Shedding unwanted competence and subcontracting it to others became common practice. Regional market pressures triggered companies to reorganize to create, produce, and distribute goods and services. Greater dependency on chains of supply from external companies became the norm. Medium and smaller sized companies began to gain some advantage and at the same time some were sucked into management and control systems governed by the larger companies.

The preceding process of globalization and the continuously rising competitive pressure on manufacturing companies in more developed economies unveiled the limits of classical site-focused optimization approaches. The focus of network optimization shifts ever more towards an integrative view of manufacturing networks, striving for a harmonization of the strategy-, configuration- and coordination levels. This book presents such an integrative approach to the strategic management of manufacturing networks. Besides strategic network requirements, this book discusses the derivation of an optimal global footprint and the optimization of network coordination activities. Special attention is paid to the site roles concept, especially to the concept of 'lead factory'. A large number of up-to-date cases from the producing industry enrich the book and provide the reader with vivid examples for the application of the presented concepts. Hence, this book is a must-read for both practitioners and academic researchers.

Using site-specific optimization approaches in international manufacturing networks is increasingly proving insufficient. To solve this problem, several holistic and integrated alternatives have been developed to reflect a global perspective. This book presents advances in the St. Gallen Global Manufacturing Network Model and its application in numerous industry-, benchmarking- and research projects. The contents combine data-driven solutions with qualitative management frameworks for the strategic optimization of international manufacturing networks. In the first part, the book addresses the foundation of manufacturing network management and further describes the St. Gallen Operational Excellence approaches to manage plant performance. On this basis, the authors show how plant- and network-level performance can be enhanced via key improvement domains (e.g., strategy, configuration, coordination, performance management, digitalization). In turn, the second part demonstrates the application of the constructs in manufacturing companies from various industries. By combining research and practice, the book offers unique perspectives on the management of global production striving toward higher performance on manufacturing site and network level.

This book constitutes the thoroughly refereed post-conference proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2011, held in Stavanger, Norway, in September 2011. The 66 revised and extended full papers were carefully reviewed and selected from 124 papers presented at the conference. The papers are organized in 3 parts: production process, supply chain management, and strategy. They represent the breadth and complexity of topics in operations management, ranging from optimization and use of technology, management of organizations and networks, to sustainable production and globalization. The authors use a broad range of methodological approaches spanning from grounded theory and qualitative methods, via a broad set of statistical methods to modeling and simulation techniques.

Although the area of International Manufacturing Network (IMN) and International Operations Network (ION) has received considerable attention in the literature, most of studies appear multifaceted and interdisciplinary, and thereby require thorough investigation from both academic and practical perspectives, in order to deepen our related understanding. The book seeks advanced contributions that will combine theoretical insights and empirical experience by offering a detailed examination of IMN and, further, ION from various perspectives. This book can be used as a reference material for scholar-practitioners, business executives, and university researchers who need to deepen their understanding on the importance and influence of IMN and ION as well as their development. The book is important because there are few reference/resource materials available related to IMN and ION.