Developing a framework for make-or-buy decisions

The make-or-buy question represents a fundamental dilemma faced by many companies. Companies have finite resources and cannot always afford to have all manufacturing technologies in-house. This has resulted in an increasing awareness of the importance of make-or-buy decisions. This paper reports on the development of a make-or-buy framework to address the make-or-buy decision for either a specific individual part or family of parts. Firstly, a literature review of the principal make-or-buy approaches is discussed. Secondly, the development of a make-or-buy framework is described and the framework is explained and illustrated using case studies. Thirdly, the operationalisation of the framework is outlined. The paper concludes with a discussion of its contribution to both the academic understanding of the subject, and the improvement of industrial practice.

A supply network configuration perspective on international supply chain development

Purpose - The purpose of this paper is to explore the impact of configuration on supply network capability. It was believed that a configuration perspective might provide new insights on the capability and performance of supply networks, a gap in the literature, and provide a basis for the development of tools to aid their analysis and design. Design/methodology/ approach - The methodology involved the development of a configuration definition and mapping approach extending established strategic and firm level constructs to the network operational level. The resulting tools were tested and refined in a series of case studies across a range of sectors and value chain models. Supply network capability assessments, from the perspective of the focal firm, were then compared with their configuration profiles. Findings - The configuration mapping tools were found to give new insights into the structure of supply networks and allow comparisons to be made across sectors and business models through the use of consistent and quantitative methods and common presentation. They provide the foundations for linking configuration to capability and performance, and contribute to supply network design and development by highlighting the intrinsic capabilities associated with different configurations. Research limitations/implications - Although multiple case networks have been investigated, the configuration exemplars remain suggestive models. The research suggests that a re-evaluation of operational process excellence models is needed, where the link between process maturity and performance may require a configuration context. Practical implications - Advantages of particular configurations have been identified with implications for supply network development and industrial policy. Originality/value - The paper seeks to develop established strategic management configuration concepts to the analysis and design of supply networks by providing a robust operational definition of supply network configuration and novel tools for their mapping and assessment. © Emerald Group Publishing Limited.

Improving co-development through process alignment

There has been a recent surge of enthusiasm icithin tlie automotive industry to build closer supplier relationships idthin the area of product development. One concept deemed central to these relationships is the alignment of development processes between the collaborating organizations, an area that is expanded upon idthin this paper. We suggest that synchronization can be achieved through the four key steps of process standardization, knowledge sliaring, alignment of existing practices, and continuous elimination oftcaste idthin the joint development cycles. A methodology for implementing these stages is presented along idth the underlying prindples on which it is based - the importance of joint teamworking and multi-company involvement idthin the alignment process is higlilighted. © MCB University Press.

Managing global network operations along the engineering value chain

Purpose: This paper aims to improve understanding of how to manage global network operations from an engineering perspective. Design/methodology/approach: This research adopted a theory building approach based on case studies. Grounded in the existing literature, the theoretical framework was refined and enriched through nine in-depth case studies in the industry sectors of aerospace, automotives, defence and electrics and electronics. Findings: This paper demonstrates the main value creation mechanisms of global network operations along the engineering value chain. Typical organisational features to support the value creation mechanisms are captured, and the key issues in engineering network design and operations are presented with an overall framework. Practical implications: Evidenced by a series of pilot applications, outputs of this research can help companies to improve the performance of their current engineering networks and design new engineering networks to better support their global businesses and customers in a systematic way. Originality/value: Issues about the design and operations of global engineering networks (GEN) are poorly understood in the existing literature in contrast to their apparent importance in value creation and realisation. To address this knowledge gap, this paper introduces the concept of engineering value chain to highlight the potential of a value chain approach to the exploration of engineering activities in a complex business context. At the same time, it develops an overall framework for managing GEN along the engineering value chain. This improves our understanding of engineering in industrial value chains and extends the theoretical understanding of GEN through integrating the engineering network theories and the value chain concepts. © Emerald Group Publishing Limited.

Buyer-supplier relationships in a servitized environment: An examination with Cannon and Perreault's framework

Purpose: The purpose of this study is to examine a buyer's adoption of servitization and the associated implications for the relationships with its suppliers. Design/methodology/approach: The authors use the case study approach to examine the tripartite relationship between a manufacturing company and two of its two suppliers. The paper explores the perspectives of employees on multiple organisational levels, and collects evidence on both sides of a relationship. The authors use template analysis utilising Cannon and Perreault's relationship connectors framework to analyse the data. Findings: There are overarching implications of servitization adoption for buyer-supplier relationships. The implications are notable in all five relationship connectors. Parties expected more open exchange of information, operational linkages were strengthened and changes in the structural arrangements of relationships were witnessed. Legal contracts are complemented by relational norms. The authors also observed a departure away from a win-lose mentality and increased levels of supplier adaptation to support the buyer's provision of integrated solutions. Research limitations/implications: The findings are confined to this tripartite relationship and to an extent are context specific. Practical implications: The study unveils buyer-supplier relationships in a servitized context and provides managers with a better understanding of some of the potential implications that the adoption of a servitization strategy may have for managing buyer-supplier relationships. Originality/value: This is the first empirical study that explores the implications of servitization on buyer-supplier relationships. It advances the understanding of the implications that the adoption of servitization has on the manner in which two parties interrelate and conduct commercial exchange. © Emerald Group Publishing Limited.

Conceptual transformation framework for servitization

This paper presents a Conceptual Transformation Framework for Servitization. The challenges experienced by manufacturers on their journey to servitization are investigated in order to develop our understanding of the transformation that traditional manufacturers undergo to become servitized manufacturers. Three change theories are applied to develop the Framework: Lewin's force field analysis, Senge's system thinking and Pettigrew and Whipp's framework of strategic change. The Framework includes the dimensions of the change that takes place and the elements of change when transforming towards Product-Service Systems.

Improving turbomachinery design process management

It is widely acknowledged that a company's ability to aquire market share, and hence its profitability, is very closely linked to the speed with which it can produce a new design. Indeed, a study by the U.K. Department of Trade and Industry has shown that the critical factor which determines profitability is the timely delivery of the new product. Late entry to market or high production costs dramatically reduce profits whilst an overrun on development cost has little significant effect. This paper describes a method which aims to assist the designer in producing higher performance turbomachinery designs more quickly by accelerating the process by which they are produced. The adopted approach combines an enhanced version of the 'Signposting' design process management methodology with industry-standard analysis codes and Computational Fluid Dynamics (CFD). It has been specifically configured to enable process-wide iteration, near instantaneous generation of guidance data for the designer and fully automatic data handling. A successful laboratory experiment based on the design of a large High Pressure Steam Turbine is described and this leads on to current work which incorporates the extension of the proven concept to a full industrial application for the design of Aeroengine Compressors with Rolls-Royce plc.