Competitive flexibility in systems supplier companies in mechanical engineering industry

Systems suppliers are focal actors in mechanical engineering supply chains, in between general contractors and component suppliers. This research concentrates on the systems suppliers’ competitive flexibility, as a competitive advantage that the systems supplier gains from independence from the competitive forces of the market. The aim is to study the roles that power, dependence relations, social capital, and interorganizational learning have on the competitive flexibility. Research on this particular theme is scarce thus far. The research method applied here is the inductive multiple case study. Interviews from four case companies were used as main source of the qualitative data. The literature review presents previous literature on subcontracting, supply chain flexibility, supply chain relationships, social capital and interorganizational learning. The result of this study are seven propositions and consequently a model on the effects that the dominance of sales of few customers, power of competitors, significance of the manufactured system in the end product, professionalism in procurement and the significance of brand products in the business have on the competitive flexibility. These relationships are moderated by either social capital or interorganizational learning. The main results obtained from this study revolve around social capital and interorganizational learning, which have beneficial effects on systems suppliers’ competitive flexibility, by moderating the effects of other constructs of the model. Further research on this topic should include quantitative research to provide the extent to which the results can be reliably generalized. Also each construct of the model gives possible focus for more thorough research.

Explosion-proof requirements for Electrical Machines in Chemical, Oil and Gas Industry in Russia and CIS Countries

One of the main industries which form the basis of Russian Economical structure is oil and gas. This industry is also playing a significant role for CIS countries. Oil and gas industry is developing intensively attracting foreign investments. This situation is providing sustainable development of machinery production for hazardous areas. Operating in oil and gas areas is always related with occurrence of explosion gas atmospheres. Machines for hazardous areas must be furnished with additional protection of different types. Explosion protection is regulated with standards according to which equipment must be manufactured. In Russia and CIS countries explosion-proof equipment must be constructed in compliance with GOST standards. To confirm that equipment is manufactured according to standards’ requirements and is safe and reliable it must undergo the approval procedure. Certification in Russia is governed by Federal Laws and legislation. Each CIS country has its own approval certificates and permissions for operating in hazardous areas.

International Partner Management in the Software Industry

The purpose of this research is to describe how the scope of internationalization affects partner management in software companies. The effects are analyzed separately for small and large companies. Partner management is described from three perspectives: who should manage partnerships, how they should be managed and how does the context affect the choice of management style. Inductive case study is selected as research design. Eventually four case companies are chosen. The findings reveal that the size of the company affects the volume whereas the scope of internationalization affects the choice of partner management activities. Companies with high scope of internationalization required a more formal yet flexible management system whereas companies with low scope of internationalization relied more on the informal relations and personal management.

Development of corporate social responsibility in Finnish forest industry

The main objective of this thesis was to map the development of corporate social responsibility (CSR) in Finnish forest industry. The aim was to describe the development and find factors that explain the development. Another objective was to understand the influence of different stakeholders on the development as well as examine the development of CSR reporting. This qualitative case study used thematic interviews as the research method. The research data were collected by conducting 11 interviews among the case company representatives and stakeholders. Based on the research results, no single factor in the background of the phenomenon could be showed. Instead, CSR has developed in stages through its different dimensions. The main drivers of CSR turned out to be environmental organizations, customers and local communities. It can be concluded that the forest industry has taken CSR seriously for a long time, which has benefited the forest companies in many ways.

Elinkaariarvioinnin hyödyntäminen pumpputehtaan ympäristötoimenpiteiden tunnistamisessa

Voimistuvan kasvihuoneilmiön myötä kiinnostus hiilidioksidipäästöjen vähentämiseen on lisääntynyt. Ympäristöteknologian tavoitteena on hidastaa tämän ilmiön haitallisia vaikutuksia maailmanlaajuisesti, kansallisesti sekä yritystasolla. Yrityksillä on yhä suurempi paine valmistaa tuotteita ympäristöä vähemmän kuormittavasti. Työn tavoitteena on tarkastella elinkaariarvioinnin käytettävyyttä, kun halutaan tunnistaa pumpputehtaan mahdollisuuksia pienentää tuotteidensa valmistuksen ympäristönkuormittavuutta. Työssä pyritään myös selvittämään ne pumpun valmistuksen prosessit, jotka tuottavat eniten kasvihuonekaasupäästöjä. Tarkastelussa on keskitytty lähinnä hiilidioksidipäästöjen laskentaan. Työssä on käytetty elinkaariarvioinnin menetelmää ja työ noudattaa SFS ISO 14040 ja 14044 standardia. Elinkaariarviointi on hyväksi havaittu keino tunnistaa ne tuotteen tai palvelun yksikköprosessit, joilla on suurin vaikutus ympäristöön. Tutkimuksessa luotiin elinkaariarviointi pumppulaitoksen vuosittain tuottamille pumpuille. Samalla toteutettiin elinkaariarviointiin Excel-malli, jolla voidaan arvioida yksittäisten pumppujen valmistuksen hiilidioksidipäästöt. Tulosten pohjalta on tehty myös joitakin ehdotuksia pumpun valmistuksen hiilidioksidipäästöjen vähentämiseksi. Laskennassa käytetty aineisto kerättiin kirjallisuudesta, pumppulaitoksen alihankkijoilta sekä julkaistuista elinkaariarvioinneista vuoden 2008 kesän aikana. Työssä on osoitettu, että elinkaariarviointia voidaan hyödyntää tunnistettaessa pumpputehtaan ympäristötoimenpiteitä. Saatujen tulosten luotettavuus on kuitenkin riippuvainen käytettävissä olevista resursseista sekä lähtötietojen tarkkuudesta. Erityisesti valimoiden ilmoittamat energiankulutusmäärät vaikuttavat tulosten tarkkuuteen. Tarkempien tulosten saaminen edellyttäisi muun muassa tehtaan alihankkijoiden parempaa tietoisuutta omasta energiankulutuksestaan.

Change of Electricity Distribution Industry: Drivers and Opening Business Opportunities

As a result of the recent regulatory amendments and other development trends in the electricity distribution business, the sector is currently witnessing radical restructuring that will eventually impact the business logics of the sector. This report represents upcoming changes in the electricity distribution industry and concentrates on the factors that are expected to be the most fundamental ones. Electricity network companies nowadays struggle with legislative and regulatory requirements that focus on both the operational efficiency and the reliability of electricity distribution networks. The forces that have an impact on the distribution network companies can be put into three main categories that define the transformation at a general level. Those are: (1) a requirement for a more functional marketplace for energy, (2) environmental aspects (combating climate change etc.), and (3) a strongly emphasized requirement for the security of energy supply. The first point arises from the legislators’ attempt to increase competition in electricity retail markets, the second one concerns both environmental protection and human safety issues, and the third one indicates societies’ reduced willingness to accept interruptions in electricity supply. In the future, regulation of electricity distribution business may lower the threshold for building more weather-resistant networks, which in turn means increased underground cabling. This development pattern is reinforced by tightening safety and environmental regulations that ultimately make the overhead lines expensive to build and maintain. The changes will require new approaches particularly in network planning, construction, and maintenance. The concept for planning, constructing, and maintaining cable networks is necessary because the interdependencies between network operations are strong, in other words, the nature of the operation requires a linkage to other operations.

Theoretical background for market emergence framework : Case: Electricity Distribution Industry

Both the competitive environment and the internal structure of an industrial organization are typically included in the processes which describe the strategic management processes of the firm, but less attention has been paid to the interdependence between these views. Therefore, this research focuses on explaining the particular conditions of an industry change, which lead managers to realign the firm in respect of its environment for generating competitive advantage. The research question that directs the development of the theoretical framework is: Why do firms outsource some of their functions? The three general stages of the analysis are related to the following research topics: (i) understanding forces that shape the industry, (ii) estimating the impacts of transforming customer preferences, rivalry, and changing capability bases on the relevance of existing assets and activities, and emergence of new business models, and (iii) developing optional structures for future value chains and understanding general boundaries for market emergence. The defined research setting contributes to the managerial research questions “Why do firms reorganize their value chains?”, “Why and how are decisions made?” Combining Transaction Cost Economics (TCE) and Resource-Based View (RBV) within an integrated framework makes it possible to evaluate the two dimensions of a company’s resources, namely the strategic value and transferability. The final decision of restructuring will be made based on an analysis of the actual business potential of the outsourcing, where benefits and risks are evaluated. The firm focuses on the risk of opportunism, hold-up problems, pricing, and opportunities to reach a complete contract, and finally on the direct benefits and risks for financial performance. The supplier analyzes the business potential of an activity outside the specific customer, the amount of customer-specific investments, the service provider’s competitive position, abilities to revenue gains in generic segments, and long-term dependence on the customer.

Optimizing of intelligence level in welding

The productivity, quality and cost efficiency of welding work are critical for metal industry today. Welding processes must get more effective and this can be done by mechanization and automation. Those systems are always expensive and they have to pay the investment back. In this case it is really important to optimize the needed intelligence and this way needed automation level, so that a company will get the best profit. This intelligence and automation level was earlier classified in several different ways which are not useful for optimizing the process of automation or mechanization of welding. In this study the intelligence of a welding system is defined in a new way to enable the welding system to produce a weld good enough. In this study a new way is developed to classify and select the internal intelligence level of a welding system needed to produce the weld efficiently. This classification contains the possible need of human work and its effect to the weld and its quality but does not exclude any different welding processes or methods. In this study a totally new way is developed to calculate the best optimization for the needed intelligence level in welding. The target of this optimization is the best possible productivity and quality and still an economically optimized solution for several different cases. This new optimizing method is based on grounds of product type, economical productivity, the batch size of products, quality and criteria of usage. Intelligence classification and optimization were never earlier made by grounds of a made product. Now it is possible to find the best type of welding system needed to welddifferent types of products. This calculation process is a universal way for optimizing needed automation or mechanization level when improving productivity of welding. This study helps the industry to improve productivity, quality and cost efficiency of welding workshops.

Delivery Reliability: Timely and Quantitative Accuracy in a Forest Industry Company

The primary objective of this thesis was to research delivery reliability of mill business unit of a forest industry company, especially timely and quantitative accuracy of sales orders. Delivery reliability is an important factor of customer satisfaction, which has a great influence for success of a company. The secondary objective was to find out reasons for possible problems of delivery reliability and give propositions for improvable performances. The empirical part of the thesis based on reporting database of the forest industry company’s ERP-software and detailed information of the mill system. The delivery reliability results of the mill business unit were compared to delivery reliability of similar mill business unit inside the forest industry company. The research results expressed problems in the supply chain. The delivery reliability reporting should be also developed further. This would advance delivery reliability monitoring. The improvement propositions of the thesis were logistic operation mode estimation, particular benchmarking of the compared mill business unit and more detailed survey on production delivery reliability.

Engendering Group Support Based Foresight for Capital Intensive Manufacturing Industries - Case Paper and Steel Industry Scenarios by 2018

In recent times of global turmoil, the need for uncertainty management has become ever momentous. The need for enhanced foresight especially concerns capital-intensive industries, which need to commit their resources and assets with long-term planning horizons. Scenario planning has been acknowledged to have many virtues - and limitations - concerning the mapping of the future and illustrating the alternative development paths. The present study has been initiated to address both the need of improved foresight in two capital-intensive industries, i.e. the paper and steel industries and the imperfections in the current scenario practice. The research problem has been approached by engendering a problem-solving vehicle, which combines, e.g. elements of generic scenario process, face-to-face group support methods, deductive scenario reasoning and causal mapping into a fully integrated scenario process. The process, called the SAGES scenario framework, has been empirically tested by creating alternative futures for two capital-intensive industries, i.e. the paper and steel industries. Three scenarios for each industry have been engendered together with the identification of the key megatrends, the most important foreign investment determinants, key future drivers and leading indicators for the materialisation of the scenarios. The empirical results revealed a two-fold outlook for the paper industry, while the steel industry future was seen as much more positive. The research found support for utilising group support systems in scenario and strategic planning context with some limitations. Key perceived benefits include high time-efficiency, productivity and lower resource-intensiveness. Group support also seems to enhance participant satisfaction, encourage innovative thinking and provide the users with personalised qualitative scenarios.

Globaali tietoliikenneverkkojen palvelutuotanto metsäteollisuuden yrityksessä

Tutkimuksen tavoitteena on tuottaa malli globaalin tietoliikenneverkkojen palvelutuotannon toteuttamiseksi metsäteollisuuden yrityksessä. Pääongelmana on selvittää miten tietoliikenneverkkojen palvelutuotanto on toteutettava ottaen huomioon tarvittavat toimijat, kustannustehokkuus ja tiedonhallinta. Ongelmaa lähestyttiin IT- johtamisen, ulkoistamisen, yhteistyöverkostojen, prosessien, yhteisten työkalujen ja standardoinnin näkökulmista. Yrityksen tietoliikenneverkkojen nykytilaa ja tavoitetilaa tutkittiin laadullisella kyselytutkimuksella. Tutkimuksen perusteella päädyttiin malliin, jossa tietoliikenneverkkojen palvelutuotannon laadukkuuteen ja tehokkuuteen vaikuttavat oleellisesti toimijat, yhteiset työkalut, standardointi kaikilla tasoilla ja harkittu ja laskelmoitu ulkoistaminen. Keskeiseen rooliin nousivat standardit prosessit ja niitä tukevat yhteiset työkalut, jotka on toteutettu keskitetysti ja kriittisten osien osalta myös paikallisesti. Prosessien ja työkalujen tulee tukea tiedonhallintaa luonnollisena osana päivittäistä toimintaa. Toimijoiden rajapinnat on oltava yksiselitteisesti määritelty ja toimijoiden välillä on kyettävä kommunikoimaan yhteisillä työkaluilla ja jakamaan tietoa avoimesti.

Teknisen auringonsuojauksen tukikonseptin liiketoimintalähtöinen arviointi

Työssä tutkitaan erään tekniseen auringonsuojaukseen keskittyneen yrityksen päätöstä tuottaa aloittelevia yrityksiä palveleva tukikonsepti. Konsepti sisältää mitoitusohjelmia, kokoonpano-ohjeita sekä markkinointimateriaalia. Oleellista on selvittää kannattaako yrityksen keskittyä kyseisiin asiakkaisiin, sekä onko konsepti oikea ratkaisu tälle segmentille. Tätä varten työssä tutustuttiin toimiala-analyysiin, strategiaan, segmentointiin sekä differointiin. Työssä selvitettiin, että Porterin viiden voiman malli on yhä toimiva aloitus toimiala-analyysin laatimiseen. Strategiaan liittyviä koulukuntia löytyy kirjallisuudesta useita erilaisia, oleellista on löytää oikea lähestymistapa kuhunkin tilanteeseen. Segmentointi on tärkeä vaihe, koska sen avulla selvitetään yrityksen eri asiakasryhmiä. Differointi on usein suositeltu keino kilpailuedun tavoittelemiseen. Työtä varten laadittiin yritykselle toimiala-analyysi. Lisäksi yritykselle etsittiin segmenttejä sekä pohdittiin sen mahdollisuuksia differointiin. Segmenttejä löydettiin kolme erilaista. Samalla todettiin, että paras tapa differoida yrityksen tuotteita on keskittyä tuotteiden aineettomiin ominaisuuksiin. Toimiala-analyysin, segmenttien sekä differointimahdollisuuksien perusteella päädyttiin siihen, että yrityksen päätös keskittyä enemmän uusiin ja aloitteleviin asiakkaisiin vaikuttaa järkevältä. Konseptin ominaisuuksien perusteella myös konsepti vaikuttaa hyvältä tavalta palvella kyseistä asiakassegmenttiä.

Potentials of process intensification in the Finnish petrochemical industry

This research was motivated by the need to examine the potential application areas of process intensification technologies in Neste Oil Oyj. According to the company’s interest membrane reactor technology was chosen and applicability of this technology in refining industry was investigated. Moreover, Neste Oil suggested a project which is related to the CO2 capture from FCC unit flue gas stream. The flowrate of the flue gas is 180t/h and consist of approximately 14% by volume CO2. Membrane based absorption process (membrane contactor) was chosen as a potential technique to model CO2 capture from fluid catalytic cracking (FCC) unit effluent. In the design of membrane contactor, a mathematical model was developed to describe CO2 absorption from a gas mixture using monoethanole amine (MEA) aqueous solution. According to the results of literature survey, in the hollow fiber contactor for laminar flow conditions approximately 99 % percent of CO2 can be removed by using a 20 cm in length polyvinylidene fluoride (PDVF) membrane. Furthermore, the design of whole process was performed by using PRO/II simulation software and the CO2 removal efficiency of the whole process obtained as 97 %. The technical and economical comparisons among existing MEA absorption processes were performed to determine the advantages and disadvantages of membrane contactor technology.