sandra martínez miguélez (tecnun) · (tecnun) josefa mula (universidad politécnica de valencia)...
TRANSCRIPT
Sandra Martínez Miguélez (TECNUN)Miguel Mediavilla (GLOBOPE Research & Consulting)Javier Santos (TECNUN)Josefa Mula (Universidad Politécnica de Valencia)
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Outline
Introduction1
Literature Review 2
Discussion3
Conclusions and Future Research4
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1. Introduction
• Not only MNEs but also SMEs are engaging in international production.
• Increase of the international presence to take market opportunities.
• The design and management of Global Operations Networks (GON) plays a vital role in organizational competitiveness.
Introduction Literature Review Discussion Conclusions and Future Research
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2. Literature Review
GLOBALIZATION
• Homogenization of markets, products and clients.
INTERNATIONALIZATION
• Corporate strategy in order to grow by geographical diversification.
INTERNATIONALIZATION OF OPERATIONS
• Deployment of the business resources over the own country, by location peopleand assets in order to to execute primary activities of the value chain
DEPLOYMENT
Globalization vs Internationalization vsInternationalization of operations
Introduction Literature Review Discussion Conclusions and Future Research
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Acces to low cost production• Low cost labor.• Raw materials.• Energy.• …Acces to knowledge/competences
• Local technical know-how.• Skilled labor force.• Advanced infrastructure.• …
Proximity to market• Key customers.• Tax benefits.• Quicker and more reliable distribution.• …
New Facility Implementation
Global Suppliers Network Development
Multi-site Production Network Configuration
Strategic reasons Common challenges in the literature(Ferdows, 1997)
Internationalization of operations
Introduction Literature Review Discussion Conclusions and Future Research
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Joint Venture Greenfield approach Brownfield approach
New facility implementationBy its ownWith local partner
Introduction Literature Review Discussion Conclusions and Future Research
• Companies, when assessing production locations abroad both with Greenfield and Brownfield approach, tend to:– Underestimate the
necessary ramp-up times that are necessary for securing process reliability, quality and productivity.
– Have ramp-up delays in time and volume (Kinkel and Maloka, 2009)
RealRamp-up curve
PlannedRamp-up curve
New local suppliers quality and service problems
Machinery transfer and personnel training
Machinery availability and quality problems
Delay in reaching full ramp-up
Target capacity of new factory
Time
Production volume
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• Several authors (Vereecke and Van Dierdonck, 2002; Shi, 2003; Kinkel and Maloca, 2009) stress the importance of:
– Managing accordingly the numerous risks and different circumstances that appear during the entire facility implementation –in order to avoid disadvantages and unpleasant surprises during the process.
– Building frameworks to help practitioners to design and manage their international production networks.
– Developing a careful coordination planning.
New facility implementation
Introduction Literature Review Discussion Conclusions and Future Research
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• The purchasing function is a strategic function (Alignaghian and Aghadasi, 2006).
– New challenges: • Develop suppliers in any part of the world.• Decide between centralized or decentralized structure.• Negotiation power with suppliers regardless of the culture…
• Main producers have fragmented production system.– Offshore suppliers need coordination of:
• Quality control and delivery time.– Settle down decoupling points (Wikner and Rudberg, 2005).
• Multiple configurations of supply networks are possible (Meixell and Gargeya, 2005).
– “Which part of the supply chain should be globalized or localized?”
Global Suppliers Network Development
“Be able to design and implement a robust supply chain with the same criteria as local sourcing, emphasizing quality
assurance and delivery”
Introduction Literature Review Discussion Conclusions and Future Research
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• Defining and managing the roles of individual plants is a critical component. (Shi and Gregory, 2005; Vilana and Rodríguez, 2009).
Multi-site Production Network Configuration
Introduction Literature Review Discussion Conclusions and Future Research
Strategic role of the plants
(Ferdows, 1997)
Little evidence of application Ferdows’ Model
(Vereecke and Van Dierdonck, 2002)
Extension and operationalization of
Ferdows’ Model (Miguel Mediavilla et al., 2012)
Necessity of new insights into the application of Ferdows’
Model (Miguel Mediavilla et al., 2012)
How to balance the strategic roles, competencies and responsibilities of multi plants within a GON.
How to deploy the operations strategy within a GON where individual plants require to simultaneously and continuously develop their capabilities to remain competitive.
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Discussion• The facility starting up process and the supply development
for SMEs Implies many risks
• The management of a production logistics network in different countries Requires greater coordination
• Operations strategy has to gain more effectiveness and efficiency over operations resources (Slack and Lewis, 2002).
• How to deploy the operations strategy during:– The new facility implementation.– The global suppliers network development.– The multi-site network configuration
Introduction Literature Review Discussion Conclusions and Future Research
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Conclusions and Future Research• The existing literature about the main operations
internationalization challenges that SMEs have to face is scarce and widely dispersed (Corti et al., 2009; Laiho and Blomqvist, 2010).
• A relevant study in this topic for future research focused on:
Introduction Literature Review Discussion Conclusions and Future Research
Global Suppliers Network Development
Multi-site Production Network Configuration
New Facility Implementation
Develop a framework for SMEs to
cope these challenges
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Introduction Literature Review Discussion Conclusions and Future Research
Future Research
• Design and management of global networks (Vereecke and Van Dierdonck, 2002; Shi, 2003).
• Next generation factories (Azvedoand Almeida, 2011).
• Modular, scalable, flexible, agile.• Be able to adapt, in real time, to
the continuously changing market demands, technology options and regulations.
• Design and keep the coordination of the global supply network with different delivery times and procurement reliability (Meixell and Gargeya, 2005; Abele et al., 2008).
Frameworks Research Projects
Sandra Martínez Miguélez (TECNUN)Miguel Mediavilla (GLOBOPE Research & Consulting)Javier Santos (TECNUN)Josefa Mula (Universidad Politécnica de Valencia)