scholarly journals Outsourcing decisions – the case of parallel production

2014 ◽  
Vol 34 (8) ◽  
pp. 974-1002 ◽  
Author(s):  
Daniel Nordigården ◽  
Jakob Rehme ◽  
Staffan Brege ◽  
Daniel Chicksand ◽  
Helen Walker

Purpose – The purpose of this paper is to investigate an underexplored aspect of outsourcing involving a mixed strategy in which parallel production is continued in-house at the same time as outsourcing occurs. Design/methodology/approach – The study applied a multiple case study approach and drew on qualitative data collected through in-depth interviews with wood product manufacturing companies. Findings – The paper posits that there should be a variety of mixed strategies between the two governance forms of “make” or “buy.” In order to address how companies should consider the extent to which they outsource, the analysis was structured around two ends of a continuum: in-house dominance or outsourcing dominance. With an in-house-dominant strategy, outsourcing complements an organization's own production to optimize capacity utilization and outsource less cost-efficient production, or is used as a tool to learn how to outsource. With an outsourcing-dominant strategy, in-house production helps maintain complementary competencies and avoids lock-in risk. Research limitations/implications – This paper takes initial steps toward an exploration of different mixed strategies. Additional research is required to understand the costs of different mixed strategies compared with insourcing and outsourcing, and to study parallel production from a supplier viewpoint. Practical implications – This paper suggests that managers should think twice before rushing to a “me too” outsourcing strategy in which in-house capacities are completely closed. It is important to take a dynamic view of outsourcing that maintains a mixed strategy as an option, particularly in situations that involve an underdeveloped supplier market and/or as a way to develop resources over the long term. Originality/value – The concept of combining both “make” and “buy” is not new. However, little if any research has focussed explicitly on exploring the variety of different types of mixed strategies that exist on the continuum between insourcing and outsourcing.

2019 ◽  
Vol 37 (5) ◽  
pp. 711-731
Author(s):  
Nhlanhla Sibanda ◽  
Usha Ramanathan

Purpose This research is elucidating quality control theories to reduce variation in chocolate manufacturing process in the UK food company that will help maintain the processes stable and predictable. The purpose of this paper is to reduce defects of the output; to identify the root causes of variation; to establish and implement solutions to this variation problem; and to establish a control system to monitor and report any variation in the process. Design/methodology/approach The authors use experimental case study of a chocolate company to achieve the objective. In this paper, the authors predominantly use established theory define–measure–analyse–improve–control, customised to the case of the chocolate factory to reduce variations in production processes. Findings The results confirm that customised-traditional theoretical quality models will support manufacturing companies to maintain customer satisfaction while enhancing quality and reliability. Practical implications Implementation of customised approach reduced the rate of defect from 8 to 3.7 per cent. The implications of reduced variation are improved product quality; reprocessing elimination; and a more stable process that support sustainability and reliability in producing chocolates to meet customer needs. Social implications The authors used an experimental-based case study approach to test with one company. Testing in multiple case companies may help to generalise results. Originality/value The research study experimentally tested quality approach with a real case company and hence the findings of this study can be applied to other cases working in similar settings.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arvind Upadhyay

PurposeThis paper investigates the current state of green supply chain practices (GSCPs) and also introduces a framework for the implementation of GSCPs in India.Design/methodology/approachA case study approach was used for this research in which semi-structured interviews were conducted with three companies. These companies were automobile component manufacturing companies.FindingsIn the three case studies, there were different antecedents depending upon the specific company structure and organization. The ten GSCPs were used as a base for finding the antecedents.Research limitations/implicationsAlthough every step has been taken to ensure the rigour and reliability of case studies, in a field as complex as GSCPs, there are inevitably some limitations. Due to the limited size of the case study approach, the results can only be generalized to a similar size and types of organization. The scope of data collection for all three case studies was the same, but the quality of information gathered varied. As demonstrated earlier, a good-quality cross-case analysis was still possible, but the relative strengths of the three cases varied.Practical implicationsA double contribution has been made to test the theory of GSCPs from a process and output perspective. From a process perspective, a contribution has been made to methodology by developing a robust approach for conducting supply chain research beyond the dyad. From an output perspective, the author has the empirical results from the three individual case studies and their cross-case comparison for dissemination to an academic audience.Originality/valueThe outputs of this research work will pave a path for other automobile component manufacturing companies in India to address and implement GSCPs.


2016 ◽  
Vol 27 (2) ◽  
pp. 511-532 ◽  
Author(s):  
Artur Swierczek ◽  
Danuta Kisperska-Moron

Purpose – The purpose of this paper is to identify the role and main attributes of manufacturing companies which operate in virtual supply chains. Design/methodology/approach – In order to identify the role and main attributes of manufacturing companies enabling to operate in a virtual supply chain, a three-step statistical analysis was employed, namely exploratory factor analysis, hierarchical cluster analysis and non-hierarchical clustering technique. Findings – The findings show that virtual supply chain operations would not be supported by manufacturing companies offering highly customized products achieved by a unit production, developed in details and engineered to order. On the contrary, the large manufacturing companies of virtual supply chains report a high level of flexibility stemming from a wide scope of more standardized products offered to the market. The conducted study show that better ability of manufacturers supporting virtual supply chains is not industry specific. Research limitations/implications – The list of investigated attributes is not complete, and other characteristics of manufacturers in virtual supply chains should be identified. Another important shortcoming of the study is its quantitative character and generalization of the findings. Each “virtual” environment in supply chains may be unique and some of the compared characteristics may differ significantly. Therefore, the aforementioned attributes should be considered separately with a conscious focus on the environmental context. The quantitative study may be greatly enhanced by applying the case study approach, showing detailed solutions and practices, and thus making the study more valuable from the theoretical and managerial standpoints. Practical implications – The conducted study showed that better ability of manufacturers to support virtual supply chains is not industry specific, since the branch of electronic products and electrical equipment and components was represented by an equal share of manufacturers, both in non-virtual and virtual clusters. Furthermore, in order to operate in virtual supply chains, managers should pay attention to the structure and range of products delivered to the market. The managers should also be aware that apart from considering cost and efficiency, operating in a virtual supply chain environment also requires quality of products and processes in order to manufacture and deliver a superior value for the customers. Originality/value – Having recognized major groups of indicators demonstrating the level of ability of manufacturing companies to operate in a virtual supply chain, the attributes of three clusters of manufacturers possessing different bunch of features, significant for virtual supply chains, have been distinguished.


Energies ◽  
2020 ◽  
Vol 13 (19) ◽  
pp. 5034
Author(s):  
Andrzej Bożek

A problem to determine a production schedule which minimises the cost of energy used for manufacturing is studied. The scenario assumes that each production task has assigned constant power consumption, price of power from conventional electrical grid system is defined by time-of-use tariffs, and a component of free of charge renewable energy is available for the manufacturing system. The objective is to find the most cost-efficient production plan, subject to constraints involving predefined precedence relationships between the tasks and a bounded makespan. Two independent optimisation approaches have been developed, based on significantly different paradigms, namely mixed-integer linear programming and tabu search metaheuristic. Both of them have been verified and compared in extensive computational experiments. The tabu search-based approach has turned out to be generally more efficient in the sense of the obtained objective function values, but advantages of the use of linear programming have also been identified. The results confirm that it is possible to develop efficient computational methods to optimise energy cost under circumstances typical of manufacturing companies. The set of numerous benchmark instances and their solutions have been archived and it can be reused in further research.


Author(s):  
Hümeyra Adıgüzel ◽  
Marios Floros

Purpose The purpose of this paper is to provide a case study about the capacity utilization analysis in a small-sized manufacturing company through the application of time-driven activity-based costing (TDABC). After a brief overview of development of the TDABC system, a detailed application of TDABC and capacity utilization analysis in a bakery is given. Design/methodology/approach This paper is based on a case study about the application of TDABC in a small-sized Greek manufacturing firm. In the case study, time equations were developed for the supporting, operating and manufacturing departments and product costs determined based on the model. Capacity utilization analysis made through the application of TDABC system. Findings The study shows that TDABC is more applicable in small-sized manufacturing companies because of their labor-intensive nature. In contrast to previous studies, authors argue that even in small firms simple excel sheets are not enough to capture the complexity of the time equations and business intelligence software and programming coding is required. Research limitations/implications Although the fundamental structure of TDABC is the same for all companies there is no strict form of application. Practical implications The practical implication of this paper is that each firm has unique characteristics that need to be reflected in the application of the TDABC model. Originality/value This paper contributes by providing insights into cost accounting in SMEs. More specifically, this paper contributes to the TDABC literature regarding the application of the system in small and medium sized manufacturing firms.


2012 ◽  
Vol 23 (4) ◽  
pp. 426-440 ◽  
Author(s):  
Andrew Thomas ◽  
Mark Francis ◽  
Elwyn John ◽  
Alan Davies

PurposeThe purpose of this paper is to identify the qualitative characteristics that can make manufacturing small to medium‐sized enterprises (SMEs) more robust and hence become economically sustainable in this globally competitive environment. The characteristics identified will form the foundations for defining a new manufacturing management perspective to both academics and industrialists.Design/methodology/approachThrough a comprehensive case study approach the authors initially analyse the developmental cycle of the subject company and then identify the key characteristics which enabled the company to become economically sustainable and survive in the changing environment in which it operates. The paper opens with a brief academic analysis of sustainability literature available, before developing the case study.FindingsTraditional business improvement strategies, such as Lean and Agility, which many companies initially follow in an attempt to become more robust and economically stable, allow companies to deliver bottom‐line savings in production terms although their effectiveness depends upon the volume and demand profile of their products. Through the case study outlined in this paper however, a combined approach towards the application of Lean is outlined as a primary means of reducing operating costs alongside the simultaneous implementation of product innovation strategies which allows the company to break into new markets as a means to achieving long‐term economic sustainability and making it more robust to market changes. The development of a business within a business is described as an effective mechanism towards achieving business sustainability.Research limitations/implicationsThe paper proposes a novel approach to achieving economic sustainability within a business and can be of benefit to the wider industrial and academic community. The development of work around a single company has its obvious limitations and it is crucial that further work, with a range of companies in the area of business sustainability, is key to developing a comprehensive set of sustainability characteristics.Practical implicationsThe paper proposes a set of qualitative characteristics for the development of an economically sustainable manufacturing company. The development of a comprehensive case study with a subject company also directs and enables other companies of similar size and style to apply a similar approach and to achieve economic sustainability in an efficient and effective manner, through reducing production costs, minimising company failure and increasing business efficiency and effectiveness.Originality/valueThe development of a set of sustainability characteristics aimed at tackling directly the issues of economic sustainability is proposed and is considered by the authors as one of a kind. The case study approach also provides for a framework towards the implementation of sustainable manufacturing operations within SMEs.


2015 ◽  
Vol 105 (11-12) ◽  
pp. 812-817
Author(s):  
F. Klocke ◽  
J. Müller ◽  
P. Mattfeld ◽  
J. Stauder

Produzierende Unternehmen in der Medizintechnik müssen die Anforderungen vieler Interessenspartner erfüllen. Eine kostengünstige Herstellung erfordert die Berücksichtigung dieser Anforderungen bereits in frühen Phasen des Produktentstehungsprozesses. Es wurde daher eine Methodik entwickelt, die auf Basis eines Zielsystems, das als Ausgangspunkt für die Technologieplanung dient, die Berücksichtigung unternehmensspezifischer Anforderungen erlaubt.   Manufacturing companies in medical engineering have to take into account the needs of a variety of stakeholders. Cost-efficient production requires the consideration of these requirements already in the early phases of the product development process. Therefore, a methodology has been developed that enables the consideration of company-specific requirements based on a target system serving as the starting point for technology planning.


2015 ◽  
Vol 6 (3) ◽  
pp. 223-245 ◽  
Author(s):  
Sen Bao ◽  
Marja Toivonen

Purpose – The purpose of this study is to examine the challenge of cultural differences in servitizing manufacturing. The focus is on services that the representatives of small, developed and open economies (exemplified by Nordic countries) provide in a large, developing and centralized economy (exemplified by China). Along with internationalization, cultural differences in business practices have become a topical issue. They may be particularly challenging when the business area is new and the cultures of business parties include opposing characteristics. Design/methodology/approach – A multiple case study approach is applied, including five case companies from Finland and Sweden. They are all manufacturing companies in metals and mechanical engineering industries, offering product services, process optimization and consultancy services. Empirical data have been collected from both Nordic service providers and their customers in China. Findings – The data reveal that services including tangible elements (e.g. spare parts) are successful in China. However, there is also a growing demand for total solutions. Customers’ buying behavior is not only influenced by the Chinese business culture, e.g. “guanxi”, but it also varies according to the ownership of companies (state-owned, private, foreign) and to the geography. A prerequisite for success is a shared understanding of central business concepts – in this case, the interpretations of “tangibility” and “added-value” turned out to be particularly important. Originality/value – This study indicates that generalizations based on the experience of developed countries may be misleading in developing countries, as they may “jump over” some steps on their way toward advanced services. In China, services as offerings are newcomers, but service culture in a “tacit” form is embedded due to the Confucian influence. The recent view of service-dominant logic that highlights the mutual benefit as the core of service business may actually be quite near to the original Chinese thinking.


2014 ◽  
Vol 22 (1) ◽  
pp. 2-13 ◽  
Author(s):  
Clifford Paul Hallwood

Purpose – The paper aims to investigate how failure of markets for commercially useful knowledge can lead to the broadening of the scope of a firm. Design/methodology/approach – Design: case study methodology: selective literature review as relating to the findings of the case study approach: theoretical as built on the case study and literature review. Findings – Failure in the market between firms for new commercial knowledge led the case study firm to broaden the scope of its operations. Creation of special corporate culture to govern team performance was crucial for this process. Originality/value – Originality lies in: the case study, theoretically linking failure in the markets for knowledge to broadening of the scope of the firm. Identifying the firm's corporate culture as a team motivational and cost control device making broadening of scope of the firm cost efficient.


2019 ◽  
Vol 6 (1) ◽  
Author(s):  
Jingen Li ◽  
Shuying Gu ◽  
Zhen Zhao ◽  
Bingchen Chen ◽  
Qian Liu ◽  
...  

Abstract Background Lignocellulosic biomass has long been recognized as a potential sustainable source for industrial applications. The costs associated with conversion of plant biomass to fermentable sugar represent a significant barrier to the production of cost-competitive biochemicals. Consolidated bioprocessing (CBP) is considered a potential breakthrough for achieving cost-efficient production of biomass-based fuels and commodity chemicals. During the degradation of cellulose, cellobiose (major end-product of cellulase activity) is catabolized by hydrolytic and phosphorolytic pathways in cellulolytic organisms. However, the details of the two intracellular cellobiose metabolism pathways in cellulolytic fungi remain to be uncovered. Results Using the engineered malic acid production fungal strain JG207, we demonstrated that the hydrolytic pathway by β-glucosidase and the phosphorolytic pathway by phosphorylase are both used for intracellular cellobiose metabolism in Myceliophthora thermophila, and the yield of malic acid can benefit from the energy advantages of phosphorolytic cleavage. There were obvious differences in regulation of the two cellobiose catabolic pathways depending on whether M. thermophila JG207 was grown on cellobiose or Avicel. Disruption of Mtcpp in strain JG207 led to decreased production of malic acid under cellobiose conditions, while expression levels of all three intracellular β-glucosidase genes were significantly up-regulated to rescue the impairment of the phosphorolytic pathway under Avicel conditions. When the flux of the hydrolytic pathway was reduced, we found that β-glucosidase encoded by bgl1 was the dominant enzyme in the hydrolytic pathway and deletion of bgl1 resulted in significant enhancement of protein secretion but reduction of malate production. Combining comprehensive manipulation of both cellobiose utilization pathways and enhancement of cellobiose uptake by overexpression of a cellobiose transporter, the final strain JG412Δbgl2Δbgl3 produced up to 101.2 g/L and 77.4 g/L malic acid from cellobiose and Avicel, respectively, which corresponded to respective yields of 1.35 g/g and 1.03 g/g, representing significant improvement over the starting strain JG207. Conclusions This is the first report of detailed investigation of intracellular cellobiose catabolism in cellulolytic fungus M. thermophila. These results provide insights that can be applied to industrial fungi for production of biofuels and biochemicals from cellobiose and cellulose.


Sign in / Sign up

Export Citation Format

Share Document