Global Manufacturing Networks Research Articles

Macroeconomic shocks, investment volatility and centrality in global manufacturing network.

In this paper, based on the investment behavior of publicly listed manufacturing companies in major economies, we analyze the impacts of macroeconomic systematic shocks on the cyclicality of industrial investment volatility and on the centrality of major economies in global manufacturing network. Two facts are established: (1) the cyclicality of investment volatility in major economies shows to be more countercyclical after 2008, indicating that the downward systematic shocks after 2008 resulted in higher investment volatilities in these major economies through the effect of increased uncertainty accompanying the downward shocks; (2) the impact of global systematic shocks on global manufacturing is making the linkages between industrial investments in major manufacturing economies closer during the period 2002-2020, resulting in an increased centrality of major economies. We consider this as an effect of the counter-globalization trend.

Vaccine technology transfer in a global health crisis: Actors, capabilities, and institutions

The COVID-19 pandemic, which featured international pharmaceutical firms seeking to build global manufacturing networks to scale-up the supply of vaccines, has generated heightened interest in understanding the role of firm-to-firm technology transfer. While considerable attention has been given to tracking the extent of international vaccine technology transfer, we know little about how partnerships were established and work in practice. Understanding the challenges that such projects face, and how such challenges may be overcome, is crucially important. This paper provides an account of the partnership between the British-Swedish multinational pharmaceutical company AstraZeneca, the vaccine developer that has engaged in the most technology transfer and built the widest global manufacturing network, and Bio-Manguinhos, a public laboratory linked to Brazil's Ministry of Health. The case study demonstrates the importance of capabilities and regulatory flexibility. Moreover, the analysis highlights the role of political factors that affect the process of technology transfer, and innovation more broadly. Because of the risks involved and the need to quickly mobilize existing capabilities and build new ones, as well as the imperatives of coordinating among manufacturing and regulatory processes and allocating resources to make such arrangements feasible, technology transfer projects need to be enabled politically. Looking forward, the case study has implications for initiatives to expand technology transfer for broadened production of vaccines in the Global South.

An integrated framework of Industry 3.5 and an empirical study of simulation-based automated material handling system for semiconductor manufacturing

ABSTRACT Industry 4.0 empowered by the advanced technologies has driven digital transformation of global manufacturing networks for smart production. However, most of the industries may not be ready for direct migration. To fill up the gaps, this study aims to develop an integrated framework of Industry 3.5 as a phased migration towards Industry 4.0 while employing methodologies and technologies to show systematic approach for the existing manufacturing ecosystem. Moreover, an empirical study of automated material handling system (AMHS) for semiconductor manufacturing is conducted as validation, in which congestion of AMHS can be reduced by integrating machine learning, dispatching strategies, and simulation modelling. The empirical study has shown the practical viability of the proposed integrated framework of Industry 3.5 under the existing system and manufacturing environment.

Capability mapping to improve manufacturing network performance: how a factory can target growth

PurposeThis paper explores growth opportunities for a contract manufacturer (CM), which operates a global virtual manufacturing network (GVMN). The Swiss factory should play a profitable role in the holding's competitive strategy, in spite of lower-cost alternatives within its network.Design/methodology/approachThe study applied a design science method over a period of two years of collaboration with the partner firm to complete three iterations of solution incubation and refinement.FindingsThe design artefact is a growth strategy for a CM with independently-managed, heterogeneous sites. A novel capability mapping tool reveals competitive advantage by deploying the GVMN as an order fulfilment system. Engineering and sales are integrated with production to project higher revenue streams in multiple locations including Switzerland.Research limitations/implicationsThe research expands the operations management (OM) focus on optimization and continuous improvement. Results indicate that local and global manufacturing capabilities can be configured to target network performance, implying that the smile curve flattens in certain GVMN configurations. The exploratory case study is limited by a lack of statistical generalizability and is specific to the contract electronics manufacturing industry.Practical implicationsManaging manufacturing as a network can restore feed-forward and feedback loops, which are disrupted by de-verticalization and externalization. The visualization positions a Swiss plant in an inimitable role, serving growth accounts, which require co-development. The order fulfilment strategy and capability maps can be adapted to other GVMNs.Social implicationsThe study presents an alternative to shuttering high-cost locations using performance improvements instead of protectionist interventions. This could have a material impact on de-industrialization in developed nations like Switzerland.Originality/valueThe strategy innovation originates in practice. Its synthesis drew on multiple disciplines to position OM as a strategic lever for competing in global value chains (GVCs). The author finds alternatives to the internationalization logic of cost arbitrage and adds to developed country studies. This is an OM contribution to the broader debate on globalization dominated by the social sciences.

Game theory–based multi-task scheduling in cloud manufacturing using an extended biogeography-based optimization algorithm

Cloud manufacturing is an emerging paradigm of global manufacturing networks. Through centralized management and operation of distributed manufacturing services, it can deal with different requirement tasks submitted by multiple customers in parallel. Therefore, the cloud manufacturing multi-task scheduling problem has attracted increasing attention from researchers. This article proposes a new cloud manufacturing multi-task scheduling model based on game theory from the customer perspective. The optimal result for a cloud manufacturing platform is derived from the Nash equilibrium point in the game. As the cloud manufacturing multi-task scheduling problem is known as an NP-hard combinatorial optimization problem, an extended biogeography-based optimization algorithm that embeds three improvements is presented to solve the corresponding model. Compared with the basic biogeography-based optimization algorithm, genetic algorithm, and particle swarm optimization, the experimental simulation results demonstrate that the extended biogeography-based optimization algorithm finds a better schedule for the proposed model. Its benefit is to provide each customer with reliable services that fulfill the demanded manufacturing tasks at reasonable cost and time.

UNISON data-driven intermittent demand forecast framework to empower supply chain resilience and an empirical study in electronics distribution

The complexity involved in demand forecast for supply chain management of electronics components is exponentially increasing owing to demand fluctuations in consumer electronics, shortening of product life cycles, continuous technology migration, lengthy production cycle time, and long lead time for capacity expansion. While global manufacturing networks often suffer the risks of oversupply and shortage of key components, the distributor that is the key intermediate participator in electronics product supply chain buys components from the suppliers, warehouses them, and resells different parts to a number of electronics manufacturers with vendor-managed inventories. Thus, the component distributors forecast the demands for large assortments of stock keeping units (SKUs) with distinct dynamics for inventory control and supply chain management. To address realistic needs to enhance demand forecast performance, this study aims to develop a UNISON data-driven analytics framework that integrates machine learning technologies and temporal aggregation mechanism to forecast the demands of intermittent electronics components. An empirical study is conducted in a world-leading semiconductor distributor for validation. The results have shown practical vitality of the proposed approach with better performance than conventional approaches and the existing practice. Indeed, the developed solution has been employed in this company to support flexible decisions to empower agile logistics and supply chain resilience for smart production.

Evolution of Global Manufacturing Networks and xKD Supply Chains: A Cross Case Study of Six Global Automotive Manufacturers

The implementation of different types of knocked down (xKD) supply chains have been one main element of the internationalization strategies of automotive original equipment manufacturers (OEMs). The original plants in the industrialized home markets create handling kits that are imported by the oversea plants where the kits can be easily assembled in high quality despite lacking qualification of local workforce and without a local supplier base. Over time, the global manufacturing networks mature and the oversea plants increasingly overtake value-adding processes and integrate local suppliers. However, typically the supply chain management and design are not adapted to this maturing process and the supply chains are characterized by high inventories and long lead times. In this research, we develop an integrated framework to align the global manufacturing network and xKD supply chains in order to improve the logistics performance and to exploit cost potentials by means of a six-fold cross-case study of globally operating automotive OEMs.

Fixed Cost Management as an Enabler for Agile Manufacturing Networks

Markets worldwide are tending towards higher volatility and complexity. This results in increasing uncertainty and rapidly changing requirements for producing companies. While the planning of global manufacturing networks has so far been seen primarily as a long-term optimizing task based on predictions of the future, today agility is a major competitive factor for being able to react quickly to market changes. As a result, the focus in the network design shifts from optimizing based on made assumptions to explicitly designing the adaptability of a network to unpredictable changes. One of the main obstacles thereby are high fixed costs, which are none or less changeable and hence often result in remaining costs after a change, so-called sticky costs. Thus, the purpose of this paper is to present methods to manage fixed costs and reduce possible sticky costs in manufacturing networks. Subsequently, the paper discusses to what extent an often-connected increase in costs, here called “agility costs”, is acceptable to achieve a higher level of agility in the manufacturing network.

Combating Child Labor: Incentives and Information Disclosure in Global Supply Chains

Problem definition: We investigate multinational firms’ inspection and pricing strategies to address the challenges of combating child labor in global supply chains. We also examine how several factors (such as information disclosure, goodwill loss, inspection cost, external monitoring by nongovernmental organizations (NGOs), and penalty scheme) affect firms’ incentives to use different strategies to combat child labor. Academic/practical relevance: Nearly 200 million children are engaged in child labor, many in developing countries that are part of the supply base of global manufacturing networks. However, there has been little research on evaluating the impact of firms’ strategies and NGOs’ initiatives on child labor. Methodology: We develop a game-theoretic model based on a two-tier supply chain, in which a multinational firm in a developed country sells the product made by a supplier in a developing country. Results: If internal inspections are economical, a global firm can reduce the incidence of child labor by inspecting the supplier’s use of child labor. Otherwise, the firm can deter the supplier’s child labor employment by offering a sufficiently high wholesale price or simultaneously using internal inspections and a medium wholesale price. The latter strategy should be adopted only when information about the firm’s inspection policy can be informed credibly. This strategy combats child labor more effectively when a higher penalty is levied onto the supplier’s use of child labor. Managerial implications: A multinational firm that adopts a zero-tolerance policy should consider disclosing its effort to combat child labor (e.g., through a social responsibility report), whereas it should take extra caution when using other penalty schemes. NGOs should help raise the firm’s goodwill cost (e.g., through campaigns and consumer education), but they should be careful about helping to reduce the firm’s inspection cost (e.g., by improving a monitoring system). To prevent children from going back to work after initial removal, a sufficient amount of compensation should be provided to those children, especially when firms rely on inspections without paying a high wholesale price to suppliers.

Two-level multi-task scheduling in a cloud manufacturing environment

Abstract Cloud manufacturing is a new paradigm of global manufacturing networks. In a cloud manufacturing environment, the problem of scheduling multiple heterogeneous tasks is very challenging. Tasks submitted to the cloud manufacturing platform possess different functional requirements and various complexities. They are decomposed into fine-grained subtasks with their precedence relationship to be processed by the aggregated distributed resources. From the perspective of each individual task, it is desirable to be completed in the shortest time possible without due date constraint. On the other hand, from the perspective of the cloud platform, all tasks being scheduled should also be completed as quickly as possible. How to schedule all the subtasks decomposed from multiple heterogeneous tasks to maximize the benefits not only to individual tasks themselves but also to the platform as a whole is an intractable but important issue in cloud manufacturing. In this paper, a two-level multi-task scheduling model is proposed. Two scheduling strategies based on the two-level scheduling model are presented and evaluated. The test results obtained from computational experiments suggest that the proposed two-level scheduling model is more effective than the traditional one-level model. The two-level two-optimization scheme in particular can find a better schedule beneficial not only to individual task but also to the cloud platform as a whole.

A Study of Knowledge Management and Organizational Learning under Environmental Education

Under the globalized and fiercely competitive external environment, manufacturers have to enhance the organizational learning capability to cope with the challenge of Environmental Education. In addition to developing and cultivating the knowledge management capability, manufacturers have to co-develop, share, and spread relevant knowledge among different bodies in the external network. The theoretical relationship among manufacturers’ knowledge management in global manufacturing network, knowledge management in supply chain network, and organizational learning capability is proposed in this study, and the moderation effect of Environmental Education is further discussed. Based on 2013 International Manufacturing Strategy Survey VI (IMSS VI) of 463 manufacturers in 22 countries and regions. The empirical research results are concluded as below. (1) Manufacturers’ knowledge management in global manufacturing network and knowledge management in supply chain network present remarkably positive effects on the organizational learning capability. (2) Manufacturers’ knowledge management in supply chain network shows mediation effects on the relationship between knowledge management in global manufacturing network and organizational learning capability. (3) Environmental Education reveals notable moderation effects on the relationship between manufacturers’ knowledge management in supply chain network and organizational learning capability.

Integration of global manufacturing networks and supply chains: a cross case comparison of six global automotive manufacturers

Striving for new business opportunities automotive original equipment manufacturers established overseas plants in emerging markets and global manufacturing networks evolved. In this regard so-called knocked down supply chains have been the key for the establishment of successful overseas operations. Importing all parts required from the original plants in form of easy to be handled kits secures a high product quality and stable supply despite lacking qualification of local workforce and supplier bases. Over time the overseas plants and global manufacturing networks have matured by increasingly taking over value adding processes and integrating local suppliers. However, the supply chain structure and management have not been adapted accordingly and still comprise high inventory buffers and lead times. There is little research on the integrated design of global manufacturing networks and knocked down supply chains. This research aims to contribute to close this research gap by means of a cross-case study with six globally operating OEMs investigating the fit of knocked down supply chains and global manufacturing networks. On the basis of transaction cost theory, we develop an integrated framework to align global manufacturing networks and knocked down supply chain design that can serve as guideline to open logistics performance and cost potentials.

A Risk Index and Data Display for Process Performance in the Pharmaceutical Industry.

We propose a new index and graphical display for quantifying and visualizing process performance in the pharmaceutical industry. These tools can provide management a comprehensive, high level overview of the process performance of a global manufacturing network suitable for risk ranking, by which is meant: identifying those processes at greatest risk of failing to meet specifications, and prioritizing resources to drive continuous process improvement. Our index, like others currently in use, compares the observed variation of CQAs-critical quality attributes-to their specifications. However, instead of relying on traditional data summaries such as means and standard deviations to characterize process results, the proposed index uses sample quantiles. Quantiles are more accurate and reliable when data are skewed or short-tailed as is often observed for pharmaceutical processes. Perhaps just as important, we communicate the results with a new visual display that accurately compares processes and sites. The display identifies instances when the summaries may mislead and the subject matter expert needs to "drill down" into manufacturing data to assure correct understanding.LAY ABSTRACT: The proposed risk index and graphical display enables high-risk processes to be identified, process improvements to be prioritized, resources to be efficiently allocated, and strategic planning for continuous process improvement to be evidence-based.

Assessing the influence of supply chain collaboration value innovation, supply chain capability and competitive advantage in Taiwan's networking communication industry

Taiwan's networking communication industry has had a clustering scale and a good position for collaboration in the global networking communication manufacturing network. This study considers whether Taiwan's networking communication industry can enhance its competitive advantage through supply chain management activities. In order to examine the relationships of supply chain collaboration value innovation, supply chain capability and competitive advantage, this research selects 74 firms and 465 questionnaires from the upstream, middle and downstream manufactures of Taiwan networking communication industry for research subjects, and uses structural equation modeling (SEM) to verify the theoretical model. Results show that the relationships among supply chain collaboration value innovation, supply chain capacity and competitive advantage can have a positive impact, and that supply chain capability is a full mediator. Moreover, supply chain echelons (upper, middle and downstream) have some moderating effects in these relationships.

Supply chain integration within global manufacturing networks: a contingency flow-based view

PurposeThe purpose of this paper is to analyse how the role of the plant in a manufacturing network (MN) affects the configurations of the flows of goods among plants, suppliers and customers and how these configurations, in turn, affect the extent of adoption and effectiveness of supply chain (SC) integration.Design/methodology/approachThree research questions are developed at the plant level and then tested using an international survey (IMSS 6) featuring 364 plants which are part of an intra-company MN from 18 countries.FindingsFive configurations of flows of goods emerge from the analysis. These configurations appear to be related to the role of the plant in the network and to the effectiveness of SC integration practices, but not to their extent of adoption.Research limitations/implicationsResearch limitations include the focus on specific industries (assembly industries) and limited size of the clusters which did not allow for a deep investigation of each single cluster.Originality/valueThe paper creates a bridge between two literature streams (MNs and SC management) by means of an innovative flow-based perspective that can help researchers and practitioners to disentangle the two interwoven perspectives.

Simulation-Based Evaluation of Quality Control Strategies in Global Manufacturing Networks

In the context of an increased globalisation of sales and procurement markets companies are distributing their manufacturing activities in global networks. A key challenge is to ensure the overall production quality despite distributed value creation processes in complex manufacturing networks. Hence, a simulation model is presented, which allows for an evaluation of quality control strategies in global manufacturing networks. Based on the approach of Value Stream Mapping (VSM), which is enhanced by quality-relevant elements, a simulation approach is developed to dynamically evaluate different quality control strategies taking the individual target systems and site roles of the involved partners in the manufacturing network into account.

A Performance Measurement System for Global Manufacturing Networks

New developments coming along with globalisation increasingly force companies to realize efficient global manufacturing networks (GMN). Current research offers abundant methods aiming at the configuration of GMNs. However, less attention is paid to identifying the need for adapting existing networks and the comparison of enhanced network configurations. In other fields, like for example logistics, performance measurement systems (PMS) are applied to accomplish these tasks. This paper therefore seeks to support the improvement of network configurations by providing a PMS for GMNs.In the course of this research existing PMS are reviewed and a multidimensional evaluation is carried out. The system with the best fit is chosen and transferred to the field of GMNs. Subsequently, performance attributes are deduced from a strategic and operational point of view based on a literature review as well as the application of concepts known from life-cycle-management and systems theory. The proposed PMS is validated by an industrial case study.The results of the multidimensional evaluation show that the concept of selective key figures that is known from the field of logistics has the best fit to serve as a basis for a novel PMS for GMNs. The transferred PMS consists of metrics evaluating the strategic success factors of GMNs like flexibility and delivery reliability on the one hand and possible operational bottlenecks like complexity on the other hand. The validation of the PMS in a real life environment shows that it contributes to overcoming the identified gap in the literature and supports practitioners in the process of enhancing GMNs.

A Lifecycle-enhanced Global Manufacturing Platform for Enterprises

A growing interest toward the adoption of a lifecycle perspective in product design is characterizing current industrial trends. The cooperation of global manufacturing actors is fundamental to retrieve information from each lifecycle stage. From this background, a lifecycle based platform is proposed to efficiently set up feasible design configurations by including global manufacturing information. Starting from a set of input parameters, the idea is to collect lifecycle information in a customized XML structure in order to draw up the environmental profile. Such platform can also be adopted as an organized “knowledge repository” enhancing information sharing among the global manufacturing network.

A global optimization for sustainable multi-domain global manufacturing

A multi-period and domain nonlinear optimization model is developed in this article. The model incorporates the design of forward–reverse manufacturing networks topology, product platform and operation capacity planning. The model takes into account the lead times and costs for each period of planning and is formulated as mixed integer nonlinear programming (MINLP). A two stages branch and bound (B–B) with cutting planes and under-estimators is proposed, which exploits the problem structure by solving problem relaxation at the first stage upper bound (UB) and generates cutting planes and under-estimators at the second stage lower bound (LB). The application in a three-echelon forward–reverse global manufacturing network shows that the proposed algorithm is capable of efficiently handling large scale and non-convex problem formulation in order to achieve a global optimum. Some important results from the model are presented in terms of their impacts on the sustainability of global manufacturing.

Equipment characterization to mitigate risks during transfers of cell culture manufacturing processes.

The production of monoclonal antibodies by mammalian cell culture in bioreactors up to 25,000L is state of the art technology in the biotech industry. During the lifecycle of a product, several scale up activities and technology transfers are typically executed to enable the supply chain strategy of a global pharmaceutical company. Given the sensitivity of mammalian cells to physicochemical culture conditions, process and equipment knowledge are critical to avoid impacts on timelines, product quantity and quality. Especially, the fluid dynamics of large scale bioreactors versus small scale models need to be described, and similarity demonstrated, in light of the Quality by Design approach promoted by the FDA. This approach comprises an associated design space which is established during process characterization and validation in bench scale bioreactors. Therefore the establishment of predictive models and simulation tools for major operating conditions of stirred vessels (mixing, mass transfer, and shear force.), based on fundamental engineering principles, have experienced a renaissance in the recent years. This work illustrates the systematic characterization of a large variety of bioreactor designs deployed in a global manufacturing network ranging from small bench scale equipment to large scale production equipment (25,000L). Several traditional methods to determine power input, mixing, mass transfer and shear force have been used to create a data base and identify differences for various impeller types and configurations in operating ranges typically applied in cell culture processes at manufacturing scale. In addition, extrapolation of different empirical models, e.g. Cooke et al. (Paper presented at the proceedings of the 2nd international conference of bioreactor fluid dynamics, Cranfield, UK, 1988), have been assessed for their validity in these operational ranges. Results for selected designs are shown and serve as examples of structured characterization to enable fast and agile process transfers, scale up and troubleshooting.