Offshoring: Relocation of production processes towards low-cost countries through the project management & process reengineering performance model

Abstract

Purpose

Nowadays, especially after the recent financial downturn, companies are looking for much more efficient and creative business processes management. They need to place better solutions on the market in less time and with lower costs. Companies are achieving these goals of efficiency always more by using the offshoring strategy. It commonly describes a company’s relocation of a business process from one country to another, typically manufacturing processes towards low-cost countries (Brazil, Russia, India, China and South Africa – BRICS area). The purpose of this paper is to propose a methodological approach based on project management tools that supports the decision-making process in order to help companies in optimizing the re-engineering production processes and improve management costs. The framework provided in this paper is grounded on available literature and from the authors’ personal experiences in managing several projects.

Design/methodology/approach

This paper seeks to propose a Project Management Process Reengineering performance model (PMPR) for managing projects of reengineering of processes and applies it in a real case study concerning the relocation of an automotive glass production line.

Findings

The model proposed in this paper should serve as a valuable tool to facilitate a successful BPR design in the project management and intends to assist companies as they operate projects of transferring and optimizing production lines.

Originality/value

This paper proposes a PMPR model with a methodological approach which integrates efficiency and effectiveness estimators applicable to company needs. Thus, the aim of the paper is to develop a methodology and technical approach for the redesign and realization of a production line in consequence of its relocation.

Citation

De Felice, F., Petrillo, A. and Silvestri, A. (2015), "Offshoring: Relocation of production processes towards low-cost countries through the project management & process reengineering performance model", Business Process Management Journal, Vol. 21 No. 2, pp. 379-402. https://doi.org/10.1108/BPMJ-01-2014-0008