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Fredrik von Corswant

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization…

Abstract

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization, increased innovation, and possibilities to perform development activities in parallel. However, the differentiation of product development among a number of firms also implies that various dependencies need to be dealt with across firm boundaries. How dependencies may be dealt with across firms is related to how product development is organized. The purpose of the paper is to explore dependencies and how interactive product development may be organized with regard to these dependencies.

The analytical framework is based on the industrial network approach, and deals with the development of products in terms of adaptation and combination of heterogeneous resources. There are dependencies between resources, that is, they are embedded, implying that no resource can be developed in isolation. The characteristics of and dependencies related to four main categories of resources (products, production facilities, business units and business relationships) provide a basis for analyzing the organizing of interactive product development.

Three in-depth case studies are used to explore the organizing of interactive product development with regard to dependencies. The first two cases are based on the development of the electrical system and the seats for Volvo’s large car platform (P2), performed in interaction with Delphi and Lear respectively. The third case is based on the interaction between Scania and Dayco/DFC Tech for the development of various pipes and hoses for a new truck model.

The analysis is focused on what different dependencies the firms considered and dealt with, and how product development was organized with regard to these dependencies. It is concluded that there is a complex and dynamic pattern of dependencies that reaches far beyond the developed product as well as beyond individual business units. To deal with these dependencies, development may be organized in teams where several business units are represented. This enables interaction between different business units’ resource collections, which is important for resource adaptation as well as for innovation. The delimiting and relating functions of the team boundary are elaborated upon and it is argued that also teams may be regarded as actors. It is also concluded that a modular product structure may entail a modular organization with regard to the teams, though, interaction between business units and teams is needed. A strong connection between the technical structure and the organizational structure is identified and it is concluded that policies regarding the technical structure (e.g. concerning “carry-over”) cannot be separated from the management of the organizational structure (e.g. the supplier structure). The organizing of product development is in itself a complex and dynamic task that needs to be subject to interaction between business units.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

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Article

Miia Martinsuo and Rami Sariola

The purpose of this paper is to increase understanding on the emergence of mutually beneficial relationships between component suppliers and third parties in projects, and…

Abstract

Purpose

The purpose of this paper is to increase understanding on the emergence of mutually beneficial relationships between component suppliers and third parties in projects, and their interaction practices in the project and potential new services.

Design/methodology/approach

A qualitative, exploratory research strategy is employed in the context of construction projects, with construction component manufacturers as the focal component suppliers. In total 22 interviews were conducted with structural engineers and architects as relevant third parties, to discover the specifics of component suppliers’ third-party relationship development in construction projects.

Findings

The results show the crucial role of third parties in the constructor’s and customer’s decision-making process, and various ways for component suppliers to develop the relationship toward the third parties. The results offer important knowledge about the cooperation between construction component suppliers and third parties and means to increase the centrality of component suppliers in the project network.

Research limitations/implications

The research was delimited to structural engineers and architects as third parties in construction projects in one country. Further research is encouraged on third-party cooperation in other kinds of project networks, other kinds of third parties, and the various forms of triadic cooperation in project networks.

Practical implications

The results encourage component suppliers to take a proactive approach in developing relationships with third parties, when strengthening their network position. The paper introduces practical ways in which component suppliers may take action toward generating powerful main contractor-supplier-third-party triads.

Originality/value

Limited research attention has been directed at third parties and triadic cooperation in project networks. This paper offers important knowledge about the relationship between component suppliers and third parties, particularly in terms of third parties’ expectations and practical initiatives to enhance the relationships.

Details

International Journal of Managing Projects in Business, vol. 8 no. 1
Type: Research Article
ISSN: 1753-8378

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Article

Yohanes Kristianto Nugroho

This paper aims to focus on production ramp up modeling on built‐to‐order (BTO) manufacturers facing customized demand. The general purpose is to present a novel approach…

Abstract

Purpose

This paper aims to focus on production ramp up modeling on built‐to‐order (BTO) manufacturers facing customized demand. The general purpose is to present a novel approach to managing collaboration, by considering information exchange between the manufacturer and the supplier.

Design/methodology/approach

The methodology applies feedback control mechanism to analyze supplier responsiveness and customer order decoupling point to represent the need for collaboration. A two‐stage game is applied ahead of control system application to optimize the capacity decision, with the ultimate goal being profit maximization.

Findings

The results show that a higher product commonality degree gives more opportunity for quick response BTO supply chains, which are managed by feedback control, and at the same time to possibly mitigate the bullwhip effect caused by demand information noise.

Research limitations/implications

The analytical model here focused on one product family development, so the applicability of the proposed model to the whole product portfolio should be investigated in the future.

Practical implications

This paper helps the manufacturer to act optimally by considering the possibility of information exchange with the supplier and deciding on the product commonality degree, in taking into account the customer's lead time requirement.

Originality/value

A control system model of “BTO Supply Chain” is proposed by including product commonality and response analysis in the simulation model. Furthermore, a contribution to collaborative supply chains is shown by applying a synchronized supply model to represent supplier and manufacturer communication.

Details

Journal of Modelling in Management, vol. 6 no. 2
Type: Research Article
ISSN: 1746-5664

Keywords

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Article

Fabio Cassia, Francesca Magno and Marta Ugolini

This paper explores the process of mutual value creation in a component co-branding relationship between an unknown component supplier and a well-known Original Equipment…

Abstract

Purpose

This paper explores the process of mutual value creation in a component co-branding relationship between an unknown component supplier and a well-known Original Equipment Manufacturer (OEM). In particular, the purpose of this paper is to investigate the antecedents of parties’ willingness to engage in mutual value creation, thus enriching Grönroos and Helle’s (2010, 2012) model of mutual value creation.

Design/methodology/approach

An in-depth longitudinal analysis of a single case study in the cycling wear industry is presented based on data gathered from several sources, including long interviews with managers of a component supplier and an OEM, promotional materials, press releases and articles in cycling-related publications and on web portals, and online conversations among amateur cyclists.

Findings

Four antecedents of the willingness to engage in mutual value creation are identified: mutual trust; the perceived easiness of alignment between the supplier’s and OEM’s processes and resources relevant to value creation; the expected creation of a substantial level of additional mutual value; and the expected value gains for each party.

Research limitations/implications

The study analyses only one case in a single industry and adopts a dyadic perspective.

Practical implications

This study suggests that – contrary to the traditional view – when specific antecedents for mutual value creation are present, the component co-branding strategy is available to many innovative small- and medium-sized firms without strong brands.

Originality/value

Beyond enriching Grönroos and Helle’s (2010, 2012) model, this study explains why co-branding relationships can be established even in the absence of a strong component brand.

Details

Management Decision, vol. 53 no. 8
Type: Research Article
ISSN: 0025-1747

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Article

A.I. Millington, C.E.S. Millington and M. Cowburn

This paper explores the conditions under which motor component manufacturers may choose to supply car assembly plants through decentralised production in local assembly…

Abstract

This paper explores the conditions under which motor component manufacturers may choose to supply car assembly plants through decentralised production in local assembly units (LAUs). The analysis is based on a case study of the decision to supply motor exhausts through an LAU where demand from the OEM company is sequenced. The case suggests that local assembly may result in significant efficiency gains. However, most of these gains flow to the OEM company, while most of the costs of local assembly flow to the component supplier. This finding emphasises the importance of trust and collaboration within supplier relationships, but suggests that significant possibilities for opportunistic recontracting may exist after the establishment of the LAU. Both supplier and OEM company should consider these possibilities when making the initial investment decision.

Details

International Journal of Operations & Production Management, vol. 18 no. 2
Type: Research Article
ISSN: 0144-3577

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Article

Suyuan Wang, Huaming Song and Canran Gong

Companies face the critical reliability problem of products due to the development of outsourcing. This study intends to provide some feasible solutions for a company to…

Abstract

Purpose

Companies face the critical reliability problem of products due to the development of outsourcing. This study intends to provide some feasible solutions for a company to improve the reliability level of products.

Design/methodology/approach

The paper considers the reward and reliability decisions regarding a product made with two complementary components from two different suppliers: high-capable and low-capable. Two kinds of reliability improvement incentives (normal incentive and cost-sharing incentive) through which a manufacturer provides a reward and shares the reliability improvement cost with a supplier are discussed. As the Stackelberg leader, the manufacturer determines the strategy, while the suppliers are responsible for determining its reliability. Using a game-theoretic framework, four different contract scenarios are addressed. We develop analytical methods to better understand how the manufacturer decides the incentive mechanism to be used for the suppliers.

Findings

The results show that cost-sharing contracts do not always lead to a higher reliability level and more enormous profits. Setting a target reliability level is better for the manufacturer. The cost-sharing contract is beneficial for a high-capable supplier even though it does not directly participate in that kind of mechanism. A low-capable supplier gains more profit when the manufacturer provides incentive mechanisms that do not specify a target reliability level.

Originality/value

This paper investigates the reliability improvement mechanism used for complementary products and focuses on identifying the optimal decisions when demand is influenced by the gap between the product's failure rate and the standard failure rate.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

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Article

Anna Dubois, Lars-Erik Gadde and Lars-Gunnar Mattsson

The purpose of the paper is to describe and analyse the evolution of the supplier base of a buying firm and the reasons behind these changes.

Abstract

Purpose

The purpose of the paper is to describe and analyse the evolution of the supplier base of a buying firm and the reasons behind these changes.

Design/methodology/approach

The paper is based on a case study of the changes over 52 years in a sub-set of the supplier base of a firm manufacturing fork-lifts.

Findings

The study shows that some relationships feature substantial longevity. However, the duration of one-third of the total relationships is shorter than five years. There was considerable variation over time in the dynamics of the supplier base in terms of entries and exits of suppliers. Owing to this variation, research findings and conclusions in short-term studies are heavily dependent on the specific conditions at the time of the study. Finally, no less than one-fourth of the terminated supplier relationships were reactivated later.

Research limitations/implications

The study was designed in a time when purchasing was considered entirely from the perspective of the buying firm. Further studies, therefore, must increasingly emphasise the role of suppliers and the interaction in the buyer–supplier relationships, as well as the embeddedness in networks.

Originality/value

The findings of the study are unique in two ways. First, they are based on systematic observations over more than 50 years. Second, the study involves the purchases of 11 components representing different technical and economic features. The (few) previous studies are based on much shorter time periods and involves fewer suppliers/components. Moreover, the findings regarding re-activation of terminated relationships represent unique contributions.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

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Article

Paraskeva Wlazlak, Kristina Säfsten and Per Hilletofth

Although prior research provides evidence that production ramp-up is often disrupted by supplier-related problems, it fails to discuss how the original equipment…

Abstract

Purpose

Although prior research provides evidence that production ramp-up is often disrupted by supplier-related problems, it fails to discuss how the original equipment manufacturer (OEM) and various types of suppliers integrate their functions and operations to secure preparations for production ramp-up. The purpose of this paper is to investigate OEM–supplier integration in a new product development (NPD) project to prepare for production ramp-up.

Design/methodology/approach

The results presented in this paper are based on a real-time, longitudinal study of a single collaborative NPD project in the mechanical engineering industry. The NPD project involves seven suppliers and it is carried out in a large Swedish company (the OEM) and fits the theory-elaborating approach of this research.

Findings

This study argues that the aspect of timing in OEM–supplier integration, the OEM’s research and development (R&D) attitude toward collaboration and the OEM’s (R&D) operating procedure are challenges affecting the preparation for production ramp-up. The following three mechanisms to facilitate OEM–supplier integration in order to prepare for production ramp-up are also discussed: the mediator’s role, the OEM’s face-to-face meeting at the project level and suppliers’ formal face-to-face meetings with the OEM and internally.

Originality/value

This paper elaborates on and extends prior research on production ramp-up by conducting an empirical analysis that incorporates supplier integration in NPD. It bridges the gap between the literature on production ramp-up and on supplier integration in NPD and clearly indicates that supplier integration is an important prerequisite for successful production ramp-up.

Details

Journal of Manufacturing Technology Management, vol. 30 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

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Article

Sheelagh Matear and Richard Gray

Examines the factors which are important in the choice of freightservices for both shippers and freight suppliers and explores whetherthe service choice decision is based…

Abstract

Examines the factors which are important in the choice of freight services for both shippers and freight suppliers and explores whether the service choice decision is based on different sets of criteria for the two groups and further, whether freight suppliers use different criteria in selecting sea and air transport services. Principal components analysis is used to elicit the factors important in freight service choice. Carrier timing and price characteristics are more important for freight shippers while performance and schedule are more important for freight suppliers purchasing sea services and a combination of schedule and space is more important for freight suppliers purchasing air services. Discusses strategic implications for marketing.

Details

International Journal of Physical Distribution & Logistics Management, vol. 23 no. 2
Type: Research Article
ISSN: 0960-0035

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Article

Hong Zhang and Lu Yu

Prefabricated construction concerns off-site production, multi-mode transportation and on-site installation of the prefabricated components, which are interdependent and…

Abstract

Purpose

Prefabricated construction concerns off-site production, multi-mode transportation and on-site installation of the prefabricated components, which are interdependent and dynamically interactive, so coordination among the multiple stages along the prefabricated component supply chain (PCSC) is indispensable. This study aims to solve the dynamic transportation planning problem for the PCSC by addressing the interdependency, dynamic interaction and coordination among the multiple stages and different objectives of the stakeholders.

Design/methodology/approach

The PCSC is analyzed and then the formulation for the dynamic transportation planning problem is developed based on the just-in-time (JIT) strategy. The particle swarm optimization (PSO) algorithm is applied to solve the dynamic optimization problem.

Findings

The proposed dynamic transportation planning method for the PCSC regarding component supplier selection, transportation planning for means, routes and schedule, site layout planning and transportation plan adjustment is able to facilitate coordination among the multiple stages by addressing their interdependencies and dynamic interactions, as well as different economic objectives of the stakeholders such as suppliers or the contractor.

Originality/value

The study helps to achieve the advantages of prefabricated construction by prompting coordination among multiple stages of the PCSC by realizing different benefits of the stakeholders. In addition, it provides the stakeholders with the competitive bidding prices and the evaluation data for the bids quote. Meanwhile, it contributes to the domain knowledge of the PCSC management with regard to the viewpoint of coordination and integration of multiple stages rather than only one stage as well as the dynamic optimization model based on the JIT strategy and the PSO algorithm.

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