The purpose of this paper is to propose a new, empirically derived typology of plants in the international manufacturing network of multinational companies. This typology is based on the knowledge flows between the plants. In our research, network analysis has been used as a methodology for understanding the position of plants in international manufacturing networks. The focus has been primarily on the intangible knowledge network, and secondarily on the physical, logistic network. Our analysis leads to four types of plants with different network roles: the isolated plants, the receivers, the hosting network players, and the active network players. Our analysis shows that the different types of plants play a different strategic role in the company, have a different focus, and differ in age, autonomy, and level of resources and investments. Also, the analysis suggests that the evolution of the plant depends to some extent on the network role of the plant. Finally, two scenarios for the development of a strong network role are identified. The research is useful for the scholar studying the architecture of knowledge networks, as well as for the practitioner who is in charge of an international network of manufacturing units.manufacturing strategy, knowledge management, international manufacturing, plant networks
The literature on global manufacturing strategy contains few models that help managers to design and manage their global plant network. An interesting model is the one developed by Ferdows, describing the strategic role of plants. This paper discusses and tests this model. The data provide strong empirical support for the model and add some new insights. It is shown that the role of the “center of excellence” in a manufacturing network is not restricted to plants with know‐how as the primary location advantage, but is also a common role for plants with market proximity as the primary advantage. Also, the model proves to be useful for the description and assessment of today’s network of plants, but it is too limited to serve as a typology for new plants that might be added to the network. Finally, the research shows that the perception of headquarters and of plant management concerning the plants’ strategic role may be very different.
This paper describes the major barriers across the design-manufacturing interface and examines ways to overcome them to achieve a smooth production start-up. An integration model reveals that formalization facilitates a smooth production start-up. Independent of the degree of formalization during the early development stages, a formal approach is preferred when the new product is introduced into production. Another facilitating factor is the empathy from design towards manufacturing, which can be stimulated by managerial actions. Although the complexity and newness of product and technology hinder a smooth production start-up, their effect seems to vanish by introducing formalization and by striving for a design team that has empathy towards manufacturing.
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