Original equipment manufacturer (OEM)-supplier integration to prepare for production ramp-up

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.

Enhancing quality and innovation performance: the role of supplier communication and knowledge development

“…The firms' main intention is to utilise the suppliers' specialised knowledge in their know-how projects to reduce time to market (Aloini et al, 2015) and increase the frequency of new products to market (Rosell & Lakemond, 2012). Manufacturers often move beyond just acquisition and sharing supplier knowledge towards integration with redesign and improvement of existing processes (António Carrizo Moreira & Ferreira, 2018;Calvi et al, 2018;Pihlajamaa et al, 2017;Wlazlak et al, 2019) or early engagement in new product development (Chesbrough, 2010;Laursen & Andersen, 2016;Rosell & Lakemond, 2012). These practices have been examined in relations with supplier integration, which enhances the speed to markets and the rate of innovation (Cavusgil et al, 2003;Ritala et al, 2015).…”

“…Several studies have found that supplier collaboration is positively related to innovation in the buying firm (Liu & Li, 2017;Un et al, 2010). Communication facilitates the integration of the suppliers on the development team (Pihlajamaa et al, 2017;Wang et al, 2015;Wlazlak et al, 2019) and provides good conditions for knowledge integration. The suppliers' network closure and access to diverse information can enhance synchronously both stylistic and process innovation (Delbufalo, 2015).…”

“…To reduce negative effects from supply chain disruption risk and improve performance, firms are willing to share information with their partners. Theoretically, supplier communication can direct enhance understanding of customer expectations (Yang, 2014) and product specifications (Teoman & Ulengin, 2017;Wlazlak et al, 2019;Wu & Weng, 2010). Sharing information enhances the understanding of customer expectations while also reducing the product and process development cycle time (Yang, 2014).…”

Evolutionary Game Analysis of the Effects of Problem Size and the Problem Proposing Mechanism on the Problem Processing Mechanism in a New Main Manufacturer–Supplier Collaborative System

“…Moreover, as a result of the slow transformation for some old enterprises, like MOTOROLA, who was once a highly qualified mobile phone manufacturer, or the need for national strategic development, many new manufacturers and suppliers have emerged as the times require, such as COMAC, China's manufacturer of big passenger aircraft. Lots of new relationships between manufacturers and suppliers in the R&D of some complex products are established thereby [10].…”

“…Many of the problems were unpredicted in advance by the young manufacturer COMAC and its suppliers before they signed the collaboration, even though some of the suppliers are experienced. Due to the complexity of complex products, the problems arising in the R&D of complex products are more complicated and diverse than those of ordinary products [9][10][11][12]. Thus, the probability of the unpredicted problems is much higher.…”