A production-transferprocedure based on risk management principles
2019 (English)In: Journal of Global Operations and Strategic Sourcing, ISSN 2398-5364, E-ISSN 2398-5372, Vol. 12, no 1, p. 103-150Article in journal (Refereed) Published
Abstract [en]
Purpose –This paper develops a procedure for preparing production transfers based on risk management principles. The procedure should help companies reduce the amount of supply disruptions during transfers and achieve their outsourcing/offshoring objectives.
Design/methodology/approach – The procedure was developed during a 3-year Design Science study. First, a literature review and case studies were conducted to frame the research problem. Second, a preliminary procedure was developed based on preventive actions from the production transfer literature. Third, the procedure was implemented during an electronics-offshoring case and refined during workshops with the sender and receiver’s transfer-personnel. Fourth, during a seminar, transfer experts verified the procedure by applying it to outsourcing/offshoring cases with which they had experience.
Findings – Most of the preventive actions were evaluated as relevant for the transfers the procedure was applied to, regardless of industry and relocation type. Nevertheless, the electronics-offshoring case showed that the amount of resources the transfer parties were willing to invest in interactive actions (e.g. cross-locational transfer of personnel) depended on the transfer’s risk level and profit impact. This paper provides propositions about how to better allocate personnel during relocations and enhances the production transfer literature by clarifying transfer-risk management.
Practical implications – The procedure can be used during the production-transfer phase as a preparation procedure. Moreover, it informs the decision-making process during the relocation-decision and supplier-selection phases.
Originality/value – To the authors’ knowledge, this is the first production-transfer-preparation procedure based on risk management principles.
Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2019. Vol. 12, no 1, p. 103-150
Keywords [en]
Supply Chain Risk Management; Manufacturing Relocation; Production Transfer
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Economic Information Systems
Identifiers
URN: urn:nbn:se:liu:diva-153102DOI: 10.1108/JGOSS-01-2018-0001ISI: 000458579700005Scopus ID: 2-s2.0-85057301387OAI: oai:DiVA.org:liu-153102DiVA, id: diva2:1266225
2018-11-272018-11-272023-10-05Bibliographically approved