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Product introduction within extended enterprises : description and conditions
Linköping University, Department of Management and Engineering, Assembly technology. Linköping University, The Institute of Technology.ORCID iD: 0000-0003-1646-5817
2002 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

The trend of outsourcing within the electronic industry has contributed to the creation of new types of extended enterprises. These extended enterprises must be able to manage a challenging situation with shorter product life cycles, increased co-operation between companies during product development, more individualized products, etc.

In general, these new extended enterprises consist of: a "product owner" in the form of an Original Equipment Manufacturer (OEM) that owns the product design and its brand; a "producer" in the form of an Electronic Manufacturing Services (EMS) company that is responsible for the manufacturing; and suppliers of services, material, components, equipment etc. In some cases the producer has the responsibility for the product introduction process. In the product introduction process a product design is prepared for and transferred into production. The product introduction includes the design of the production system.

The challenging situation in the electronic industry demands an efficient and flexible manner of work during the product introduction process within an extended enterprise. The objective for this thesis is therefore to explore and describe, on a general level, factors, parameters, and conditions that are of importance for an efficient product introduction within an extended enterprise.

In the research empirical data were. first collected within an OEM that was responsible for its own manufacturing. Based on a strategic decision at the OEM a new extended enterprise was founded. This new extended enterprise consists of the original OEM as a product owner, an EMS as a producer with responsibility for product introduction and manufacturing, and their suppliers. After this strategic decision, further empirical data were collected within this newly founded extended enterprise.

The analysis of the empirical data made it possible to explore and describe a generic product introduction process. Furthermore, a generic structure of an extended enterprise is presented and the main conditions to fulfill in order to achieve an efficient product introduction within an extended enterprise are described. These main conditions are:

  1. A clear defmition of what is included in product introduction.
  2. Early participation from Production System Design in the product development project.
  3. Clear communication and information handling within the extended enterprise - both internally and externally.
  4. Business approaches built on trust, reliability and respect for each other's competence.
Place, publisher, year, edition, pages
Linköping: Linköpings universitet , 2002. , 58 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 978
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:liu:diva-39880Local ID: 51571ISBN: 91-7373-457-8 (print)OAI: oai:DiVA.org:liu-39880DiVA: diva2:260729
Available from: 2009-10-10 Created: 2009-10-10 Last updated: 2016-09-26
List of papers
1. An economic analysis of investment in an assembly line: Case study at Ericsson Mobile Communications AB, Linköping, Sweden
Open this publication in new window or tab >>An economic analysis of investment in an assembly line: Case study at Ericsson Mobile Communications AB, Linköping, Sweden
2001 (English)In: Proceedings of ICPR-16 / [ed] Daniel Hanus, Jaroslav Talácko, 2001Conference paper, Published paper (Refereed)
Abstract [en]

During the last four years the global annual production of mobile telephones has increased four times. To Ericsson Mobile Communications AB's supply unit in Linköping, Sweden, this has been a tremendous challenge. The supply unit has increased the produced volume of mobile telephones six times during this period at the same premises. The strategy for the production-engineering depattment was to change the manual assembly line into an automated assembly line. The automated assembly line was built up with SONY smart cells. During 1998 the volumes increased rapidly and the automation strategy where copied to the test stations for the mobile telephones.

This paper discusses the importance of how to link a manufacturing strategy to economical calculations. A case study at Ericsson Mobile Communications AB shows how financial calculations was used when changing from manual testing to automated testing of mobile telephones. Even though all benefits were not accounted for. the studied automation project for automated board test had a calculated pay back period of 7 months. The decreasing production volumes for mobile telephones made that the real yearly cost for the investment increased dramatically compared to the calculated investment cost. The decision-makers need to analyze the risks in an investment calculation due to the uncettai.nty in data used in the calculations. For example, it can be difficult to analyze the risks depending on the difficulty to predict the development for the product market and the future product volumes. The investment calculation result can also differ depending on who is delivering the numerical data that are included in the calculations.

Keyword
Manufacturing strategy, Production economy
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-14108 (URN)
Conference
ICPR-16: 16th International Conference on Production Research, 29 July-3 August 2001, Prague, Czech Republic
Available from: 2006-11-01 Created: 2006-11-01 Last updated: 2016-09-26
2. Towards the mass customization of mobile telephones: current strategy and scenarios for realization at Ericsson
Open this publication in new window or tab >>Towards the mass customization of mobile telephones: current strategy and scenarios for realization at Ericsson
2001 (English)In: Proceedings of the 16th International Conference on Production Research, 2001Conference paper, Published paper (Refereed)
Abstract [en]

The paradigm of Mass Production is being challenged in a number of industries where fragmented markets and the customer's desire for individualized products have become the norm. In the largest consumer electronics industry in the world, that of mobile telephones, manufacturers are well aware of these trends. Many of these same manufacturers are responding with Mass Customization, which has been defined as customized production at Mass Production efficiency and speed. This research, conducted at Ericsson Mobile Communications AB in Sweden, explores the implications of implementing a Mass Customization strategy for the production of mobile telephones. The paper begins with an objective presentation of Mass Customization, which lays the foundation for a discussion of the strategy's applicability at Ericsson and in the mobile telephone industry as a whole. The study focused on the past, present, and projected roles of customized production at the company, and investigated its potential for Mass Customization in the future. Two frameworks from the customized manufacturing literature guided the data collection and analysis in the case. Findings from the study point towards minimal, yet increasing customization at Ericsson, and highlight recent efforts towards the realization of increasingly customer-focused production there. The applicability of different Mass Customization scenarios for Ericsson and its industry is also discussed.

Keyword
manufacturing strategy, mass customization, mobile communications industry
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-14109 (URN)
Conference
The 16th International Conference on Production Research, 29 July - 3 August, Prague, Czech Republic
Available from: 2006-11-01 Created: 2006-11-01 Last updated: 2016-09-26
3. Product introduction within extended enterprises
Open this publication in new window or tab >>Product introduction within extended enterprises
2002 (English)In: Proceedings of ISCE’02 International Symposium on Consumer Electronics, Ilmenau, Germany, 2002Conference paper, Published paper (Refereed)
Abstract [en]

The outsourcing trend within the electronic industry during the last decade has founded new company networks - so called extended enterprises (EEs). Future products will, to a higher degree. be jointly developed and produced within these EEs consisting of product owners. producers and suppliers. The transfer of a design into production - product introduction (PI) or industrialization - needs to be suitable for co-operation within EEs with the aim of shorten the time from concept to volume production.

This paper will describe PI within an EE relevant for the electronic industry. A definition of the PI process will be presented. Furthermore. a performed case study gives the following overall and fundamental criteria to consider working with PI within EEs. 1) A clear definition of what is included in PI, 2) Early participation of all participants in the product development project. 3) Clear cormmmication and information handling within the EE and 4) Business approach build on trust. reliability and respect for each other's competence.

National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-14110 (URN)
Conference
IEEE Internationa Symposium on Consumer Electronics (ISCS'02), 24-26 September 2002. Ilmenau, Germany
Available from: 2006-11-01 Created: 2006-11-01 Last updated: 2016-09-26

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