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Distribution of manufacturing strategy decision-making in multi-plant networks

Olhager, Jan LU and Feldmann, Andreas (2017) In International Journal of Production Research
Abstract

This paper is concerned with the manufacturing strategy decision-making structure in multi-plant networks, i.e. how strategic manufacturing decision-making authority is distributed between the network level (i.e. headquarters) and the plant level. We use survey data from 107 manufacturing plants. This research identifies three different structures: centralised at the network headquarter, decentralised to the plant and integrated between central headquarters and the plant. All decision areas follow the same pattern, i.e. full centralisation, full decentralisation or full integration. We do not find any support for that some decisions are centralised while others are decentralised. Product volume and process type are significantly... (More)

This paper is concerned with the manufacturing strategy decision-making structure in multi-plant networks, i.e. how strategic manufacturing decision-making authority is distributed between the network level (i.e. headquarters) and the plant level. We use survey data from 107 manufacturing plants. This research identifies three different structures: centralised at the network headquarter, decentralised to the plant and integrated between central headquarters and the plant. All decision areas follow the same pattern, i.e. full centralisation, full decentralisation or full integration. We do not find any support for that some decisions are centralised while others are decentralised. Product volume and process type are significantly associated with the choice of decision-making structure. In particular, high product volumes are associated with a centralised approach, and a low degree of process flow orientation (such as project manufacturing, job shop and flow shop) is associated with a decentralised approach. The integrated approach is associated with a combination of lower product volumes and higher degrees of flow orientation. Choosing the right decision-making structure for the product and process mix seems to lead to high levels of operational performance.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
authority, autonomy, decision categories, exploratory study, manufacturing networks, operations strategy, responsibility, survey research
in
International Journal of Production Research
pages
17 pages
publisher
Taylor & Francis
external identifiers
  • scopus:85034269733
ISSN
0020-7543
DOI
10.1080/00207543.2017.1401749
language
English
LU publication?
yes
id
0cd033fb-28b0-4136-aa59-32e7bd82f2e4
date added to LUP
2017-12-08 08:17:16
date last changed
2018-01-07 12:27:43
@article{0cd033fb-28b0-4136-aa59-32e7bd82f2e4,
  abstract     = {<p>This paper is concerned with the manufacturing strategy decision-making structure in multi-plant networks, i.e. how strategic manufacturing decision-making authority is distributed between the network level (i.e. headquarters) and the plant level. We use survey data from 107 manufacturing plants. This research identifies three different structures: centralised at the network headquarter, decentralised to the plant and integrated between central headquarters and the plant. All decision areas follow the same pattern, i.e. full centralisation, full decentralisation or full integration. We do not find any support for that some decisions are centralised while others are decentralised. Product volume and process type are significantly associated with the choice of decision-making structure. In particular, high product volumes are associated with a centralised approach, and a low degree of process flow orientation (such as project manufacturing, job shop and flow shop) is associated with a decentralised approach. The integrated approach is associated with a combination of lower product volumes and higher degrees of flow orientation. Choosing the right decision-making structure for the product and process mix seems to lead to high levels of operational performance.</p>},
  author       = {Olhager, Jan and Feldmann, Andreas},
  issn         = {0020-7543},
  keyword      = {authority,autonomy,decision categories,exploratory study,manufacturing networks,operations strategy,responsibility,survey research},
  language     = {eng},
  month        = {11},
  pages        = {17},
  publisher    = {Taylor & Francis},
  series       = {International Journal of Production Research},
  title        = {Distribution of manufacturing strategy decision-making in multi-plant networks},
  url          = {http://dx.doi.org/10.1080/00207543.2017.1401749},
  year         = {2017},
}