Managing the Manufacturing Value Network

Burgum, Paul
June 2003
Management Services;Jun2003, Vol. 47 Issue 6, p16
Academic Journal
To deliver the sophisticated products that today's business and consumer markets demand-- against tighter time and cost targets--manufacturers are creating ever more complex, multi-dimensional, highly collaborative supply chains or 'value networks.' These networks may involve more organisations than traditional linear supply chains and the relationships between their activities are more complicated. If any of these value-adding organisations fails to meet its objectives, the time, budget or quality targets for the whole project are jeopardised. So managing the value network effectively is critical. The project management challenge increases as the number and diversity of suppliers grows. These days collaborative players may be located on different contingents and vary in size from just a handful of people to many thousands. Regardless of their differences, all of these organisations and their activities must be coordinated and controlled in order to achieve the project goal. The management methodology must be simple and familiar enough to apply to the smallest company, yet provide the sophistication that larger manufacturers need to manage programmes and projects of all sizes. The aerospace and defence industry is a good example, where it may take years to develop a new aircraft, involving many sub-contractors around the globe. The automotive industry is another case where the supply chain consists of numerous, geographically dispersed players. Computer-aided systems that have evolved to make the task easier range from simple personal computer (PC)-based products to highly sophisticated software that is powerful but costly.


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