KIT – University of the State of Baden-Wuerttemberg and National Research Center of the Helmholtz Association
wbk Institute of Production Science
www.wbk.kit.edu
Made in quality. Made worldwide. Challenges for globally distributed value-added networks.Prof. Dr.-Ing. Gisela Lanza15.06.2012
10.05.20122 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
wbk Institute of Production ScienceOrganizational Structure
Prof. Dr.-Ing. Jürgen FleischerProf. Dr.-Ing. Gisela LanzaProf. Dr.-Ing. habil. Volker Schulze
10.05.20123 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
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Production SystemsResearch Topics
ProductionNetwork
Production System
Process
GlobalProduction
10.05.20124 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Applied researchApplied research
Industry consulting for German companiesIndustry consulting for German companies
Further education/training/coachingFurther education/training/coaching
International research platformDevelopment of production and product structuresfor local requirements: Design for Low Cost CountryDesign of global production networks
Quality standards within the supply chainSupplier development, global sourcingProduction process optimization
Production management trainingIn-house training, workshopsCoaching, scoutingSino-German student exchange programsUSP: Team including Chinese engineerstrained in Germany (mainly at KIT)
GAMI - Global Advanced Manufacturing InstituteObjectives and Portfolio
Suzhou, China
10.05.20125 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Linping
SuzhouInternational Financial Center
Employees:Engineers ~20Administration ~5Students ~5
Education/Trainings:15 Trainings35 Workshops1 University lecture
Current Projects:1 Basic Research Project1 Applied Research Project21 Industry Projects
General InformationFounded in 2008Headquarter at Suzhou
General InformationFounded in 2008Headquarter at Suzhou
Outpost of wbk in China: GAMILocation and Facts 2012
10.05.20126 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Discussion4
Quality in global production3
Challenges & potentials2
Global production today1
Agenda
10.05.20127 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Steps of globalization
Source: Abele, E.; Kluge, J.; Näher, U. (Hrsg): Handbuch Globale Produktion, Hanser Fachbuchverlag, München-Wien 2006 ISBN: 3-446-40610-7
1850 1930 1980 2000Time
Degree ofglobalization
Overseas productionindependent from
home country
Overseas salesorganizations, Export from home country
World-wide, cross-functionalcooperation in international
supply chains
10.05.20128 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
The five types of networks at a glance
Importance of local adaptation and transaction costs Low High
Econ
omie
s of
sca
le a
nd s
cope
Low
Hig
h
“Local for local” –Local production for local markets
“Chain” (Sequential or convergent) –Concentration along stages of production
location/ plantproduction process / manufacturing step
"Hub and Spoke" -Economies of scale and local presence
Today“World factory” –plants supply worldwide
Yesterday
“Web Structure” –closely integrated global network
Tomorrow?
Source: Abele, E.; Kluge, J.; Näher, U. (Hrsg): Handbuch Globale Produktion, Hanser Fachbuchverlag, München-Wien 2006 ISBN: 3-446-40610-7
10.05.20129 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Only one locationDelivers to the entire global marketOnly limited exchange of goods andinformation required
Automobile industry yesterday: World factory
Advantages:
Maximum economies of scale Good utilisation of resources Local pooling of know-how Better specialisation is possible Intensive exchange of knowledge Reduced production time
„World factory" -Plants deliver to theentire global market
10.05.201210 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Shifting of world business locationsHigher prices of imported final products must bepayed by the customer (i.e. transport costs, punitive tariffs) Lower image and trust of the customers due toimported products (i.e. „Buy in America“)
Picture: Die Presse, N24
Transfer from world factory to globalization
Direct foreign investment
Challenge
Reasons
Serving new markets via export not possibleFor sustainable development of distant marketsphysical presence is required.
10.05.201211 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Automobile industry today: Hub and spokeBased on a spoke structureKnowledge-intensive processes andprocesses offering good economies of scaleconcentrated at a few locations (hubs)Remaining processes distributed to manysmaller locations close to the respectivemarket
Benefits:
Savings from economies of scale at the hubs Additional cost savings from:
smaller shipping volumes lower tariff rates for semi-finished
products lower manufacturing costs
Ability to react quickly
"Hub and Spoke" -Economies of scale and local presence
10.05.201212 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Automobile industry tomorrow: Web Structure?
For high value adding within the company and relatively high value densitiesOrders are placed through internal competitionFlexible with regards to peaks in demandExample: Network structure with lead function of individual locations Plants have main responsibility for
characteristic processesSophisticated logistic structure
Benefits:
Levelling of production capacities acrossplants
High flexibility regarding order allocation Relatively high utilisation of capacities Combines the advantages of the basic types
„Web structure" -Closely integrated globalnetwork
10.05.201213 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Hypothesis 1: Companies are becoming increasinglyinterlinked.
Reasons
Wish for customizationUse of local knowledge (and culture)Research and development must be close to market andproductionAbility to balance capacities in volatile marketsRealising cost savings through synergies
„Web structure" -Closely integrated globalnetwork
„World factory" -Plants deliver to theentire global market
Yesterday
Tomorrow?
10.05.201214 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Discussion4
Quality in global production3
Challenges & potentials2
Global production today1
Agenda
10.05.201215 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
4. Adaptation ofproducts to localrequirements and
conditions
4
Challenges & potentials
1. Strategic planningand evaluation of qualityin value-added networks
(VAN)
3. Operative control ofquality within the entire
supply chain
2. Systematic choice ofnew suppliers under
quality aspects
New approaches are required for a joint adaptation of product and production under quality aspects.
10.05.201216 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Discussion4
Quality in global production3
Challenges & potentials2
Global production today1
Agenda
10.05.201217 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Approaches of wbk
4
1
3
2
4. Adaptation ofproducts to localrequirements and
conditions
1. Strategic planningand evaluation of qualityin value-added networks
(VAN)
3. Operative control ofquality within the entire
supply chain
2. Systematic choice ofnew suppliers under
quality aspects
A comprehensive program of methods and tools was developed.
10.05.201218 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Project IQ.net
Quality assurance (QA) aspects are not sufficiently integrated in the modeling and design of distributed global supply chain networks
Development and evaluation of new organizational forms of QA tasks in networks
Analysis and simulation of defect prop-agation within the network (quality bull-whip effect)
Site-specific optimization of quality control loop systems
Analysis and evaluation of multi-site data management systems
Objective: develop innovative methods, models and practical tools for the planning, optimization and control of quality strategies for zero-defect production networks
10.05.201219 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Strategic choice of parts and markets Analysis of the companies own abilities
Location-specificproduct design
Dynamic evaluationof supplierdevelopment
2011
1.HJ 2009
2.HJ 2009
1.HJ 2010
2.HJ2010
2013 2014 2015
Einsparungen [in EUR]
Investitionen [in EUR]
-200.000
200.000
100.000
-100.000
400.000
300.000
500.000
-300.000
02012
Project consortium:
Research project q-Sourcing
10.05.201220 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Development of practical methods for planning and evaluation ofprocurement in low-cost countries.
Objective
Supply part Company
Supply market
Design for low-cost country sourcingDecision support in supplierchoice
Research project q-Sourcing
Consideration of the three important fields and their interfaces.
10.05.201221 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Objectives of the YADE-project
The close interaction in global supply chains requires joint activities like the YADE-project to act socially and environmentally sustainable.
Corporate SocialResponsibility
(CSR)
Sustainableproduction
Efficiency & Effectiveness
High productquality
10.05.201222 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
The 3 parts of the YADE-project
1. On-Site Development
10.05.201223 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Measures within the YADE-Projekt
Quality management workshop in Xixia
Value stream analysisin ShenzhenMetal cutting
workshop in Shanghai
More than 180 supporting visits and training workshops were conducted within the runtime of the project.
10.05.201224 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
2. Supplier trainings
The 3 parts of the YADE-project
10.05.201225 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
YADE supplier trainings
Production Management I
Quality Management I
Production Management
II
QualityManagement
IISocial
Standards & Env. Protection
Supply Chain Management
In total 72 training days were conducted, each topic was set up 4 times.
Prof. Lu Jiansha, Zhejiang University of Technology
Prof. Lu Jiansha, Zhejiang University of Technology
Prof. Xiong Wei, Zhejiang University
Mr. Wang Xiaolu, Tüv Süd Shanghai
Syntao Beijing, lecturer team
Dr. Li Binfeng, TsinghuaUniversity Beijing
10.05.201226 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Production Management I
Quality Management I
Production Management II
QualityManagement II
Social Standards & Environ. Protection
Supply Chain Management
In total more than 660 employees from suppliers of German companiesattended the YADE-trainings.
YADE supplier trainings
10.05.201227 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
3. YADE - Supplier Award
The 3 parts of the YADE-project
10.05.201228 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
YADE – Supplier Development Award
YADE Award CeremonyFriday, March 30, 2012
German Centre for Industry and Trade Shanghai
10.05.201229 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Material flow, handling, qualitymanagementTools, fixtures, machineproductivityProductiontechnology, process flow
Change ofproduct designChange offunctionality orcustomer benefit
Hypothesis 2: A joint adaptation of product andproduction is required.
Adaptation of productiontechnology
Adaptation of product
design
A successful production in global production networks requires a joint adaptation of product and production.
10.05.201230 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Summary & Outlook
Hypothesis 1: Companies are becoming increasingly interlinked.Hypothesis 2: A joint adaptation of product and production is required.
Objectives for new quality-oriented approaches:• Control of cross-company quality management• Improvements in quality through integrated product and production
adaptations.
Approaches of wbk:
Innovative methods for a global quality management
Operative control of qualitythrough supplier development
Quality-oriented procurementand product adaptation
10.05.201231 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Discussion4
Quality in global production3
Challenges & potentials2
Global production today1
Agenda
10.05.201232 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
Thank you for your attention!
Prof. Dr.-Ing. Gisela Lanza
wbk Institute of Production Science
www.wbk.kit.edu
Tel.: 0049 721 608 44017
Mail: [email protected]
Karlsruhe Institute of Technology (KIT)Kaiserstr. 12 D-76131 Karlsruhe
10.05.201233 © wbk Institute of Production ScienceProf. Dr.-Ing. J. Fleischer, Prof. Dr.-Ing. G. Lanza, Prof. Dr.-Ing. habil. V. Schulze
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