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Surviving Supply Chain Integration: Strategies for Small Manufacturers (2000)
Board on Manufacturing and Engineering Design (BMED)

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141
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Surviving Supply Chain Integration: Strategies for Small Manufacturers

Index

A

Aerospace industry

Boeing, 53, 54, 57-58, 104

NASA, 86

After-sales support, 2, 3, 4, 5, 13, 57, 125

documentation, 2, 8, 13, 98

see also Recycling and disposal

Agility, 2, 13, 86, 93

Antitrust regulations, 63, 67

Asset management, 17, 30, 36, 38, 39, 40

see also Inventories

Astronics Corporation, 93-94

Attitudes, 69-70

corporate, general, 6, 13, 35, 67, 71, 97

resistance to change, 37, 107

Automobile industry, 17-22, 32, 83

B

Benchmarking, 40, 41, 104

Best practices, 8, 52, 103

Bidding, competitive, 18, 20, 22, 52, 53-54

Boeing Company, 53, 54, 57-58, 104

C

CAD/CAM, 19, 46, 47, 48, 72, 82-85, 101, 118, 120, 122, 131

Cambridge Information Network, 75

Capability gaps, 2, 3-4, 14, 15, 35, 43, 44, 45, 52, 61, 66, 72, 85, 87, 90, 99, 101, 104-107 (passim)

mapping, 35, 105-106, 107, 124-125

Case studies

integration, forces driving, 28-31

on-line commodity buying, 53-54

outsourcing, 17-22

repositioning strategies, 93-94

Center for Advanced Purchasing Studies, 104

Chrysler Corporation, 17-20, 21, 32

Communications capabilities, 4, 6, 7, 22, 27, 30, 32, 33, 37-38, 40, 57, 67, 72, 73-74, 77, 86, 90, 91, 93, 96, 98, 105

English, use of, 4, 52-53, 109

inventory reduction, 57

quality issues, 52

see also Information sharing;

Information systems;

Internet technologies, Telecommunications

Competitiveness Review, 106-107

Computer technologies, 19, 47, 48, 72, 73, 100, 104

activity-based costing, 54, 55

CAD/CAM, 19, 46, 47, 48, 72, 82-85, 101, 118, 120, 122, 131

enterprise resource planning software, 7, 31, 77-78, 82

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141

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Surviving Supply Chain Integration: Strategies for Small Manufacturers Index A Aerospace industry Boeing, 53, 54, 57-58, 104 NASA, 86 After-sales support, 2, 3, 4, 5, 13, 57, 125 documentation, 2, 8, 13, 98 see also Recycling and disposal Agility, 2, 13, 86, 93 Antitrust regulations, 63, 67 Asset management, 17, 30, 36, 38, 39, 40 see also Inventories Astronics Corporation, 93-94 Attitudes, 69-70 corporate, general, 6, 13, 35, 67, 71, 97 resistance to change, 37, 107 Automobile industry, 17-22, 32, 83 B Benchmarking, 40, 41, 104 Best practices, 8, 52, 103 Bidding, competitive, 18, 20, 22, 52, 53-54 Boeing Company, 53, 54, 57-58, 104 C CAD/CAM, 19, 46, 47, 48, 72, 82-85, 101, 118, 120, 122, 131 Cambridge Information Network, 75 Capability gaps, 2, 3-4, 14, 15, 35, 43, 44, 45, 52, 61, 66, 72, 85, 87, 90, 99, 101, 104-107 (passim) mapping, 35, 105-106, 107, 124-125 Case studies integration, forces driving, 28-31 on-line commodity buying, 53-54 outsourcing, 17-22 repositioning strategies, 93-94 Center for Advanced Purchasing Studies, 104 Chrysler Corporation, 17-20, 21, 32 Communications capabilities, 4, 6, 7, 22, 27, 30, 32, 33, 37-38, 40, 57, 67, 72, 73-74, 77, 86, 90, 91, 93, 96, 98, 105 English, use of, 4, 52-53, 109 inventory reduction, 57 quality issues, 52 see also Information sharing; Information systems; Internet technologies, Telecommunications Competitiveness Review, 106-107 Computer technologies, 19, 47, 48, 72, 73, 100, 104 activity-based costing, 54, 55 CAD/CAM, 19, 46, 47, 48, 72, 82-85, 101, 118, 120, 122, 131 enterprise resource planning software, 7, 31, 77-78, 82

OCR for page 142
Surviving Supply Chain Integration: Strategies for Small Manufacturers expertise, 79, 85 Simulation-Based Acquisition, 83-84 specific examples of integration, 21, 28-31 supply chain integration software, 7, 31, 81-82, 98 see also Extranet; Internet technologies Concurrent engineering, 19, 84, 131 Constraints, 43, 44, 99, 106, 107 regulatory, 14-15, 62, 67, 70, 101 Construction industry, 22-23 Contracts and contracting, 17-18, 22-23 bidding, competitive, 18, 20, 22, 52, 53-54 construction industry, 22-23 defense industry, 14-15, 23 long-term, 95, 96 partnerships, 60-63 small business set-asides, 35, 103-104 see also Outsourcing Cost and cost-benefit factors, 2, 3, 4, 9, 13, 31, 50, 52-54, 85 computerized design tools, 85 e-Business, 78-80 enterprise resource planning and supply chain integration software , 7 highly-accelerated life testing/stress screening, 51-52 inventory costs, 5, 56-57 labor, 2, 4, 93 opportunity costs, 31 outsourcing, 17, 18 partnerships, 6, 90 quality issues, 3-4, 50 supply chain integration software, 81-82 technological innovations, 44, 65, 88, 92 transportation, 4, 31, 57, 94 see also Efficiency Cost reduction, 17, 18, 21, 26, 28, 32, 33, 34, 54-56, 66, 109 activity-based costing, 54-55 communications, 73-74 Internet, 73 life cycle, 24 manufacturing extension centers and technical resource providers (MEC/TRPs), 100 materials, 24, 29, 54, 57, 73 SCORE, 20-21 specialization, 16 training, 31, 87 transaction costs, 33 transportation, 4, 31, 34, 52, 56, 74 Customer selection, 8, 46-48, 68, 78, 80, 94-96, 97 Customized products and services, 2, 5, 13, 26, 28, 77, 89 see also After-sales support; Documentation; Recycling and disposal D DaimlerChrysler AG, 18, 21, 32 Defense Advanced Research Projects Agency, 100 Defense industries, 14-15, 17, 23, 44, 70, 83, 93 Definitions, 1, 14 integrated supply chain, 27, 132 glossary, 131-134 manufacturing, 16 original equipment manufacturer, 14, 133 partners/partnership, 59, 133 SME, 2, 13, 14, 46 successful supply chain participation, 3, 15 supply chain, 2-3, 22, 133 Delivery, 3, 5, 7-8, 19, 21-22, 26, 27, 29-30, 32, 35, 36, 56-57, 85 just-in-time manufacturing, 4, 5, 18, 28-29, 32, 47, 48, 51, 54, 56, 70, 132 performance metrics, 38, 39 time-to-market, 2, 5, 29, 39, 40, 51, 56-57, 73, 75, 82, 100 see also Customized products and services; Transportation Dell Computer Corporation, 28-31 Department of Defense, 83, 86, 100 Department of Energy, 86 Department of Justice, 63 DHL International, 56 Documentation, 2, 8, 13, 98 E e-Commerce/e-Business, 5, 45-46, 47, 48, 53-54, 56, 57, 72-73, 78 80, 101-102, 108, 117, 132

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Surviving Supply Chain Integration: Strategies for Small Manufacturers Education and training, 8, 69, 78, 85-86, 87, 88, 97, 104, 109, 125 , 104, 109, 125 cost of, 31, 87 management, 90-91 manufacturing extension centers and technical resource providers (MEC / TRPs), 8, 99-103, 105-106, 107, 109 performance metrics, 39 supplier development, 35-36 university labs, technology licensing by, 86 Efficiency, 2, 13, 16, 39, 69 case studies, 18, 21, 28, 30, 31 innovation, 30 procurement, 17, 73 proprietary information, 70 proximity and, 90 Employment issues, 8, 97 labor contracts, 2 labor costs, 2, 4, 93 number employed by SMEs, 2, 13, 14, 94, 117, 120, 121 resistance to change, 37, 107 see also Education and training; Management skills English, use of, 4, 52-53, 109 Enterprise resource planning systems, 7, 31, 77-78, 82 Expertise, 2, 13, 15, 100 computer, 79, 85 managerial, 66, 67, 69 Extranets, 57-58, 132 F Federal Acquisition Regulations (FAR), 14-15, 70 Federal Trade Commission, 63 FedEx Corporation, 31, 56, 74 Flexible manufacturing systems, 5, 39-40, 56, 57, 93, 101 Flow manufacturing, 86 Ford Motor Company, 21 Fujitsu America, 31 Functional integration, 19, 27, 33, 35, 36-37, 77 Funding manufacturing extension centers and technical resource providers (MEC/TRPs), 8, 99, 102 small business set-asides, 35, 103-104 technological innovation, 88 G General Motors Corporation, 17-18, 21, 32, 83 Georgia Manufacturing Extension Alliance/ Georgia Tech Economic Development Institute, 45, 49 Globalization, 3, 4, 9, 17, 21-22, 28, 31, 43, 52, 55, 89-91, 109 air freight, 56 bidding, 52 customer interaction, 64 outsourcing, 21-22 Goldratt Theory of Constraints, 107 H Hazardous materials, 46, 48, 118, 120, 122 Highly-accelerated life testing, 51-52 Highly-accelerated stress screening, 51-52 Historical perspectives, 108 outsourcing, 16-17, 21 repositioning, 93-94 see also Case studies I IBM, 21 Information sharing, 22, 29, 33, 35, 36, 46, 69, 70, 74, 76, 77, 95, 96, 98 partnerships, 59, 61, 63 supply chain integration software, 7, 31, 81-82, 98 survey of SMEs, 117, 118, 120, 121, 123 see also Intellectual property Information systems, 5, 6, 8, 56, 75-78, 100 see also Communications capabilities; Computer technologies; Education and training; Internet technologies; Telecommunications Intel Corporation, 21, 29 Intellectual property, 30, 86 proprietary technologies, 2, 13, 29, 30, 62, 70, 86-87 International Standards Organization (ISO), 4, 46, 47, 48, 51, 52, 97, 101, 106, 118, 120, 121, 122, 125

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Surviving Supply Chain Integration: Strategies for Small Manufacturers Internet technologies, 5, 6, 7, 8, 30, 47, 48, 54, 57, 72-73, 74, 75, 77, 91, 98, 121, 132 auto industry outsourcing, 20 bidding, 52 e-Commerce/e-Business, 5, 45-46, 47, 48, 53-54, 56, 57, 72-73, 78-80, 101-102, 108, 117, 132 extranets, 57-58, 132 on-line commodity buying, 53-54 see also Web sites Inventories, 5, 7-8, 21, 26, 31, 40, 56-57 computer tracking, 72, 75, 78, 81 cost factors, 5, 56-57 just-in-time manufacturing, 4, 5, 18, 28-29, 32, 47, 48, 51, 54, 56, 70, 132 obsolescence and, 40, 55, 56, 81 performance metrics, 39 supplier selection and development, 35-36 J James Madison University, 102 Johnson Controls, Inc., 20, 21-22 Just-in-time manufacturing, 4, 5, 18, 28-29, 32, 47, 48, 51, 54, 56, 70, 132 L Labor, see Employment issues Language factors, see English, use of Lear Corporation, 20, 21-22 Logistics, 4, 5, 9, 26, 32, 34, 35, 36, 37, 40, 56, 73 see also Delivery; Inventories; Transportation M Malcolm Baldridge National Quality Award, 97, 106 Management skills, 6, 24-26, 43-44, 53, 64-71, 109 asset management, 17, 30, 36, 38, 39, 40 automobile industry, 19 customer selection, 8, 46-48, 68, 78, 80, 94-96, 97 Internet, 7 risk management, 32, 36, 38, 60-61, 62-63, 68, 89-90 strategic planning, 4, 9, 29, 34-35, 37, 38, 51, 59, 64-66, 82, 93-94, 96, 97, 109 Manufacturing extension centers and technical resource providers (MEC/TRPs), 2, 8, 99-103, 105-106, 107, 109 Manufacturing Extension Partnership, 99-100 Manufacturing Innovation Center, 102 Manufacturing processes, 8, 16, 19, 27, 30, 37, 52, 82, 83, 84, 85-86, 96, 98, 100 see also Process capabilities Manufacturing technologies, 2, 6-8, 72-88 flexible manufacturing systems, 5, 39-40, 56, 57, 93, 101 flow manufacturing, 86 Mapping, 35-36, 37, 65, 81, 84, 105-106, 107, 124-125 Marketing strategies, 2, 5, 13, 21, 26, 30, 33, 44, 58, 66, 93, 94 , 101 activity-based costing, 54 demand fluctuations, 5, 21, 26, 33, 39, 56, 73, 75-77, 89, 92, 93, 94 foreign markets, 89-91; see also Globalization mass customization, 28 mutlifunction teams, 19 partnerships, 59 quality planning, 51 time-to-market, 2, 5, 29, 39, 40, 51, 56-57, 73, 75, 82, 100 see also Customized products and services Massachusetts Institute of Technology, 90-91 Materials requirements planning/manufacturing resource planning (MRP) , 46, 47, 48, 57, 73, 77, 81, 118, 120, 122, 132-133 see also Inventories Metrics, 8, 38, 38-41, 59, 60, 67, 98, 121 Microsoft Corporation, 21, 29 N National Aeronautics and Space Administration, 86 National Association of Purchasing Management, 104

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Surviving Supply Chain Integration: Strategies for Small Manufacturers National Institute of Standards and Technology, 1, 14, 15 Manufacturing Extension Partnership, 99-100 Northeast Tier Ben Franklin Technology Center, 102 O Opportunity costs, 31 Outsourcing, 1, 3, 14, 15, 43 case study, 17-22 defined, 133 logistics, 56 sole-source suppliers, 32, 36, 105 supplier selection, 34-36 see also Contracts and contracting P Partnerships, 5-6, 8, 23, 46, 59-63, 97, 118, 133 case studies, 18, 20, 30 contracts, 60-63 cost factors, 6, 90 defined, 59, 133 foreign companies, 90 information sharing, 59, 61, 63 virtual enterprises, 23, 29-30, 43, 71, 83, 101-102, 134 Performance metrics, see Metrics Platform teams, 19 Process capabilities, 2, 6, 7, 13, 34, 36-37, 43, 72, 85-86 mapping, 35-36, 37, 65, 81, 84, 105-106, 107, 124-125 Simulation-Based Acquisition, 83 statistical process control (SPC), 40, 46, 47, 48, 51, 52, 97, 101 , 104, 118, 120, 122, 133 see also Manufacturing processes Procter & Gamble, 26, 28 Production stoppages, 31-32 Product life cycles, 6, 18, 24, 26, 28, 50, 64 Product realization cycles, 28, 33, 123 auto industry outsourcing, 18, 19, 21 supplier development, 36 Product support delivery time, 51, 56-57, 73, 75 documentation, 2, 8, 13, 98 see also After-sale support; Recycling and disposal Proprietary technologies, 2, 13, 29, 30, 62, 70, 86-87 Q Quality issues, 3-4, 16, 28, 35, 50-52, 96, 101 benchmarking, 40, 41, 104 performance metrics, 8, 38, 38-41, 59, 60, 67, 98, 121 statistical process control (SPC), 40, 46, 47, 48, 51, 52, 97, 101 , 104, 118, 120, 122, 133 see also Standards R Recycling and disposal, 2, 13, 22, 36, 38 hazardous materials, 46, 48, 118, 120, 122 supply chain, defined, 3 Regulatory constraints, 101 antitrust, 63, 67 Federal Acquisition Regulations (FAR), 14-15, 70 Robert C. Byrd Institute, 1, 14, 15, 100-102 Risk, 6 global markets, 89-90 management, 32, 36, 38, 60-61, 62-63, 68, 89-90 partnerships, 59, 60-61, 62-63 production stoppages, 31-32 sharing, 27, 38, 59, 62-63 supplier selection, 35 see also Cost and cost-benefit factors S Service, 3, 4, 5, 17, 39, 57-58 see also After-sales support; Customized products and services Simulation-Based Acquisition, 83-84 Small business set-asides, 35, 103-104 Sole-source suppliers, 32, 36, 105 Standards, 50-52, 96 benchmarking, 40, 41, 104

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Surviving Supply Chain Integration: Strategies for Small Manufacturers best practices, 8, 52, 103 design systems, 84 Federal Acquisition Regulations, 14-15 globalization and, 89, 90 International Standards Organization (ISO), 4, 46, 47, 48, 51, 52, 97, 101, 106, 118, 121, 122, 125 manufacturing extension centers and technical resource providers (MEC/TRPs), 8, 101, 103 partners, 30 performance metrics, 8, 38, 38-41, 59, 60, 67, 98, 121 Statistical process control (SPQ, 40, 46, 47, 48, 51, 52, 97, 101, 104, 118, 120, 122, 133 Stoppages, see Production stoppages Strategic alliances, 8, 20-21, 63, 97 virtual enterprises, 23, 29-30, 43, 71, 83, 101-102, 134 see also Partnerships Strategic planning, 4, 9, 29, 34-35, 37, 38, 51, 59, 64-66, 82, 96 , 97, 109 quality issues, 51 repositioning, 93-94 see also Market strategies Supply chain integration software, 7, 31, 81-82, 98 Surveys, 15, 43, 45-49, 65, 94, 115-123 T Technological innovations, 2, 6-8, 27, 43-49, 53, 65, 68, 72-88, 92, 94, 109 Competitiveness Review, 106-107 cost factors, 44, 65, 88, 92 manufacturing extension centers and technical resource providers (MEC/TRPs), 100, 101, 107, 109 obsolescence, 29, 30, 40, 55, 56, 81, 87 see also Computer technologies; Information systems; Intellectual property; Internet technologies; Telecommunications Technological resource providers, see Manufacturing extension centers and technical resource providers (MEC/TRPs) Telecommunications, 4, 6-7, 52, 73-74, 86, 90, 101 see also Internet 3M Corporation, 28 Time-to-market, 2, 5, 39, 56 Training, see Education and training Transportation, 4, 5, 57, 81, 89, 90, 91, 93 cost factors, general, 4, 31, 57, 94 cost reduction, 4, 31, 34, 52, 56, 74 see also Delivery U United Technologies Corporation, 22, 53 V Value-added, 2, 4, 16-17, 33, 37, 55-56, 94, 100, 102 activity-based costing, 54-55 Virginia's Manufacturing Innovation Center, 102 Virtual enterprises, 23, 29-30, 43, 71, 83, 101-102, 134 W Wal-Mart, 26, 28 Waste management, see Recycling and disposal Web sites, 91, 100 collaborative engineering, 84 creation of, 7, 58, 73, 79-80, 57-58, 78-80 for SMEs, general, 5, 49, 57-58, 71, 73, 78, 84, 91, 93, 109 see also Internet technologies

Representative terms from entire chapter:

manufacturing extension