Reporting on Internationalization of Operations, GLOBOP: Design and Management of Global Supply Chains

Repo ing on In e na ionaliza ion o Ope a ions, GLOBOP: Design and Managemen o Global Supply Chains Jose a Mula* Resea ch Cen e on P oduc ion Managemen and Enginee ing (CIGIP), Poly echnic Uni e si y o Valencia, Spain *Co esponding au ho : Jose a Mula, Resea ch Cen e on P oduc ion Managemen and Enginee ing (CIGIP), Poly echnic Uni e si y o Valencia, Spain; Tel: 34966528423; E-mail: [email p o ec ed] Rec da e: Ma ch 04, 2014; Acc da e: May 19, 2014; Pub da e: May 27, 2014 Copy igh : © 2014 Mula J, This is an open-access a icle dis ibu ed unde he e ms o he C ea i e Commons A ibu ion License, which pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal au ho and sou ce a e c edi ed. Abs ac The esea ch p ojec en i led Design and Managemen o Global Supply Chains (GLOBOP) ocuses on he speci ic model con igu a ion s ages wi h p oduc i e mul i loca ion and new p oduc i e implan a ions, which a ec he design o p oduc i e and logis ic sys ems, and he associa ed supplie ne wo k design. This esea ch p ojec aims o o e a me hodological and echnical solu ion o hose companies ha ha e begun an in e na ionaliza ion p ocess in ecen yea s (la e mo e s). In oduc ion The need o accomplish in e na ional ma ke s de elopmen wi h sophis ica ed, di e se cus ome equi emen s and, a he same ime, o pu in o p ac ice global pu chasing s a egies ha exploi wo ldwide supplie ma ke oppo uni ies is in luencing he way p oduc ion and logis ics ne wo ks ha e o be con igu ed and managed. F agmen a ion o p oduc i e p ocesses and mul iloca ion o ac i i ies ha e become ele an . This implies ha he agen s in eg a ing he global supply chain (i.e., dis ibu o s, o iginal equipmen manu ac u e s, o he manu ac u e s, supplie s and logis ic ope a o s, e c.) ha e o ca y ou new ope a ions and supply s a egies o e na ional bo de s o each op imal le els o quali y, lexibili y and cos s. The in e na ionaliza ion p ocess is one o he mos di icul decision-making p ocesses as i implies nume ous isks, mainly o SMES, whose esou ces a e limi ed. The esea ch p ojec en i led Design and Managemen o Global Supply Chains (GLOBOP) ocuses on he speci ic model con igu a ion s ages wi h p oduc i e mul i loca ion and new p oduc i e implan a ions, which a ec he design o p oduc i e and logis ic sys ems, and he associa ed supplie ne wo k design. This esea ch p ojec aims o o e a me hodological and echnical solu ion o hose companies ha ha e begun an in e na ionaliza ion p ocess in ecen yea s (la e mo e s). The gene al esea ch p ojec objec i es a e o: a) p opose a me hodology and associa ed echniques o analyze and design global ne wo ks wi h p oduc i e mul iloca ion, and o design plan s, wa ehouses and supplie ne wo ks in he new in e na ional con ex s ha imply con empla ing all he economic, social and en i onmen al ac o s. The abo e-men ioned ac o s, which a e no inco po a ed in o he design, a e gene a ing delays in implan a ions, majo cos s, and e en unsuccess ul implemen a ions o edesigns; b) de elop concep ual models wi h associa ed wo king me hods, simula ion and op imiza ion decision suppo ools, and implemen a ion guides o acili a e he design and managemen o global supply chains; c) p o ide empi ical esea ch om he p oposed models and ools. Key Fac o s in Design and Managemen in Global Supply Chains The design o a p oduc i e and logis ics sys em mus all in line wi h he company’s in e na ionaliza ion business s a egy [1]. To his end, i is necessa y o make p oduc i e and logis ic decisions by managing esou ces and de eloping compe ences o accomplish ma ke equi emen s. C i ical decisions when dealing wi h he design and con igu a ion o a global supply chain a e he: • Localiza ion o supply sou ces (own and o he wise); • S a egic ole o plan s, supplie s and wa ehouses; • In eg a ion o agmen a ion o p oduc i e and logis ic ope a ions (p oduc ion o pu chasing decisions); • Se ice deli e y s a egies (supply s a egy, p oduc ion s a egy, and pu chasing s a egy • Global ope a ions ne wo k (dis ibu ion ne wo k, p oduc ion ne wo k, supplie ’s ne wo k). P oduc i e and logis ic designs mus con inuously unde go adap ion and econ igu a ion. The e o e, hey mus be designed o ha e he capaci y o be modi iable in he nea u u e o conside changes in p oduc s, a ia ions in he mix o p oduc s, capable- lexible-adequa e-e icien equipmen and echnologies, p io i y ope a ional unc ions o ins alla ions-equipmen -people, and con ingen ac ion p o ocols. These ac o s and cha ac e is ics, which mus be de eloped by global supply chains ha e been summa ized as [2,3]: eac i i y, scalabili y, apid adjus men o exis ing sys ems and e icien p oduc ion. In oday’s economic c isis, cha ac e ized by a globaliza ion con ex , poo demand and inancial di icul y, he SMEs loca ed in de eloped economies a e seeking new p oduc i e implemen a ions o econ igu a ions in hei p oduc i e and logis ic ne wo ks o emain compe i i e. The in e na ionaliza ion p ocesses o bo h he business and ope a ions suppo ing hem ha e especially accele a ed in o de o co e ma ke s in eme ging economies [4]. These p oduc i e and Indus ial Enginee ing & Managemen Mula, Ind Eng Manage 2014, 3:3 h p://dx.doi.o g/10.4172/2169-0316.1000131 Sho Communica ion Open access Ind Eng Manage ISSN:2169-0316 IEM Volume 3 • Issue 3 • 1000131 logis ic s a egies equi e a model con igu ed wi h p oduc i e and/o dis ibu ed mul iloca ion p oduc ion, as well as o ganized di ec and in e se logis ic lows [5]. The p ocesses and p ac ice o imp o e and op imize he pe o mance o a p oduc i e ne wo k ha e no been su icien ly analyzed [6], especially as a as new p oduc i e implemen a ions, and cons an ly econ igu ing and adap ing in e na ional manu ac u ing ne wo ks, a e conce ned [7]. Many SMEs and BUIGs (Business Uni s o Indus ial G oups), which ac locally and p ospe , ail in o eign ma ke s. Change in ma ke s means ha ing o de elop a new analy ical amewo k om which in e na ional specializa ion is unde s ood. The con en ional business heo y can o e analy ical ools, bu i is necessa y o adap hem o new ope a ions-based specializa ion condi ions. Likewise, he e is he need o e lec on he analy ical amewo k om which new o ms o SMEs’ in e na ionaliza ion a e in e p e ed. I is he e o e necessa y o use he dis ibu ed o mul iloca ion p oduc ion concep in supply chain design models; co e ing se e al objec i es simul aneously; conside ing p oduc i e and logis ic decisions oge he . Mo eo e , he e is: he inco po a ion o ools in o he analysis and design phase which allow obus ness and secu i y concep s o be inco po a ed in o econ igu ed p oduc ion plan s and supply chains; he p o ision o comp ehensi e, e ec i e ma hema ical models o help managemen make sui able decisions on in e na ionaliza ion. Some ele an wo ks on hese ma e s a e p o ided in he Table 1 below. Reasons o in e na ionaliza io n [8-12] Access o p oduc ion in low-cos coun ies; 2) p oduc i e uni s close o new ma ke s; 3) agmen a ion o he alue chain and edesigning he alue chain o gain an ad an age in each plan and node indi idually, and o ob ain he coo dina ion syne gies o his ne wo k; 4) c ea ing new p oduc s and ma ke s wi h he comple e alue o global ac i i ies, and using he capaci ies o companies in he p oduc ion ne wo k. P oduc ion-pu chasing economies o scale and in es men e u ns, hus ex ending he li e cycle o a icles in o he ma ke s. In e na ionaliza io n phases [13,7] Spo adic expo s; expo s wi h independen agen s and/o expo s wi h own comme cial delega ions; implemen ing a sha ed p oduc i e uni (join en u e); implemen ing p oduc i e uni s. Some au ho s ha e added he need o con inuously econ igu e and adap he global p oduc ion and manu ac u ing ne wo k. Possible con igu a ions o ope a ions [8] Fo p oduc s in which a apid esponse o consume s can signi ican ly inc ease sales and sale p ices, i is necessa y o make a emp s o ca y ou all he manu ac u ing phases as close o he cus ome as possible by ying o apply lean and mass cus omiza ion p inciples. Fo p oduc s wi h g ea e sensi i i y o p ice, bu which also equi e a apid esponse (seasonali y o ola ile demand), he design phase and p oduc i e p ocess mus be join ly loca ed in a nea by a ea ha o e s he lowes sha ed cos s. Commodi y- ype p oduc s wi h a high alue-weigh a io, whose long- e m demand can be o eseen, mus be loca ed in coun ies whe e labo is cheap, e en beyond he sales a ea. Exis ing guidelines o global supply chains design and managemen a e insu icien o help wi h design and o se up an in e na ionaliza ion p ocess o ope a ions. Design models o supply chains [11,14- 16] I is concluded ha : (1) hyb id app oaches a e mainly adop ed, which combine in ege -mixed linea p og amming o Mul iobjec i e in ege - mixed linea p og amming wi h me a-heu is ics; (2) i s minimiza ion o cos s, o combined wi h o he cus ome s-based c i e ia; second, wi h o he ope a ions-based c i e ia, hese being he main objec i es; (3) mo e alida ed models wi h nume ical examples a e p oposed han hose wi h applica ions wi h eal supply chains; (4) he main no el aspec s o hese wo ks ela e mo e wi h de eloping me a-heu is ics algo i hms han p oblems modeling; (5) he main iden i ied limi a ions e e o he simple na u e o he modeled p oblem (one s age, one sou ce, one p oduc o one planning pe iod, among o he s). O he iden i ied limi a ions include poo compu a ional e iciency and unce ain ies in pa ame e s like demand no being conside ed. Need o new analysis models and ools [7,17,1 8] Supply chain managemen esea che s should p oduce comp ehensi e models o wo king amewo ks o in e na ional manu ac u ing sys ems ha help manage s design and manage hei ne wo ks. These wo king models/ amewo ks should b idge he gap be ween p oduc ion sys ems (Toyo a PS, Vol o PS, Bosch Siemens PS, e c.) and adjus ed manu ac u ing p og ams (lean manu ac u ing), which lead o excellence when implemen ed in o a plan wi h a s able se ing. Howe e , hey a e no ad an ageous in a dynamic ma ke se ing and in new in e na ional mul iloca ion con ex s, o o econ igu ing an exis ing ne wo k. Sho comings in SMEs [19] A Delphi s udy wi h 20 indus ial manage s showing ha he wo king me hods o SMEs lack he decisions made in he p oduc ion ne wo ks design and analysis phase o achie e new scalable p ocesses o p oduc ion plan design, o o de elop supplie ’s ne wo ks wi h a global pu chases s a egy. Table 1: Rele an aspec s o he in e na ionaliza ion o ope a ions Modeling Techniques and Solu ion In speci ic e ms, and based on he iden i ica ion o equi emen s, his p ojec will concep ually cha ac e ize and model ope a ions design and managemen p ocesses in global supply chains, which is he main objec i e o his p ojec . [12,20,21] de eloped a concep ual model (GLOBOPE), which will ac as a s a ing poin o his esea ch p ojec . Analy ical echniques, based on ope a ional esea ch, shall be employed in which linea p og amming, mixed-in ege p og amming, and pa icula ly Mul iobjec i e ma hema ical p og amming, s and ou o analy ically model global supply chains based on concep ual modeling. In o de o o malize unce ain y, uzzy ma hema ical p og amming echniques will be applied. On he one hand, hey can be used o inco po a e he epis emic unce ain y o lack o knowledge in inpu pa ame e s in o he analy ical models o uzziness in hei objec i es [22-24]. On he o he hand, uzzy op imiza ion can be used as a solu ion echnique o Mul iobjec i e ma hema ical p og amming models [25-27]. Mo eo e , me a-heu is ics will be mos sui able o sol e op imiza ion p oblems wi h in eg ali y cons ain s o he a iables since hey seek many solu ions in pa allel. Simula ion models ha e been widely used in supply chains ([28-30]). This p ojec will use Ci a ion: Mula J (2014) Repo ing on In e na ionaliza ion o Ope a ions, GLOBOP: Design and Managemen o Global Supply Chains. Ind Eng Manage 3: 131. doi:10.4172/2169-0316.1000131 Page 2 o 3 Ind Eng Manage ISSN:2169-0316 IEM Volume 3 • Issue 3 • 1000131 simula ion o do wha -i analyses o imp o e he de eloped analy ical models and algo i hms. Finally, he applica ions o he mul iagen sys ems o [31-33] o alida ing he p oposed models a e highligh ed. Acknowledgemen This esea ch is unded by a Spanish Minis y o Science and Educa ion P ojec en i led ‘Ope a ions Design and Managemen in Global Supply Chains (GLOBOP)’ (Re . 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Ind Eng Manage 3: 131. doi:10.4172/2169-0316.1000131 Page 3 o 3 Ind Eng Manage ISSN:2169-0316 IEM Volume 3 • Issue 3 • 1000131