OIDD 680 Operations Strategy Practicum Spring 2017...Boeing encountered an unusual supply chain...
Transcript of OIDD 680 Operations Strategy Practicum Spring 2017...Boeing encountered an unusual supply chain...
OIDD‐680
OperationsStrategyPracticum
Spring2017
(RevisedNovember06,2016)Locations:ScheduledsessionsatWhartonwillmeetinJMHH‐TBDonscheduleddatesandtimes.SpringBreakinGermanyandvariouscompanyvisitsreachablefromthePhiladelphiaCampusduringthesemester.Dates:SpringSemester2017
‐ Lectures,CaseDiscussions‐ VisitstoGerman,DutchandUSmanufacturingplants,logisticscentersandservice
providerfacilities‐ Presentationsbyseniormanagers
Credit:1.0CreditUnitCourseInstructorMorrisA.CohenPanasonicProfessorofManufacturingandLogisticsOPIMDepartment546JonM.HuntsmanHallTel:215‐898‐6431(office)cohen@wharton.upenn.eduParticipatingFacultyArndHuchzermeierProfessor,OttoBeisheimSchoolofManagement,WHUUniversityCourseTATBDCourseOverviewandLearningGoalsThiscoursewillfocusonthemanagementofoperationsatmanufacturingandservicefacilitieslocatedwithintheUS,Germany,andtheNetherlandsthatareusedeitherbydomesticcorporationsorbyforeignmultinationalcompanies.Ouremphasiswillbeontheevolvingpatternsofoperationsstrategiesadoptedbyfirmsforproducingproducts,sourcingmanufacturing,distributingproducts,deliveringservicesandmanagingproductdesignaswellasonprogramsforenhancingquality,productivityandflexibilityandmanagingtechnology.Wewillfocusontheformulationandexecutionofsuchstrategiesforacollectionoffirmsinthecontextofthecurrentdynamicsofglobalcompetition.Thecoursewillconsistofasetofsitevisitsandin‐classsessionswhichinclude
lectures,casediscussionsandmanagementspeakerswhowilldescribetheircompany’scurrentstrategy.Ourcourseismotivatedbythefactthatmanymanufacturingandserviceproducingfirmsarere‐examiningthestructureoftheirglobalsupplychains,internalprocessesandsourcingstrategyinresponsetotheuncertaintiesandriskstheyfaceintheseturbulenttimes.Theseadjustmentsareoccurringagainstabackdropoffundamentalchangetotheenvironmentinwhichcompaniesoperate.Fordecadesadominantstrategyinmanufacturinghasbeentooutsourcetolowcostglobalsuppliers.ThishasledtothetransferofmillionsofmanufacturingjobsanddevelopmentactivitiesoutoftheUS,JapanandEuropeandintolowlaborcostcountriessuchasChina,IndiaandVietnam.Todaythistrendisbeingchallengedbyamovementbysomecompaniesto“re‐shore”theirmanufacturingbybringingitbackoratleastmovingitclosertotheirdevelopedcountrymarket,i.e.by“near‐shoring”tolocationssuchasMexicoorEasternEurope.Atthesametimemanyfirmscontinuetoselectoffshorelocationsforoutsourcingofmaterialinputsandservices.Similarargumentsforglobalsourcingandre‐shoringcanalsobemadeforfirmsthatactassuppliersofservicessuchasBusinessProcessOutsourcing,CustomerServiceSupport,ProductDesignandSoftwareDevelopment.Moreovertherehavebeenmajortechnologydevelopmentsaffectingproductionautomation,logisticsandsmart,connectedproductdesignswhicharecontributingtothisre‐structuring.Againstthisbackdropofchange,wearecurrentlyinanerawheregovernmentpoliciesconcerningglobalizationanditsimpactondomesticemploymenthavebeenquestionedandchallenged.Thiscoursewillconsiderthecurrentstatusofoperationsstrategyandprocessmanagementprimarilyfromtheperspectiveofmajormulti‐nationalfirms,althoughwewillalsointeractwithstartupcompanies.Thegoalistoprovidetheclasswiththeopportunitytointeractwithseniorexecutivesfromthesecompanies,whichareheadquarteredand/oroperatingintheUS,Germany,andtheNetherlands,toexplorecurrentthinkingandstate‐of‐the‐artpracticesconcerningtheirglobaloperations.Experientiallearningwillbefacilitatedbyprovidingstudentswiththeopportunitytoobservecompanyoperationsinactionundertheguidanceofcompanymanagement.Theseinteractionswillfacilitateanexchangeofideasthatwillidentifymanagerialchallengesandconcerns.Itwillalsohighlightcurrentpracticesandintentionsofparticipatingcompanies.Moreover,thecoursewillconsidervariousmodelsandframeworksthathavebeendevelopedintheeconomics,publicpolicy,operationsandmanagementliteraturesfordealingwithstrategiesforglobalsupplychainsourcing,technologymanagementandprocessimprovement.Wewillalsoconsiderhowtechnologydevelopmentsareimpactingcurrentoperationsstrategy(e.g.automation,E‐commerce,InternetofThings).Ourobjectiveistodevelopanunderstandingofthedriversofoperationsstrategydecisions,atpresentandinthefuture,inordertoidentifyopportunitiesforimprovementandbarrierstoimplementation.
WewillexploretheseissuesthroughthelensofvisitstoaspecificgroupofmultinationalandemergingcompanieslocatedinGermany,theNetherlandsandinthemid‐AtlanticregionoftheUS.Thecompanieswillbechosentocoverarangeofmanufacturingandserviceindustrieswhereglobalsourcing,productivityandcoordinationarekeyissuese.g.aerospaceanddefense,automotive,consumerelectronicsandcomputers,consumerproducts,entertainment,healthcareproducts,medicalequipment,pharmaceuticals,logistics,andsemiconductor.ThiscoursewillbuildoffofthelearningbasedonaGlobalModularCourseonthistopicthathasbeenofferedinJapanandfromversionsofthecoursethathasbeenofferedtostudentsparticipatingintheWhartonSiSF(SemesterinSanFrancisco)programandtostudentsintheregularfulltimeprograminPhiladelphia.
CourseOrganizationandRequirementsThecoursewillincludeanintenseweekofcompanyvisitsinGermanyandtheNetherlandsduringthespringbreak(March5–March11,2017),severalUScompanyvisitsonFridays,andseveralclasssessionsatWharton.TheclasssessionstobeheldatWhartonwillincludelectures,casediscussionsandguestspeakers.Studentswillberesponsiblefortravelexpenses(flighttoGermanyandforthelandarrangementsinGermany,,theNetherlandsandtheUS).Weestimatethattheseexpenseswillbeabout$2,400forthecourse(forthefullsemester,sharedoccupancy,excludingthecostoftheflighttoGermany).Itwillbenecessarytoregisterforthecourse(asa1CUcourse),andpayadepositfeefortheexpensesinordertoreserveyourplaceinthecourse.Enrollmentwillbelimitedduetocapacityrestrictionsimposedbythecompaniesthatwewillbevisiting.
Pre‐requisites
StudentstakingthiscourseshouldhavecompletedatleastoneoftheOIDDcorecourses,i.e.OIDD611,“ManagingtheProductiveCoreoftheFirm:QualityandProductivity”orOIDD615,“ManagingtheProductiveCoreoftheFirm:OperationsStrategy”,oranequivalentcourse,orhavehadworkexperiencethatfocusesonoperationsandsupplychainmanagement.
GradingandassignmentsGradesarebasedon(1)classparticipationwhichincludesclassdiscussions,contributiontothegroupreportsandattendancetothecompanyvisits(20%);(2)analysisof2assignedcases,eachwithanindivual,writtenreport(20%);(3)analysisofarecentexampleofsupplychainrestructuringinaglobalcompany,selectedfromanindustrythatisrelevanttoourexplorationsofissuesintheUSand/orEurope(20%).Thiswillbeagroupreport;(4)Abackgroundreportconcerningoneofthecompanies/industriesthatwewillvisitandasitevisitreportforthatcompany(teamassignment)(20%)and(5)afinal,individualpaperofferingreflectionsonwhatyouobservedandlearnedduringthesitevisits(20%).Ifyoumissanyofthecompanyvisitsyourparticipationgradewillbereduced.PriorversionsofthiscoursehaveincludedvisitstoandspeakersfromavarietyofcompaniesintheUSJapanandEurope.
ThescheduleforthecourseincludesaseriesofcompanyvisitsinGermanyandtheNetherlandsduringtheweekofSpringbreak(March5toMarch11).ThetourwillbegintheGermansegmentinFrankfurtandwewillvisitaboutadozencompaniesasweworkourwaytoEindhovenandthentoHamburgduringtheweekofMarch5.Therewillalsobeseveralsitevisitstovariouscompanysites(onFridays),thatareaccessiblefromthePhiladelphiacampusthathavebeenscheduledthroughouttheSpringsemester,(seebelow).Thescheduleissubjecttochangebuthasbeenfullyconfirmed.Thecompaniestobevisitedduringthespringbreaktourlistedintheschedulebelow.Thecompaniestobevisitedlocallyare:
JanssenPharmaceuticals,Inc.andJohnson&Johnson AmerisourceBergen
Schedule:Whartonstudytour,GermanyandtheNetherlandsMarch6to11,2017
Monday:March6,201709.00a.m.:WirtgenGmbH‐Windhagen2.00p.m.:ZalandoLogistics‐Moenchengladbach
Tuesday:March7,201709.00a.m.:ASMLHQ‐Eindhoven2.00p.m.:SmartRobotics‐Eindhoven
Wednesday:March8,201709.00a.m.:SchmitzCargobull‐Vreden2.00p.m.:MeyerShipyard‐Papenburg
Thursday:March9,201709.00a.m.:Daimler‐Bremen(CarAssembly)2.00p.m.:AirbusHQ‐Hamburg(AirPlaneAssembly)
Friday:March10,201709.00a.m.:LufthansaTechnologyHQ‐Hamburg2.00p.m.:Kühne&Nagel‐HamburgSaturdayMarch11,2017(optional)HarborTour
CaseAssignments(Individualassignments‐20%ofyouroverallgrade)
FirstCaseAssignment‐CiscoOnMarch11,2011amajorearthquakestruckTohokuJapan.Ithadadevastatingimpactonglobalsupplychains.Readthecase,CiscoSCRMinAction:2011TohokuEarthquake,byRaviAnupindi(TauberInstitute,U.ofMichigancase1‐429‐284,2013) andalsoreadSupplyChainRiskManagementatCisco:ResponsetoH1N1(U.ofMichigancase1‐428‐881),–readpages2throughtopofpage9foradescriptionofCisco’sapproachtoriskmanagement.Preparea750wordpaper(plusorminus5%;double‐spaced;putwordcountandyournameatthetop)thataddressesthefollowingquestions:
1. WhatarethemajorchallengesfacingCiscoasresultofsupplychaindisruptionscausedbytheearthquake?
2. HowshouldCiscomanagethecrisis?3. WhatmetricsshouldbeusedbyCiscotosupportSupplyChainRiskManagement?Whatdata
wouldyouneedtoestimatethesemetrics?Atwhatorganizationallevel(plant,product,supplychain,businessunit)woulditbeappropriatetoapplythesemetrics?Whatmaybetypicalusesofthesemetrics?
4. HowshouldCiscomitigatetheimpactofthedisruptiontotheirsupplychain?Whattradeoffsandrisksshouldtheyconsiderandhowaretheserelatedtothemetrics?Inparticular,howcantheTTRmetricbeusedtodevelopamitigationstratgy?
5. CommentonCisco’sSCRMprocessandhowtheydealtwiththeTohokucrisis.Whatareitsmajorstrengths?Doyouseeanyweaknesses?
Youshouldalsoreadthefollowingarticles(postedonCanvas)asyouprepareyouranswerstothecase:
1. D.Reynolds,“LessonsFromTohoku”,WhartonMagazine,January26th,2012,2. D.SimchiLevi,“FromSuperStormstoFactoryFires:ManagingUnpredictableSupply‐Chain
Disruptions”,HarvardBusinessReview,Jan‐Feb2014.3. A.PollackandS.Lohr,"AJapanesePlantStrugglestoProduceaCriticalAutoPart",NewYork
Times,April278,2011.
Readthecaseandthinkabouttheassignmentquestions.WewilldiscussthiscaseinclassonTBD.JamesSteele,whowasdirectorofCisco’sSCRMprogramatthetimeofthequake,hasprovideduswithareportonhowCisco’sSCRMsystemactuallyoperatedduringthecrisis.Wewillreviewhiscommentsinourdiscussionofthecase.YourpaperisdueonTBD,postedonCanvas.
SecondCaseAssignment‐BoeingBoeingencounteredanunusualsupplychainproblemduringits787Dreamlinerproductdevelopmentandmanufacturingprocess,relatedtoasmallandunlikelysourceofdifficulty,namelyshortagesanddelaysinthesupplyoffastenersneededtoholdtheairframetogether.Readthecase,Boeing:TheFightforFasteners,byMosesLeeandRaviAnupindi(TauberInstitute,U.ofMichigancase1‐428‐787,2009)andpreparea750wordpaper(plusorminus5%;double‐spaced;putwordcountandyournameatthetop)thataddressesthefollowingquestions:
1. WhatwerethecausesofthefastenercrisisatBoeing?Howwastheproblemignoredforsolong?Whateffectdidthe787Dreamlinerprojecthaveonfastenersupply?
2. WhatarethekeyelementsoftheFastenerProcurementModel(FPM)?
3. Describethematerial,information,andfinancialflowsbetweenBoeing,fastenermanufacturers(suppliers)andTier‐1partnersunderFPM.
4. EvaluateFPMfromtheperspectiveofBoeing,fastenermanufacturers,Tier‐1partners,andotherstakeholders.
5. CritiquetheapproachtakenbyBoeinginimplementingFPM.WhatproblemshasBoeingencounteredinrollingouttheFPM?
6. Whataresomeofthecosts,benefitsandrisksassociatedwitha“customermanagedinventory”strategysuchasFPM.
YoushouldalsoreadthearticlebyChrisTang,andJoshZimmerman,MitigatingNewProductDevelopmentRisks–TheCaseoftheBoeing787Dreamliner,Chapter11inM.S.SodhiandC.S.Tang.ManagingSupplyChainRisk.Springer.2012,asyouprepareyouranswerstothecase.Readthecaseandthinkaboutthefirst4assignmentquestions.WewilldiscussthiscaseinclassonTBD.Yourpaper,whichincludesanswerstoall6questions,isdueonTBD,postedonCanvas.IndustryBackgroundandSiteVisitReport(Teamassignment‐20%ofyouroverallgrade)Eachteamwillbeassignedtoacompanythatwewillbevisitingduringthesemester.Priortothevisit,theteamwillprepareandpresentordistributeareportthatprovidesbackgroundinformationconcerningtheindustryandthecompanythatwewillbevisiting.Topicsthatcouldbeincludedinthisreportinclude:currentcompetitivetrends,technologydevelopmentsaffectingboththeproductandprocesses,theregulatoryenvironment,etc.Theteamwillthenusetheplanttourassessmenttool(i.e.“ReadaPlantFast”byGoodson)toprepareareportbasedonthevisit.Thereportswillbesharedwiththefullclassafterthevisits.GroupformationsaredueonTBD.Thesamegroupswillbeusedfortheanalyticpaper.Eachgroupwillpresenttheirindustry/companybackgroundreporttotheclassonTBD.Groupswillbeassignedforthecompanyvisitsfromthefollowinglist:
Airbus ASML KuhneNagel LufthansaTechnik MercedesBenz MeyerWerft SchmitzCargobull SmartRobotics Wirtgen Zalando
Analyticpaper(Teamassignment‐20%ofyouroverallgrade)Prepareananalyticalpaperthatidentifiesacompanythathasrecentlyadjustedormodifieditsoperationsstrategyconcerningissuessuchassupplychaindesignandmanagement,globalsourcing,useoftechnology,productdesign,etc.andaddressesthequestionslistedbelow.Youwillproposeyourchoiceoffocalfirmtothefacultyforapproval;wewilltrytoavoidduplicationsincethesepaperswillbearesourcefortheentireclassoncecompleted.Papersshouldbewrittenbyagroupconsistingof3or4students,therequiredlengthis2,250words(plusorminus5%;double‐spaced;putwordcountandyournameatthetop).
Youranalysisshouldaddressthefollowingquestions:
1. Whatisthecurrentdesignandmanagementofthecompany’ssupplychainandhowhasthisdesignandmanagementbeenaffectedbytherecentstrategychange?
2. Whatarethereasonsthatthecompanyhasofferedformakingthechangestoitsoperationsstrategy?
3. Whatisyourassessmentofthereasonsthatthesechangeshavebeenmade?4. Whatistheexpected(orobserved)impactofthestrategychangeoncompetitiveposition,
financialperformanceandoperationperformance?5. Compareandcontrasttowhatothercompaniesinthesameindustryaredoing,i.e.haveother
companiesintheindustrymadeoperationsstrategychanges?Arethedecisionsoftheothercompaniesthesameordifferent?Why?Aretheretrendsfortheindustry?
6. Whatarethekeychallengesfacingtheindustrywithrespecttosupplychainsourcing,technologyandcompetition?
Werecommendthatyouconsideracompanyfromoneoftheindustries,whichwewillbeinteractingwiththroughcompanyvisitsandguestspeakersessions,(butnotoneofthecompanieswevisitorfromwhomwehostaspeaker).Pleaseindicateyourfirstandsecondchoicesforacompany/industryinadvance,(dueTBD),sothatwecaninsurethatawiderangeofissuesandsettingsiscovered.Totheextentpossible,theindustrybackgroundandsitevisitreportgroupassignmentswillbemadetocomplementtheanalyticpapercompanytopicselected.Groupassignmentsfortheanalyticpaperandindustry/visitreportwillbefinalizedonTBD.
RecommendedIndustries:AerospaceandDefense;Apparel;Appliances;Automobiles;Computers/InformationandCommunicationTechnologies(ICT);ConsumerElectronics;Entertainment;Gaming;LogisticsandDistribution;HealthCare;Retail;Robotics;SemiconductorManufacturingandSemiconductorEquipment;Toys.
ThispaperisdueonTBD,postedonCanvas,andwillbediscussedonTBD.Eachteamwillberequiredtopresentabrief(10minute)presentationdescribingthefindingsoftheiranalyticpaper.Finalreflectionpaper(Individualassignment‐20%ofyouroverallgrade)Thisindividualassignmentisanopportunitytoreflectonwhatyouhavelearnedinthecourseandthroughthesitevisits.Itisworth30%ofyourgradeandisdueonTBD,postedonCanvas.Youshouldgiveyourthoughtson1)thecurrentstatus,2)futuretrendsand3)keydriversofoperationsstrategyandsourcingdecisionsintheindustrieswevisited.Ourguidelineforlengthis750words,roughlythreepages,althoughthisisarecommended,butnotrequired,length;yourpapercanbeeithershorterorlonger,aslongasitcapturesyourthoughtfulreflectionsonyourexperienceinthecourse.
CompanyProfiles(GermanyandtheNetherlands)
WIRTGENGmbH
WIRTGENsuppliesacompleterangeofmobilemachinesandhigh‐qualityservicesforallareasofroadconstructionandopen‐castmining.
Withitsinnovative,high‐performanceandcost‐efficientproductsandtechnologiesforcoldmilling,soilstabilization,hotandcoldrecycling,concretepavingandsurfacemining,WIRTGENleadstheworldmarketinroadconstructionandrepair,aswellasinminingnaturalrockandpayminerals.WIRTGENdevelopsboththemachinesandthetechnologies.
Today,market‐leadingandcutting‐edgeproductsfortheRoadandMineralTechnologiesbusinesssectorsareconstructedattheWIRTGENbrandheadquartersinWindhagen,Rhineland‐Palatinate.Over60differenttypesofmachinesfromthecompany'sextensiveproductdivisionsareproducedatthebrandheadquartersusingstate‐of‐the‐arttechniques.
ZalandoLogisticsMönchengladbachSE&Co.KG
ZalandoSEisamultinationale‐commercecompanythatspecializesinsellingshoes,clothingandotherfashionandlifestyleproductsonline.ThecompanywasfoundedinGermanyin2008byRobertGentzandDavidSchneider,initiallyunderthenameIfanshoandsincethenhasexpandedtoofferitsretailservicesinatotaloffourteenEuropeancountries.Currently,ZalandoisoperationallyactiveinGermany,Austria,Switzerland,France,Belgium,theNetherlands,Italy,Spain,Poland,Sweden,Denmark,Finland,NorwayandtheUK.Zalandoinitiallyspecializedinthesaleoffootwearbuthassincegrowntoencompassotherareasoffashion,lifestyleandsports.
ASML
In1984,PhilipsandAdvancedSemiconductorMaterialsInternational (ASMI)createdanewcompanytodeveloplithographysystems,calledASML.Today,ASLMistheworldbiggestsupplieroflithographysystemsforSemiconductorindustry.
Theproductsfocusonmakingtransistorsonachipsmaller,akeystepinmakingthembothfasterandcheaper.ThemachinesthatASMLmakesareessentiallyprojectionsystems,notunlikeaslideprojector.Laserlightisprojectedthroughaso‐calledmask(alsocalledareticle),whichcontainstheblueprintofthepatternthatwillbeprinted.Alensfocusesthepatternontothewafer,whichhasearlierbeencoatedwithalight‐sensitivechemical.Whentheunexposedpartsareetchedaway,thepatternisrevealed.
Becauselithographypatternsthestructuresonachip,itislithographythatdetermineshowsmallthefeaturesonthechipcanbe,andhowdenselychipmakerscanpacktransistorstogether.Inotherwords,lithographyiscrucialtofollowthepathdescribedbyMoore’sLaw.
SmartRobotics
SmartRobotics,theemploymentagencyforrobots,developsand placesmodularrobotsthatcanbeconfiguredforspecifictasks.Thecompany isspecializedinflexibleautomationformanufacturingandintralogistics.Inthemanufacturingindustrywehelpourclientsbydeployingourrobotsforassemblylinework,productsorting,machineloadingandunloading,butalsoforqualitycontrol,packagingandpalletizing.
Theintralogisticsmarketisoftenstronglylinkedtotheproductionandpackagingofmanufacturedproducts.Howeverthequicklyincreasingnumberofenterpriseswithwarehousingforonlineshoppingalsocontributetoourclientele.Extremelyflexibleautomationisessentialtorealizingthehighonlinedemandfor24/7orderfulfilment.Theirsolutionsarethereforefoundinprocessessuchasorderpicking,loadingandunloadingofvehicles,sorting,packagingandpalletizing.
SchmitzCargobull
Withanannualproductionofsome45,000*vehiclesandaround 4,900*employees,SchmitzCargobullAGisEurope'sleadingmanufacturerofsemi‐trailersandtrailersfortemperature‐controlledfreight,generalcargoandbulkgoods.
Thecompanyachievedsalesofapproximately€1.6*billioninthe2014/2015businessyear.Asapioneerintheindustry,theGermancompanydevelopedacomprehensivebrandstrategyearlyonandconsistentlyestablishedqualitystandardsspanningeverylevel:fromresearchanddevelopment,toproductionandspecialistservicessuchastrailertelematics,financing,usedvehicles,sparepartsandFullService.
*Figuresbasedonthe2014/2015businessyear
MEYERWERFT
MEYERWERFT,basedinPapenburg,wasfoundedin1795andisin itssixthgenerationoffamilyownership.
Ithasachievedanexcellentworldwidereputationoverthelastdecades.Thecompanyisespeciallyknownduetotheconstructionofhuge,modernandsophisticatedcruiseships.MEYERWERFTwasthefirstcompactshipyardinEuropeandisoneofthemostmodernshipyardsintheworld.Thetwocovereddocksaswellasthemodernmanufacturingplantsandtheconceptofshortdistancesensuretheshipyard’ssuccess.Innovationsandthenewesttechnologiescharacterizetheshipyard'sdailyroutine.
Moderncomputertechnologyisusedeverywhere,bethatthefirstlayoutorthedesignoftheshiportheproductionprocess.Constructiondrawingsarehardlyfound.Theyarereplacedbysimulationsbywhichtheshellplatingofashipisdesigned,tonamebutoneexample.Almostthewholeproductionprocesshasbeendigitized,whichsavestimeandmoney.Alotofprojectscanbeplannedandsavedinthevirtualworld,andassemblyprocessescanbetested.3‐Dsimulationsallowplanningwithahighdegreeofanticipation.Productionandproductionprocess
canbedevelopedatthesametime:Thissavestimeandeffortandleadstoabetterefficiency.The"DigitalFactory"isextremelyhelpfulinplanninganddesignsbecausetheengineerscanestimateatveryearlystageswhatcanbeimplementedandwhatcan't.Thisavoids"surprises"intheproductionprocess,andacceleratesconstruction.Mistakescanbeavoidedwellbeforetheycostalotofmoneywhentheshipisalreadyattheproductionstage.Thecomputer‐aidedlogisticssystemminimizesstoragespaceandthusoperatingcosts.Thematerial‐flowcontrolsystemTESScontrolsthewholematerialflowontheshipyardviadataradio.Eachstructuralcomponentiswiththerightpersonattherightplaceattherighttime.Shortesttransportroutes,minimalemptyrunsandprecisejust‐in‐time‐supplyareensured.MEYERWERFTisPapenpurg’sattraction,duetotheconstructionofluxurycruiseships.Everyyear,about 300,000touristscometoMEYERWERFTtoseeonsitehowstate‐ of‐the‐artshipbuildingworks.
Theshipyard’svisitorcenterprovidesyouwithacomprehensiveintroductionaboutMEYERWERFT’s worktodayandofthepreviousyears.Furthermorethereareunique exhibits,informativefilms,afullyequippedmock‐upcabinand otherhighlights.
Mercedes‐BenzPlant,Bremen
TheMercedes‐BenzPlantinBremenisworldwideoneofthebiggestcar factoriesofMercedes‐Benz.Morethan12,500employeesareworkinginBremensothatDaimlerisalsothebiggestprivateemployerinthatregion.Untiltoday,morethan7millioncarshavelefttheplant.In2014,morethan338,000vehicleswereproduced.Presently,8modelsareproducedatthesite:C‐ClassSaloon,Estates,Coupé,E‐ClassCoupéandCabriolet,thenewGLCaswellasbothSLKandSLroadsters.
Furthermore,theMercedes‐BenzplantinBremenisresponsibleasleadfactoryfortheC‐ClasspartnerfactoriesintheUS,inSouthAfricaandinChina.Inthe"futurevision",whichwasdeterminedbytheplantmanagementandtheworkcouncilinJune2015thefuturecoursewasset.Theplantreceivestwonew
modelsandwillbeequippedwiththelatesttechnologies.Especiallytheaspectsof“Industry4.0”willberealizedbythedigitalinterconnectionofproductionprocessesandman‐machinerelationshipinthefactory.In2017,thenumberofapprenticeshippositionswillbeincreasedaswellas500newstaffmembersemployed.TheDaimlergroupwillinvest750millioneurointotalinthesite.
Airbus,Hamburg
HamburgtheheadquartersofAirbusinGermanyandthelargestAirbussiteinGermanyemploysaround12,500peopleandplaysakeyroleinthedevelopmentandmanufacturingofallAirbusaircraft.Thecompanyisalsooneofthebiggestemployersintheregion.Over500apprenticesstarttheircareerseachyearatAirbusinHamburg.HamburgisthehomeoftheA320Familyprogrammanagement.FortheA320Family'sfourmembers,the A318,A319,A320andA321,structuralassemblyandequippingof fuselagesectionsaswellasfinalassemblytakeplacehere.Around halfofAirbus’annualproductionofA320familyaircraftare assembled,painted,anddeliveredtocustomersfromallaroundthe worldinHamburg(262in2015).
TheplantinHamburg‐FinkenwerderisalsohometoAirbus' A380majorcomponentassemblyhall,whichhousesthestructuralassemblyandtheequippingoftheforwardandcompleterearfuselagesectionsforthisnew‐generationverylargeaircraft.ThesefullyassembledandequippedfuselagesectionsareproducedhereandthenshippedtotheA380FinalAssemblyLinein
Toulouse,Franceonaspecially‐builtroll‐on,roll‐offseaship.
FollowingfinalassemblyinToulouse,theemptyandunpaintedA380sareflowntoHamburg.Theyarefittedwiththeircustomers’exclusivecabininteriorsandpaintedinoneofthetwohigh‐techA380paintshopsbeforefinaldelivery.FinalacceptanceanddeliveryofA380sforcustomersinEuropeandtheMiddleEasttakeplacefromthe“JürgenThomasDeliveryCentre”inHamburg.
HamburgalsoplaysakeyroleintheA330andA350XWBprograms.AsfortheA380,theforwardandtherearfuselagesectionsaremanufacturedandequippedinHamburg.Intheproductiondomain,Hamburg'smanyyearsofmanufacturingexperienceinfuselagestructuralassemblyandsystemsinstallationmakethissiteacenterofcompetenceforfuselageandcabin.
Intheengineeringdomain,keycompetencesinHamburgrevolvemainlyaroundthedevelopmentoffuselagestructureandthedesign,innovationandsystemsofthecabin.TheFinkenwerdersitealsohousesA320Familymaintenancetrainingfacilitiesthatreceivehundredsofairlinetraineeseveryyear.
ClosetothecommercialairportofHamburg‐Fuhlsbüttel,Airbusoperatesalargesparescenter‐whichholdssome120,000proprietaryparts,aswellasa24/7sparescallcenterforitscustomersfromaroundtheworld.
LufthansaTechnology
Astheworld'sbiggestprovideroftechnicalsupportservicesforaircraft, LufthansaTechnikismorethanjustamaintenanceandrepairorganization.Thecompanyisalsoanaviationauthority‐approveddevelopmentandproductionorganization.Thismultiplecompetencecontributessignificantlytothecompany'sleadingpositionandmakesitpossibletofulfilleventhemostcomplexcustomerrequirements.Morethan500engineersworkinthevariousbusinessunitsinHamburg,ateamofover120peopleis
responsiblesolelyforthedevelopmentofnewtechnologies,equipmentandsystems.LufthansaTechnik'stechnicalexpertiseintheconversionofaircraftforprivatecustomersisparticularlystriking.Theproblemsthattheteamisregularlyaskedtosolvecallforanunusuallywiderangeofdevelopmentcompetencies,ascustomers'requirementsvarywidely,forexample,fromthedesignofawatersupplysystemwithextra‐largetankvolumetoaverylarge‐formatplasmascreenfortheon‐boardaudioandvideosystemorcustom‐builtfurnitureforthecabin.
Althoughsomein‐housedevelopmentsweredesignedprimarilytomeettheneedsofprivatecustomers,othershavealsofoundtheirwayintocommercialairliners.OneexamplehereisGuideUColourCurve,afloorpathmarkingsystemforpassengeraircraftwhichhasbecomethestandardontheinternationalmarket.Thelightstripsworkwithoutelectricalpowerandhencecanbereliedontoindicatetheroutetotheemergencyexitsinadarkenedcabin,evenafteranelectricalfailure.Skypower®,asystemforsupplyingpowertoindividualpassengerseatstoenabletheuseoflaptops,wasalsodevelopedbyLufthansaTechnik.Anotherexampleofacustomer‐orientedproductdevelopedbyLufthansaTechnikistheCyclean®enginecleaningsystem.Cyclean®EngineWashisanewmethodforwashingengineinteriorsquicklyandeffectivelyusingwaterdeliveredunderhighpressure.Removingdepositsinthiswayenablesthehigh‐pressurecompressorofanenginetoworkmorecleanlyandefficiently,resultinginabetterflowofairandareductioninexhaustgastemperature.Improvingengineperformanceinthiswaynotonlycutsfuelconsumptionandemissionsofpollutants,butalsobringssavingsinmaintenancecoststhroughouttheservicelifeofanengine.AfurtherexampleofthecompetenceofLufthansaTechnikisthedevelopmentofasystemforhigh‐speedInternetaccessonboardcommercialaircraft.OriginallydevelopedforVIPcustomers,todaytheseproductsarealsoavailabletopassengersofcommercialairlines.Between2004and2006Lufthansaequippeditsentirelong‐haulfleetwithfastinternetaccessbasedonthissystem.ToconnectpassengerstotheInternetevenatcruisealtitude,LufthansaTechnikfittedaspecialantennatotheuppersideoftheaircraftfuselagewhichensuredconnectiontotheworldwidenetbysatellite.Evenatacruisespeedof900km/h,theantennamaintainssteadycontactwiththesatellites,thuspermittingtransmissionspeedssimilartothosethatpassengersareusedtoforconvenientonlineapplicationsathomeorintheoffice.Whenthethenpartner,ConnexionbyBoeing,discontinuedtheInternetaccessserviceLufthansastoppedtheproductandlookedforanalternativepartner,whichhasbeenfoundnow.ThenewcooperationwithPanasonicallowedLufthansatore‐launchtheserviceintheendof2010.LufthansaTechnikiscurrentlyfittingthecompletelong‐haulfleetofLufthansawiththenewsystem.
Kuehne+Nagel
Overour125yearhistory,Kuehne+Nagelhasevolvedfromatraditionalinternationalfreightforwardertoaleadingglobalproviderofinnovativeandfullyintegratedsupplychainsolutions.Since1890,whenthebusinesswasfoundedinBremen,Germany,byAugustKuehneandFriedrichNagel,Kuehne+Nagelhasgrownintooneoftheworld'sleadinglogisticsproviders.Today,theKuehne+NagelGrouphasmorethan1000officesinover100countries,withover66,000employees.Ourkeybusinessactivitiesandmarketpositionarebuiltonthecompany'strulyworldclasscapabilities:Seafreight:
Number1globalseafreightforwarder Sustainedyear‐on‐yeardoubledigitgrowthinmanagedfreight Solidpartnershipswithanextensiverangeofpreferredoceancarriers
Airfreight:
Number2globalaircargoforwarder Leaderininnovativecargomanagementconcepts GlobalCargo2000Phase2certification
ContractLogistics&IntegratedLogistics:
Number2globalcontractlogisticsprovider Worldwidenetworkofwarehouseanddistributionfacilities Number1globalleadlogisticsprovider
Overland:
EuropeanTop3provider Pan‐Europeanoverlandtransportationcapabilities,includingdedicatedandindividualdelivery
services Closepartnershipswithbest‐in‐classcarriers
Kuehne+Nagelisfinanciallystrong,stableandindependent.Itsgloballogisticsnetwork,cutting‐edgeITsystems,in‐houseexpertiseandexcellentcustomerserviceisproofofourdedicationtobethemarketleader.Theseattributeshaveplacedthemattheforefrontofourindustry,andpositionedustocontinueincreasingthescopeofourcustomersolutionsandservices.
CompanyProfiles(USA)
AmerisourceBergen
AmerisourceBergenisdrivinginnovativepartnershipswithglobalmanufacturers,providersandpharmaciestoimproveproductaccessandefficiencythroughoutthehealthcaresupplychain.Aspartofthelargestglobalgenericspurchasingorganization,theleadingspecialtypharmaceuticalservicesproviderandthepartnerwithmorecommunityandhealthsystempharmacyrelationshipsthananyother—we’rewellpositionedtohelpyoucapitalizeonthedynamicchangesinhealthcare.Fromproductcommercializationanddistributiontopharmacy,providerandmanufacturersolutions,we’reworkingwithyoueverydaytoenhancepatientcare.
JanssenPharmaceuticals
WhoisJanssen?We’remorethan30,000peopleworkinghardtoprevent,treat,cureandstopsomeofthemostdevastatingandcomplexdiseasesofourtime.FromheartdiseasetoHIV,Alzheimer’sdiseasetocancer,wearecommittedtoissuesthattoucheveryone’slives.
Ourmissionistotransformindividuallivesandfundamentallychangethewaydiseasesaremanaged,interpreted,andprevented.Webelievethatchallengingsomethingisthebestwaytochangeit.Soeveryday,inmorethan150countries,webringcutting‐edgescienceandthemostcreativemindsintheindustrytogethertothinkdifferentlyaboutdiseases.Weaimnotonlytoinnovatebutalsotoempowerpeoplewiththetoolstheyneedtomakeinformeddecisionsandachievethebestpossibleresultsfortheirhealth.
Wearelookingatafuturewheretheworldofhealthcarewillbechallengedbyinformedandempoweredpatients.Weworkforchangethatwillimproveaccesstomedicines:thebestavailabletreatmentatanaffordableprice.That’swhyweatJanssenstrivetoprovideaccesstoeffectiveandaffordablemedicinesandrelatedhealthcareservicestothepeoplewhoneed.
Ourfocusareasare:Cardiovascular&Metabolism,Immunology,InfectiousDiseases&Vaccines,NeuroscienceandOncology.
OptionalReadingList
Note:Requiredreadingsareassignedforthelectureclassesandthewrittenassignments.AllrequiredreadingswillbepostedonthecourseCanvassite.AsubsetoftheoptionalreadingswillalsobepostedontheCanvassiteandwillbeupdatedthroughoutthesemester.Studentsareencouragedtosuggestcurrentreadingstobesharedwiththeclass.
Optionalreadingsprovide:1)recentexamplesofreshoring/nearshoringandinsourcing,ascounter‐trendstooffshoringandoutsourcing,inavarietyoffirms,industries,andcountries,fromthebusinesspress;2)comprehensivereportsbythink‐tanks,consultingfirms,andgovernmentagenciesontheeconomicandpolicyissuessurroundingmanufacturinginadvancedeconomycountriessuchastheU.S.andJapan;3)examplesofresearcharticlesbyfacultythatconveytheirinterestsandprovidecontextforthiscourse.Suggestedbooksarelistedaswell.
1) Recentexamplesofreshoring/nearshoringandinsourcingfromthebusinesspressa) “SanDiego”,DestinationSanDiegoJune21,2016.b) “Mexico’smaquiladoras:Bigmaqattack”,TheEconomist,Oct26th,2013.c) “Yen’sShiftingValueHelpsJapaneseCarmakersMeetNewChallenges”,
Knowledge@Wharton,April01,2014.d) “ReshoringCouldCreate200,000jobsovernextdecade”,FinancialTimes,March
11,2014.e) “UKReshoringFacesBattleIndustrialistsWar”,FinancialTimes,January24,
2014.f) “FewUSReshoringsGoAhead,StudyFinds”,FinancialTimes,September7,
2014.g) “ReshoringDrivenbyQuality,NotCosts,SayUKManufacturers”,Financial
Times,March3,2014.h) "TheTopSupplyChainDisastersofAllTime",SupplyChainDigest,D.Gilmore,
May7,2009i) “RebalancingYourSourcingStrategy”,McKinsey&Co.,July2014.j) A.PollackandS.Lohr,"AJapanesePlantStrugglestoProduceaCriticalAuto
Part",NewYorkTimes,April278,2011.k) “JapanRe‐EmergesintheAerospaceArenaWithaNewJet”,H.Tabuchi,New
YorkTimes,April9,2013.l) “RequiemforaDreamliner,”JamesSurowiecki,TheNewYorker,Feb.4,2013.m) “NewProblemswithBoeing787,”C.DrewandJ.Mouawad,NYTimes,Dec.10,
2012.n) “DoesAmericaReallyNeedManufacturing?”GaryP.PisanoandWillyC.Shih.
HarvardBusinessReview,March2012.
o) “MakingItinAmerica.”AdamDavidson.TheAtlantic,Jan‐Feb.2012.p) “WinningtheRacewithEver‐SmarterMachines.”EricBrynjolfssonandAndrew
McAfee.SloanManagementReview,Winter2012.q) “Offshoring,Onshoring,andtheRebirthofAmericanManufacturing.”Michael
Dolega.TDEconomics,October2012.r) “InShiftofJobs,AppleWillMakeSomeMacsinU.S.,”C.RampallandN.
Wingfield,NYTimes,Dec.6,2012.s) “FlextronicsCEOSeesHopeforU.S.TechProduction,”J.Hagerty,WallStreet
Journal,January4,2013.t) “HondaBolstersItsProductioninNorthAmerica,”M.Ramsey,WallStreet
Journal,Aug.12,2012.u) “ToyotaSaysNoFullProductionUntilYear’sEnd,”H.Tabuchi,NYTimes,April
22,2011.v) “JapaneseManufacturersHelpSaveChipMakerRenesas,”H.Tabuchi,NYTimes,
December10,2012.w) “NissantoInvest$358millioninThaiPlant,”YahooNews,Nov.9,2012.x) “ToshibaTurnsOverseastoReduceProcurementCosts,”J.Osawa,WallStreet
Journal,Aug.16,2010.y) “Hitachi’sRevivalIsn’tSoGoodfortheCityofHitachi,”NYTimes,Dec.28,2012.z) “ChinaLosesEdgeAsWorld’sFactoryFloor,”WallStreetJournal,Jan.17,2013.aa) “HedgingChinaRisks,JapanFirmsTurntoBoomingSoutheastAsia,”S.
Grudgings,Reuters,Nov.5,2012.bb) “TheInsourcingBoom,”CharlesFishman,TheAtlantic,Dec.2012.cc) “Mr.ChinaComestoAmerica,”JamesFallows,TheAtlantic,Dec.2012.dd) “ShouldManufacturingJobsBe‘Reshored’totheU.S.?”Knowledge@Wharton,
Sept.26,2012.ee) “AmericanIndustryIsOntheMove,”S.Mallaby,FinancialTimes,Jan.8,2013.
2) In‐depthreportsfromthink‐tanks,consultingfirms,governments
a) “ManufacturingFootprints:GettingtoPlantX”,K.O’MarahandH.Lee,SCMWorld,2013.
b) “U.S.ManufacturinginInternationalPerspective.”MarcLevinson.CongressionalResearchService,Feb.2013.
c) “U.S.ManufacturingNearsaTippingPoint,”BostonConsultingGroup,2012.d) “LocatingAmericanManufacturing:TrendsintheGeographyofProduction,”
BrookingsInstitute,April2012.e) “Tradingmyths:AddressingMisconceptionsaboutTrade,Jobs,and
Competitiveness,”McKinseyGlobalInstitute,May2012.f) “ManufacturingtheFuture:TheNextEraofGlobalGrowthandInnovation,”
McKinseyGlobalInstitute,November2012.
g) “Manufacturing’sNewEra:AConversationwithTimkenCEOJamesGriffith,”McKinseyandCompany,December2012.
h) “Offshoring(OffshoreOutsourcing)andJobLossamongU.S.Workers,”CongressionalResearchService,December2012.
i) “RebalancingyoursourcingstrategyOffshoringisaliveandwell,butit’snolongertheonlyanswer,”byConradinMerk,JonathanSilver,andFabioD.Torrisi,McKinseyandCompany,July2014.
3) Faculty‐authoredarticlesa) “WinningintheAftermarket,”MorrisA.Cohen,NarendraAgrawal,andVipul
Agrawal,HarvardBusinessReview,May2006.b) “ValuingOperationalFlexibilityunderExchangeRateRisk,”ArndHuchzermeier
andMorrisA.Cohen,OperationsResearch,Vol.44,No.1,Jan.‐Feb.1996.c) “LessonsfromProductArchitectureInitiativesintheGlobalAutomotive
Industry,”JohnPaulMacDuffie,GlobalStrategyJournal,Vol.3,No.1,2013.d) “GetReadyfortheComplexityRevolution,”JohnPaulMacDuffieandTakahiro
Fujimoto,HarvardBusinessReview,June2010.e) “CollaborationinSupplyChains:WithandWithoutTrust,”JohnPaulMacDuffie
andSusanHelper,chapter10inTheCorporationasaCollaborativeCommunity,PaulAdlerandCharlesHeckscher(editors),OxfordUniversityPress,2007.
f) “SupplyChainCompetitivenessandRobustness:ALessonfromthe2011TohokuEarthquake,”TakahiroFujimoto,DiscussionPaper#362,ManufacturingManagementResearchCenter,UniversityofTokyo,September2011.
g) H.Matsuo,“ImplicationsoftheTohokuEarthquakeforToyota’sCoordinationMechanism:SupplyChaindisruptionofAutomotiveSemiconductors”,2014.
h) “CreatingtheNewGlobalEnterprise:TransportationPanel”,summaryfromWhartonconferenceonUS‐JapaneseManufacturingAlliances,April7‐8,1993.
4)SuggestedBooksa) ProducingProsperity:WhyAmericaNeedsaManufacturingRenaissance.GaryP.
PisanoandWillyC.Shih.Boston,MA:HarvardBusinessSchoolPress.b) RaceAgainsttheMachine:HowtheDigitalRevolutionisAcceleratingInnovation,
DrivingProductivity,andIrreversiblyTransformingEmploymentandtheEconomy.EricBrynjolfssonandAndrewMcAfee.Lexington:DigitalFrontierPress,2011.
c) TheNewIndustrialRevolution:Consumers,GlobalizationandtheEndofMassProduction.PeterMarch.NewHaven:YaleUniversityPress,2012.