Sourcing Unique Components in the Electro-Mechanical Engineering Industry from Chinese Suppliers

A Multiple-Case Study

Tesis , 2007 , 103 Páginas , Calificación: 1,0

Ingeniería - Ingeniería industrial

Sourcing relatively simple standardized commodity-like items from Chinese suppliers already poses considerable sourcing challenges. But methodologies and best-practice guidelines exist to identify Chinese suppliers, to develop them, and to establish a global supply chain. However, the case of sourcing unique components from Chinese suppliers is not widely published in the academic literature. Unique components are complex from an engineering point of view, and they are ordered in low volume.
Based on a multiple-case study in the electromechanical engineering industry, the result of this thesis is a best-practice guideline for sourcing unique components from Chinese suppliers. The guideline addresses the involvement of different functions including quality assurance with the Chinese supplier, and it shows the different approaches the case companies take for selecting the suppliers. Also, the companies’ production management is addressed.
The conclusion is that there are two promising approaches depending on the customer’s re-quirements. One approach is to outsource engineering and manufacturing as far as possible, the other is to engage in a close buyer-supplier-relationship.

Inhaltsverzeichnis (Table of Contents)

• 1 INTRODUCTION
  • 1.1 Motivation
  • 1.2 Objective and Scope
  • 1.3 Thesis Structure
• 2 BASICS AND DEFINITIONS
  • 2.1 Mechanical and Electro-Mechanical Engineering Industry
  • 2.2 Supply Segmentation
  • 2.3 Sourcing Strategies
    • 2.3.1 Regional Sourcing
    • 2.3.2 International Purchasing
    • 2.3.3 Global Sourcing
    • 2.3.4 Buyer-Supplier Relationships
  • 2.4 Total Cost of Ownership
  • 2.5 Outsourcing
• 3 STATE OF RESEARCH ON SOURCING IN CHINA
  • 3.1 Evolution of China Sourcing
  • 3.2 Sourcing Strategies in the Chinese Market
    • 3.2.1 Mediated Sourcing
    • 3.2.2 Direct Sourcing
  • 3.3 Difficulties of Sourcing from Chinese Suppliers
  • 3.4 Key Elements for Negotiations in China
  • 3.5 Suitable Items for Sourcing from Chinese suppliers
  • 3.6 Staffing in China
• 4 RESEARCH METHODOLOGY
• 5 CASE STUDIES
  • 5.1 Company A
    • 5.1.1 Overview
    • 5.1.2 Sourcing
    • 5.1.3 Design and Engineering
    • 5.1.4 Production Management
    • 5.1.5 Quality Control
  • 5.2 Company B
    • 5.2.1 Overview
    • 5.2.2 Sourcing
    • 5.2.3 Design and Engineering
    • 5.2.4 Production Management
    • 5.2.5 Quality Control
  • 5.3 Company C
    • 5.3.1 Overview
    • 5.3.2 Sourcing
    • 5.3.3 Design and Engineering
    • 5.3.4 Production Management
    • 5.3.5 Quality Control
  • 5.4 Company D
    • 5.4.1 Overview
    • 5.4.2 Sourcing
    • 5.4.3 Design and Engineering
    • 5.4.4 Production Management
    • 5.4.5 Quality Control
• 6 CROSS-CASE COMPARISON
  • 6.1 Sourcing
  • 6.2 Design & Engineering
  • 6.3 Production Management
  • 6.4 Quality Control
    • 6.4.1 Internal Control
  • 6.5 Comparison Across Customer Segments
    • 6.5.1 Customer Dimension
    • 6.5.2 Supplier Dimension
    • 6.5.3 Staff Dimension
• 7 PROPOSED APPROACHES
• 8 SUMMARY
• 9 OUTLOOK

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to develop a best-practice guideline for sourcing unique components from Chinese suppliers in the electro-mechanical engineering industry. The research is based on a multiple-case study approach, analyzing the experiences of several companies in this field.

• Sourcing strategies for unique components from Chinese suppliers
• Challenges and opportunities of sourcing unique components from China
• The role of quality assurance and production management in the sourcing process
• Best practices for building successful buyer-supplier relationships with Chinese companies
• Comparison of different approaches to sourcing from China: outsourcing vs. close collaboration

Zusammenfassung der Kapitel (Chapter Summaries)

This section provides summaries of the main chapters, excluding the conclusion.

• Chapter 1: Introduction - Briefly introduces the motivation behind the research, outlining the increasing significance of sourcing from Chinese suppliers, particularly for unique components in the electro-mechanical engineering industry. - Defines the objective and scope of the thesis, focusing on developing a best-practice guideline for sourcing unique components from Chinese suppliers.
• Chapter 2: Basics and Definitions - Provides essential definitions and explanations of relevant concepts, including: - The electro-mechanical engineering industry and its specific characteristics. - Different supply segmentation approaches and their implications. - Various sourcing strategies (regional, international, global) and their impact on supply chain management. - The concept of Total Cost of Ownership (TCO) and its relevance in sourcing decisions. - The role of outsourcing in global supply chains and its potential advantages and drawbacks.
• Chapter 3: State of Research on Sourcing in China - Reviews existing research on sourcing from China, examining the evolution of sourcing practices and its impact on the industry. - Explores different sourcing strategies prevalent in the Chinese market, specifically mediated and direct sourcing, outlining their benefits and challenges. - Discusses common difficulties encountered when sourcing from Chinese suppliers, highlighting potential risks and obstacles. - Identifies key elements crucial for effective negotiations with Chinese suppliers. - Provides insights into suitable items for sourcing from China, considering their characteristics and complexity. - Explores the staffing landscape in China, analyzing the availability of qualified personnel and its implications for sourcing decisions.
• Chapter 4: Research Methodology - Outlines the research methodology employed in the thesis, explaining the choice of a multiple-case study approach. - Describes the selection criteria for the case companies and the data collection methods used. - Explains the analysis techniques applied to extract relevant insights from the collected data.
• Chapter 5: Case Studies - Presents in-depth analysis of four case studies, showcasing different approaches to sourcing unique components from Chinese suppliers in the electro-mechanical engineering industry. - Each case study examines the following aspects: - Company Overview: provides a brief overview of the case company, its operations, and its business model. - Sourcing: explores the company's sourcing strategies, supplier selection criteria, and negotiation practices. - Design & Engineering: analyzes the company's approach to design and engineering, considering the role of collaboration with Chinese suppliers. - Production Management: examines the company's production management practices, including quality control, logistics, and inventory management. - Quality Control: investigates the company's quality assurance procedures, focusing on internal and external control mechanisms.
• Chapter 6: Cross-Case Comparison - Compares and contrasts the insights gained from the case studies, identifying common patterns and differences across the companies. - Analyzes the different approaches to sourcing, design & engineering, production management, and quality control. - Examines the influence of customer segment, supplier characteristics, and staff expertise on sourcing practices.
• Chapter 7: Proposed Approaches - Based on the analysis of the case studies and the cross-case comparison, this chapter proposes two distinct approaches to sourcing unique components from Chinese suppliers in the electro-mechanical engineering industry: - Outsourcing approach: advocates for maximizing outsourcing of engineering and manufacturing activities to Chinese suppliers. - Close Collaboration Approach: emphasizes establishing strong and collaborative buyer-supplier relationships with Chinese companies.
• Chapter 8: Summary - Summarizes the key findings and conclusions of the thesis, highlighting the major insights gained from the case studies and the proposed approaches.

Schlüsselwörter (Keywords)

The key topics and concepts explored in this thesis include sourcing unique components, electro-mechanical engineering industry, Chinese suppliers, global supply chains, quality assurance, production management, buyer-supplier relationships, outsourcing, and case study analysis.

• Universidad: University Karlsruhe (TH) (Institut für Produktionstechnik - wbk)
• Calificación: 1,0
• Autor: Dipl. Wi.-Ing. Andreas Martin Radke (Autor)
• Año de publicación: 2007
• Páginas: 103
• No. de catálogo: V84805
• ISBN (Ebook): 9783638049634
• ISBN (Libro): 9783638944083
• Idioma: Inglés
• Etiqueta: Sourcing, Unique, Components, Electro-Mechanical, Engineering, Industry, Chinese, Suppliers