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Production ramp-up capability : developing a framework and a process


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Type

Thesis

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Authors

Li, Hui Hong Jim Kery 

Abstract

This thesis is concerned with developing an understanding of production ramp-up and a process for firms to attain improved volume ramp-up capability in the context of international manufacturing supply networks. As major multinational corporations (MNCs) continue to deploy outsourcing strategies globally, traditional factory-based volume ramp-up issues have extended to complex inter-firm relationships affecting the pace of new product market introduction (time-to-market). This fundamental change, coupled with rapid shmiening of product life cycles, has led to practical challenges and revealed a lack of theory underpinning production volume ramp-up (time-to-volume) activities in manufacturing businesses. The lack of prior work and the exploratory nature of the research suggested a multiple-case, field-based research methodology. It involved five large Japanese multinational corporations and their respective international manufacturing supply networks comprising more than twenty factories in six countries. There were observational studies of cmTent practice and a pilot study to illustrate the application of the structured ramp-up process guidance which emerged from the research. The observations provide new insights into the nature of advanced practice m production ramp-up particularly: � Pilot production during ramp-up was found to be targeted to identify discrepancies, rectifying and verifying product manufacturability rather than simply verifying or testing the new production line. � Verification or testing of a new line takes place during the 'Initial Production Qualification '(JPQ) stage which involves the evaluation of line set-up, detailed production processes, production environment standards, and product packaging standards to specification before volume ramp-up. � Actual production capacity versus line designed capacity and output yield are analyzed during IPQ and the data collected are used for detailed planning of product delivery schedules. These findings are synthesised into an enhanced representation of production ramp-up proposing linkages between critical elements and placing operational activities in the context of an international manufacturing supply network structure. A structured ramp-up process was observed to be vital to enable manufacturing operations to attain predictable initial production yields and rapid volume ramp-up. The enhanced representation was therefore developed into a new seven-stage process to guide practitioners. This was illustrated and evaluated through application in a 'live' production ramp-up case. A key feature of the process is the recommendation that inter-finn operational practices be standardised to avoid unnecessary discrepancies between the focal film and its critical suppliers and contract manufacturers. The outcomes of the research have implications for theory and practice: � Knowledge of the production ramp-up process has been extended, refined and synthesised highlighting its role in enhancing product manufacturability. � The role of ramp-up in complex production networks has been explored extending knowledge beyond the limitations of earlier intra-firm studies and highlighting the impact of production ramp-up on networks and their constituent businesses. � A process has been proposed offering practicing managers an approach to tracking progress towards initial production yields and increasing the speed and flexibility of new product volume ramp-up. � Volume ramp-up capability and its impact on network performance have been highlighted as new and important criteria for supplier selection and existing supplier performance assessment. These findings are synthesised into an enhanced representation of production ramp-up proposing linkages between critical elements and placing operational activities in the context of an international manufacturing supply network structure. A structured ramp-up process was observed to be vital to enable manufacturing operations to attain predictable initial production yields and rapid volume ramp-up. The enhanced representation was therefore developed into a new seven-stage process to guide practitioners. This was illustrated and evaluated through application in a 'live' production ramp-up case. A key feature of the process is the recommendation that inter-firm operational practices be standardised to avoid unnecessary discrepancies between the focal firm and its critical suppliers and contract manufacturers. The outcomes of the research have implications for theory and practice: � Knowledge of the production ramp-up process has been extended, refined and synthesised highlighting its role in enhancing product manufacturability. � The role of ramp-up in complex production networks has been explored extending knowledge beyond the limitations of earlier intra-firm studies and highlighting the impact of production ramp-up on networks and their constituent businesses. � A process has been proposed offering practicing managers an approach to tracking progress towards initial production yields and increasing the speed and flexibility of new product volume ramp-up. � Volume ramp-up capability and its impact on network performance have been highlighted as new and important criteria for supplier selection and existing supplier perfonnance assessment.

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Qualification

Doctor of Philosophy (PhD)

Awarding Institution

University of Cambridge