Dealing with uncertainty in the global supply chain and analyzing implementation dynamics

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2013.Cataloged from PDF version of thesis.Includes bibliographical references (p. 65-67).This thesis explores the problem of global supply chain flexibility in the context of a multinational commonly that we refer to as Company X. Company X faces competitive markets, increasingly demanding customers, and internal challenges due to the global extension of previously local business processes. Company X aims not only to produce goods to meet customers' requirements but also to improve the performance of its fundamental business processes. Considering this reality, this thesis explores two main initiatives to accomplish sustainable continuous improvement: 1) maximize flexibility in the Global Value Chain while minimizing waste and variance, and 2) develop a methodology to ensure the successful implementation of improvements. For the optimization of the Global Value Chain, the objective was to enable the company to grow its business as global opportunities present themselves. For this purpose, this thesis proposes a new planning process that both enables assessing the risk on supply and deliveries due to the variability of lead times and includes real options analysis in the planning processes for Region A. As a result, this Dynamic Strategic Global Sourcing Plan will make possible the creation of a plan that captures benefits from increases in project value and insures against losses from decreased project value. In addition to the strategic and tactical work for the optimization of the Value Chain, it is a reality that large-scale transformation requires a deep understanding of the human side. The company's culture, values, people, mindset and capabilities must be changed to ensure a successful implementation of the improvements. On this line, a unique iterative perspective on managing the human side of change that can be adapted to a variety of realities was developed during the course of the research. This technique is iterative and adaptable because transformation is not a one-time event but an ongoing process and the company is a multinational corporation facing different situations on its locations. Overall, the aim and tasks of the thesis deal with sustaining continuous improvement in a dynamic Global Value Chain environment. The Dynamic Strategic Global Sourcing Plan will enable Company X to respond effectively to changes and the Change Management Process will ensure the implementation of the processes needed to make that effective response possible.by Arturo Ochoa Gonzalez.S.M.M.B.A