Relationships between global operations networks and product architectures

Globalization has resulted in more segments and product configurations to meet the needs of various customers in different markets. For manufacturers to keep up, the operations footprint has become more global to source from the most appropriate suppliers but also have manufacturing sites in close proximity to the main local markets. The relationship between the products offered, in particular the product design and the global operations network, is important to consider because it can be a significant source of complexity and cost in the operations network. In research and practice, the complex relationship between products, in particular, product architectures and global operations networks, has been of great interest. Product architectures are generally discussed in terms of modular and integral products, while the global operations network includes the firm’s own component and assembly plants, distribution system, transportation and R&D within the network, as well as first-tier key suppliers and markets. The relationship between global operations networks and product architecture is complex and needs more detail and nuance. Therefore, researchers have called for more research on the relationship between global operations networks and product architectures. The overall purpose of this dissertation is to contribute to the understanding of the relationships between global operations networks and product architectures. The research purpose is addressed by three research objectives and six appended research papers. The first research objective is to review the literature on the relationship between product architectures and global operations networks and propose new areas for research. The second research objective is to identify aspects of global operations networks that are associated with product architecture decisions. The final research objective is to test and describe the mutual relationships between product architectures and global operations networks. The empirical data collected for this dissertation is based on two distinct methodologies—multiple-case and survey studies. The multiple-case studies were conducted with three manufacturing firms with global sales and a manufacturing footprint. The participants in the multiple-case studies were from supply chain and operations functions, and product development and R&D functions. The survey was sent to 409 plants and included general information about the companies, as well as specific information on the product and operations network. This research contributes several insights into the relationships between global operations networks and product architectures. First, this research increases the understanding of which global operations network aspects are associated with product architecture decisions, providing two novel aspects: the number of capable plants and the number of key supplier sites. Second, this research contributes with the knowledge that global operations networks from a product architecture perspective have four dimensions. Finally, the relationship between global operations networks and product architectures is not always straightforward, and different combinations of this relationship exist for specific reasons—whether it is the product, network, markets or suppliers. The research contribution aims to improve the understanding of this relationship and provide a foundation for future research and guidance for decision makers