A systematic approach to analysis and design of global production networks

The systematic approach of the global variant production system (GVP) presented here is intended to enable companies to operate globally and at the same time retain, even expand, their core competencies at the home location.

Abstract

The increasingly global market and the international organization of manufacturing companies demand efficient and effective configuration of the operational production network. However, the prerequisites for a successful reorganization of the production network are frequently inadequately analyzed and taken account of. The outsourcing and relocation of production and assembly capacities solely for reasons of (labor) costs turns out to entail economic risks and to be too short-sighted strategically. The systematic approach of the global variant production system (GVP) presented here is intended to enable companies to operate globally and at the same time retain, even expand, their core competencies at the home location. The GVP system is the result of a joint research project sponsored by the Federal Ministry of Education & Research (BMBF) and carried out by the Institute of Production Systems and Logistics (IFA) in cooperation with the Institute of Integrated Production Hannover (IPH), the Sociological Research Institute Göttingen (SOFI) and different companies from industry.