Management and Control of Outsourcing in Dispersed Network Manufacturing Systems

The trend of economic globalisation and advances in i nformation technology has led to the emergence of dispersed manufacturing system s as a form of the virtual organisation. New manufacturing strategy pays more at tention to the management of the total value chain and therefore puts emphasis o n outsourcing. In fact, outsourcing is an efficient way of utilizing available r esources and has become one key aspect of the manufacturing strategy. Improved d ecision and organization on outsourcing will result in cost production and short er lead-times. However, most concepts and practice of traditional outsourcing do not adapt to t he changing environment and meet increasing performance requirements. On the oth er hand, virtual organisations might display instability between pure outsourcin g and establishing alliance. Balance and trade-off between independent agents a nd creating alliance are thus required. Therefore, the purpose of this paper is to develop a model to support decision-making, management and control on outsou rcing in a dispersed network manufacturing system and to discuss several key iss ues that are relevant to the relationship between the agents of the network. Dev elopment of the model will deploy Applied System Theory and will be built on fou ndations of earlier research on industrial management such the theories of Outso urcing, Order Entry Points, Design of Organisations and Logistic Control. The is sues that will be addressed in this paper are: · The selection of suppliers and co-makers; · Communication between suppliers and clients; · The mechanisms for profit-sharing between agents; · The product data management to integrate the knowledge of the different agent s into product design. Industrial companies will benefit from this research by the practical methods an d implementation extending their business models beyond concepts for outsourcing and alliances. Additionally, the exploration will lead to proactive contributio n of manufacturing during engineering, which would improve management and contro l of dispersed manufacturing systems.

The trend of economic globalisation and advances in i nformation technology has led to the emergence of dispersed manufacturing system s as a form of the virtual organisation. New manufacturing strategy pays more at tention to the management of the total value chain and therefore puts emphasis o n outsourcing. In fact, outsourcing is an efficient way of utilizing available r esources and has become one key aspect of the manufacturing strategy. Improved d ecision and organization on outsourcing will result ...