Impact of Outsourcing on Various Dimensions of Manufacturing Flexibility
Type
conference paper
Date Issued
2008-06-15
Author(s)
Abstract
Despite the need for flexibility in today's organizations, one common manufacturing practice not empirically examined in significant detail as contributing to, or inhibiting, flexibility is outsourcing. The purpose of this study is to further our understanding of the relatively unexplored relationship between outsourcing and manufacturing flexibility. Specifically, this study examines the motivations and experiences of manufacturing companies actively involved in outsourcing; and how such outsourcing influences various types of manufacturing flexibility. To achieve this goal, a mixed case study approach with eleven manufacturing companies that outsourced a significant portion of their product development or manufacturing activities is used. Key findings of the study indicate that outsourcing has a positive influence on four types of flexibility, specifically product mix, product, volume, and delivery time flexibility. In the case of process flexibility, the majority of companies reported that this flexibility type is largely unaffected by outsourcing. In addition, labor flexibility seems to have decreased in a number of cases after outsourcing. As a result, the impact of outsourcing on flexibility will depend upon the flexibility types required by the organization.
Language
English
Keywords
flexibility
outsourcing
multiple case studies
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Tradition and Innovation on operations management
Event Title
15th European Operations Management Association (EurOMA) Conference
Event Location
Groningen, the Netherlands
Event Date
15.-18.06.2008
Subject(s)
Division(s)
Eprints ID
43795