Managing international supply: The balance between total costs and customer service

Many trading companies have taken a global approach to their supply markets, sourcing from low-cost foreign countries in order to achieve cost reductions. There remains, however, a lack of evidence that sourcing internationally actually leads to improved economic performance. This can be explained by two key challenges in terms of how to achieve a balance between: (1) purchasing and logistics costs, and (2) customer service. The purpose of this paper is to examine the organisation and management of international supply from a total cost perspective, taking into account both purchasing and logistics costs, as well as customer service and agility. Previous research into a number of Norwegian companies that have sourced from China has identified four configurations for managing international supply. This paper utilises the supply management literature and an example of a Norwegian retail and wholesale company to analyse and discuss these configurations and their effects on total costs and customer service. The paper's theoretical contribution is the conceptualisation of a total cost perspective on international supply management and the discussion of such costs in relation to customer service. This contribution may, in turn, aid companies that source from foreign, low-cost countries.     

Communication Flows in International Product Innovation Teams

Recently, we have witnessed a strong growth in the internationalization of many firms' product development activities. However, the lack of attention devoted by scientific research to the management of international innovation contrasts sharply with the importance attached to it as a cornerstone of international business success. Although several empirical studies and normative theories have specified the communication requirements in innovation teams, an empirically based insight is definitely needed on the communication requirements and requirements that prevail in the complex context of international innovation teams, in which the participants are located in different company units, countries, and cultures. This article addresses the following research question: viewing international innovation as an interfunctional activity, what are the communication requirements an international innovation team is facing, and what are the communication capabilities (interface mechanisms) that may be adopted to initiate, develop, and launch the new product effectively and efficiently? An extensive case study research project was designed to develop a comprehensive theoretical framework. Over a two year time period, the research team has investigated selected innovation projects in four European multinational corporations. The analysis of the case study data suggests five requirements that determine the effectiveness and efficiency of communication in international product development teams: network transparency, knowledge codification, knowledge credibility, communication cost, secrecy. To cope with these communication requirements, organizations may create firm level capabilities (parallel structures, cross‐functional and inter‐unit climate, communication infrastructure, goal congruence) and team level capabilities (core team, team leadership, formalization, procedural justice). The evidence from the in‐depth case study research indicates that these mechanisms provide a parsimonious and powerful approach to address the communication requirements in international product innovation teams. After the information processing framework proposed by Tushman and Nadler [124], the adoption of these mechanisms is expected to improve innovation effectiveness. This holds important consequences for the management of international product innovation projects. First, the innovating firm must balance centralization and decentralization, employ formal as well as informal strategies, and integrate ad‐hoc and permanent strategies. Second, it highlights the critical role of the project leader. Given the fact that companies often select the most available person, rather than the best person for the job, the allocation of light weight project leaders may create heavyweight problems in international teams. Third, following the argument in favor of procedural justice, the absence of involvement may severely hinder cross‐functional commitment to international innovation projects. Fourth, the innovating firm must also actively manage the communication flows with external parties. Failure to do so may result in flawed specifications, and a limited understanding about product design and market strategies.     

我国装配式住宅发展的对策研究

装配式住宅作为绿色环保建筑,具有许多优势,它不仅可以缩短房屋建筑的建设周期,低碳节能、绿色环保,还能节约劳动力、提高生产效率、确保住宅工程的质量。欧美的一些国家已经成功应用和推广装配式住宅,例如:法国、德国、瑞典等国家是较早推行建筑工业化的国家,装配式住宅的应用已经普及,美国的装配式住宅盛行于20世纪70年代,日本装配式住宅技术发展也很成熟。我国装配式住宅虽然起源于50年代初,但是,几经周折到90年代才开始积极推进,目前存在着建造成本较高、行业技术不成熟、缺少专业人才、缺乏完善的装配式住宅技术标准和管理体系等问题。因此,需要通过控制装配式住宅的经济成本、加大政府扶持力度、加快装配式住宅产业链建设、完善管理体系和相关规范标准、多渠道培养装配式住宅设计和施工专业人才等途径促进我国装配式住宅的发展。     

Comparison of patterns of research effectiveness and output and their stability across six countries*

The focus of the study is an exploration of the stability of relationships between characteristics of research groups and various dimensions of the effectiveness of research activities across different national settings. The analysis is based on data collected by a Unesco coordinated international research team in six European countries. Data were collected by means of a survey of research groups engaged in research and experimental development activities in a variety of scientific disciplines, primarily in the natural and technological sciences. The total sample consists of 1,222 research groups. From a wide variety of data a set of indices describing the age, patterns of communication, management, diversity, morale and inter-personal relations in the unit, etc., were selected on the basis of observed correlations to measures of effectiveness in the samples of each of the six countries. By means of a residualization procedure the indices were adjusted for the effect of the type of institution end scientific field of research groups to eliminate differences with respect to these two structural dimensions in the samples of the different countries. Stepwise regression analyses were performed separately for each country to explore the relationships of the ‘adjusted’ indices to seven different measures of effectiveness. The common pattern of relationships of certain indices to give effectiveness measures is described and discussed. The recurrent relevance of certain variables in the individual countries across a variety of effectiveness measures is analysed. On the basis of these analyses a few ‘universal’ indices are isolated such as quality of research planning, communication with users of the research results, and the research morale as perceived by unit heads and scientists. These seem to have consistent, systematic and additive relationships across countries to most of the specific dimensions of research group effectiveness. In conclusion the theoretical and practical implications of the findings are discussed.     

国外电网成本管理经验及对我国电网企业的启示

为解决当前我国电网企业成本管理面临的问题和难点,在结合我国电网企业经营管理现状的基础上,借鉴国外电网成本管控经验,提出了在我国电网企业实施全口径、全周期成本管理及全面实施标准成本和作业成本管理的建议,以促进电网企业加强成本管控力度,提高管理绩效。     

Moderating the impact of global sourcing on inventories through supply chain management

In recent years, companies have paid growing attention to supply chain management at a global level. With regard to the upstream part of the supply chain, the need for better suppliers, the research into specific competences and concerns related to international competition have forced companies to improve their ability to cope with suppliers located in different countries around the world. The literature suggests that the geographical distance of suppliers should create higher inventory levels primarily because of longer and more uncertain lead times. However, as this paper aims to demonstrate, companies can limit this effect by means of specific investments in the supply chain and in their relationships with suppliers. The empirical analysis is based on data from the last edition of the International Manufacturing Strategy Survey (IMSS). The results show that companies performing global sourcing have invested in supply chain management (SCM) and that this has been helpful in keeping their inventories under control.     

The importance of a common project management method in the corporate environment

Like so many other major companies in the world today, Ericsson runs most of its product development operations as projects. The increasing complexity of telecommunication solutions often requires that many technologies are brought together in one turnkey project, such as telephone switching, mobile radio networks, DECT radio Access and others. Competence centres within Ericsson, spread out over many countries need to work together in'cross functional' projects.
While the advantage of the project concept is obvious, carrying out projects in which various Ericsson companies participate, in different countries, can prove to be a very complex undertaking. Many such projects are running simultaneously and often compete for resources and priority with ever increasing time constraints. In order to succeed we need a common methodology for managing projects.
This methodology must provide Ericsson with a shared view on how we allocate scarce (human) resources, the roles that need to be played by all those involved in the project and the supporting line functions, the criteria to be used for decisions to be taken inside the project and in relation to other projects, and many more issues that require a common view. A shared view on project management is also a prerequisite for handling conflicts within an organization in which the project, as a working form, is predominant. Various Ericsson companies and units have achieved different degrees of maturity in their management of projects. This combined experience has produced a methodology called 'PROPS' that Ericsson uses today. The widespread use of PROPS has given Ericsson a common terminology and common perspective of projects. This contributes to shorter lead-time, time to market and time to customer. In this article is explained some of the PROPS features and how PROPS is applied.     

基于全过程委托代建模式的项目管理公司建设问题研究

随着政府投资项目代建制的实施,建立和培育一个完善的项目管理市场是很有必要的。我国的项目管理市场总体上是不完善的,其中关键的问题就是项目管理市场主体一项目管理公司的缺乏,这极大地影响了项目管理的推行。文章基于全过程项目管理代建模式对项目管理公司的建设问题进行了研究,并对各专业公司如何实现向项目管理公司的过渡提供了一些建议。     

建设项目成本管理与投资控制

建设项目成本管理与投资控制是建设项目管理的重要组成部分。本阐述了建设项目管理各阶段成本管理与投资控制要点，提出了行之有效的控制方法与技巧，在大中型建设项目管理中具有实用价值。     

价值工程在油田开发工程造价管理中的应用

结合实际就采油厂在油田开发工程造价管理中价值工程的原理进行了阐述,并结合实际案例就价值工程在油田开发工程造价管理设计阶段、施工阶段、招投标阶段的应用进行了分析。通过开展价值工程活动,对提高采油厂油田开发工程的总体效益,降低开发工程寿命周期成本起到积极作用。     

垂直合约与产业环境贸易政策——环境成本内部化及中国的策略选择

全球经济一体化背景下,发达国家利用环境贸易政策来实现竞争优势已经出现趋势。本文介绍了欧盟的环境贸易政策,基于环境贸易政策的背景,预设国内外上、下游企业之间已经构成一个产业链,应用Stephen F.Hamilton的垂直型结构模型,将数量竞争分为四种不同情况,给出了最大均衡供给量。分析表明,如果采用垂直合约,则数量竞争和价格竞争的最佳非合作环境政策均是庇古(Pigouvian)税。在国内下游出口商与上游进口品供应商能够达成合约的条件下,政府之间存在着非合作环境政策。因此,我国的产业环境贸易政策应当是努力实现环境成本的内部化。     

Customization of Product Technology and International New Product Success: Mediating Effects of New Product Development and Rollout Timeliness

Offering a standardized product for different country markets may enable companies to accomplish fast product development and multicountry rollout, whereas also enjoying substantial cost benefits. However, not all manufacturers serving multicountry markets can adopt a standardized product strategy. Where technological requirements, standards, and approval procedures vary substantially across countries, manufacturers invariably must adapt the product's technology to fit individual country requirements. Extensive customization may lead to longer new product development and rollout times and increase the likelihood of delays in the entire project, hence adversely affecting overall new product outcome. This study examines the relationships between product technology customization, the timeliness in completion of both the new product development effort and international market launches, and new product success. The study that reports on new product launches across European markets, is based on personal interviews with senior managers in 30 multinational companies. The authors show that timeliness in new product development and timeliness in rolling out the new product into different country markets mediate the link between product technology customization and overall new product success. Customization of product technology increases the likelihood of delays in the completion of new product development projects and multicountry rollout. Additionally, the timeliness in new product development mediates the relationship between product technology customization and timeliness in international new product rollout. This means that if the NPD project runs behind schedule, a fault‐free multicountry rollout program becomes increasingly unlikely, as problems encountered during product development spillover into the rollout program. The results imply that international product managers must assign greater priority to assessing the relative advantages of customizing new product technology and to consider the timing implications for both the NPD effort and subsequent rollout. Managers must set realistic schedules and allocate sufficient resources to ensure both tasks can be accomplished within planned time scales. Finally, managers should not underestimate the complexities and time involved in customizing new product technologies, including the completion of disparate country technical approval procedures.     

政府投资项目招标投标阶段的全面造价管理

全面造价管理是现有建设项目造价管理思想和方法的全面集成,它是用来指导人们分析、确定和控制工程造价的思想和方法,包含全团队造价管理、全要素造价管理、全过程造价管理和全生命期造价管理。文章简单扼要介绍建设项目招标投标的意义,分析了我国政府投资项目招投标阶段造价管理现状。为了解决存在的主要问题,将以全面造价管理为理论基础,探讨政府投资项目招投标阶段造价管理的实施方法,期望为政府投资项目造价管理提供实践的指导。     

AN ANALYSIS OF CONTRACT COST PHASING ON ENGINEERING AND CONSTRUCTION PROJECTS

The development and implementation of engineering and construction projects for new manufacturing facilities in the oil, gas, and petrochemical industry is largely contracted out. Progress and cost control by the owner is an intrinsic part of these projects. The results of an empirical analysis of payment and progress schedules for different contract types are presented, indicating a practice of advance payments on lump sum/fixed price contracts. The Value of Work Done concept and a normalized approximation function for progress control are discussed. The results provide guidance for progress management and contract cost phasing on engineering and construction projects.     

海外项目质量控制方法探索与实践

随着中国石油工程技术服务企业在国际市场业务范围不断扩大,服务质量、产品质量在市场中地位和发挥的重要作用日显突出,同时在国际高端技术服务市场,国外公司在重视技术的同时更关注服务的品质和项目策划运行,重视项目的质量程控管理。本文旨在分析海外项目的管理特点、探索海外项目管理过程中质量控制体系与方法,为同行业提供海外国际项目质量控制管理方面的经验。     

低碳能源专利发展态势及国内石油公司对策建议

低碳技术专利申请量从20世纪90年代后期开始急剧增长.大多数低碳技术专利权归发达国家跨国公司所有,面向发展中国家的专利授权有限.全球主要发达国家不断加强低碳技术开发和保护的力度.国际石油工程技术服务公司在非常规天然气技术领域处于优势地位,国际石油公司近几年开始加强专利布局.国际大石油公司对低碳技术的研发投入相对少,他们以并购作为获取低碳资源和低碳技术的主战略途径,并与技术领先公司合作,抢占发展先机.对于中国的石油公司来说,低碳技术价格高昂,引进成本不断增大.为此,国内石油公司可考虑常规天然气领域寻找机会并购拥有核心专利技术油工程技术服务公司;在具有发展前景的技术领合作研发与自主创新双管齐下;在开展合作时,需确保合作对象拥有关键技术;充分运用低碳能源领域的专利信息资源.     

R&D Project Termination Decisions: Processes, Communication, and Personnel Changes

The decision to terminate a project can demoralize project managers and team members, and increase concerns about job security. For these reasons, managers tend to delay project termination decisions. However, delaying project termination diverts scarce R&D resources from higher potential projects. Ramaiya Balachandra, Klaus K. Brockhoff, and Alan W. Pearson describe the results of a study that explores the manner in which managers inform staff of the decision to terminate or continue a project. Survey respondents are the highest ranking R&D managers in 78 large German, British, and U.S. companies. Respondents were asked to describe the procedures they use for monitoring R&D projects and deciding whether to continue a project. Underlying this research is the belief that more effective management of these processes can improve project team effectiveness, employee relations, and morale. All survey respondents use project monitoring procedures. Most use formal procedures, often supplemented with informal procedures. More than one person usually monitors projects. Project managers, their immediate superiors, and project staff typically have these responsibilities, but respondents also indicate that marketing managers often monitor projects. Compared to U.S. companies, European firms typically involve fewer people in project monitoring. U.S. firms involve more non-R&D personnel in these tasks. Most firms focus on monitoring such variables as time, technical success, and probability of technical success. Staff motivation is the least used monitoring variable. Cost control was mentioned more frequently by German respondents than by respondents from other countries. Decisions regarding the fate of a project usually come from individuals not directly involved with the project. Termination decisions are typically communicated in writing; no respondents use staff meetings to relate such decisions. Following the decision to terminate a project, management faces the difficult task of finding suitable jobs for project team members. Rather than assign an entire team to a new project, management typically disbands a team and assigns its members to other teams. The inherently uneven progress of R&D projects complicates these scheduling problems, and thus compounds the career uncertainty caused by project termination decisions.     

Insights from Senior Executives about Innovation in International Markets

Innovation and the internationalization of business are two of the most important factors determining business success today. However, very few empirical studies have examined these factors together. This study uses a discovery-oriented approach to examine innovation in the international marketplace. The study's findings are based on interviews with 64 senior executives including many current and former CEOs and presidents of multinational companies. The interviews were conducted in five countries over a period of several months. These findings provide insights into the thoughts of senior executives on innovation in international markets. Several novel insights that have implications for management practice and future academic research were discovered. Among these findings, executives stressed the importance of managing and disseminating knowledge throughout their companies during all stages of new product development. They highlighted several limitations in achieving this objective as well. Another finding is that firms adhere to several mechanisms that limit competition. In Japan, a well-recognized business hierarchy helps to form the market share goals of firms introducing new products. Companies in some categories seem to have an understanding that they will not introduce new products unless they are suitably differentiated from existing products. Other companies have bought out competitors to reduce competition. A third finding is that companies make concerted efforts to use standardized brand names and positioning. They find these efforts most suited to image-based products and children's products. Finally, the country-based management structures of most companies make it very difficult to cross-subsidize new products across countries.     

Remodularization of a Product Line: Adding Complexity to Project Management

Faced with ever-tighter schedules, product development professionals employ various methods for staying at least one step ahead of the competition. In particular, an autonomous, cross-functional team offers an effective structure for meeting the sometimes conflicting objectives of timely delivery of a high-quality, easily manufactured product. To complicate matters, however, companies must manage not only individual projects, but also entire product lines. Changes in product and process technology eventually necessitate revamping of the product architecture—that is, the remodularization of a product line. Can an autonomous project team provide the long-term perspective necessary for such efforts? Or, does remodularization of a product line require centralized oversight by functional management? Mats Lundqvist, Niklas Sundgren, and Lars Trygg explore this issue by examining product development efforts at two Swedish manufacturing companies. Specifically, their study explores this research question: Does a high degree of project autonomy limit the possibility for effective remodularization of product architecture? Both companies were involved in remodularization projects with stringent requirements for project cost and duration, but the companies employed markedly different managerial models in these efforts. One company took a centralized approach, except that two design engineers worked full time on the project. The other company used the autonomous model, with two exceptions: functional managers worked closely with some project members during the task specification phase of the project; and the project leader, though a heavyweight in many respects, did not have formal decision-making power. The latter project demonstrated that an autonomous project team can maintain a long-term perspective during development of a product. In other words, this project team was able to meet challenging time and cost objectives while developing a product consisting of highly compatible modules and subsystems. Although a centralized management approach might be expected to offer greater efficiency, the company using that approach failed to meet project goals for development time, product cost, and long-term product line effectiveness. However, the shortcomings of that effort are more directly attributable to the management style of the project leader than to the management structure employed.     

国际石油合作项目现场管理初探

国际石油合作项目的现场管理,是施工第一线的基础性管理,对项目成败起着关键性作用。在介绍国际石油合作项目现场管理特点的基础上,从人员管理、设备管理、材料管理、HSE管理、质量管理、关系管理等六个方面详细阐述了现场管理体系,最后给出了几点国际石油合作项目现场管理中应注意的问题.