Manufacturing competencies in high-tech NPD: on the impact of vertical integration and coordination
by Daniel Olausson, Thomas Magnusson
International Journal of Manufacturing Technology and Management (IJMTM), Vol. 22, No. 3, 2011

Abstract: Starting from a distinction between internalisation and outsourcing of manufacturing, this paper studies how the degree of vertical integration affects R&D-manufacturing coordination. The case study findings illustrates that there are several quasi-stages of outsourcing that affect R&D-manufacturing coordination and manufacturing competence within R&D organisations. For effective R&D-manufacturing coordination to take place, it seems necessary that the R&D department possesses certain manufacturing competencies, both in terms of understanding the constraints of the manufacturing equipment/process and in terms of understanding the relation between production volumes and manufacturing cost. The implication is that managers need to carefully consider the effects of make-or-buy decisions on R&D-manufacturing coordination.

Online publication date: Thu, 27-Nov-2014

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