Title: The importance of locally commanded design for the consolidation of local supply chain: the concept of design headquarters

Authors: Mario Sergio Salerno, Roberto Marx, Mauro Zilbovicius, Ana Valeria Carneiro Dias

Addresses: Production Engineering Department, Polytechnic School, University of Sao Paulo, Av. Prof. Almeida Prado Trav. 2 Num. 128, 05508-900, Sao Paulo, Brazil. ' Production Engineering Department, Polytechnic School, University of Sao Paulo, Av. Prof. Almeida Prado Trav. 2 Num. 128, 05508-900, Sao Paulo, Brazil. ' Production Engineering Department, Polytechnic School, University of Sao Paulo, Av. Prof. Almeida Prado Trav. 2 Num. 128, 05508-900, Sao Paulo, Brazil. ' Production Engineering Department, Engineering School, Federal University of Minas Gerais, Av. Antonio Carlos, 6627, Pavilhao Central de Aulas, 30161-010, Belo Horizonte, MG Brazil

Abstract: This paper discusses the extent of the adoption of some operations best practices in the Brazilian automobile industry. A survey and extensive case studies were conducted. Adoption of operations best practices is more widely spread among first and second tier suppliers than in lower levels. There is a strong relation between local product development and the integration of local autoparts producers. In new condominiums, suppliers| facilities add low value, most of the value is added in mother plants. The level of innovation activities and its influence in the incorporation of local firms in the productive chain is discussed.

Keywords: automobile industry; vehicle production; innovation; emerging countries; Brazil; automotive supply chains; supply chain management; SCM; local supply chains; best practice; product development; automotive components.

DOI: 10.1504/IJMTM.2009.023753

International Journal of Manufacturing Technology and Management, 2009 Vol.16 No.4, pp.361 - 376

Published online: 10 Mar 2009 *

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