Early Supplier Involvement in New Product Development: A Casting-Network Collaboration Model
Early supplier involvement (ESI) benefits new
product development projects several ways. Nevertheless, many castuser
companies do not know the advantages of ESI and therefore do
not utilize it. This paper presents reasons why to utilize ESI in
casting industry and how that can be done. Further, this paper
presents advantages and challenges related to ESI in casting industry,
and introduces a Casting-Network Collaboration Model. The model
presents practices for companies to build advantageous collaborative
relationships. More detailed, the model describes three levels for
company-network relationships in casting industry with different
degrees of collaboration, and requirements for operating in each
level. In our research, ESI was found to influence, for example, on
project time, component cost, and quality. In addition, challenges
related to ESI, such as, a lack of mutual trust and unawareness about
the advantages were found. Our research approach was a case study
including four cases.
[1] R.N. Ashkenas, D. Ulrich, T. Jick, S. Kerr, The Boundaryless
Organization: Breaking the Chains of Organizational Structure, Jossey-
Bass Inc, San Francisco, 1995.
[2] J. Campbell, Ten casting rules, In: B. Cantor, K. O-Reilly, (Eds.),
Solidification and Casting, Institute of Physics, Series in materials
science and engineering, CRC Press, 2003, pp. 87-105.
[3] CMMI Product Team, CMMI for development: Improving processes for
better products, V1.2, Carnegie Mellon, Software Engineering Institute,
(August 2006), Pittsburgh, 2006.
[4] J. Cullen, A.J. Berry, W. Seal, A. Dunlop, M. Ahmed, J. Marson,
Interfirm supply chains: The contribution of management accounting,
Management Accounting, vol. 77, no. 6, pp. 30-32, 1999.
[5] S. Dowlatshahi, Purchasing-s role in a concurrent engineering
environment, International Journal of Purchasing and Materials
Management, vol. 28, no. 1, pp. 21-25, 1992.
[6] S. Dowlatshahi, The role of product design in designer-buyer-supplier
interface, Production Planning & Control, vol. 8, no. 6, pp. 522-532,
1997.
[7] K.M. Eisenhardt, Building theories from case study research, The
Academy of Management Review, vol. 14, no. 4, pp. 532-550, 1989.
[8] L.M. Ellram, Partnering pitfalls and success factors, International
Journal of Purchasing and Materials Management, vol. 31, no. 2, pp. 35-
44, 1995.
[9] C. Farrukh, P. Fraser, M. Gregory, Development of a structured
approach to assessing practice in product development collaborations,
Proceedings of the Institution of Mechanical Engineers, Part B, Journal
of Engineering Manufacture, vol. 217, no. 8, pp. 1131-1144, 2003.
[10] P. Fraser, C. Farrukh, M. Gregory, Managing product development
collaborations: A process maturity approach, Proceedings of the
Institution of Mechanical Engineers, Part B, Journal of Engineering
Manufacture, vol. 217, no. 11, pp. 1499-1519, 2003.
[11] C.J. Gelderman, A.J. van Weele, Handling measurement issues and
strategic directions in Kraljic-s purchasing portfolio model, Journal of
Purchasing and Supply Management, vol. 9, pp. 207-216, 2003.
[12] I. Giannoccaro, P. Pontrandolfo, Supply chain coordination by revenue
sharing contracts, International Journal of Production Economics, vol.
89, no. 2, pp. 131-139, 2004.
[13] R. Graaf, L. Kornelius, Inter-organizational concurrent engineering: A
case study in PCB manufacturing. Computers in Industry, vol. 30, pp.
37-47, 1996.
[14] J. Hattel, Fundamentals of numerical modelling of casting processes,
Polyteknisk Forlag, Kgs. Lyngby Denmark, 2005.
[15] P. Humphreys, W.K. Shiub, V.H.Y. Lo, Buyer-supplier relationship:
Perspectives between Hong Kong and the United Kingdom, Journal of
Materials Processing Technology, vol. 138, pp. 236-242, 2003..
[16] T.E. Johnsen, Supplier involvement in new product development and
innovation: Taking stock and looking to the future, Journal of
Purchasing and Supply Management (2009),
doi:10.1016/j.pursup.2009.03.008, 2009.
[17] R.R. Kamath, J.K. Liker, A second look at Japanese product
development, Harvard Business Review, vol. 72, no. 6, pp. 154-170,
1994.
[18] P. Kraljic, Purchasing must become supply management, Harvard
Business Review, vol. 61, pp. 109-117, 1983.
[19] H.I. Kulmala, J. Paranko, E. Uusi-Rauva, The role of cost management
in network relationships, International Journal of Production Economics,
vol. 79, no. 1, pp. 33-43, 2002.
[20] K. Mitzuno, Castings in the automotive industry, In: B. Cantor, K.
O-Reilly, (Eds.), Solidification and Casting, Institute of Physics, Series
in materials science and engineering, CRC Press, 2003, pp. 59-68.
[21] R.M. Monczka, R.B. Handfield, T.V. Scannel, G.L. Ragatz, D.J. Frayer,
New Product Development: Strategies for Supplier Integration, ASQ
Quality Press, Milwaukee, 2000.
[22] M. Peter, Early Supplier Involvement in Product Development,
Dissertation, St. Gallen, der Universität St. Gallen, 1996.
[23] K.J. Petersen, R.B. Handfield, G.L. Ragatz, Supplier integration into
new product development: Coordinating product, process, and supply
chain design, Journal of Operations Management vol. 23, pp. 371-388,
2005.
[24] T. Saarelainen, O. Piha, P. Makkonen, E. Coatanéa, J. Orkas, Current
and future practices in Finnish foundry industry - questionnaire study,
In: The Proceeding of 47th Foundry Conference, Portoroz, Slovenia,
September 12-14, 2007, Slovenian Foundrymen Society, 2007.
[25] S. Stjenström, L. Bengtsson, Supplier perspective on business
relationships: Experiences from six small suppliers, Journal of
Purchasing & Supply Management, vol. 10, pp. 137-146, 2004.
[26] E.J. Vinarcik, High Integrity Die Casting Processes, John Wiley & Sons,
New Jersey, 2003.
[27] L. Wen-li, P. Humphreys, L.Y. Chanc, M. Kumaraswamy, Predicting
purchasing performance: The role of supplier development programs,
Journal of Materials Processing Technology, vol. 138, pp. 243-249,
2003.
[28] F. Wynstra, E. ten Pierick, Managing supplier involvement in new
product development: A portfolio approach, European Journal of
Purchasing & Supply Management, vol. 6, pp. 49-57, 2000.
[29] F. Wynstra, B. Axelsson, A. van Weele, Driving and enabling factors for
purchasing involvement in product development, European Journal of
Purchasing & Supply Management, vol. 6, pp. 129-141, 2000.
[30] R.K. Yin, Case Study Research: Design and Methods, Second ed., Sage
Publications, Newbury Park, CA, 1994.
[1] R.N. Ashkenas, D. Ulrich, T. Jick, S. Kerr, The Boundaryless
Organization: Breaking the Chains of Organizational Structure, Jossey-
Bass Inc, San Francisco, 1995.
[2] J. Campbell, Ten casting rules, In: B. Cantor, K. O-Reilly, (Eds.),
Solidification and Casting, Institute of Physics, Series in materials
science and engineering, CRC Press, 2003, pp. 87-105.
[3] CMMI Product Team, CMMI for development: Improving processes for
better products, V1.2, Carnegie Mellon, Software Engineering Institute,
(August 2006), Pittsburgh, 2006.
[4] J. Cullen, A.J. Berry, W. Seal, A. Dunlop, M. Ahmed, J. Marson,
Interfirm supply chains: The contribution of management accounting,
Management Accounting, vol. 77, no. 6, pp. 30-32, 1999.
[5] S. Dowlatshahi, Purchasing-s role in a concurrent engineering
environment, International Journal of Purchasing and Materials
Management, vol. 28, no. 1, pp. 21-25, 1992.
[6] S. Dowlatshahi, The role of product design in designer-buyer-supplier
interface, Production Planning & Control, vol. 8, no. 6, pp. 522-532,
1997.
[7] K.M. Eisenhardt, Building theories from case study research, The
Academy of Management Review, vol. 14, no. 4, pp. 532-550, 1989.
[8] L.M. Ellram, Partnering pitfalls and success factors, International
Journal of Purchasing and Materials Management, vol. 31, no. 2, pp. 35-
44, 1995.
[9] C. Farrukh, P. Fraser, M. Gregory, Development of a structured
approach to assessing practice in product development collaborations,
Proceedings of the Institution of Mechanical Engineers, Part B, Journal
of Engineering Manufacture, vol. 217, no. 8, pp. 1131-1144, 2003.
[10] P. Fraser, C. Farrukh, M. Gregory, Managing product development
collaborations: A process maturity approach, Proceedings of the
Institution of Mechanical Engineers, Part B, Journal of Engineering
Manufacture, vol. 217, no. 11, pp. 1499-1519, 2003.
[11] C.J. Gelderman, A.J. van Weele, Handling measurement issues and
strategic directions in Kraljic-s purchasing portfolio model, Journal of
Purchasing and Supply Management, vol. 9, pp. 207-216, 2003.
[12] I. Giannoccaro, P. Pontrandolfo, Supply chain coordination by revenue
sharing contracts, International Journal of Production Economics, vol.
89, no. 2, pp. 131-139, 2004.
[13] R. Graaf, L. Kornelius, Inter-organizational concurrent engineering: A
case study in PCB manufacturing. Computers in Industry, vol. 30, pp.
37-47, 1996.
[14] J. Hattel, Fundamentals of numerical modelling of casting processes,
Polyteknisk Forlag, Kgs. Lyngby Denmark, 2005.
[15] P. Humphreys, W.K. Shiub, V.H.Y. Lo, Buyer-supplier relationship:
Perspectives between Hong Kong and the United Kingdom, Journal of
Materials Processing Technology, vol. 138, pp. 236-242, 2003..
[16] T.E. Johnsen, Supplier involvement in new product development and
innovation: Taking stock and looking to the future, Journal of
Purchasing and Supply Management (2009),
doi:10.1016/j.pursup.2009.03.008, 2009.
[17] R.R. Kamath, J.K. Liker, A second look at Japanese product
development, Harvard Business Review, vol. 72, no. 6, pp. 154-170,
1994.
[18] P. Kraljic, Purchasing must become supply management, Harvard
Business Review, vol. 61, pp. 109-117, 1983.
[19] H.I. Kulmala, J. Paranko, E. Uusi-Rauva, The role of cost management
in network relationships, International Journal of Production Economics,
vol. 79, no. 1, pp. 33-43, 2002.
[20] K. Mitzuno, Castings in the automotive industry, In: B. Cantor, K.
O-Reilly, (Eds.), Solidification and Casting, Institute of Physics, Series
in materials science and engineering, CRC Press, 2003, pp. 59-68.
[21] R.M. Monczka, R.B. Handfield, T.V. Scannel, G.L. Ragatz, D.J. Frayer,
New Product Development: Strategies for Supplier Integration, ASQ
Quality Press, Milwaukee, 2000.
[22] M. Peter, Early Supplier Involvement in Product Development,
Dissertation, St. Gallen, der Universität St. Gallen, 1996.
[23] K.J. Petersen, R.B. Handfield, G.L. Ragatz, Supplier integration into
new product development: Coordinating product, process, and supply
chain design, Journal of Operations Management vol. 23, pp. 371-388,
2005.
[24] T. Saarelainen, O. Piha, P. Makkonen, E. Coatanéa, J. Orkas, Current
and future practices in Finnish foundry industry - questionnaire study,
In: The Proceeding of 47th Foundry Conference, Portoroz, Slovenia,
September 12-14, 2007, Slovenian Foundrymen Society, 2007.
[25] S. Stjenström, L. Bengtsson, Supplier perspective on business
relationships: Experiences from six small suppliers, Journal of
Purchasing & Supply Management, vol. 10, pp. 137-146, 2004.
[26] E.J. Vinarcik, High Integrity Die Casting Processes, John Wiley & Sons,
New Jersey, 2003.
[27] L. Wen-li, P. Humphreys, L.Y. Chanc, M. Kumaraswamy, Predicting
purchasing performance: The role of supplier development programs,
Journal of Materials Processing Technology, vol. 138, pp. 243-249,
2003.
[28] F. Wynstra, E. ten Pierick, Managing supplier involvement in new
product development: A portfolio approach, European Journal of
Purchasing & Supply Management, vol. 6, pp. 49-57, 2000.
[29] F. Wynstra, B. Axelsson, A. van Weele, Driving and enabling factors for
purchasing involvement in product development, European Journal of
Purchasing & Supply Management, vol. 6, pp. 129-141, 2000.
[30] R.K. Yin, Case Study Research: Design and Methods, Second ed., Sage
Publications, Newbury Park, CA, 1994.
@article{"International Journal of Business, Human and Social Sciences:51854", author = "Taneli Eisto and Venlakaisa Hölttä and Katrine Mahlamäki and Janne Kollanus and Marko Nieminen", title = "Early Supplier Involvement in New Product Development: A Casting-Network Collaboration Model", abstract = "Early supplier involvement (ESI) benefits new
product development projects several ways. Nevertheless, many castuser
companies do not know the advantages of ESI and therefore do
not utilize it. This paper presents reasons why to utilize ESI in
casting industry and how that can be done. Further, this paper
presents advantages and challenges related to ESI in casting industry,
and introduces a Casting-Network Collaboration Model. The model
presents practices for companies to build advantageous collaborative
relationships. More detailed, the model describes three levels for
company-network relationships in casting industry with different
degrees of collaboration, and requirements for operating in each
level. In our research, ESI was found to influence, for example, on
project time, component cost, and quality. In addition, challenges
related to ESI, such as, a lack of mutual trust and unawareness about
the advantages were found. Our research approach was a case study
including four cases.", keywords = "Casting Industry, Collaboration Model, EarlySupplier Involvement, New Product Development.", volume = "4", number = "2", pages = "78-11", }
