Combining internal and external manufacturing product modules

Paper in proceeding, 2014

This paper considers different ways to manufacture product modules. When all product modules are manufactured externally there is a risk for diminished activity in the design/manufacturing interface, which could result in lower capacity to upgrade products according to customers’ needs. An alternative to this could be to have some own manufacturing, though there are benefits and drawbacks to consider. Own manufacturing located nearby the product design unit brings preconditions for close collaboration and spill off effects as dissemination of manufacturing knowledge to designers and informal decision-making. Though, such informal decision channels risk to eliminate the ground for long-term improvement work.