INDEX [link.springer.com]978-0-230-59424-1/1.pdf · opment (chapter one) 7, 9–23 ... lifecycle (basis for innovation) 15–22 music industry 18–19 ... chief financial officer

INDEX

ABS finishing 119

accountability 134, 263

accounting 28, 196f, 223, 239

accounts payable 121f, 232, 233–5, 236f,

237–8, 239, 240, 242b, 243, 244, 246f,

247–54

accounts receivable 232, 233–5, 236f, 237–8,

239, 240, 242b, 243–52, 253f

action plans 42, 43f

activity based product costing 33f, 41

‘adherence to global processes’ 55

Adidas 15, 22(n2), 202

aerospace xv–xviii, 29, 99, 109, 148, 151,

152, 153, 155, 205, 219f

Africa 103, 108

Airbus A350 65tb

Airbus A380 64, 64b, 65tb

aircraft manufacturers 109

airline industry xii, xiii, 10, 11

alliance hubs 127, 128

alliances 50f, 216

aluminium 30, 35f, 49f, 116, 152, 154f

amortization 71

Apple 19b, 20, 21

Asia 41b, 107f, 108, 243

emerging markets 107

Asia-Pacific 137f, 138

assembly lines 1, 50, 150, 152, 153, 179,

207–8

manual 40f, 41

asset performance/productivity xvi, 2, 3f 200f

asset turnover 199, 210

assets 233

assets 236f

Audi 30

Augustin, R. xii , 7

Australia xvi

Austria xv, 107

automotive companies/manufacturers 122,

124, 148

average working capital 234f

Japanese 82–5, 86–7f, 90, 109–10

western 81

automotive components manufacturers 155


automotive industry xii–xviii, 12, 25, 30, 92,

99, 151, 152, 162, 203, 205, 207, 214b,

219f, 237, 243, 258

CCR (case study) 41–4b

global development made successful 45–60

industry benchmark for debtor days 245f

Japan 79, 80–1

lead buying 135–9b

safety recalls 64–5

share of sales with original product inno-

vation 62f

speed with which new models are launched

90

working capital optimization 247, 248f

see also cars

automotive suppliers xiii, 119, 177, 259f, 263

leveraging manufacturing excellence

172–3b

maintenance costs 177, 178f

Avesta (steel producer) 12

B-2-B 10

B-2-C 10

backward and forward integration 119

balance of power 238

balance sheets 101–2, 233, 239, 242b, 243

balanced scorecards 57

Bamberg xvii

bankruptcy/insolvencies 24, 144

banks xiii, 92, 233

barriers to entry 14

BASF 191

batch systems 166, 167f

Bayer 191b

Bayer Industry Services 191b

270

benchmarking/benchmarks 14, 15, 38n, 70f,

110, 121f, 152

equipment maintenance cost-to-availability

ratio 177, 178f

external 73b

financial ratios 256

industry leader 162

machinery maker 119–20

maintenance costs 186

manufacturing excellence 163, 166–8

purchasing 111, 115

SCM 200f, 237

supplier development 109

TCO 112

technical 121f 237, 238–9

working capital 237, 238–9, 244

Berlin 13

best practice/best in class

equipment maintenance 177

institutionalization 171f, 171

lean manufacturing 146

manufacturing 162, 164f, 165, 166, 167f,

170–1, 174

miscellaneous xvi, 2, 3f, 14, 15, 36f, 47, 152

price discounts versus payment term targets

254

purchasing 94, 99, 123–4, 125, 127–30, 135

SCM 200f, 200, 204

sharing process 171f

success factors and levers in innovation

management 61–78

supply chain organization 258, 260–3, 264,

265, 268

working capital 232, 243–4, 249, 251, 252

see also optimization

best price evaluation 121f

Bilfinger Berger Multi Service

Group 12–13

bio-informatics 13–14

BMW [Bayerische Motoren Werke AG] 51,

203

board members 251

body (automotive) 79, 80f

bonuses 55, 121f, 251

book-keeping 56

bottlenecks 41, 101, 174, 254f, 255

Brandenburg, K. 19b

brands 15, 130, 136, 145, 220

Brazil 49f

British Airways 11

built-in quality 162

Bulgaria 108

bureaucracy 158f

business administration xiii, 6

business areas 51, 52

business divisions 133

business environment 59, 93, 106, 148, 156f,

156, 257, 264

changing 14

global 132

business functions 194

business impact 115–16, 116f

business model innovation 7, 13f

prerequisite 19–22

business models xvii, 42, 147, 151, 198, 238,

244

business models: impact on product devel-

opment (chapter one) 7, 9–23

airline industry 11b

attractiveness indicators 18f, 19b

change and innovation 12–15

components 9–10, 10f

corporate strategy in action 9–12

development over time 13f

formation, growth, maturity, decline 15, 17f

how and when to innovate 15

imitation 14, 15, 22(n2)

key question 16

lifecycle (basis for innovation) 15–22

music industry 18–19

outlook 22

‘emerging’ versus ‘planned’ changes 14

prerequisite for innovation 19–22

product/service innovation 19–22

business parks 158f

business planning 254

business processes xiv, xvi, xviii, 49f, 120,

172b, 198

harmonization 57

see also processes

business segments 159b, 191b, 199

business sites 133, 134, 136, 139b, 157

business strategy 200f

business system analysis 164f

business units (BUs) 13f, 43f, 53f, 72, 75b,

123, 124, 128–31, 133, 134, 136, 139b,

199, 206–9, 211–15, 261

central organizational units 214b

data comparability 237–8

local 100

Index 271

buyer-supplier relationships 263

buyers/leverage 116f

Buzz (KLM subsidiary) 11

call centres 209f

capital 177, 185, 194f, 261

international transfer 145

tied 124

capital binding 249

capital expenditures (capex) 97, 98f

capital markets 233, 235

capital projects 192

capital structure 200f

capital transfer 126, 126f

capital turnover 207

car manufacturers 25, 108, 109

best practices 110

R&D activities (splitting among sites) 50

supplier development 109

cars 1, 30, 81

‘hurry up’ models 84

innovative 89

models 203

pure Japanese 80

see also vehicles

cars: sections/attributes

body 85

chassis 79, 80f

crash tests 84

door panels 39f

front wheel drive 49f, 88

interior trimming 109

paint and colour combinations 203

power window module 34, 35f

radios 57

rear wheel drive 49f, 88

right-hand drive 49f

styling 84

under body 87

upper body 86–7f

case studies

CCR in automotive industry 41–4b

complexity tackled from sourcing side

(case study) 226–30b

global manufacturing footprint: optimiza-

tion (how the approach works in real

life) 159–60b

global supply chain management frame-

work (electronic components)

205–14b

healthcare sector 226–30b

‘innovation to cash’ at utility company

72–5b

lead buying in automotive industry 135–9b

lead buying in utilities industry 139–41b

manufacturing excellence (manufacturer of

engine components) 172–3b

SCM 200

university hospitals (tackling complexity

from sourcing side) 226–30b

working capital excellence: consumer

goods industry (case study) 241b

working capital excellence: energy sector

(case study) 242b

working capital excellence: media group

(case study) 242b

cash 240, 264

cash discounts 239, 242b, 249, 251

cash flow 233, 235, 237, 240

cash reserves

hidden in supply chain 232–56

cash-out 75b

catalogue purchasing 139b, 140f, 140b, 141f

cell manufacturing 79

Central and Eastern Europe 107f, 108, 144

‘Central Europe’ 203, 213, 264

‘Eastern Europe’ 6, 47, 49f, 103, 213, 238

central ivory towers 100

centralization 72, 122, 264

purchasing 99, 99f

sourcing functions 97, 98f

supply chain organization 266

Centre for European Economic Research

(ZEW) 61

change management 55, 117f, 187f, 188

change process engineering 119, 121f

chemical industry/chemicals xii–xv, xvii, 12,

191–2b, 219f, 243

benchmark for debtor days 245f

equipment maintenance 188–91


shared support functions 191–2

working capital 234f, 247, 248f

chemical parks 192b, 196

chief executive officers (CEOs) 78, 96, 100,

141f, 259f

chief financial officer (CFO) 251

chief marketing manager (Nissan) 89

chief operating officer (COO) 251

chief product specialist (Nissan) 89

272 Index

chief vehicle engineer (Nissan) 89

China 6, 47, 49f, 103, 106, 108, 129, 144,

145, 159–60b

entry into WTO 105

industrial system 106

sourcing hurdles 106

claims management 252

clearance sales 254f, 255

client base 157, 158

combined cycle gas turbine (CCGT) plant

140b

commercial vehicles 88, 119

commitment 169, 239

commodities 105–6, 107, 117, 122, 128, 134

module- or system-oriented 106

price trends 103f

commodity classification 124

commodity codes/coding 123, 127, 136, 137

commodity councils 129

commodity groups 115

commodity management xiii, 100, 229

commodity markets 199

commodity procurement process cost 127

commodity strategy 138f

commonization 33f, 34, 48f, 121f

communication/s 42, 55–6, 76, 90, 127, 135,

164f, 170–1f, 172, 173, 183, 193f, 205,

240–1

barrier-free 56, 59

compact discs (CDs) 18–19b

companies

advanced 97

best-in-class 109, 257

blue-chip 28

corporations 29, 131, 133, 134

downstream and upstream 109

European 90, 107

external versus internal funding 233

family-owned enterprises 28

global manufacturing footprint (optimiza-

tion) 147–61

global manufacturing footprint (unique-

ness) 148

industrial 109

international 56

international sales affiliates 174

Japanese (efficiency) 79

large 243, 258, 259f

lead-buying concept 134

long payment targets 249

major global 97

medium-sized 94, 125, 243, 258, 259f

multinational 59, 102, 125

partnerships and alliances with suppliers 108

product-based 217

reasons for de-localization 149–50

small 133

small and medium-sized enterprises

(SMEs) 133, 262

start-up 21, 133

survival chances 47

targeted for acquisition 160b

Triad region 145

Western 103, 108

see also suppliers

company size 132, 258, 259f

competence 54, 64b

competition 6, 21, 29, 104, 139, 144, 150,

162, 173, 203, 216

global 45, 61

low-cost (defence against) 151

outsmarting 24–44

competitive advantage 10f, 10, 22, 96, 108,

146, 151, 159, 173

comprehensive solutions 12–13

integrated lead engineering-lead buying

approach 58

technological 161

competitive environment 16, 18f, 18–19b, 93,

154

competitive pressure 96, 131, 257

competitive strategy 9

competitiveness 2, 31, 76, 93, 94, 104, 107f,

115, 136f, 159, 162, 173

three skills 161

competitors 44, 71, 114, 115, 150–1, 159b,

210, 237, 238, 239

competencies 34

cost positions 32

performance cost analysis 36f

products 37, 88

complete knock down (CKD) 153

complexity

addressed 221–6, 228–30

brand and channel 217, 218f, 222f

characterisation 217

cost versus value 220, 221, 224f

costs 217

cross-functional 220

customer 217, 218f, 222f

Index 273

complexity – continued

engineering 217, 218f, 222f

good versus bad 224f, 231

growth-suffocation 231

identification 217

main drivers (identification) 227

management and control 224f, 225–6,

229–30

manufacturing 217, 218f, 222f

market-driven 222f

miscellaneous 47, 199–200, 215, 258

necessary versus unnecessary 216, 217

non-value-adding 225, 227, 228

organizational 217, 218f, 222f, 227

processes 217, 218f, 222f, 227

re-designing 224f, 225, 229

right level 220

suppliers 217, 218f, 222f, 227

tackled from sourcing side (case study)

226–30b

technical 222f

transparency (three-step approach) 223–6,

228–30

understanding 223, 224f, 228–9

visible versus invisible 223

complexity costs 220, 221b, 221

bottom-up estimation 223, 224f

savings 228, 229, 230

complexity database 225

complexity drivers 217, 218f, 221tb, 223

complexity management/complexity reduc-

tion xii, xiii, 70f, 201, 229, 252

importance 218–20

improves profitability 210–12

‘not low-hanging fruit, but always pays off’

231

optimization 221

complexity management (starting point for

improving SCM performance) (chapter

thirteen) 199–200, 216–31

addressing complexity 221–6

case study (tackling complexity from

sourcing side) 226–30b

complexity drivers 218f

cross-functionality of complexity 220

importance of complexity management

218–20

manage complexity before it suffocates

growth 231

SKU rationalization 221tb

complexity tax 217, 219f

resources, processes, systems 218

component assembly 40f

component quality 181

components 28–9, 32, 37, 38f, 40n, 48f, 52,

53f, 54, 58, 102, 110, 149–52

cost 88

cost of keeping in stock 30

Japanese ‘sets’ 83

least value-added 105

low-value 49f

over-engineered 36f

performance 83

comprehensive cost reduction (CCR) xii, 25

analysis tool-matrix 32, 33f

automotive industry (case study) 41–4b

implementation 42, 43f

main advantage 44

six-phase 42

ten facets of a gem 32–41

compressors 12

computer chips 34, 37, 144

computer games 19b

computer industry 14, 25, 129

computer-aided design (CAD) 56, 64b, 72

computer-aided engineering (CAE) 84, 85

computerized maintenance management sys-

tems (CMMSs) 183–4

concept competitions 119, 121f

concept development (manufacturing

excellence) 168, 169

conjoint analysis 223, 224f

consensus 168

consignment stocks 31, 214b

consignment warehousing 119, 121f

consistency 67

construction errors 64b

construction industry xiii, 12, 152

construction of cost competitiveness (CCC21)

initiative 88

consultancy firms 110

see also Roland Berger Strategy Consultants

consumer electronics 14, 25

consumer goods xii, xiv–xvi, 145, 205, 219f,

239, 243



working capital optimization 241b, 248f

consumer markets 107

consumers 145

274 Index

‘diversified’ requirements 84

legislation to protect 30

regional 47

content teams 169–70, 170f

continuous improvement 70f, 162

contracts

fixed-price 121f

long-term 125

control systems 166, 167f

cooperation 55, 59, 100, 188

worldwide 45

coordination 64b, 88, 100, 122, 225, 241,

257, 263

global 48f, 129

Nissan 89

supply chain 258, 266

three levels 53

WCM 250–1

coordination costs 202

copyright protection 161

core competencies 3f, 28, 31, 49f, 50, 51, 65,

92, 94, 125, 161

pressure to concentrate on 93

core processes 237, 242b

core teams 58

corporate culture 64b, 150, 163, 225, 265–6,

267f, 268

corporate governance 225

corporate innovation launch plan 75b

corporate innovation units 72b, 75b

corporate philosophy 132

corporate strategy xv, 1, 9, 13, 69, 77, 96

‘being innovative’ 61

innovation initiatives linked to 68f

purchasing 111, 113

SCM 199

corporation tax 156

cost approach design 24–44

cost base 195, 196

cost competitiveness 25

cost drivers 44

cost efficiency 199

cost leadership 9, 11

cost levers

innovation management 70f, 71

cost performance 68f, 200f

cost planning 79, 82, 85, 88

cost pressure 204

cost savings/cost management xii, xv, xvi, 25,

31, 35f, 46, 57, 79, 92, 107f, 115–20,

131, 154f, 156, 173b, 191, 202, 212–14,

221, 226b, 233, 257, 264

deferred 83

global, regional, local 137f

idea calculation 42

idea creation 42, 43f

opportunistic 77

potential 43f, 58

purchasing 94–5, 98f, 99, 114, 136

reason for de-localization of manufacturing

149,150

targets 53, 55

transportation choice 104

see also CCR

cost simulation 159b

cost structure 3f, 42, 43f, 85, 148, 149–50f,

152, 153, 154, 158, 159b

new (through re-design) 36f

cost transparency 110, 223

cost types 2

cost-per-function data 58

costs 84, 109, 122, 123, 175, 216

bottom-up and top-down calculations 32

follow-up 101

post-deployment 101

trend analysis 112

variable versus fixed 236f

cost-to-serve 218

CPL 141f

CRA 121f

critical mass 70f, 77, 108, 213

cross-divisional functional role 93

cross-docking 204, 254f, 255

cross-functional approach 67

cross-functional responsibility 254f, 255

cross-functional teams 70f, 106

lead engineering 52f, 54

cross-investment 110

culture 57, 106, 107, 107f, 110

currency movements 157

currency risk 107

customer base 150, 191b

customer demand 217, 220

customer expectations 46, 93, 125

‘client expectations’ 264

customer groups 26f, 27

customer information

automated supply to sales department

252

customer integration 254f, 255

Index 275

customer interaction/interface 140b, 225, 251,

252, 256

customer orientation 13f, 209

customer planning (integration) 252, 254f,

255

customer portfolios 206, 208, 222f

customer representatives 81–2

customer requirements 76, 265, 267f

function and price 63

pace of action 94

customer satisfaction/loyalty 11, 116f, 118,

124, 198, 199, 202, 223, 235, 260, 262

customer segmentation 208, 252

customer service 11, 202, 204, 208, 209f,

209b, 211, 249–50

customer service structures 201, 214b

customer service unit 211

customer structures 238

customer value 10f, 10, 22, 119, 223

comprehensive solutions 12–13

customers

dissatisfied 205b

hidden needs 80

incremental value 223

individualized solutions 52

‘key-account’ versus ‘small’, 208, 210, 211

miscellaneous 17f, 18f, 31, 71, 93, 205,

207, 214b, 225, 239, 244, 251, 266

needs 89, 217

power and unpredictability 216

product-functions required 63, 63f

regional 52

tastes 47

time to stop listening to 83

unprofitable 210

wants (real and supposed) 27

willingness to pay 16

see also internal customers

customization 62, 73b, 146, 147, 203, 204,

219f, 220

local 77

Czech Republic 108, 212

Darmstadt xii, xiii, xv

data access 102

data analysis 32

data collection 43f, 163

data exchange 55–6

data formats 56

data management/purchasing 99f

data networks 193f

data quality 186

data transparency 123, 136

data warehousing 56

databases 42, 123, 126

global suppliers 88

know-how 56

debtor days 245f

decentralization 72, 99f

decentralized buyers 122, 135

decision-makers 148, 168, 172b, 251, 258

decision making 54, 55, 57, 74f, 133, 139b,

161, 183

lean global processes 129


upstream 199

decision-making mechanisms 263

decision-making power 165

Deckert, C. xii , 200

default risk 248

defects 79, 260f, 260

defence sector xvi, 148, 151, 153, 155, 219f

delivery flexibility 262

delivery moratoriums 252

delivery on time 260f, 260, 262

delivery performance 208

delivery times 207, 214b

delivery timing 109

delocalization 151

demand

constantly changing situations 264

demand data

central collation 211

demand forecasts 254f, 255

demand management 117f, 211

deoxyribonucleic acid (DNA) 13–14

depreciation 153, 166

design 50, 84, 89, 109, 202, 222f

dominant 21

design to cost (DtC) 25, 27, 29–32, 37, 41, 44,

70f, 71

design engineering 79, 80f, 80, 82

design freeze 83, 84, 85, 86–7f

design for manufacture and assembly

(DFMA) 121f

technical benchmarking 32–4

design modifications 50

Detroit xvii

developing countries 71, 146

development budgets 62

276 Index

development costs 64, 65tb, 71

development departments 47

development facilities 51

development gap 21

development lead times 82

development virtualization 70f

diagnosis related groups (DRGs) 228

die manufacturing 85

die-making 86–7f

digital versatile discs (DVDs) 19b

digitalization 14, 18–19b, 67, 84

direct debit 254

direct ordering

elimination of inter-company flows 212f

direct shipment/s 209f, 211, 213, 214b, 254f,

255

distribution xvi, 20, 208, 209f, 233, 250, 250f,

251, 253–4f, 255, 261

Adidas 202

complexity tax 219f

lean 201, 214

distribution business unit 73b

distribution network/channels 210, 212–14,

215, 220

diversification 12, 151, 203

‘doing more with less’ 47

Dolby function 31

downstream activities 109, 152

Duisburg xvi

dunning system 239, 242b

e-catalogues 118, 121f

e-conferencing 56

e-enabled tools 102

e-mail 56

e-procurement/e-sourcing 118, 121f, 123,

127–8

early adopters (of an innovation) 71

early warning signals/systems 16, 18–19b, 19,

21–2

earnings before interest and taxes (EBIT) 208,

210, 214b, 240

East Asia/Far East 159b, 160b, 238

Eastern Bloc 24

eBay 21

eCl@ss 137

ecological factors 18f

economic data/tactical and strategic 102

economic growth 103, 192

economic performance 243

economics xii, 153

economies of scale 97, 117–18, 133, 148, 150,

152, 153, 196, 212–13

education 161

efficiency 182, 223, 257, 258, 264

administrative 133

employees 47

operational equipment 175

Eisenmann (painting systems) 12

electric power 152

electrical industry xiv, 62f

electricity 116

electronic commerce 14

electronic components 199, 201, 205, 206,

210, 214b

electronics xii, xiv, xv, 31, 90, 243

automotive 79, 80f




emergency shipments 205b, 214b

emerging countries 71, 103, 104, 107, 111,

145, 161

emerging economies 147, 151, 152, 198

emerging markets 48f, 144, 146, 150,

159b, 160

employees 110, 134, 142, 158, 181–2, 185,

190, 195

interaction (company and supplier) 263

number of 132

skilled 146

enablers 8, 67

reduction in lead time 85

successful SCM 257–69

third level of operations excellence 2, 3f

WCM 237, 240–1

energy 103, 110–11, 153

WCM optimization levers 242b

engineered products xii–xiv, xvi–xvii, 101,

219f, 258



engineering xii–xviii, 6, 25, 28, 58, 83–4, 124,

129–30, 148, 152, 154f, 155, 160b, 182,

192b, 193f, 196f, 205, 217, 243


central 189f, 190


initial 86–7f

smart processes (Japanese approach) 8

Index 277

engineering – continued

under body and upper body (automotive) 85

virtual 65, 71

engineering capacities 65tb

engineering change management 86–7f

engineering companies 128

engineering data 64b

engineering service providers 90

engineering services 160b

engineering tasks 85

engineers 29, 31, 81, 82, 83, 89, 145, 190

component-design 88

etymology 25

global teams 51

local 55

shortage 90

enterprise application integration (EAI)

platform 212

Enterprise Resource Planning (ERP) 102,

128, 183–4, 186, 212

equipment 111, 166

breakdowns/downtime 175, 176f, 181, 183,

184, 188, 189f

failure costs 179, 181, 184, 185, 187f, 188

first-time costs 112

life-cycle costs 112

maintenance cost-to-availability ratio 177,

178f

losses (planned versus unplanned) 180f,

184

equipment availability 185, 186,

189f, 191b

equipment defects 177, 186

equipment maintenance 175, 193f

‘breakdown’ strategy (run to failure)

179, 180f

centralized versus decentralized 190

corrective, predictive, preventive 186, 187f

order processing 180f, 183

planned 189f, 190–1b

planning 180f, 183

predictive strategy 179, 180f

preventive strategy 179, 180f

small projects 189f, 190

equipment maintenance: six building blocks

179–84

control 180f, 184

IT systems 180f, 183–4

organization 180f, 181–3

personnel 180f, 183

process 180f, 181

strategy 179–81

ESB Research Institute 76

escalation and mediation processes 54–5

escalation paths 57

euro (currency) 108

Euro-zone 107

Europe xv, 11, 46, 49f, 66f, 79, 107, 108, 117,

128, 137f, 138, 144, 192b, 204, 206, 208,

226b, 233, 243, 264

chemical industry (equipment mainte-

nance) 188–91

top five hundred companies (ROCE) 235

Europe, Middle East, and Africa (EMEA)

205, 205b, 209f, 211–15

European Aeronautic Defence and Space

Company (EADS) 64, 65tb

European Union (EU) 103, 104

experience 62, 67, 96, 97, 112, 125, 170f, 199,

231, 239–40, 242b

expertise 226b, 227

see also skills

experts 168, 172b, 181, 228

maintenance 190

technical and financial 158

exports 174, 202f

F&A 219f

face-to-face contact 56, 82, 111

‘personal interaction’ 56

facility management 194, 196f

fact-based neutrality 32

factor costs 156f

failure costs 176f

failure mode and effect analysis (FMEA)

179, 184, 186, 187f

fashion industry 204

fast followers 17f, 21

finance departments 41, 239

finance staff 240

financial holding companies 133

financial holdings 141f, 141b

financial performance 244

monitoring 251–2

financial resources 69

financial services 66f, 118

Finland 12

fire services 194

first-to-market strategy 70f, 71

first-movers 21

278 Index

flexibility 28, 30, 113, 137, 145, 147, 148,

157, 161, 199, 202, 206, 208, 211, 258

delivery 62

refining organizations 194–6b

supply 260f, 260

supply chain 265, 267f, 268

Flickr 21

focus groups 81

follow-up costs 101

food industry 259f

food manufacturers 258

Ford (corporation) 1, 12

Ford, H., Snr 1

forecast-to-fulfil 237, 238, 250

forecasting 111, 166, 167f, 209

link with production 107

sales 174, 249

SCM efficiency 211

foreign direct investment (FDI)

202, 202f

forward and backward integration 121f

France xiii, 25, 64b

Franke, T. xiii, 95, 99

Frankfurt 191b

Fraunhofer Institute for Systems and Innova-

tions Research ISI 12, 22(n1)

Free University of Berlin 13

front loading 79, 82, 83–4

front wheel drive 49f, 88

fuel prices 103, 104

Fujimoto, T. 79

functional adjustment 117f, 119–20, 121f

functional department heads 81

functional departments 79–80

functional systems 58

gap analysis 21, 266

‘GAP analysis’ 126

gearboxes 61

genetic immunization 13

geographical location 132

geography 204

Germany xii–xvii, 12, 15, 19b, 25, 30, 51, 61,

64b, 145, 174, 192b, 194b, 202, 203,

212f, 212, 226b, 227, 242b

Gleisberg, J. xiii , 8

global commodity leader (GCL) 138, 138f,

139b

global development made successful (chapter

three) 7–8, 45–60

automotive industry 45–6, 58

global product development 46

global product development (tailored to

evolving circumstances) 47–51

global R&D network (allocation of core

competencies) 49f

interactions ‘need to be managed’ 59

issues/questions 45, 52, 59

lead engineering (concept and implementa-

tion) 51–8

local technical centres/integration and

competencies 50f

organization is what matters in global

world 46–7

status quo (coordinated multinational

development) 48f

trend towards integrated global networks

(coming decade) 48f

trends 45–6

global development network 47

global development organizations 8

global lead centres 50f, 51

global manufacturing footprint 144

global manufacturing footprint: optimization

(chapter nine) 146, 147–61

case study (how the approach works in real

life) 159–60b

economic performance of each scenario

157

monitoring 158–9

network design goals and challenges 150f

payback and risk analysis 154, 154f

process without close 158–9

simulation model 157

size and imprint 148–58

global manufacturing footprint: six-step

approach 148–58

step 1: understanding strategic drivers 149f,

149–51

step 2: derive model 149f, 151–3

step 3: segment product structure and

define delocalization scenarios 149f,

153–4

step 4: select target regions and countries

149f, 155–6

step 5: fine-tune the model and finalize the

footprint 149f, 156–7

step 6: select site, suppliers, partners 149f,

157–8

global marketers 76

Index 279

globalization xiii, 6, 45, 96, 147, 149, 258,

265

automotive industry 135

importance of organization 46–7

industry and society 93

manufacturing 144, 145

product development 90

production 204

purchasing 102–3, 123, 128, 130, 131

R&D: success factors 76–7tb

supply chain 216, 267f

value chains 202

globalization leaders 76

GNP (China and India) 145

Go (BA subsidiary) 11

goods

customized 146

‘near-the-customer’ 146

goods and services 97, 107, 111, 112, 116,

200f, 201, 214, 216, 217

Google 21

government funding 226b

governments 104, 106

Great Britain see United Kingdom

greenhouse gases 104

gross domestic product (GDP) 105, 202f

groupware 56

guarantees 30, 46

Gulf of Mexico 192

hardware 20, 21

head offices 50

health, safety, security, environmental, and

quality (HSSEQ) standards xix, 194,

196f

healthcare facilities 184

healthcare sector xiii, xvii, 200, 216, 243


case study 226–30b


see also pharmaceuticals

heavy weight product managers (HWPM)

79–80, 80f

capability and personality 82

chief engineer 89

history 80–1

initiatives for change 88–9

matrix organization 80f, 80

practices 82–8

strong empowerment by top management 81

success factors 81–2

well-defined processes 82

hierarchy 45, 53, 142, 169, 209, 230, 263

high technology xiii, xv, 219f

high-maintenance partnerships 265

Hoechst 191b

holistic approach 32, 67

Hollmann, T. xiii, 199–200

home country 50f, 51

Home Depot 123

hospitals 226–30b

housing market 1–2

human medicine 14

human resources 2, 57, 81, 82, 157,

158f, 196f

prioritization 69

Hungary 108

Hurricane Katrina 192

IBM [International Business Machines] 123

idea evaluation 62, 73b

idea management 70f

image 26, 27, 30, 100

implementation 83

manufacturing excellence 164f

import regulations 117, 238

export regulations 238

improvements: source of fortunes (Ford) 1

incentives 158f, 225, 251

internal sales systems 252

India 47, 49f, 103, 144, 145

indirect functions 172b, 173b

individualized standardization 47

industrial engineering company

global manufacturing footprint (optimiza-

tion) 159–60b

industrial goods

‘complete solutions’ approach 12–13

industrial history 107, 107f

industrial structure 160b

industrial tradition 108

industry type 132

information 42, 161, 163, 174, 200f, 224f

information and communications technology

(ICT) 93, 203

information flows 100, 220

information systems (IS) platform 166, 167f

information technology (IT) xiv, xvii, 2, 3f,

99–100, 123, 138, 193f, 239, 242b

common platform 127

280 Index

compatibility of computer systems/data

formats 56

global systems 55–6


knowledge sharing 56

systems performance 67

unified groupware solutions 56

working capital optimization 247

information technology: miscellaneous

IT automation and integration 254f, 255

IT capability 267f

IT infrastructure 266

IT platforms 77

IT solutions 57

IT tools 90

information technology systems 59, 145,

172b, 185, 187f, 188, 206, 212, 226b,

227, 229, 265

equipment maintenance 180f, 183–4

global 52f, 55–6

lead engineering 52f, 55–6

Infraserv 191b

infrastructure 68f, 106, 108, 146, 156f, 156,

157, 158f, 193f, 213, 225

infrastructure excellence fields 2

infrastructure projects 13

infrastructure and systems (innovation enabler)

72

innovate to win (chapter two)

clever cost approach design 24–44

CCR approach (ten facets of a gem)

32–41

CCR in automotive industry (case study)

41–4b

competition 24–44

cost drivers (quartet that sets stage)

28–31

discussion and perspective 44

emotion versus rationalism 28

reducing cost ‘a mindset’ 25–8

innovation 15, 217, 221tb, 225

competitive differentiation factor 94

environment for excellence 6

failure 61, 63, 64, 65, 67

‘not having to lower prices’ 24

‘not sign of outstanding performance’ 24

optimization levers 95

pace of action 94

performance targets 68f

preconditions for effectiveness 68f

source of higher profits 62f

innovation analysis 33f, 34, 37, 121f

innovation budget 74f, 75b

‘innovation to cash’ 72–5b

innovation controlling (innovation enabler)

68f, 72

innovation enablers 67, 68f, 72

innovation management xv

correlation with commercial success 75

holistic concept 73b, 74f

re-definition 75b

innovation management: success factors and

levers for best practice (chapter four) 8,

61–78

Airbus A380 64b, 65tb

business context 62–7

case study: ‘innovation to cash’ at utility

company 72–5b

globalization of R&D: success factors

76–7tb

innovation performance 69–72

innovation strategy 69

major challenges 62–3

performance measures 70f

questions 73b, 76

Roland Berger Innovation Toolbox 67–78

strong versus weak 67

innovation performance 67, 68f, 69–72

innovation portfolio 70f, 71, 75b

innovation process 72, 76, 109

customer involvement 63

ideal 73b

innovation scorecard 72

innovation strategy 9, 67, 68f, 69, 74f

innovation theory 6

innovation toolkit 8

‘innovative supply industries’ 221tb

institutionalization 29

insurance sector 92

integrated global organization


leadership approach 53, 53f, 54

local execution approach 53, 53f, 54

mandate approach 53f, 53–4

integrated network hubs 50f, 51

intellectual capital 7

inter-governmental agencies 104

internal customers 115, 129, 133, 138,

185, 186

international 100

Index 281

international contract law 100

international purchasing offices (IPOs) 123

internet 18–19b, 20, 21, 203

interviews 76, 81, 111, 157, 158, 163, 223,

228, 258, 259f

inventories 31, 121f, 185, 199, 209, 210, 215,

232, 233–5, 236f, 243, 244, 246f, 247–56

‘buffer inventories’ 186

‘buffer stocks’ 254f, 255

centralized planning 212

optimization (four-step strategy) 237–42

inventory costs 173b, 213, 214b, 260f, 260

inventory management xiii, 166, 167f, 201,

209f, 211, 230, 254f, 255, 256

investment 41, 73b, 152, 153, 157, 158f, 161,

225, 242b

invoicing 252, 253f

iPod 21

iTunes 18–19b, 21

Japan xiv–xv, 8, 25, 46, 49f, 66f, 144, 145

smart engineering processes 79–90

jeans 26

joint partners 159b

joint venture structure 106

just-in-time production 79, 162, 254f, 255

Kaeser (compressor manufacturer) 12

kanban 255f

Kazaa 18b

key performance indicators (KPIs) 2, 3f, 57,

72, 74f, 110, 136f, 164f, 166, 167f, 171,

172b, 175, 195, 207, 209, 230, 264, 265

emergency shipment cost to total shipment

cost 210

innovation activities 69

inventory coverage 210

lead engineering 52f, 55

price 96

quantitative 262

standardized 52f, 55

supply chain 261

KLM 11

know-how 26f, 27, 106, 109, 153, 183, 194,

concentration 77

decentralized units 77

external 21

global 77

knowledge

externally-available 31

local 46, 54

knowledge management 51

knowledge sharing 56, 182, 187f, 188,

Korea 25

KUKA Robot Group 12

labels (music) 20

labour 105

labour content 149, 152

labour costs 108, 151, 153, 158f, 165, 166,

195, 213

labour legislation 158f, 265

labour rates 107

labour skills 152, 154

lamp manufacturer 40f

language barriers 52, 107

language skills 55, 108, 123

Lanxess 191b

large order planning 254f, 255

Latin America 6

law/legislation 30, 100, 106, 158f, 265

lead buyers 53, 54, 58, 141f, 141b

role 122

lead buying 58, 99, 131–42

automotive industry 135–9b

benefits 141–2

concept 134

governance models 137–9b

utilities industry 139–41b

lead car 51

lead engineer 52–3, 54, 55, 56, 58

lead engineering

concept and implementation 51–8

global strategies 52f, 52–3

price to pay 57

real life 57

six key elements 52f, 52–6

lead engineering groups (LEGs) 53, 54, 55, 57

lead times 39f, 62, 65, 174, 177, 185, 258

concept approval to start of production 66f

reduction 79, 82, 84–5, 86–7f

supply chain 199

lead-user integration 70f

leadership concepts 45, 131

lean manufacturing xvii, 146, 174

LEDs [light-emitting diodes] 37

legal departments 58

legal environment 157, 158f

leverage (sourcing strategy) 116f, 116

life-cycle 53, 153, 155, 157, 219f, 220

282 Index

business model 15–22

equipment 181

life-cycle costs 124

life-cycle indicators 17f

light bulbs 37

Linde 12

liquidity 249

optimization 248

‘local antennas’ 50, 50f

local autonomy 48f

local buyer (LB) 138, 138f, 139b

local content 46, 151, 155

local expectations 47

local requirements 50, 90

‘local satellites’ 50, 50f

location 193f

logistics xiv–xviii, 3f, 31, 32, 37, 145, 149f,

156f, 156, 158f, 165f, 165, 166, 167f,

172b, 173, 175, 196f, 198, 199, 201–3,

206–9, 217, 230, 233, 238

competitive services 264

demand-driven 258

logistics capabilities 260f, 260

logistics costs 260f, 260

logistics managers 259f

logistics networks 202, 209f

London xiii

Louisiana 192

low-cost countries 113, 131, 144,

147, 159b

advantages and disadvantages 105

alternatives to China 106–7

dominance 103f

low-cost country (LCC) sourcing 104–8, 202,

206, 213, 265, 267f

manufacturing 117, 121f, 155, 159

success factors 106

‘trendy’ approach 113

Lufthansa 11

machinery xiii, 2, 29, 101, 119–20, 145, 152,

166, 186, 212

medical 227

magnet valves 119

maintenance 174–96

‘break-fix’ philosophy 192

cautious 177

centralized 180f, 182

decentralized 180f, 182

expert services required 181–2

integrated 180f, 182, 188

manufacturing equipment 175

regular 177

simple activities 181–2

maintenance control 180f, 184, 185, 187f,

188, 190

maintenance costs 166, 184, 185, 187f, 189f,

191b, 195

balance with equipment availability 177

balance with failure costs 181

maintenance excellence project (three-phase)

185–8

concept 185, 186–8

implementation 185, 186, 187f, 188

positioning 185, 186, 187f

preparatory phase (target-setting)

185, 187f

maintenance, repair, overhaul

(MORO) 128

make-or-buy decisions 26f, 28, 62, 119, 121f,

149f, 157, 182, 186, 187f

management 42, 142, 158, 160b, 171f, 241,

265–6

best-in-class 146

commitment 164f

distracted by complexity 218

strategic challenge 204–5

management attention 69

management by objectives (MbO) 55, 57

management information systems 22

management methods 243

management practices 163

management skills 161

management stretch 192

managers 145, 162, 226, 239, 258, 262

manpower 51

manufacturability 84

manufactured goods 97

manufacturers 59, 106

alliances 47

western 151

manufacturing

business set-up time 156f, 156

de-localization, 156–7

driver of product costs 29–30

global context 144–6

global footprint: optimization (chapter

nine) 146, 147–61

global networks 146

labour-intensive 153

Index 283

manufacturing – continued

leveraging manufacturing excellence in

global production networks (chapter

ten) 146, 162–73

miscellaneous xiii, xiv, xvii, xviii, 1, 107,

109, 129, 202, 261

network design 149

Nissan 89

not only shifting landscape, but also

shifting world 145–6

performance leveraged by support func-

tions (maintenance/quality control)

(chapter eleven) 146, 174–96

third ‘field of action’ 2, 3f, 143–96

see also global manufacturing footprint

manufacturing capabilities 157

manufacturing companies 104, 218

manufacturing department 33f

manufacturing engineering 80, 90

manufacturing equipment 185–6

manufacturing equipment maintenance

177–84

manufacturing excellence

first indication of good and bad practices

166

identifying best practices 166, 167f, 168,

171

implementation, 164f, 165–6, 168–9,

170–1, 172–3b

same as ‘lean manufacturing’ 162

manufacturing excellence: leveraged in glo-

bal production networks (chapter ten)

146, 162–73

benchmarking 163, 164f, 166–8

case study (manufacturer of engine

components) 172–3b

concept development 168

four-step process 163, 164f

introduction 162

making transformation stick 169–72

preparation 163, 165–9

question 162

roll-out 168–9

manufacturing hubs 146

manufacturing locations 147, 205

manufacturing methods 32

manufacturing options 153

manufacturing performance: leveraged by

support functions (maintenance/quality

control) (chapter eleven) 146, 174–96

chemical industry: shared support functions

191–2

costs of support functions and failure costs

176f

critical production lines 190–1b

flexibility 194–6b

impact of support functions 175–7

introduction 174–5

maintenance excellence programme:

execution 185–8

maintenance in Europe’s chemical industry

188–91


177–84

outsourcing production support functions

191–2b

production-support functions independent

of location 193f

project example: major sites of a global

player (specialty chemicals) 189f

refining organizations (new developments)

192–4

six building blocks 179–84

support for support function 185

support function design 175

tailoring supportive function 177–84

manufacturing processes 127, 149f, 152,

153, 177

manufacturing processes/principles 26, 27–8

manufacturing scenario 149f, 154

mapping/procurement 159b

market access 76, 77, 147, 159b

market capitalization loss 64

market cycles 12

market demand 174, 223

market entry 71, 109, 267f

market entry test 70f

market environment 63f

market growth

inability to keep pace with 174

market know-how/decentralized units 77

market launch 71

market launches/successful management 63

market leadership 71

market opportunities 198

market penetration 17f

market positioning 9, 69

market potential 17f

market requirements 125, 265

missed 63, 63f

284 Index

supply chain 267f

market research 123

market saturation 17f

market segmentation 199

market segments 15, 26, 61, 203, 204, 207

market share 61, 151, 229

market size 152, 155, 160b

market structure 264

market trends 89, 101

market/consumer studies 34

marketing xii, xv, 20, 27, 32, 54, 80, 82, 202,

208, 262

markets

attractiveness 149

global/international 6, 44, 76, 161, 199

home/local 47, 76

miscellaneous 29, 111, 131, 149f, 151, 206,

207, 266

national 174

new 144–5, 159b, 202, 232

regional 50, 51

western 24

mass manufacturing 85

mass markets 61

mass production 1–2

material costs/prices 88, 93, 96,

177, 195

materials 28–9, 30, 32, 34, 49f, 92, 105, 153,

212f, 225, 239, 243


standardized 140b

materials management 166, 194, 194b, 208,

209, 211, 215

matrix organization 80f, 80, 81

mechanical engineering 259f, 263

R&D leaders 63

share of sales with original product

innovation 62f

media 20, 64b

WCM optimization levers 242b

medical procedures 228

medical research 226b, 227

medicine technology measuring and control/

share of sales with original product

innovation 62f

mega networks 99f, 100

Mercedes 27, 65, 67

merge-in-transit procedures 204

mergers and acquisitions (M&A) xiv, xvii, 15,

34, 129, 160b, 257, 265, 267f

me-too product 63, 63f

middle class 145

Middle East 107f, 108, 238

Milan xviii

mindset 51, 93

end-to-end 268

‘one-supply-chain-fits-all’ 199

reducing cost 25–8

mineral resources 24

Mini brand (BMW) 203

MIT 19b

mobile telephone companies 20

mobile telephones 204

model proliferation (automotive) 64, 66f

models 220

modular construction concepts 52

modular construction system 58

modular sourcing 121f, 254f, 255

module cost 38n

modules 28–9, 32, 48f, 53–4, 56

molecular medicine 13–14

Mologen 13–14

monitoring 141–2, 158–9, 207, 240, 253f

accounts receivable 239

business processes 198

commodity management 229

complexity management 224f, 225

cross-function 254f, 255

KPIs 230

maintenance control 185

maintenance costs 180f, 184

manufacturing excellence 169, 171f, 173

payment patterns 252

ROCE or company value 235

supply chain 199, 208, 261, 262

WCM 241

motivation 120, 122f, 132, 182, 262

motor-cycles 144

MP3 files 18b

multinational purchasing environment 102

multiple reporting lines 161

Munich xv, xvi

music industry 18–19b, 20, 22(n3)

Nagashima Satoshi xiv–xv, 8

Nakamura, K. 80, 81, 88

Napster 18b

natural resources 103f, 103–4

near-sourcing 107

negotiation power 133–4

Index 285

Negroponte, N. 19b

net meeting 56

network coordination model 14

network effect strategy 70f

networked systems 212

networks 13f, 51, 200f, 222f

new entrants 16, 18f, 96, 144

new product development 221

niche markets 61, 64–5

Nike/business model 15, 22(n2)

Niketowns 15

Nissan 124

Nissan/team management, 88, 89

non-price factors 112

North Africa 107f

North America 46, 66f, 79, 137f, 138, 144,

145, 243

North America/automotive manufacturers

(time-to-market) 84

NZZ (Swiss newspaper) 65tb

obsoletion 14

OEE 180f

office services 193f

offshoring 149–50, 152, 213, 265

oil xiii, 24, 192, 219f, 243




oligopoly 18b

one-face-to-customer principle 251

openness to changes 32

operating earnings 235, 236f

operating styles and processes 257

operational costs 224f

operational expenditures (opex) 97, 98f, 139

operational managers 249

operational support 187f, 188

operations excellence

factor of differentiation 146

four fields of action 2–3

global manufacturing networks 146

manufacturing (Part III) 143–96

purchasing (Part II) 91–142

research and development (Part I) 5–90

questions 1

supply chain management (Part IV)

197–269

three levels 2, 3f

operator models 13

opportunity players 77

optimization

assembly 34

complexity management 221

cost-savings 156

costs 37, 119

design 34

global manufacturing footprint 147–61

global supply chains 204–5

innovative levers 95

inventories 237–42

lead buying 139b

liquidity 248

manufacturing footprint 148,

manufacturing performance 174

manufacturing process 34

miscellaneous xii, 75b

plant network 162, 163

price 116–17, 117f

production sequences 174

products and costs 44

purchasing 99f, 140f, 228

purchasing organization and processes 120,

122–4

revenue, cost, time-to-market 68f, 69, 70f, 71

site services 194b

supplier base 127

supply chain 199, 204–5, 206–7, 208, 262,

264

use of resources 133

working capital 247, 248f, 252–5

working capital management 232, 237, 256

see also best practice

order batch size 254f, 255

order handling 210, 211, 215

order management 3f, 250–5

order moratoriums 254f, 255

order processing 180f, 209f, 261

order scheduling 241b

order segmentation 254f, 255

order type 266

order-to-cash 237, 238, 250

order-to-pay processes 120

ordering (inter company) 211

orders (lost) 65tb

organization 52f

effective and efficient WCM 250–2

equipment maintenance 180f 181–3

lean, structured 227

‘what really matters in global world’ 46–7

286 Index

organization transition 266

organizational form 2

organizational options 266, 268

organizational set-up 186, 187f

organizational talents: supply chain

organizations 258–63, 268

organizations drive strategy and performance:

insights from lead buying models (chap-

ter eight) 95, 131–42


lead buying in automotive industry 135

lead buying in automotive industry (case

study) 135–9b

lead buying in utilities industry 139

lead buying in utilities industry (case study)

139–41b

procurement organizations: types 132–4

transformation teething problems 134–5

original equipment manufacturers (OEMs)

38f, 39f, 46, 59, 64, 67, 82, 109, 135, 148,

151, 152, 155, 203, 234f

core competencies 65

R&D budgets 66f

outlook

global development made successful 59

global manufacturing footprint: optimiza-

tion 160–1

innovation management 75, 78

manufacturing excellence 173

manufacturing performance 196

organizations drive strategy and perfor-

mance: insights from lead buying

141–2

purchasing: key trends in best practices and

impact on purchasing strategy 111–13

Purchasing EmPowerment 130

supply chain 268

output

additional (better equipment availability)

189f, 191b

per employee 47

losses 188

outsourcing 15, 30, 119–20, 121f, 155, 161,

175, 180f, 181, 182, 190, 209, 216, 254f,

255, 258

advantages and disadvantages (equipment

maintenance) 183

functions and services 196

manufactured components 198

materials management 194–6b

materials and services 203

production 206

production support functions 191, 191–2b

R&D 70f, 71

support functions 195

outsourcing know-how 93

over-engineering 63f

over-specification 63f

overhead costs 88, 108, 165f, 175

P-2-P 10

pace of action 94

packaging 37, 175, 40f, 223

packers 40n

paper industry xiii, 245f

Paris xiii, xvi, xvii

partners 157, 158

partnerships 71, 93, 97, 216

parts 32, 37, 56, 102, 109

missing 39f

standardized 47

parts storage 40f

patent licensing 70f

patients 228

pay-on-production 12

payback and risk analysis 154, 154f

payment 253f

long targets 251

payment terms (standardization) 254

penalty payments 64, 65tb

people 51, 52, 55, 142, 163, 165–6, 168, 187f,

267f

know-how predominantly bound to 77

performance 52f, 55, 88, 165f

fact-based measurement 7

performance cost analysis 33f, 34, 36f

performance deficits 238, 239

performance drivers 3f

performance gaps 126, 126f, 239, 242b

performance improvement xv, xvi

second level of operations excellence 2, 3f

performance targets 67

personal computer (PC) 204

personnel 126, 126f, 175, 177

equipment maintenance 180f, 183

pharmaceuticals xiv–xvi, 12, 13, 174–5, 219f,

227, 258, 259f



see also healthcare sector

Index 287

Phonak 61

pilot projects 215

complexity cost-reduction 224f, 225

planning 239

bottom-up 240

plant data collection 186, 187f

plant engineering 12, 189f, 190

plant managers 169, 170f

plant networks 169

optimization 162, 163

quantitative analysis 166–8

plant performance 165f

plant selection 165

plant visits (‘deep dive’) 166, 167f

plants 150, 212, 213

consolidated 209f

differential quality (even within same

company) 162

on-site analysis 165f

PlayStations 19b

PM committee 141f

Poland 108

political instability/turmoil 24, 157

political stability 111, 156f, 156

political risk 156f, 156

Porsche 51

portfolio adjustment 254f, 255

portfolio development (holistic approach) 221

portfolio management 74f, 75b

portfolio planning 74f

portfolio reporting 75b

power plays 215

power train 79, 80f

PPC optimization 254f, 255

pragmatism 188

R&D management 77

premiums 55

prescriber-user-buyer triangle 101

price/s 15, 24, 37, 41b, 42, 44, 46, 92, 96, 101,

103–4, 106, 242b, 265

price adjustments 240

price crash 63f

price development 116f

price discounts 254

price elasticity of demand 16

price negotiations 97, 98f

price optimization 116–17, 117f, 120, 121f

pricing strategy 72

process chain 114

process costs 37, 88, 115, 120, 122f, 124

process design 186, 187f

process gap analysis 225

process improvements 38n, 41

process innovation 13f

process optimization xv, 3, 117f

process ownership 209

process quality 116

process re-design 117f, 118, 120, 121f

process responsibility

end-to-end 266

process-orientation


process-streamlining

improves profitability 210–12

processes xii, 3f, 6, 30, 34, 42, 47, 52f, 106,

163, 165f, 239

best 2

complexity tax 218

development to production 93

equipment maintenance 180f, 181

internal alignment 129

qualitative assessment 238

well-defined 82

see also business processes

procurement xiii, xiv, 186, 193f, 196f

global responsibility 159b

production and operational 209

second ‘field of action’ 2, 91–142

see also purchasing

procurement councils 129

procurement organizations: types 132–4

centralized 132, 132f, 133

decentralized 132, 132f, 133–4

lead buying 132, 132f, 134

procurement processes 123–4

product availability 177, 186, 204, 241b

product chief designer (Nissan) 89

product costs

drivers 28–31

‘eighty per cent defined during develop-

ment phase’ 30, 46, 83

influencing factors 26f, 26–8

product departments 41

product design 27–8, 29, 31, 38n, 63, 63f, 83,

150


‘errors’ 30

product design department 33f

product development xvi, 22, 66f, 79, 82,

126f, 126–7, 220

288 Index

business areas 51

continuous 15

cost 37

factors 9

global (status quo and trends) 46

global (tailored to evolving circumstances)

47–51

global footprint 72

globalization 90

levers 7

regions 51

successful 6–8

product development function 220

product development organization 81, 88

functional departments (Japan) 79

product differentiation 71

product functions 36f, 63f

product innovation 7, 13f, 19–22, 203

product launches 65

product life-cycle 26f, 31, 37, 71, 101, 110,

204, 221tb

product loss 179

product modularization 71

product planning xv, 27, 58, 85, 89, 166

product portfolios xvii, 50, 69, 201–6, 208,

211, 217, 230, 241b

complexity 218

customized 62

leaner 228

young 61

product positioning 26f, 26

product quality 30, 46, 116, 146, 185, 187f

product range 165f

product repair 46

product road-mapping 70f, 72

product segments 21, 261, 268

product specification 29

requirements 26f, 27

product standards 17f, 21

product strategy 52

product structure 58, 149f

product testing 150

product/market combination 10f, 10, 11, 15,

16, 17f, 21

Mologen 13–14

music industry 20

Nike 15

production xiii, 165, 189f, 193f, 195, 199,

209f, 212f, 217, 233, 239, 250, 250f, 251,

253f, 265

Adidas 202

complexity tax 219f

de-localization 150

first ‘field of action’ 2, 5–90

flexibility 258

global networks 145

global 47

lean 201, 214b

link with forecasting 107

projects bound for failure (early stopping)

7, 22

start 85, 89

technology-intensive 213

world-class system 164f

production batch size 254f, 255

production bottlenecks 28, 29–30, 44

production capabilities 3f

production capacity 64b, 201, 211

utilization 264

production costs 147, 218, 223

share of equipment costs 179

production data 186

production departments 32, 41

production and distribution network

consolidation (saves time and money)

212–14

production efficiency 31

production layout 254f, 255

production life-cycle 94

production lines 29, 182, 184

critical 190–1b

production logistics 172b

production moratoriums 254f, 255

production networks 172b, 206, 254f, 255

Adidas 202

cross-border 212–13

global (leveraging manufacturing excel-

lence) 162–73

production planning 165f, 172b, 177, 186,

211, 215, 241b, 261

centralized 212

production processes 172b, 211

reduced complexity 224f

production segment 254f, 255

production sites 1

production standards 108

production strategies 212

production structures 215

production support functions (independent of

location) 193f, 196

Index 289

production system (world-class) 164f

production units 209f

production volumes 210

production-smoothing 254f, 255

productivity 40n, 41, 88, 199

products 1, 6, 58, 163, 266

built to last 26–7

co-development by companies and suppli-

ers 109

with competitive disadvantages 63, 63f

cutting-edge 119

ecological 46

high-technology, low-technology 145

industrial 218

joint development 128

labour-intensive 146

legal and geographical differences 47

‘localized’ 47

make-to-forecast versus make-to-stock 211

modular 161

non-standard versus standard 228, 229, 230

overly expensive 63

structure 56

target cost 63, 63f

technical weaknesses 63f

universal 51

unprofitable, low-volume 206

value-added 108

weaknesses in market environment 63f

professional buyers 97, 98f

profit and loss account 120, 166, 240

profit margin 199

profitability 7, 116f, 207, 221, 225, 235

importance of complexity management 218

improved by reducing complexity and

streamlining processes 210–12

return on sales 210

short-term improvements 100

profit-and-loss account 101

profits 21, 24, 242b

programme director (Nissan) 89

project cancellation 74f, 75b

project implementation 73b, 75b

project launch 74f, 75b

project management 42, 72, 100

project managers 170f, 170

project portfolio

balanced 71

ideal 73b

project/complex purchasing 139–41b

project-based set-up 29

projects

commercial focus or business case 73b

property prices 158f

prototype evaluation 85, 86–7f

prototype manufacturing 49f

prototyping 65, 71, 72

public sector 13

public-private partnership (PPP) 13

Puma 15

pump repair 180f

purchase-to-pay 237, 238, 250

purchasing

best practice 127–30, 135

best practices and impact on purchasing

strategy (chapter six) 94, 96–113

complexity tax 219f

cross-BU information system 123

global 128

group-wide coordination 141b

implementation plan 122

integrated strategy 136, 136f

internet and B-2-B solutions 128

introduction 92–5

leverage 136

long-term plans 110

miscellaneous xii–xiv, xvi, 8, 30, 54, 58,

226b, 233, 239, 250, 250f, 251, 253f,

261

no singular one-fits-all approach 94

optimization xiii, 228

order frequency 140b

organizational frameworks 95, 131–42

organizational structure 99

outsourcing know-how 93

pace of change 110

performance measurements 101

process optimization 140f

procurement 254f, 255

second ‘field of action’ 2, 3f, 91–142

simplistic strategies 111

sourcing solutions 130

standardization 229

‘strategic’ 100

strategic direction 93–4

strategic versus operational 120

strategic skills 100

strategy and performance (lead buying

models) (chapter eight) 95, 131–42

structured approach 97, 98f

290 Index

‘tactical’ 100

world-class (chapter seven) 94–5, 114–30

see also procurement

purchasing: key trends in best practices and

impact on purchasing strategy (chapter

six) 94, 96–113

challenges (current) 99–102

challenges (new) 102–4

introduction 96–7

LCC sourcing 104–8

long-term plan 110–11

maturity steps at purchasing organizations

98f

purchasing today 97–9

supplier relationships 108–10

TCO approaches 112tb

purchasing budget 101

purchasing clusters 139b, 140f, 140b

purchasing codes 229

purchasing costs 32

‘procurement costs’ xv, 92, 186

external versus internal 92

savings xv, 97

purchasing departments 25, 29, 32, 41, 46, 57,

92, 96, 100, 101, 104, 122–3, 130, 132,

139, 239, 240, 242b, 265

global 47

purchasing empires 93

Purchasing EmPowerment (PEP) (Roland

Berger) (chapter seven) 94–5, 114–30

best-in-class (global) 127–30


managing the supply base 124–7

optimizing purchasing organization and

processes 120, 122–4

strategic commodity management (six-

lever approach to optimizing costs)

115–20, 121f

purchasing excellence xvi, 97, 113, 114

purchasing fads 131

purchasing functions 258

purchasing information 102, 120, 122f

purchasing know-how 120, 122f, 123

purchasing lifecycle 100

purchasing managers xvi, 141f, 259f

purchasing organization/s

life-cycle (three-stage) 97–9

maturity steps 98f

optimization 115, 120, 122–4

see also procurement organizations

purchasing performance 109–10

purchasing philosophy 98f, 99

purchasing power 226b, 229

purchasing processes: optimization 120, 122–4

purchasing professionals/staff 137

experience and educational level 112

skill gap 99f, 100

skilled 130, 132

purchasing strategy 94, 96–113

purchasing volumes 58

qualitative targets 55

quality 15, 28, 30, 84, 96, 101, 106–10,

112, 116f, 125, 129–30, 145, 150,

151, 154

consistency 104

processes 146

product and service 177

targeted 26f, 26–7

quality certification 109

quality control 174–96

returns 254f, 255

quality control department 174

quality gaps 31, 84

quality gates 7, 55, 72, 73b, 75b, 77

quality improvements 118

quality leadership 9, 11

quality standards 62

quantitative analysis 228, 238

quantity leverage 117f, 117–18, 120, 121f

questionnaires 158, 165f, 166, 223, 248

quick wins 69, 106, 117, 164f, 220,

229, 235

raw materials 103, 128, 193f, 225

availability 116f

costs 110

inventory 264

procurement 148

re-engineering 110

‘re-invention of wheel’ 56, 71, 73b

re-sale 254f, 255

re-work 39f, 40f

reactivity 102

real estate 191b, 192b, 193f

recall expenditures 30

recession 92

refineries 175

core functions versus support functions

194, 194–6b

Index 291

refinery organization

elements needed for high performance 194f

flexibility 194–6b

refining organizations/new developments

192–6

regional commodity leader (RCL) 138, 138f

regional directors 170f, 170

Registration, Evaluation, and Authorization

of Chemicals (REACH) 104

regulatory environment 103f, 104, 111

relationship re-definition and user-involve-

ment 97–9

reliability 106–9, 150, 158, 175, 177, 202,

214b

relocation scenarios 153–4

Renault 89, 124

Renault-Nissan 51

repair costs 176f, 177

reputation 15, 30, 64

request for quotation (RFQ) 128

research and development 5–90

automotive industry 45–60

business models: impact on product devel-

opment (chapter one) 7, 9–23

clever cost approach design 24–44

company clusters 6

corporate strategy 77

first ‘field of action’ 2, 3f, 5–90

global 47

global development made successful

(chapter three) 7–8, 45–60

global network (allocation of core

competencies) 49f

globalization: success factors 76–7tb

historical growth 77

innovate to win (chapter two) 7, 24–44

innovation management/success factors

and levers for best practice (chapter

four) 8, 61–78

organizational changes: careful

implementation 77

organizational practices 79

outsmarting competition 24–44

pragmatic management 77

product development (successful) 6–8

questions 7

retention of experts 77

smart engineering processes (chapter five) 8,

79–90

splitting among sites 50

research and development: miscellaneous xiii,

xv, 124, 129, 135, 185, 196f

R&D budgets 47

R&D capacity 65

R&D departments 46, 51, 78

R&D investment 151

R&D networks 56, 64b, 76, 77

R&D organizations 57, 58

R&D partnership 70f, 71

R&D projects (value analysis) 63f

R&D structures 59

R&D workforce (rationalization) 57

resistance to change 169

resource allocation 83, 218–19

resource gap 22

responsibility 53f, 80, 81, 82, 138–9b, 142,

169, 172b, 206, 225, 241, 251, 259f, 261,

265, 266

end-to-end 268

SCM 208–9

retail sector/retailers xii, xiv, xvi, 41, 203, 258

out-of-stock rate 204

return on capital employed (ROCE) 195, 199,

201, 207, 210

drivers 236f

Europe’s top five hundred companies 235

return on equity 13

return on sales 61, 62f

returns/claims 254f, 255

revenue levers/innovation management

69–71

revenue mechanism 10f, 10, 11, 13–16, 17f, 21

Mologen 14

music industry 20

transaction-based 14

revenue performance 68f, 71

revenues 21

non-transaction based 10

transaction-based 10

reverse auctioning 92

reverse logistics 261

Rhone-Poulenc 191b

risk 51, 71, 106, 144, 148, 150, 151, 153, 154,

157, 161, 225

equipment failure 179, 181

risk evaluation 149f

risk management 100, 111

risk portfolio 74f

risk priority number (RPN) 187f

roads 49f, 104

292 Index

Roland Berger Innovation Toolbox 62, 67–78

levers, success factors, cross-industry

experience 72

Roland Berger Strategy Consultants

automotive industry (innovation

performance) 66f

best practice (working capital excellence) 243

complexity management 218, 226b, 231

complexity tax 219f

complexity-related costs 218

equipment maintenance 186

five-year purchasing plan devised for steel

corporation 110–11

global manufacturing footprint 148

globalization of R&D 46

lead buying (automotive industry) 135b

‘lead concept’ 53f

lead engineering concept 57

maintenance excellence 175


177, 178f, 179

maturity steps at purchasing organizations

98f

miscellaneous iii, iv, xii–xviii, 6, 25, 32,

33n, 35–6n, 39n, 43n

operations strategy team 263

purchasing (embedding in corporate struc-

tures) 120

Purchasing EmPowerment 94, 114–30

purchasing plans 97

risk-based method 179, 181

risk-driven approach 186

SCM: end-to-end framework 199, 200f,

201, 205, 206, 214b

strategic aspects of R&D re-location 76–7tb

supplier development benchmarking

study 109

supplier-management survey 125

survey amongst R&D leaders in mechan-

ical engineering 63

tools 43f

WCM: crucial factor 241

WCM: optimization levers 241, 241–2b

working capital optimization 232, 235,

237–42, 248n

Roland Berger Strategy Consultants: supply

chain organization 257–8, 263–8,

268(n1)

step 1: understanding internal and external

factors 264–6 , 267f

step 2: develop and assess organizational

options 264, 266 , 268

step 3: agree on target organization before

defining steps for transformation 264

Roland Berger Strategy Consultants: working

capital management 237–42

step 1: achieve transparency 237–8

step 2: perform benchmarks and set targets

238–9

step 3: define levers and actions 239–41,

step 4: secure buy-in and implement

measures 241–2

roll-out/manufacturing excellence 168–9

Romania 108

round table 262

‘run to failure’ (minimum maintenance) 175

Ryanair 11

safety recalls (automotive industry) 64–5

sale and lease back 119, 121f

sales xii, xv, 7, 54, 66f, 84, 149, 186, 198, 202,

208, 210, 233, 235, 236f, 243, 245f, 251,

252, 253f, 262

annual 258, 259f

inter-company 238

lost 64, 175–7, 190, 204

sales activities 50

sales channels 45, 238

sales costs 37

sales departments 32, 41, 57, 58, 220,

239, 240

sales directors 251

sales and distribution networks 147

sales force 27

sales forecasts 252, 261

sales growth 206

sales and marketing (Nissan) 89

sales planning 254f, 255

sales representatives 228

power 230

sales staff 262

sales targets 217

sales volumes 157

savings potential 33f

scenarios 19–20

scheduling strategy 254f, 255

Schmidt, A. xvi

Schr€oter, I. xvi, 200Schwientek, R. xvi, 200

sea transport 104

Index 293

Seat 30

segmentation

industrial 210

needs-based 223

product structure 153–4


see also business segments

sen-pai (predecessors) 82

sensitivity analysis 154

series production 37

service innovation 7, 19–22

service levels 107f, 203, 208, 209f, 264

service providers 127, 182

service quality 185, 187f

services xiii, 37, 92, 153

shared 141f, 141b, 196f, 207, 208, 209,

213, 268

standardized 140b

set-based process 83

setup times 254f, 255

shareholders 75b

sheet metal 29

ship-to-request service 205b

shipments (inter-company) 213–14

shipping 209, 215

shipping charges/costs 205, 210

shipping functions 208

shop-floor control 172b

shortages 104, 111

Shukan (Nissan equivalent of HWPM) 89

Shusa (chief) 80, 82

Shusa/strong empowerment by top manage-

ment 81

Siemens 123

Silicon Valley 25

simplification: sourcing strategy 116f, 116

simulation 85, 87f, 240

simultaneous engineering 70f, 71

simultaneous product and process optimiza-

tion, 33f, 37, 36f

Singaby, G-A. xvii, 94

Singapore Airlines 65tb

single design method 83

site fitness programme (SFP) 192, 194,

194–5b

site infrastructure 191b

site managers 175

sites 53f

skills 112

availability 158f

internal 183, 186

specialized 181–2, 210

specific 156f, 156

see also expertise

Skoda 30

Skype 21

Slovakia 108

smart engineering processes (Japan) (chapter

five) 8, 79–90

challenges 90

history of HWPM 80–1

HWPM organizations: initiatives for

change 88–9

HWPM practices 82–8

HWPM: success factors 81–2


snacks manufacturer/‘scalable’ versus

‘differentiating’ activities 226

socio-cultural factors 18f

soft skills 100, 142

software 21, 49f, 154f, 184

sourcing xiii, 56


global 121f, 122, 131, 238

large-scale 108

second ‘field of action’ 2, 91–142

value-added 108

sourcing department 33f

sourcing excellence 96

sourcing processes 106, 138f

sourcing security 96

sourcing strategies 116f, 116

‘keeping up with fashion’ 105

South Africa 39f, 49f

South America xv, 49f, 137f, 138, 238, 243

South-East Asia 144

Southern Europe 238

Soviet Union 24

Spain 64b, 212f

spare parts 179, 180f, 183–4, 185, 186, 195

special product managers 81

speciality buyer 141f

specialization xii–xviii, 10, 14, 20, 77,

190, 213

‘division of labour’ 201, 203

global 48f

speed 266

sporting goods 15

stability/financial 146

staff rotation 57, 262

294 Index

stage gates 77

stakeholder expectations 125

stakeholder inclusion 32

stakeholder needs 101

stakeholders 42, 105, 115

standard procedures 257

standard purchasing 139b, 140f, 140b, 141f

standard-setting 70f

standardization 47, 56, 58, 118, 121f, 136,

137, 140b, 171f

global 51

product and packaging 223

purchasing/procurement 229, 254f, 255

targets 57

standardization councils 230

standardized data warehousing 55

standardized KPIs and performance mea-

sures/lead engineering 52f, 55

standardized processes


standards, labour and environmental 144

statistical data 179

steel xiii, 160b, 219f



stock markets 233

stock-keeping

centralized versus de-centralized

strategy 185

stock-keeping units (SKUs) 222f, 225, 230

rationalization 220, 221tb

stocks 204

storage 40n

strategic alliances 45, 47, 51, 52, 57, 59, 94

strategic capacity planning 213

strategic commodity management/six-lever

approach to optimizing costs 115–20

strategic corporate goals/long-term 125

strategic partnerships/purchasing 94

strategic pricing 70f

strategy 7, 52f, 58

equipment maintenance 179–81

first level of operations excellence 2, 3f

revision 187f, 188

structural organization (innovation enabler)

72

Stuttgart xii, xv, xvi

sub-assembly 152

sub-contractor management 166, 167f

sub-suppliers 103, 155

sub-systems 56

subsidiary companies 131

second-tier 141f, 141b

substitute products 16, 18f, 29

supplier base 1, 116f, 123, 128, 160b, 161,

227, 254f, 255,

optimization 127

supplier base management 124–7

supplier code structure 123

supplier coordination/key blocking point 263

supplier data 102

supplier development 39f, 109

supplier financing 119, 121f

supplier integration 70f, 117f, 119, 120, 121f,

126–7, 254f, 255, 268

supplier management xiii, 79, 95, 100, 115

development stages 125

success factors 126, 126f

supplier manufacturing analysis 33f, 40f,

41, 121f

supplier markets 111

supplier matrix 29

supplier networks 155

complexity 103f

structure 103

supplier partnerships/‘never easy or

comfortable’ 112

supplier performance 109

supplier productivity 110

supplier proximity 156f, 156

supplier relationships 108–10, 133, 142

success factors 110

supplier selection 112

suppliers 6, 16, 18f, 38f, 41, 43f, 44, 53, 59,

65, 72b, 90, 93, 94, 97, 114,117f, 117,

123, 130, 135, 137, 142, 147–51, 157,

158, 185, 203, 210, 229, 230, 235, 239,

262, 263

Adidas 202

automotive 148

bargaining power 116f

best-price 31

collaborative planning 261

costs and margins 102

equipment 181, 182

external view 41

first-tier 155

global information pool 124

global management 129–30

in-lead 47

Index 295

suppliers – continued

inter-dependence (with companies being

supplied) 103

lack of open discourse with 101

performance measurement 112

pooling 118

reduced in number 58

second-tier 118, 121f

second-tier (certification requirements) 155

strategic or key 37

Toyota database 88

supply base 54, 123

global 146

proactive development 106

supply chain/s

central control function 264

complexity reduction 207f

delegation of responsibility (ensures

account ownership) 208–9

driver of product costs 31

external 261, 263

external coordination 262–3

global optimization 204–5

goals and targets 261

hidden cash reserves 232–56

internal 261

miscellaneous xviii, 1, 39f, 104, 106, 115,

233

‘one-size-fits-all never’ 207

operative functions 261

single global responsibility 265

strategic staff functions 261

temporary functions 261

trends and challenges 202–4

supply chain costs 204, 205b

supply chain deficits 205

supply chain department 33f

supply chain enablers 200f, 206, 207f

supply chain functions/non-core 209

supply chain leaders 215

supply chain management (SCM) 197–269

change-management 200f

complexity management (starting point for

improving performance) (chapter thir-

teen) 199–200, 216–31

control 200f

country-focused versus BU-focused 211

end-to-end 263

fourth ‘field of action’ 2, 3f, 3, 197–269

holistic re-alignment 215

holistic view 232

importance 198–200, 263

miscellaneous xiii–xvii, 92, 124, 186

‘more than just logistics’ 198–200

‘most cross-functional of core business

disciplines’ 268

networks 200f

optimization xvi, 208

organization and resources 200f

pilot units 215

processes and systems 200f

Roland Berger’s end-to-end framework

199, 200f, 201, 205, 206, 214b

supply chain organization (key enabler for

successful SCM) (chapter fifteen) 200,

257–69

trends 201

working capital excellence (chapter four-

teen) 200, 232–56

supply chain management: success factor for

global players (chapter twelve) 199,

201–15

case study: framework (electronic

components) 205–14b

consolidating production and distribution

network (saves time and money)

212–14b

definition of strategy and target 207–8b

delegating supply chain responsibility

(ensures account ownership) 208–9b

direct ordering (elimination of inter-

company flows) 212f

holistic supply chain optimization 206–7b


monitoring supply chain (creates global

transparency) 209–10b

optimizing global supply chains (a success

story) 204–5, 205–14b

reducing complexity and streamlining

processes (improves profitability)

210–12b

results (speak for themselves) 214b

success factors (implementation) 214–15

trends and challenges in supply chains

202–4

supply chain managers 209, 259f,

266, 267f

supply chain monitoring 207f

creates global transparency 209–10

supply chain network 207f

296 Index

supply chain organization (key enabler for

successful SCM) (chapter fifteen) 200,

257–69

best practice (food for thought) 263

coordination of external supply chain 260,

262–3

coordination tools 260, 261–2

implementation 260–1


‘no single golden way’ 268

organizational talents master their supply

chain organizations 258–63

questions 263

Roland Berger’s approach 263–8

sustainability 268

‘what-if’ scenario analysis 268

supply chain performance 200f, 206, 207f

supply chain planning 261, 262

supply chain processes 207f

supply chain responsibility 207f

supply chain segmentation 211

supply chain strategy 200f, 206, 207f

definition 207–8, 209f

supply chain targets 207–8, 209f

supply chain transparency 145

supply conditions 220

supply costs 221tb

supply market challenge 115, 116f

support function/s

benefits 177

costs 176f

impact on manufacturing performance

175–7


177–84

support for 185

support service functions 194

SUVs 49f

Switzerland xii, xv, 61, 65tb, 212

synergies 52f, 52, 59, 93, 112, 122–3, 127,

128, 136, 136f, 139b, 191b, 196, 208,

209, 214b, 226b, 227, 263, 264

cross-business 135

cross-segment 268

purchasing 99f, 133

system architecture 52

system suppliers 39f, 127

systematic commodity management 95

systems 32, 48f, 56, 265

complexity tax 218

supply chain 267f

Systems Applications and Products (SAP) xx,

44b, 56, 184

‘target costing’ 70f, 85, 92

see also ‘cost planning’

target-pricing 112, 121f

target-setting 55, 135, 240

WCM 237, 238–9

targets 169

resource and financial market-oriented 13f

standardized 57

top-down versus bottom-up 239

tariffs 145

tax regulations 265, 267f

taxation 158f

taxi companies 80

team work 40n

technical benchmarking (DFMA) 32–4

technical centres 50, 50f, 54

technical cooperation 110

technical improvement 117f, 118–19,

120, 121f

technical modifications 58

technical problems 65tb

technical solutions (perfect) 63, 63f

technical standards 24, 58

technological/technical capabilities 154,

155, 158

technological factors 18f

technological gap 147

technological innovation 14

technology 1, 26f, 27, 34, 49f, 76, 81, 92, 150,

153, 157, 159, 160b, 165, 222f

concentration 77

time-saving 71

technology hunters 77

technology life-cycle 220

technology plan 72b

technology road-maps 70f, 72

technology transfer 150, 154, 159b

telecommunications xvii, 219f




testing 40f, 46, 51, 71, 84

testing (automotive) 79, 80f

Texas 192

‘think globally, act locally’ 51

third-party warehouse management 254f, 255

Index 297

time 9, 13–14, 15, 28, 42, 44b, 56, 57, 64b, 67,

83–4, 88, 116f, 122, 124, 128, 150, 156,

157, 181, 183, 192, 195, 206, 267f

deadlines 54, 55, 205b, 214b, 241, 260f,

260

idle periods 190

start-up losses 262

supplier research 102

time to market 68f, 84–5, 124

time zones 52

time-saving 212–14

timing 21–2, 43f

graduated reaction strategy 22

market entry 109

timing levers (innovation management) 70,

71–2

Tokyo xiv

tools/tooling 46, 52f, 85

top management 16, 19, 44b, 57, 80, 89, 100,

169, 172, 173b, 215, 229, 231, 235, 240,

248–9, 251, 256, 260, 268

global sourcing 106

managing complexity 220

strong empowerment of Shusa 81

top-line growth, service performance 200f

total cost of ownership (TCO) 32, 33f, 37, 39f,

96, 98f, 99, 99f, 100–1, 111, 112, 113,

121f, 124, 149, 154

over-arching benefit 112

total quality control 79

Toyoda, K. 80

Toyota xvii

chief engineers 88

database of global suppliers 88

HWPM concept 80–2, 83

lean manufacturing 162

Toyota: Research Division 89

Toyota Central Laboratories 89

Toyota concept planner 88, 89

Toyota Home 1–2

trade agreements/bilateral 107

tradition 82

training 109, 110, 120, 122f, 123,

181, 182, 185, 192, 193f, 237, 241,

251–2, 262

maintenance tasks 190–1b

strategic purchasing professionals 100

training costs 175

transaction costs 203

transparency 55–6, 102, 110, 120, 129, 163,

164–5f, 185, 206, 218, 221, 226, 227,

249, 266

complexity (three-step approach) 223–6,

228–30

purchasing 122f, 122, 123

supply-chain monitoring 209–10

working capital 238, 256

transport/transportation xvi, xvii, 40n,

104, 111, 145, 157, 193f, 198, 201,

243, 268

congestion 103f

costs 107, 151–3, 260f, 260

distances 107, 107f, 108

Triad countries/region 144–6

trial production, 85, 86–7f, 90

Trumpf (machinery producer) 2

trust 37, 42, 55, 64, 144

T-shaped project design 163, 165f

turnaround times 260f, 260

turnover ratios 239, 244

Ukraine 108

uncertainty 134, 212

unemployment 156

‘job reductions’ 192

unique selling point 6

unit costs 101, 115

unit prices 97, 98f, 101

United Kingdom 25, 49f, 212f

United States of America xv, 42, 49f, 81

Universal [corporation] 19b

universities xii–xviii, 72b, 89

university clinics 117

university hospitals/state-owned (tackling

complexity from sourcing side) (case

study) 226–30b

UNSPSC 137

upstream operations 152

utilities xiii, 92, 158f, 175, 193f,

219f, 243


industry benchmark for debtor

days 245f


utilities supply 175

utility ‘innovation to cash’ (case study)

72–5b

utility purchasing 139b, 140f, 140b, 141f

298 Index

value analysis 33f, 34, 35f, 63–4, 70f, 71, 74f,

118, 121f

R&D projects 63f

value chain 3f, 13, 14, 28, 33f, 94, 103, 115,

119, 127, 148, 153, 196, 220, 250

best-practice 164f

top-down assessment 223

global/globalization 201, 202

networked 201, 203

value chain configuration 10f, 10, 11, 15, 16,

17f, 21, 117f

Mologen 14

music industry 20

value chain deconstruction 121f

value chain mapping 33f, 37, 39f, 41, 121f

value chain structures 201, 214

value creation 1, 59, 68f, 92, 121f, 198, 200f,

216, 225

value focus 73b

value-added 7, 69, 105, 108, 152, 194–5b,

221, 223, 224f, 240

internal 10

thresholds 225

value-based management principles 242b

vehicle development 54, 89

vehicle development centres (VDCs) 88

vehicles 38f, 49f, 119, 184

braking concept 53

fastest-growing markets 46–7

see also automotive industry

vendor-managed inventories 119, 121f

vendors 210, 244

vertical integration 10, 13f, 14, 18b, 20, 92,

94, 119, 203, 238, 244, 254f, 255,

veterinary medicine 14

virtualization techniques 72

Volkswagen 30

volume bundling 118, 121f, 123, 137, 229

volume concentration 97, 98f

wages/salaries 107f, 156, 205, 236f

performance-based 262

warehouses/warehousing 31, 193f, 195,

198, 201, 205–9, 211–15, 217, 254f,

255, 268

consolidation 213–14

national 209f

regional 211, 213–14

warranty 109, 110

waste/wastage 41, 162, 175, 193f, 227

water utility 242b

weak signals 16, 19b, 22, 72

Web EDI 121f

Weisenstein, S. xvii, 146

Weiss, M. 178n

western countries/markets 105, 147

Western Europe 144, 145, 198, 264

procurement costs (external versus

internal) 92

white-spot analysis 74f

Wissenschaftliche Hochschule f€ur Unterneh-mensf€uhrung (WHU): Otto Beisheim

School of Management 257, 268(n1)

Wittenstein 61

work (labour-intensive) 150

work duplication 120

work plans 54

work-sharing agreements 151

workers 40f, 40n, 41

workflows 41, 47, 56

workforce 28, 150, 153, 156f, 156, 161

educated 108, 146

gaps 192

low-cost 46

working capital 3f, 3, 200, 205, 264

learning from best practice 243

optimization xvi, 121f, 237

optimization levers 242b, 244, 256

productivity 235

reduction 235, 236f

working capital excellence: how companies

tap hidden cash reserves in supply

chain (chapter fourteen) xii, xvi, 200,

232–56

best-practice companies (fifteen per cent of

participants) 243–4, 245–6f

bottom line (untapped potential persists in

all industries) 256

consumer goods industry (case study) 241b

crafting effective organization 247, 250–2,

256

current and targeted future status 246f

energy sector (case study) 242b


introduction 232

inventory management (vast store of

untapped process potential) 247,

252–5, 256

making working capital work 233–5, 236f

media group (case study) 242b

Index 299

working capital excellence – continued

optimization potential for all three working

capital items 247, 248f

optimizing working capital (Roland Ber-

ger’s approach) 235, 237–42

top-down targets and strategies to manage

working capital 247, 248–50, 256

working capital management (WCM)

best practice 232

direct and indirect influence 236f

importance in near future

244, 247

levers (current use and future importance,

by industry) 248f

workshops [meetings] 43f, 239, 240

world economy 103

World Trade Organization 105

Yahoo! 21

young people 19b

300 Index

Documents

INDEX [link.springer.com]978-0-230-59424-1/1.pdf · opment (chapter one) 7, 9–23 ... lifecycle (basis for innovation) 15–22 music industry 18–19 ... chief financial officer