The managerial issues related to transferring shop floor knowledge in manufacturing relocation

Technology transfer as a part of the business – inter-organizational transfer strategies based on experiences of aircraft production

Purpose

The purpose of this paper is through a literature study and a study of the Saab offset cases to identify strategies to increase inter-organizational transfer capability.

Design/methodology/approach

This paper is based on a literature study and a study of three of Saab’s offset cases and Saab’s process for technology transfer.

Findings

This study has identified inter-organizational transfer strategies based on the importance of the hierarchy of decision-making and the change from capacity transfers to capability transfers in offset business. The type of performance goals set in the business agreement decides how to realize the transfer. The hierarchy of decision-making creates a need to align the understanding of the performance goals between the different parts of the organization, which affect the plans for how to transfer knowledge between the organizational as well as the individual levels. To reach the performance goals of the technology transfer, there needs to be a balance between the disseminative capability of the sender and the absorptive capability of the receiver.

Research limitations/implications

This study is based on a single case within a relatively unique industry with an offset perspective and production transfers. Therefore, there is also a need for future studies to confirm the identified relationships within outsourcing/offset within other industries and other types of transfers.

Originality/value

A change from capacity transfers to capability transfers in both outsourcing/offshoring and offset business indicates that more research should be placed on the disseminative capacity of the sender. The literature review revealed that the disseminative capacity of the sender has been the subject of less research than the absorptive capacity of the receiver.

Management of the learning curve: a case of overseas production capacity expansion

Purpose

– This paper focuses on the management of the learning curve in overseas capacity expansions. The purpose of this paper is to unravel the direct as well as indirect influences on the learning curve and to advance the understanding of how these affect its management.

Design/methodology/approach

– The paper builds on the offshoring, capacity expansion and learning curve literature. The existing scholarship often lacks detailed insights into the factors surrounding the globalisation of production, and how constructing and operationalising new capacities overseas should be implemented. The paper employs qualitative methodology and draws on a longitudinal, factory-level analysis of an in-depth case study of a Danish wind turbine manufacturer.

Findings

– This study goes beyond a simplistic treatment of the lead time and learning required to establish a new capacity. The authors examined the dimensions of the learning process involved in a capacity expansion project and identified the direct and indirect labour influences on the production learning curve. On this basis, the study proposes solutions to managing learning curves in overseas capacity expansions. Furthermore, the paper concludes with measures that have the potential to significantly reduce the non-value-added time when establishing new capacities overseas.

Originality/value

– The paper uses a longitudinal in-depth case study of a Danish wind turbine manufacturer and goes beyond a simplistic treatment of the lead time and learning required to establish a new capacity.