What It Takes to Reshore Manufacturing Successfully

Willy C.  Shih

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Article | MIT Sloan Management Review

What It Takes to Reshore Manufacturing Successfully

by Willy C. Shih

Abstract

The data on comparative labor and energy costs may seem compelling, but the process of bringing assembly work back to domestic factories from abroad is substantially more challenging than the economics alone would predict. This paper looks at some of the issues firms moving large assembly operations back to the U.S. have faced, along with recommendations for more successful implementations.

Keywords: manufacturing; manufacturing costs; Manufacturing strategy; U.S. competitiveness; competitiveness; labor force participation; labor management; trade; Production; Management Practices and Processes; Manufacturing Industry; United States; China;

Format: Print

Citation:

Shih, Willy C. "What It Takes to Reshore Manufacturing Successfully." MIT Sloan Management Review 56, no. 1 (Fall 2014): 55–62.

About the Author

Willy C. Shih

Robert and Jane Cizik Professor of Management Practice in Business Administration

Technology and Operations Management

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Case | HBS Case Collection | August 2017 (Revised March 2020)

Flex Hungary: Launching Production (A)

Willy Shih

This case examines design choices in the construction of flow lines. Flow lines are a popular way of arranging production because they are simple and inherently efficient. Equipment or workstations are arranged according to the sequence of steps in which a product is made. Each step consists of a set of tasks that individually are minimum rational work elements. These are combined to form the work assignment associated with the step. The work follows the same sequence of operations as it moves down the line, and the sequence is fixed from batch to batch. The case setting is a production site in Hungary that is starting up the production of a personal beverage maker. Should the team implement a conveyor-paced line in preference to a manual pull system? An analysis of process steps and times gives students an opportunity to debate this question.

Keywords: manufacturing; line-balancing; flow line; conveyor-paced line; consumer goods; consumer products; Production management; Production Planning; Production scheduling; Operations; Production; Management; Supply Chain; Design; Analysis; Goods and Commodities; Consumer Products Industry; Manufacturing Industry; European Union;

Citation:
Shih, Willy. "Flex Hungary: Launching Production (A)." Harvard Business School Case 618-002, August 2017. (Revised March 2020.) View Details

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Case | HBS Case Collection | August 2017 (Revised March 2020)

Fuyao Glass America: Sourcing Decision

Willy Shih

In today's global economy, what are the factors that go into production location choice? This case is set in the world's second largest automotive glass producer as it expands from China into the United States. To meet a very aggressive cost target, management is faced with the alternatives of fulfilling the contract from its new Ohio factory, which can only produce above the target cost because it is still on a learning curve, or it can fulfill from its Tianjin, China, factory, which can produce below the cost target but will incur extensive shipping costs and require a far greater amount of inventory holding. This case examines a core question facing managers who want to produce physical products for world markets.

Keywords: supply chains; globalization of supply chain; manufacturing footprint; manufacturing; Manufacturing strategy; Global Strategy; Supply Chain; Globalization; Supply Chain Management; Production; Logistics; Strategy; Auto Industry; Manufacturing Industry; United States; China;

Citation:
Shih, Willy. "Fuyao Glass America: Sourcing Decision." Harvard Business School Case 618-007, August 2017. (Revised March 2020.) View Details

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Case | HBS Case Collection | March 2020

ZEISS Group: Organize by Customer Culture?

Willy C. Shih

How should ZEISS, the German manufacturer of precision optical and optoelectronic systems manage two historic businesses that operated fairly autonomously? The Industrial Quality Solutions (IQS) business sold measurement equipment to manufacturing companies in sectors like automotive and aerospace. The Research Microscopy Solutions (RMS) business sold into scientific research laboratories and industrial materials laboratories. The two units had many similar characteristics. Both served demanding customers in complex and competitive market segments, and the use of RMS microscopy products in materials research meant an increasing amount of cross-selling into IQS customers. Yet there were many differences in the sales processes, product development processes, and approaches to product and market planning. RMS and IQS had very different ways of working, and most team members would say that the organizational cultures and the customers were very different as well.

Keywords: Organizational Structure; Organizational Culture; Manufacturing Industry; Europe; Germany;

Citation:
Shih, Willy C. "ZEISS Group: Organize by Customer Culture?" Harvard Business School Case 620-103, March 2020. View Details

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What It Takes to Reshore Manufacturing Successfully

Abstract

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