Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?

This article questions a terminology that is frequently used to describe automotive supply chains’ industrial architecture. Since vertical disintegration became a trend in the 1980s, this architecture has been represented using the image of the pyramid. Implicitly, authors have had the image of an Egyptian pyramid in mind, one that is pointed at the top and broad at the base. We will demonstrate that even if pyramids are an appropriate image, in the auto industry the Aztec variant, with its shortened peak and room for SMEs, is more accurate. The paper’s first section – with its more historical focus – explains the birth of the Egyptian pyramid. The section 2 puts forward the idea that the Egyptian metaphor is more misleading than informative. We start by demonstrating that overusing this metaphor will ultimately exclude a number of very strategic companies from analysis. This is followed by a presentation of the findings from a study of 750 French SMEs*, in which it is demonstrated both that some continue to maintain direct access to carmakers and also that the hierarchy of tiers comprising this supply chain features greater porosity than is commonly recognized.modularity, supply chain, industrial architecture, SME, automobile.

Lean-excellence business management for manufacturing SMEs focusing on KRI

Purpose The purpose of this paper is to develop an effective framework for implementing Lean strategies in small- and medium-sized enterprises (SMEs) in the Kurdistan Region of Iraq (KRI). Design/methodology/approach Based on the integration of LM tools and techniques with the Malcolm Baldrige National Quality Award (MBNQA) criteria a systematic Lean implementation framework for manufacturing SMEs has been proposed. The core values, drivers and tools of the proposed framework were further developed based on case studies in three SMEs in the KRI. Findings Proposed framework is able to provide a simple pathway for SMEs to systematically implement Lean techniques in seven functional areas in order to create Lean culture in the organisation. Business performance measurement in terms of profitability, customer satisfaction, employee’s satisfaction, competitiveness growth and ergonomic improvement is presented in favour of evaluating Lean outcomes appropriately. It also presents the experience of small firms in implementing Lean programmes to show that Lean is valid in SMEs. Research limitations/implications The framework concentrates only on the internal issues of the organisation, while external variables such as national culture and external support are excluded. Practical implications The framework assists improvements in SMEs that either initially attempt to start Lean journey or those that are at more advanced levels towards excellent-Lean manufacturing. The framework can also be used as a self-assessment model to determine the degree of Lean readiness. Originality/value To the best knowledge of the author, it is the first framework that integrates Lean techniques with MBNQA criteria to support Lean implementation in SMEs. It is also the first study regarding Lean-excellence in the KRI.Published onlin

Regulatory Reflorm in Germany: Enhancing Market Openness through Regulatory Reform

This report assesses the impact of regulations and the regulatory process in Germany on trade and investment, as well as the extent to which market openness considerations are incorporated into the general policy framework for regulations. The assessment is based on six efficient regulation principles developed by the OECD, namely: transparency, non-discrimination; avoidance of unnecessary trade restrictiveness; use of internationally harmonized standards; streamlining conformity assessment; and integration of competition principles into the regulatory framework. Through broad application of the six efficient regulation principles Germany has been very successful in establishing a regulatory framework that has competently underpinned German participation international competition and the global economy. International stakeholders trading with or investing in Germany are confronted with an extensively elaborated regulatory framework of high quality. Particular mention may be made of the important steps taken to facilitate customs procedures, with a positive impact on trade flows. Equally, the country has taken a leading role in contributing to the spread of internationally harmonized standards and the recognition of foreign measures. The reduction of barriers to trade and investment worldwide has enabled Germany to take advantage of the expanding global market. At the same time a gradually more open market in Germany has provided benefits to consumers and contributed to economic growth and innovation. The progressive liberalisation of the German market has been driven not only by domestic forces, but even more so by regulations that follow from agreements at the regional and international level. Despite Germany's success in establishing a regulatory system that strongly supports market openness, there remains room for improvement in some areas. The general accessibility of regulatory information permits high levels of transparency; however, the extreme complexity of the legal architecture represents a significant challenge to new market entrants, particularly foreigners. Non-domestic stakeholders may need a substantial amount of time and resources to understand various and occasionally duplicative regulations and institutions applying them. This circumstance is rendered more acute by the exactness with which the regulatory framework is implemented. In addition, there is room for progress in the area of public procurement, where the country is not profiting from the opportunity of taking a forefront position within the EU which would reflect its economic capacity. Among EU countries Germany has the lowest level of public procurement tenders openly advertised at the European level and does not provide adequate legal protection for bidders competing for tenders below the EU threshold. In Germany, like in other EU countries, the regulatory processes in areas directly or indirectly affecting trade and investment are initiated at the EU level or directed by decisions of the EU with implementation often taking place at the national level. Reflecting this distribution of responsibilities, there is a tendency at the national level not to consider the full extent of international implications. At the national level the advantages of adopting an international perspective are not yet taken to their full extent. To give an example, regulatory impact assessments do not explicitly address trade and investment related aspects. The German administration is aware of the need to further change the regulatory framework in order to enhance economic growth. Several promising ongoing reform initiatives address many, if not most, areas covered in this report. The impact and pace of these reforms remains to be seen and evaluated.Regulatory reform, trade, market access, non-tariff measures

Digital transformation in the automotive supply chain: China, Germany, Italy and Japan in a comparative perspective

A wide literature on digital transformation in manufacturing and services has explored its impact on long term changes in labour demand and skills and on productivity and growth. A new perspective on the ongoing digital transformation has been prompted by Oecd to highlight specific metrics needed to assess its impact on the economy and society and to support innovat on policies. Drawing on these contributions, this paper aims to shed light on the impact of digital transformation on the reorganization and relocation of the various segments of the automotive supply chain. In particular, it will focus on the effects generated by different paces of adoption of digital technologies in this supply chain, with regard to both the various segments and the various sizes of companies, in different countries. The causes of this heterogeneity will be discussed and the implications for the full impact of the ongoing transformation will be considered in relation to industrial and innovation policy in Europe. The paper addresses the issue by reviewing empirical evidence on the automotive supply chain, which includes the most advanced manufacturing and service companies that are now adopting digital technologies. Evidence from case studies in the automotive industry in China, Germany, Italy and Japan will help in identifying the main challenges of digital transformation for European countries, which will involve a strongly interrelated supply chain both within and outside Europe