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Lee The Hong Kong Polytechnic University Abstract In this chapter we introduce a conceptual framework for a new form of production system, which is unique from many perspectives. The proposed framework, which we refer to as Dispersed Network Manufacturing (DNM), is based on the creation of a network of plants that are electronically linked so that the participating members focus on their specialized tasks, yet also share their manufacturing and production resources to create a loosely structured and flexible enterprise.

The organelle structure affects both the grouping of tasks in the primary process as well as the control processes. By subsequent integration and iteration, the design of the organelle structure meets performance requirements. Industrial Networks of the Future 25 the increased interaction between actors in networks requires a rethinking how it happens at all (Dekkers, 2009), whether it concerns manufacturing or innovation and product development. 2 Manufacturing as a Commodity Standard Evaluation process Information from Aberration environment Process of Deviation comparisonMeasurement from norm Transformation Process of process comparisonMeasurement Regulating Intervention Deviation process from norm Transformation process Measurement Measurement Measurement Capability information Standard Initiating Standard for control Evaluation process process Information from Aberration Standard from higher level Regulating Process of Deviation Process of Deviation environment process comparison from norm from norm comparison Standard Initiating Standard for control Evaluation process process Aberration Regulating Intervention Process of Deviation Process of Deviation process comparisonMeasurement from norm comparisonMeasurement from norm Standard for control Measurement Initiating process Capability information Standard from higher level Driver: Coordination • Control of quality • Control of logistics Information from environment Standard from higher level Capability information An important development influencing the shift in power within manufacturing networks has been the increasing importance of OEMs and, more recently, brand owners (Kotabe and Murray, 2004).

E. the combination of complementary activities, knowledge, and skills to realize the desired synergy. g. Souder and Nassar, 1990). Based on a study of 70 UK based firms in different industry sectors, Bailey et al. (1996) even concluded that selecting partners based on their track record in previous collaborations turns out to be a poor basis for future collaboration. These signals indicate that how collaborations can be effectively exploited has not yet been settled. 4 Research Agenda for Industrial Networks The three themes – network configuration, manufacturing as commodity, added value of networks – described in the previous section appear not to be congruent with most of the ongoing research into industrial networks.

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