Aims

• identify factors that influence product manufacturing location decisions
• develop a systematic approach and practical tools to assist firms in international manufacturing location decisions

Background

In order to remain competitive in the global business environment, many firms find it necessary to locate their manufacturing facilities in several countries. The selection of the most appropriate location in which to manufacture products is therefore a major decision that influences the firmís competitive advantage.

The range of factors and issues involved in the process make the manufacturing location decision one of the most difficult tasks for managers. Decisions areas include: where to locate a new plant, which plant to close and where to relocate an existing plant.

However, despite the importance of these issues, there are few practical processes and tools which managers can use. A systematic process and framework for location decisions in international manufacturing is therefore needed to support reliable and consistent decision making and arrive at robust decisions in this key strategic area.

Research approach

The research involves working closely with small groups of companies to develop practical tools and solutions, focusing on the design, testing and refinement of these tools to establish their robustness and utility. The programme will concentrate on the manufacturing location decision processes of multinational companies. The research is structured in three phases:

Phase 1: Reviewing literature from various fields and conducting a pilot project in order to identify the important factors involved and develop a preliminary framework and process

Phase 2: Conducting a series of industrial case studies to observe the actual experience of collaborating companies

Phase 3: Implementing the refined model in an ongoing project to improve the framework and process for international manufacturing location decisions

Preliminary framework

Outcomes

• a structured approach and tools to assist in manufacturing location decision making
• a framework for making decisions on locating international manufacturing

Researcher

Chaipong Pongpanich

Sponsors and collaborators

• APV Baker Ltd
• Cambridge-Thai Foundation
• Cambridge Overseas Trust

Further information

Dr. Yongjiang Shi E: ys@eng.cam.ac.uk