Adnan, Adnan (2011) Development of outsourcing decision models for small and medium sized manufacturing companies. (PhD thesis), Kingston University, .
Abstract
Global markets are continuously developing and becoming extremely competitive. The manufacturing organisations are improving their capabilities and responsiveness to satisfy their customer demands. Due to this dynamic change, most of the developed countries, particularly the United Kingdom, Europe and the United States have witnessed a sharp increase in outsourcing. A literature search revealed weakness in outsourcing, due to the lack of suitable decision models and frameworks. However, limited research has been carried out in the area of outsourcing of manufacturing in small and medium sized companies. The main aims of this research are formulating appropriate decision models for small and medium sized companies; in particular, those that have been outsourcing, or planning to outsource, their manufacturing activities. The outsourcer's criteria for outsourcee selection for small and medium sized manufacturing companies are chosen after analysing the data obtained through the literature survey, questionnaire survey and personal interviews. Next, a model is formulated for numerical evaluation of outsourcer's criteria for outsourcee selection. Then, a second model for outsourcee (supplier) selection is formulated. The model comprises analytical hierarchy process, cluster analysis and criteria scoring of outsourcee. In the selection process of the most appropriate outsourcee, three elements has to be considered; the previously defined i) vector of important criteria resulted from the information analysis of literature survey, questionnaire and interviews, ii) the specific criteria ranking scoring identified by a particular outsourcer company and iii) the fulfilment of both general criteria (business / market) and specific criteria (outsourcer company) by the potential outsourcees. The outsourcee that achieves the highest total score based on the priority weights of each criterionand sub-criterion in the model may be considered the most suitable. The numerical results of the second model are compared against the empirical outcome of a test case is satisfactory. The developed method is consistent, faster and objective. A further model for drawing up and implementing a manufacturing level agreement was formulated, based on the information collected through the literature survey, questionnaire survey and interviews. The above models were presented to the managers of the companies and are found to be useful according to the feedback provided by them. They will be using the models in stages, subject to the resource availability.
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