Sourcing strategy for power electronics derived from modular product structure

Abstract

Sourcing strategy is one of the most important tasks when it comes to Value Chain design. Maschinenfabrik Reinhausen GmbH (MR) seeks to gain competence in power electronics with corporate synergy generated by value chain strategy, which leverages experts' knowledge and experience across the corporate. Focusing on the sourcing decision along the value chain, the project documented in this thesis created Sourcing Decision-making Framework, which contains three analytical stages: i) technical analysis, ii) economic value analysis, and iii) strategic value analysis. The technical analysis, including product architecture and key modules/components research and interdependency analysis, explored modular product structure, and provided a better technical understanding. Economic value analysis evaluated the economic value brought about by component economies of scale across product lines. Strategic value analysis, on the other hand, assessed each component business' strategic potential. The framework was comprehensive in analyzing make-or-buy decisions from technical, economic and strategic points of view. The final make-or-buy recommendations backed by the framework presented convincing standpoints and was delivered as the project deliverable.