Improving maintenance operation through transformational outsourcing
Author(s)
Ye, Jacqueline Ming-Shih
DownloadFull printable version (7.127Mb)
Other Contributors
Leaders for Manufacturing Program.
Advisor
John Sterman and Daniel Whitney.
Terms of use
Metadata
Show full item recordAbstract
Outsourcing maintenance to third-party contractors has become an increasingly popular option for manufacturers to achieve tactical and/or strategic objectives. Though simple in concept, maintenance outsourcing is difficult in execution, especially in a cost-sensitive environment. This project examines the Full Service business under ABB Ltd to understand the key factors that drive the success of an outsourced maintenance operation. We present a qualitative causal loop diagram developed based on the case study of Kinleith Pulp and Paper Mill in New Zealand. The diagram describes the interconnections among various technical, economic, relationship, and humanistic factors and shows how cost-cutting initiatives can frequently undermine labor relationship and tip the plant into the vicious cycle of reactive, expensive work practices. The model also explains how Kinleith achieved a remarkable turnaround under ABB, yielding high performance and significant improvements in labor relations. A case study of Tasman Pulp and Paper Mill provides a contrasting case where success has been more difficult. Results point to the importance of creating sufficient resources ("slack") to implement improvement activities and pace implementation based on pre-existing dynamics on site.
Description
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Manufacturing Program at MIT, 2007. Includes bibliographical references (p. 40-42).
Date issued
2007Department
Leaders for Manufacturing Program at MIT; Massachusetts Institute of Technology. Engineering Systems Division; Sloan School of ManagementPublisher
Massachusetts Institute of Technology
Keywords
Sloan School of Management., Engineering Systems Division., Leaders for Manufacturing Program.