Details

Framgångsfaktorer för arbete med funktionsöverskridande processer : En fallstudie vid Ericsson AB

by Kekonius, Henrik; Martinsson, Gustaf

Abstract (Summary)
A product often consists for the most part of purchased materials and to reduce the total cost of production, therefore, companies often focus on reducing their purchase prices. Pushing supplier prices in this way is a popular way to improve the company's short-term profits.Ericsson negotiates annually with its suppliers to reduce their purchase prices, which is considered to reduce purchasing costs and thus the production costs. This is achieved by the sourcing function in a process known as the VPA process. The VPA process requires information from the local supply functions, which, however, has no documented approach for these activities. The purpose of this study is, therefore, to create a support processes to sourcing VPA process. We have also from a theoretical approach critically reviewed the existing process.What we found is that Ericsson's approach could be sub optimized, focusing on achieving internal goals within the function creates obstacles for other functions. Often, if not always, each function focuses on its own goals and do not have a holistic view on organizational performance. This means that the organization as a whole may suffer when instead of optimizing process output, local optimization leads to total sub optimization.To prevent sub optimization, functions needs to create an understanding of the other functions goals, communication between the functions are therefore of critical nature. However, this is not enough, to reduce the focus on goals within functions and instead focus on process goals requires that senior management will create this opportunity.
Bibliographical Information:

Advisor:

School:Högskolan i Gävle

School Location:Sweden

Source Type:Master's Thesis

Keywords:process activities functions sub optimized holistic communication

ISBN:

Date of Publication:06/27/2008

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