• Title/Summary/Keyword: subcontracting management

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Integrated production planning in supply chain management environment considering manufacturing partners (SCM 환경에서의 협력 생산을 고려한 통합 생산 계획에 관한 연구)

  • Jeong Ho Sang;Jeong Bong Ju
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2002.05a
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    • pp.363-370
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    • 2002
  • This paper presents a production planning algorithm for minimizing the costs of production and subcontracting in SCM (supply chain management) environment. In our SCM environment, the several local plants that aye dispersed geographically produce parts and products. In this environment, we have to decide the production volumes of both parts and products considering the BOM (bill-of-material) structure to meet the fixed order quantity or forecasted demand quantity. Each plant produces the specified parts of product with finite production capacity. There exist subcontracting decisions relevant to the production capacity of each plant except the core process plant, and when we use the subcontractor's capacities we should be charged for the fixed subcontracting fees. The objective of this study is to solve the production planning problem, which minimizes the total costs of production, inventory, setup, and subcontracting under constraints of production and subcontracting capacity. For this problem, an integrated production planning model based on the multi-level capacitated lot sizing problem was formulated, and efficient decomposition algorithm was proposed. The experimental investigation shows that the proposed heuristic generates quite good solutions at very low computational costs.

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Machining Route Selection with Subcontracting Using Genetic Algorithm (와주를 고려한 가공경로 선정에서의 유전알고르즘 접근)

  • 이규용;문치웅;김재균
    • Korean Management Science Review
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    • v.17 no.2
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    • pp.55-65
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    • 2000
  • This paper addresses a problem of machining route selection in multi-stage process with machine group. This problem is considered the subcontracting and the production in-house such as regular and overtime work. the proposed model is formulated as a 0-1 integer programming constraining the avaliable time of each machine for planning period and total overtimes. The objective of the model is to minimize the sum of processing cost, overtime cost, and subcontracting cost. To solve this model, a genetic algorithm(GA) approach is developed. The effectiveness of the proposed GA approach is evaluated through comparisons with the optimal solution obtained from the branch and bound. In results, the same optimal solution is obtained from two methods at small size problem, and the consistent solution is provided by the GA approach at large size problem. The advantage of the GA approach is the flexibility into decision-making process because of providing multiple machining routes.

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A Machine Cell and Part Family Formation Procedure in Considering the Duplication and Subcontracting (중복설계와 하청을 고려한 셀 및 부품군 형성 절차)

  • Mun, Chi-Ung;Kim, Hyo-Nam;Lee, Sang-Yong
    • Journal of Korean Society for Quality Management
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    • v.21 no.2
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    • pp.224-231
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    • 1993
  • This paper propose a procedure to form the cell and part family using both of similarity coefficient method and mathematical programming in order to slove the exceptional part and bottleneck machine problems. In the procedure proposed by this paper, the machine duplication and subcontracting are considered to slove the bottleneck machine and intercellular moving part problems An example is given to show how this procedure works.

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A Study on the Problem and Improvement of Screening System of Low Price Subcontracting by Analyzing a Standard of Judgement Criteria (원도급자 측면에서의 저가하도급 판정기준의 문제점과 개선방안)

  • Kim, Soon-Young;Han, Choong-Hee;Baek, Tae-Ryong;Kim, Kyoon-Tai;Lee, Jun-Bok
    • Korean Journal of Construction Engineering and Management
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    • v.10 no.6
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    • pp.107-116
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    • 2009
  • As the Fundamentals of Construction Business Act was revised in December 2004 and its implementing ordinances and enforcement regulations were adjusted in June 2005, the screening system of low price subcontracting has been an obligation to the public owners, having brought about arguments for and against since it enacted in 1983. The statutes for low price subcontracting have been reinforced from this year; for example, it underlines to submit to a project and builds an information network of subcontracting works. The system's original intention was that prevents shoddy and fraudulent constructions caused by low price subcontracting and precludes disturbances of fair trade by screening that whether it satisfies the conditions or not in advance. But, the criterion for the existing low price subcontracting has several issues having held up a true mirror to the real situation. It is arguable to discharge an important task with the primary purpose. This dissertation have researched the problem with a deposit of subcontract and the low price subcontracting basic rate are being used by the criteria for deciding whether it is a low price subcontracting or not, so showing the plan of reformation based on the findings, it wishes to contribute toward making the most of the system's essential intent.

Late development, introduction and development of in-house subcontract in large factory in metal industry - in case of Pohang steel company in the steel industry - (후발 산업화와 금속부문 대공장내 사내하청 노동의 도입과 전개 - 철강업종의 포항제철 사례를 중심으로 -)

  • Son, Jeong-Sun
    • Korean Journal of Labor Studies
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    • v.17 no.1
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    • pp.177-208
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    • 2011
  • This article examines that how in-house subcontract has been introduced and developed in metal industry in 1970s, focusing typical workplaces in steel industry. That was essential for the capital to insure control mechanism for large number of laborer because of mobilizing a large scale of capital in industrialization of heavy metal industry. In case of Pohang steel industry, this necessity was fulfilled by introduction and imitation of Japanese personnel management by being included of Japanese economic hinterland. This was embodied in both constructing internal labor market for regular workers and introducing in-house subcontracting system for contingent workers at workplaces. This was exceptional comparing in-house subcontracting system in Korean steel industry with in-house subcontracting system in advanced economies, because of disappearing in-house subcontracting system by making internal labor market. And this was closely linked by late development of Korea. Implications of Pohang steel company's case are as follows : first, late development effect in formation of employment system, second, in linking informality of Korean employment system. This implications mean that in-house subcontracting in steel industry is structured as mechanism for personnel management in large factory being influenced by industrialization of heavy industry. In this point, improvements which include wide economic solution beyond labor solution for present problem of in-house subcontracting system is desirable.

A Health and Safety Improvement Roadmap for the Construction Industry

  • Diugwu, Ikechukwu A.;Baba, Dorothy L.
    • Journal of Construction Engineering and Project Management
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    • v.4 no.1
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    • pp.37-44
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    • 2014
  • Comparatively, the construction industry has, on average, a higher rate of fatal and major injuries, work induced ill-health and damage to properties than other industrial sectors; and this is a source of concern to industry stakeholders. The study showed that although subcontracting could be contributory to an increase in workplace accidents in the construction industry, contractual aspects of subcontracting arrangements (such as the power imbalance that exist along the client-customer interface) also present opportunities for improvements in health and safety management (HSM) practices in organisations. This conclusion was reached after an analysis of a questionnaire survey (with a 27% response rate) that assessed the attitudes and perception to health and safety issues.

A Model for Assessing Maximum Overtime Rate in Labor Subcontracting Practices

  • Nassar, Khaled;Hosny, Ossama
    • Journal of Construction Engineering and Project Management
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    • v.2 no.2
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    • pp.18-27
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    • 2012
  • Despite the rapid development in the construction industry due to the changing new technologies, many projects still fail to meet target deadlines. Shortage in manpower and skilled laborers is one of the main reasons for such delays. Markets with high economic growth and economic expansion (such as Gulf Countries in the Middle East) may have pronounced labor the shortages. Labor subcontracting practices are used sometimes to increase production rates and meet project deadlines. This paper explains and analyses labor subcontracting practices currently being used in many places around the world (and especially in the Gulf Countries) and in particular defines a maximum overtime rate for laborers in the laborer-subcontracting method ensuring that the contractor gains both the time saved during overtime and also reduces the cost per unit produced. The mathematical model used formalizes a closed-form equation for overtime pay in similar situations and as such can be applicable worldwide. Data was collected from representative projects that employed such practices from various trades. Validation of the model and formula has been tested successfully by analyzing historic data. The results prove that contractors often do not reach the optimum use of their practices resulting in a higher cost per unit. The presented model and the analysis should be of interest to many contractors currently involved in the practice or considering its use and to those who wish to find new methods that would help in eliminating as much wastes as possible by allocating their resources in the most efficient way.

Entrepreneurial Orientation and Performance for Subcontracting Korean SMEs: The Role of Buyer-Supplier Relationship

  • Youngwoo LEE
    • The Journal of Industrial Distribution & Business
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    • v.14 no.8
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    • pp.27-35
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    • 2023
  • The main objective of this study is to examine the impact of entrepreneurial orientation (EO) on small and medium-sized enterprises' (SMEs) performance in the context of subcontracting buyer-supplier relation. Specifically, we seek to examine whether the power dynamics between buyer and supplier either support or hamper subcontracting SMEs' ability to effectively pursue EO for enhancing their performance. Research design, data, and methodology: We collected survey questionnaires from Korean SMEs that are certified with Inno-biz by the Korean Ministry of SMEs and Startups. The collected data was analyzed using SPSS 26 and AMOS to create an integrated model. Result: Based on the analysis, our findings indicate that the proactiveness and innovativeness dimensions of EO have a positive effect on the SMEs' performance. However, the risk-taking dimension of EO has a negative effect on performance. Additionally, buyer dependency exhibit both positive and negative moderating effects on different dimensions of EO. Conclusion: For SMEs that rely heavily on a particular buyer in terms of sale, pursuing innovativeness dimension of EO could lead to positive performance, while pursuing proactiveness dimension of EO had a negative moderating effect on performance.

A Feasibility Study on Semi-Cash Payment of Construction Subcontracting (건설 하도급공사에서 현금성결제수단 적용의 타당성 분석)

  • Koo Jeong-San;Jung Sung-Hun;Um Ik-Joon;Koo Kyo-Jin
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2004.11a
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    • pp.311-316
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    • 2004
  • According to subcontracting company's capital circumstanre change for the worse by price regionalism and long bill supply and demand, bill principal parts settlement means were introduced. But, performance disgrace is inactive except some corporation. The purpose of this study is presenting loss and gain datum point that is standard of economical price disbursement means at construction subcontracting construction price settlement connection corporation purchaser gold Beaning means application and supply basis data. economical gains by high cash specific gravity

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In-House Subcontracting and Industrial Relations in Japanes Steel Industry (일본 철강산업의 사내하청과 노사관계)

  • Oh, Haksoo
    • Korean Journal of Labor Studies
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    • v.24 no.1
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    • pp.107-156
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    • 2018
  • This article examines the history of the in - house subcontracting and the stabilization of labor - management relations in the steel industry in Japan. The ratio of in-house subcontract workers among steel workers has increased steadily until the mid-2000s, and about 70% in case of the largest company. In-house subcontracting was used as a strategy of the company to increase the quantity flexibility of employment and to save labor costs. The in-house subcontracting company needed company-specialized skills, and the internal labor market was formed because the rate of full-time workers was high and the turnover rate was low. The in-house subcontractor introduced long-term business relationship with the steel factory by introducing the equipment and materials necessary for the performance of the work, and the factory implemented the productivity improvement policy of the in-house subcontractor, and the win-win relationship between the factory and in-house subcontractor was developed. The trade union did not oppose the idea that the expansion of in-house subcontracting contributed to corporate profits, the stability of employment of the members and maintenance of their working conditions. Since 2000, the steel factory has pursued the transformation of in - house subcontractors into subsidiaries, which has been supported by capital relations. By the way, since the mid-2000s, there has been an increase in the number of regular workers' employment. The major factors are as follows: more strengthened compliance with laws and regulations, the higher quality request of customers, stricter keeping of deadlines, and problem in recruiting of workers at in-house subcontract companies. The wage gap between the factory and in - house subcontracting was less at company B than at company S, and the wage level of in - house subcontracting was about 90% of the factory at company B. The relatively small gap at company B seems to be due to the union's movement of narrowing the gap, low market dominance and unfavorable labor market. The internal labor market has been formed in the in-house subcontracting, and the wage gap is not large, and the possibility of labor disputes is low. Industrial relations are stable in the in-house subcontract company as well as the factory. The stabilization of labor-management relations in the steel industry in Korea is required to reduce the wage gap between the factory and in-house subcontract enterprises by raising productivity and expanding the internal labor market at in-house subcontract enterprises.