Strategic Supply Chain Management in Process Industries An Applicati

More and more often practitioners in process industry have to adapt their global production networks to changes in the competitive environment. A majority of the supply network design models proposed by academia does not sufficiently capture the economic

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Founding Editors: M. Beckmann H.P. Künzi Managing Editors: Prof. Dr. G. Fandel Fachbereich Wirtschaftswissenschaften Fernuniversität Hagen Feithstr. 140/AVZ II, 58084 Hagen, Germany Prof. Dr. W. Trockel Institut für Mathematische Wirtschaftsforschung (IMW) Universität Bielefeld Universitätsstr. 25, 33615 Bielefeld, Germany Editorial Board: A. Basile, A. Drexl, H. Dawid, K. Inderfurth, W. Kürsten, U. Schittko

Reinhard Hübner

Strategic Supply Chain Management in Process Industries An Application to Specialty Chemicals Production Network Design

With 57 Figures and 22 Tables

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Reinhard Hübner McKinsey & Company, Inc. Kurfürstendamm 185 10707 Berlin Germany Reinhard [email protected]

This book is the published version of the doctoral dissertation “Production network design in specialty chemicals”approved by the Faculty VIII - Economics and Management of the Technical University Berlin (D 83).

Library of Congress Control Number: 2007926109

ISSN 0075-8442 ISBN 978-3-540-72180-2 Springer Berlin Heidelberg New York This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. Springer is a part of Springer Science+Business Media springer.com © Springer-Verlag Berlin Heidelberg 2007 The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Production: LE-TEX Jelonek, Schmidt & V¨ ockler GbR, Leipzig Cover-design: WMX Design GmbH, Heidelberg SPIN 12054275

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Preface

Working on operational performance improvement projects in chemical industry gave me the opportunity to experience first hand the challenges this industry is faced with due to changes of the competitive landscape and the shift of demand growth to the developing regions of the world. Addressing these challenges requires not only an operational but also a strategic response. The production (network) strategy is at the heart of the problem for many companies. Decision makers in industry are aware of the need to adapt their production networks but lack adequate methodological support to holistically re-design them. The core objectives of my endeavor into academic research were to develop a comprehensive approach towards specialty chemicals production network design and to demonstrate the insights the use of OR methods can provide in strategic planning problems. Achieving these o