Smartville: Extras (3)
Basic Complementarities Afforded by MCC’s Performance of Final Assembly
The centrality of MCC and the Smartville information system means the manufacturing process resembles a closed loop/MRP system. The following table reports the benefits of MCC’s acting centrally by performing the final (main) assembly:
| Benefits to Suppliers | MCC Perspectives |
| Suppliers report to a central actor. | Coordination. |
| MCC arbitrates in event of inter-supplier dispute. | Centralization of authority. |
| Suppliers stand to obtain capability benefits by meeting MCC’s standards and learning from other suppliers’ methods of meeting those standards. | By enforcing quality and unifying objectives, MCC pressures suppliers into committed relationships, both with MCC and between the suppliers, elevating the standards of all. |
| Avoidance of friction/competition with other suppliers. | Prevention of titular rights disputes / legal issues regarding ownership of materials once out of supplier’s hands. |
| Suppliers might lack assembly skills, resources, etc. | MCC’s core competence will be assembly. |
| Handling of other supplier’s components would incur hazard – in event of breakage during assembly, who compensates who? | Assumption of responsibility for the crucial, pivotal stage of aggregation. |
| Absence of MCC from the assembly line or assembly by a third party would add another layer of management costs. | Presence of MCC on assembly line is a pre-emptive and active cost-saving measure. |
| Central presence of MCC avoids expense involved in training and employing assemblers in Smart Centres or on other supplier’s premises. | Cross-skilling of supplier personnel likely to be difficult, especially if assembly was done outside Smartville, i.e. in Smart Centres or regional sub-plants. |
| Final assembly by MCC relieves suppliers from administrative and coordination-related burdens, allowing leanness that should contribute to price lowering and better service. | On-the-spot presence of MCC in a central location has both practical and control effects – e.g. haste reduction and consolidation of tools. |
| Suppliers do not have to take an unfair proportion of assembly work, which would complicate job descriptions, statements of work, and billing. | MCC undertakes assembly work that would otherwise be passed to a third party or delegated between the suppliers – a complex, expensive and potentially divisive task. |
| Suppliers can concentrate on their core competencies. | Speedy assembly methods are a source of competitive advantage that would benefit suppliers and challenge MCC if unregulated or excessive spill over were to occur. |