International Mfg and Engineering

Manufacturing industry has been experiencing dramatic evolutions in last three decades. The boundaries of a manufacturing system are extended from factory towards various types of network relationships. The missions of manufacturing system are transformed and re-defined. The output scopes are also expanded into servitisation from traditional product focused concentration. This chapter, based upon recent observations and analysis in both globalised production and engineering networks, introduces an evolutionary picture of manufacturing system with its engineering function systems. The chapter demonstrates a theoretical framework that highlights both globalised manufacturing and engineering networks have not only very unique structures and configurations but also distinguished strategic capabilities. The chapter suggests that the classical manufacturing strategy and system design theories should be adapted into a contingency strategy to respond to the manufacturing evolutions and treat different systems interdependently. The chapter also seeks to clarify the two distinguished concepts and systems – production and engineering – based on the case analysis, and tries to achieve a synergy between those two different value creation systems on the global platform. The chapter suggests a new conceptual framework for further research on new manufacturing evolution and contingency strategy.