Global manufacturing issues: the case of Siemens AG

Over the last two decades we have witnessed a dramatic move towards a global economy and the globalisation of manufacturing. Some companies are forced to go global because of saturating domestic markets and diminishing profits whilst others recognise the opportunities in growing and developing regions which offer lower manufacturing costs and very large customer base. This paper describes the experiences of Siemens A G in relation to global manufacturing and identifies some of the key lessons learnt from its global operations. These included the importance of a having a long-term strategy, the adoption of a structured approach for technology transfer, a broad base of research and production facilities incorporating joint ventures and the role of training and integration of local technology and culture to tune products to local market requirements.