Managing the core plant role - key prerequisites from an operations perspective

Abstract

A core plant should be a centre of excellence, have a central role for knowledge creation, and ensure that the latest knowledge is diffused in the organisation's production network. Core plants can yield a range of benefits, such as increased resource efficiency and decreased costs in the production network. However, core plants face immense challenges in performing their roles, given the different interests of the different stakeholders that need to be satisfied. We use data gathered from an in-depth study of six core plants in Sweden to analyse the prerequisites. We conclude that the core plant prerequisites are influenced by human, organisational, and technological aspects, i.e., successful development of core plant capabilities can only be achieved if all the three components are considered together. Our findings are relevant to operation managers, plant managers, and others interested in developing and maintaining core plant excellence. [Submitted 01 March 2018; Accepted 18 March 2019]