A Virtual Manufacturing Network (VMN), also known as Global Manufacturing Virtual Networks (GMVN), are a

collaborative network A collaborative network is a network consisting of a variety of entities (e.g. organizations and people) that are largely autonomous, geographically distributed, and heterogeneous in terms of their operating environment, culture, social capital and ...

where multiple manufacturing entities—ranging from original equipment manufacturers (OEMs) to component suppliers—cooperate through ICT infrastructures to function as an integrated supply network, despite not being under single ownership. VMNs enable participating firms to specialize in core competencies while outsourcing non-core tasks, thus reducing expenses. The progression from VMNs has led to the emergence of Dynamic Manufacturing Networks (DMNs), which offer rapid reconfiguration in response to market or supply chain changes.

Emergence

The idea of the GMVN was introduced in 2000. It emerged in response to the shift from traditional, vertically integrated manufacturing to collaborative networks of specialized, independent companies, particularly in the

electronics industry The electronics industry is the industry (economics), industry that produces electronic devices. It emerged in the 20th century and is today one of the largest global industries. Contemporary society uses a vast array of electronic devices that ar ...

. By the mid-1990s, original equipment manufacturers (OEMs) began outsourcing non-core manufacturing to focus on

research and development Research and development (R&D or R+D), known in some countries as OKB, experiment and design, is the set of innovative activities undertaken by corporations or governments in developing new services or products. R&D constitutes the first stage ...

, marketing, and customer solutions, while contract electronics manufacturers (CEMs), evolving into

electronics manufacturing services Electronics manufacturing services (EMS) is a term used for companies that design, manufacture, test, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs). The concept ...

(EMS) providers, expanded to offer comprehensive manufacturing solutions. This transformation, driven by market demands for customized solutions, globalization, and advancements in ICT, enabled dynamic collaborations. MVNs leverage a cooperative resource pool, allowing companies to construct flexible

supply chains A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distr ...

without maintaining extensive internal manufacturing assets, enhancing agility and competitiveness in industries such as electronics, automotive, and

aerospace Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astron ...

Case Studies

Aeronautical Industry: Rolls-Royce

Rolls-Royce Rolls-Royce (always hyphenated) may refer to: * Rolls-Royce Limited, a British manufacturer of cars and later aero engines, founded in 1906, now defunct Automobiles * Rolls-Royce Motor Cars, the current car manufacturing company incorporated in ...

, a leading aircraft engine manufacturer, demonstrates the use of G in the

aerospace industry Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astr ...

. Initially, in the 1950s, Rolls-Royce relied on centralized production, manufacturing entire engines, such as the Dart, at a single UK facility with minimal external collaboration. Following its 1987 privatization, the company shifted to a decentralized, globalized network. By the 2000s, its manufacturing centers were specialized, each focusing on specific components like compressors or turbines to achieve

economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of Productivity, output produced per unit of cost (production cost). A decrease in ...

. This restructuring enabled flexible

tailored to specific projects. For example, the

Trent 900 The Rolls-Royce Trent 900 is a high-bypass turbofan produced by Rolls-Royce plc to power the Airbus A380, competing with the Engine Alliance GP7000. Initially proposed for the Boeing 747#747-500X, -600X, and -700X, Boeing 747-500/600X in July ...

engine for the

Airbus A380 The Airbus A380 is a very large wide-body airliner, developed and produced by Airbus until 2021. It is the world's largest passenger airliner and the only full-length double-deck jet airliner. Airbus studies started in 1988, and the pr ...

involves partnerships with companies like

Volvo Aero Volvo Aero was a Swedish aircraft engine, aircraft, guided missiles and rocket engine manufacturer. It became ''GKN Aerospace Engine Systems'' following the company's acquisition by British engineering conglomerate GKN during 2012. It was ori ...

and ITP, while the F136 engine for the

F-35 Lightning II The Lockheed Martin F-35 Lightning II is an American family of single-seat, single-engine, supersonic Stealth aircraft, stealth strike fighters. A multirole combat aircraft designed for both Air superiority fighter, air superiority and att ...

is a collaborative effort with

General Electric General Electric Company (GE) was an American Multinational corporation, multinational Conglomerate (company), conglomerate founded in 1892, incorporated in the New York (state), state of New York and headquartered in Boston. Over the year ...

. These partnerships allow Rolls-Royce to manage risks and enhance efficiency in response to market demands.

Notes

{{Reflist Manufacturing Networks Enterprise architecture

Emergence

Case Studies

Aeronautical Industry: Rolls-Royce

See also

Notes