The Drivers of the Development of High Value Added Manufacturing in Europe: a Qualitative Exploration of High Value Added Manufacturing Firms in Finland

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Volume Title

School of Business | Bachelor's thesis

Date

2017

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Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

52

Series

Abstract

Objectives The main objectives of this study were to examine the benefits of high value added manufacturing (HVM) and its potential as a strategic approach by means of qualitative research. The research was conducted to understand the sectors adopting HVM and uncover the benefits of this type of manufacturing. Summary The main approaches of high value manufacturing are customer-based solutions, ‘just in time’ manufacturing, and lean implementation to establish innovative manufacturing. The key benefits of HVM on a company’s strategy are in terms of cost savings, increase in efficiency and waste reduction, increase in profitability, improved customer approval, and a sustainable competitive advantage, as well as benefits on a country’s economy and the environment. Companies can utilize HVM as a strategic approach to increase profit margins and maintain competitiveness in the industry. The qualitative interviews were conducted with HVM companies in Finland. Conclusions The main drivers for HVM adoption were found to be an increase in value creation and the ability to obtain a sustainable competitiveness in a developed country environment. The main benefits of HVM were found to be profit and value benefits including cost savings, efficiency improvements, waste reduction, and an increase in customer satisfaction. The economical and environment benefits included employment provider, recycling and overall sustainable manufacturing with a positive impact on the economy’s wealth.

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Thesis advisor

Grinsted, Susan

Keywords

high value added manufacturing, manufacturing sector, Europe, strategic approach

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