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Companies need strategies for building critical capabilities to achieve competitive advantage.
manufacturing strategy
Methods Adopted
JIT TQM DFM Lean Manufacturing Reengineering Benchmarking Ubiquitous Team Approach
Until 1980s- manufacturing in terms of a paradigm. The dogma. 1969- Wickham Skinner Focused factory Strategic Flexibility Strategic fit: Two companies may adopt similar strategies and production processes, but one can end up being far more successful!
Trade offs mean choosing between low costs, high quality or fast response approaches, Since one production unit cannot follow all these. Lean manufacturing helps eradicate trade offs. It uses half of the efforts and resources that mass manufacturing uses.
Japanese companies were restricted when it came to product variety in the 1970s but many elite Japanese companies embarked on an orgy of product proliferation during the 1980s Lean manufacturing was flexible enough to incorporate various products within one factory or one unit.
Once a company settled on a competitive strategy, its manufacturing organization should develop the specific capabilities required to implement that strategy. The Japanese were using the most flexible form of manufacturing thus, were rapid changers.
Japanese companies had apparently found an approach to manufacturing uniformly superior to the Taylor system.
The Japanese approach has brought around a full circle from the days of Frederick Taylor: once again, we have settled for one best way to compete.
What role is left for manufacturing strategies when we have settled on one best way to compete?
During the 1960s and 1970s the strategy was to find an attractive position in study and build a competitive advantages.
Later both competitive and manufacturing strategies became outdated. Centralizing production vs. Product Innovation.
It is the way how managers apply these practices to the organizations problems. Managers define their problems in terms of starting points and end points.
Equating an improvement in manufacturing capabilities with a manufacturing strategy. Failing to recognize the new practices build new capabilities that can form the basis of a new manufacturing strategy.
Just when they appear to have solved a problem, they encounter new problems that require new approaches.
Such changes priorities simply reflect the need for continuous improvement. EG
Companies often solve one problem only to face new ones, whose solutions contradict programs just put in place.
Key role for a companys manufacturing strategy is to guide the selection of improvement programs.
Just In Time (JIT) or Manufacturing Resources Planning (MRS) .
Long-Term Strategies
Continuous differentiation from it competitors. Proper selection & implementation of improvement programs to develop unique operating capabilties
An idea that the primary way manufacturing adds value by doing certain things better than the competitor. Developing a plan for building the capabilities it wants acquire.
Conclusion