Introduction
It is usual for the manufacturing function of a manufacturing
company to: control 90 per cent of the firm's installed capital;
be responsible for 70 per cent of revenue expenditure; hold 80
per cent of the firm's net assets; and employ over 50 per cent
of the firm's work force.
Manufacturing has a critical influence on product quality
and cost, order lead time, delivery time and the speed of introduction
of new products. To achieve competitive performance in these
areas requires, among other things: sound capital investment;
sensible make versus buy decisions; human resource policies that
encourage employees to give their best; and manufacturing control
systems that facilitate the flow of material and orders. These
are examples of some of the elements of a manufacturing strategy.
However, manufacturing strategies do not exist in isolation,
and need to be placed in the context of the other strategies
found in organizations.
The content of manufacturing strategy includes the establishment
of manufacturing objectives and the recognition of manufacturing
strategic decision areas. Formulating a manufacturing strategy
requires first the identification of markets, competitors and
current performance; second, an identification of opportunities
and threats; third, an assessment of current strategy; and fourth,
the generation of a new strategy to meet requirements. Strategies
then need to be evaluated for comprehensiveness, consistency,
the extent to which they have been articulated and communicated,
and the contribution they make to competitive advantage.
As such this web-site focuses on the application of a resource-based
perspective within manufacturing strategy and on improvements
to the application or process of manufacturing strategy formulation.
There are four ways of accessing the information.
Please send any comments to me or post them on the web forum.
Robert Thompson BEng(Hons), MSc, MIQA, MIOSH |
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