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Developing Effective Manufacturing Strategies

The document outlines a research project that aims to analyze a company's manufacturing strategies. It describes conducting interviews and audits to understand the company's goals, marketing strategy, production processes, quality programs, and perceptions of important capabilities. Key findings include that the company has grown sales significantly but lacks an explicit manufacturing strategy, pursuing low costs, flexibility for exports and technical service locally through batch production. Conclusions state the implicit strategy supports goals but management systems need improvement and a culture of change exists.

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1K views17 pages

Developing Effective Manufacturing Strategies

The document outlines a research project that aims to analyze a company's manufacturing strategies. It describes conducting interviews and audits to understand the company's goals, marketing strategy, production processes, quality programs, and perceptions of important capabilities. Key findings include that the company has grown sales significantly but lacks an explicit manufacturing strategy, pursuing low costs, flexibility for exports and technical service locally through batch production. Conclusions state the implicit strategy supports goals but management systems need improvement and a culture of change exists.

Uploaded by

castco@iafrica.com
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

THE EXPLICIT AND IMPLICIT

MANUFACTURING STRATEGIES

MBA Research Project


(GSB UCT 1997)
By

YUNUS TURAN
OBJECTIVES

¾ Identify the corporate goals


¾ Assess how manufacturing meets corporate
goals
¾ Ascertain the extent of market knowledge
among different functional areas
¾ Deduce the degree of correlation between
market demands and manufacturing choices
¾ Develop a manufacturing strategy using Terry
Hill’s model
METHODOLOGY

¾ Brief the management team on the objectives


and methodology of the research
¾ Identify corporate objectives from written
documents and MD interview
¾ Interviews with MD and heads of divisions to
determine the manufacturing strategy and
ascertain their views on qualifying and order
winning criteria
RESEARCH METHODOLOGY cont....’

¾ Identify marketing strategy


¾ Interviews with key manufacturing staff and
make observations on the shop floor
¾ Conduct a manufacturing audit
¾ Review company documents
MANUFACTURING AUDIT
PROCEDURE

¾What to make and what to buy


¾Production planning, scheduling,
and inventory control
¾Work-force management
¾Quality control
¾The formal organisation
¾Controls, reports, and information systems
¾Purchasing
RESULTS

¾Company background
¾Corporate strategy
¾Marketing strategy
¾Technology and facilities
¾Capacity utilisation
¾Production planning and scheduling
¾Quality control
¾Work-force policies
¾Order winners and qualifiers
COMPANY BACKGROUND

¾Electro-mechanical equipment manufacturer


¾Nationwide and international sales
CORPORATE STRATEGY
350%

306%

300%

250%
Sales

200% 193%

150% 137%

100%
100%

50%
Year 1 Year 2 Year 3 Year 4
Ye a rs
MARKETING STRATEGY

¾Create new concepts in the local market


¾Increase export sales to meet sales targets
¾Become one of the top five manufacturer
TECHNOLOGY AND FACILITIES

¾ Job shop - batch operation


¾Transition into a focused factory layout
¾New facilities to meet increasing sales growth
¾Labour intensive operations
PRODUCTION CONTROL AND
SCHEDULING

¾Forecasting process
¾Separate sales department
¾Loading of the factory to full capacity
¾Certain departments works in shifts
¾Batch production scheduling
QUALITY CONTROL

¾ ISO 9002 listed


¾Early stages of quality system
implementation
¾Factory objectives
Reduce damage and loss
Increase productivity
WORK FORCE POLICIES

¾Business appreciation
¾Training programs
¾Skills development
EXPLICIT
MANUFACTURING STRATEGY

¾No documented manufacturing strategy


ORDER WINNERS AND QUALIFIERS
A cco rd ing to m anu factu ring
E xp o rt L o cal
O rd er W inners and Q u alifiers 1997 1998 1997 1998
P rice 50% 60% 40% 50%
F lexibility 30 30 20 20
L ead T im e 20 10 - -
T echnical S ervice - - 20 30
Q u ality Q Q 20 Q
A cco rd ing to sales
E xp o rt L o cal
O rd er W inners and Q u alifiers 1997 1998 1997 1998
R ep u tatio n - - 60 60
R elatio nship - - 10 20
S elling sk ills - - 10 10
P rice 50 60 Q Q
F lexibility 30 30 - -
L ead T im e 20 10 - -
T echnical S ervice - - 10 10
Q u ality Q Q 10 Q
THE MANUFACTURING TASK

¾Export market
low cost manufacturer
product customisation (flexibility)
short lead-time.

¾Local market
low cost manufacturer
wide range of products
technical service
CONCLUSIONS

¾ Manufacturing strategy development is implicit


¾ Implicit manufacturing strategy are aligned
towards meeting the corporate objectives.
¾ Differences between improvement programs
and strategic decisions.
¾ Management control systems are at an
early stage of implementation.
¾ A culture of change and adaptability
exist in the company.

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