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Lecture No. 19: Production Strategy: Takahiro Fujimoto Department of Economics, University of Tokyo
Lecture No. 19: Production Strategy: Takahiro Fujimoto Department of Economics, University of Tokyo
Business strategy
Manufacturing strategy
--- pattern of decision making with certain consistency
regarding to production
(consistency on maintenance/enhancement of
competitiveness)
Hierarchy Structure of Management Strategy
( diversification strategy)
company level corporate strategy (product --- market strategy)
competition strategy
business division level business strategy
production strategy
department level by function functional strategy research and
development strategy
marketing strategy
other
2.Constituent of Production Strategy
vertical integration
personnel/labor management
purchase/supplier management
production plan/control
Substructural (soft) quality control
costing, IE, improvement
management organization
Concept of "Strategy": Plan and Pattern
Author making (reference: 'Skinner,W.,Manufacturing : The Formidable Competitive Weapon, John Wiky & Sons')
Reference: Takahiro Fujimoto 'Introduction to Production Mmanagement' Nihon Keizai Shimbun, Inc. 2001 (Ⅰp347)
Structural Production Strategy (1):
Decision of Production Capacity
2. In-balance type
mid point between 1 and 3
fixed
cost
aver
total total (inves
variable age
cost cost tment
cost running cost vari
amou able
nt) cost
fixed cost
cost of set-up switch
production volume per period production lot size production capability cumulative production volume
aver aver
aver aver
age age cost of set-
age age
cost cost up switch
fixed cost cost fixed cost cost
Takahiro Fujimoto 'Introduction to Production Management' Nihon Keizai Shimbun, Inc. 2001 (Ⅰp354 figure.9.6)
Concept of Optimum Factory Size (Sherer)
average
optimum factory size
total cost per unit
product-transportation
cost per unit
0
factory size
Factory Network of Press-to-Assembly System
l
shel asse
y
bod
mbly
Detroit
asse
mbly
USA I press welding
asse
(1 module) (1 module) mbly
(1 line)
el weld asse
pa n ing
mbly
Detroit
weld asse
ing
mbly
USA Ⅱ press
weld asse
ing
mbly
weld asse
ing
mbly
Japan press
weld asse
ing
mbly ‡
Takahiro Fujimoto 'Introduction to Production Management' Nihon Keizai Shimbun, Inc. 2001 (Ⅰp355 figure.9.8)
(2)Factory Location
Check points:
distribution of consumption market/material maker,
local labor market
transportation method, community, utility
environment, preferential measure of local
government, and others
Consumer market
New
factory
‡
Takahiro Fujimoto 'Introduction to Production Management' Nihon Keizai Shimbun, Inc. 2001 (Ⅰp359 figure.9.11)
Hayes/Wheelwright
National Factory and Group of Regional Factories Ch. 4
Figure removed
due to copyright restrictions
(capab
cost cost ility)
low
high high
lead-time
long short
flexibility cost of set-up switch
small large high low
low low high
invent ride
cost ory quality
cost
high low
high
low controllability high ‡
Takahiro Fujimoto 'Introduction to Production Management' Nihon Keizai Shimbun, Inc. 2001 (Ⅰp367 figure.9.14)
3. Thoughts on Production Strategy
Two points of view (One's superiority to another is up to an
industry and times.)
(1) "Loud" view of production strategy
high-powered, active top management, significant decision
making
(2) "Steady" view of production strategy
at a glance, non-strategic action in operation level
Meticulous buildup in long term → hardly detectable to rival