Development of Mfg Strategy

Manufacturing / Operations Strategy Framework

Environment
Customer, industry,
Soc/Tech/Poli Envi Other
Functional
Tasks
A3 A1
A4 Manufacturing Configuration
Intent Strategy Manufacturing
Task A2 Structure Infrastructure
A5
Gaps

Manufacturing
Capability Gaps Mfg. Perf.
Competitor
Cap. – Perf.

Manufacturing Change Programs

Manufacturing Action Programs

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 Efficiency/Performance Frontier
Which is the efficiency
frontier?
ACC If it is blue, both ACC and
Cost

DJC have the capabilities to

threaten the other.
If it is green, ACC has
DJC advantage.
If it is red, ACC is at a
disadvantage.
Now let us see what exactly
Flexibility is the position.

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 Activity System of ACC
Process
layout: Packaging Offer 4500
Batch with 10-1500 SKUs
Processing pieces

Manpower Closely
Qlty control High works with
High quality policies
by Flexibility/ large
connectors
inspection customization customers
Proc. LT:
10 days for
Choice of std items, 2-3
Use of materials: weeks for
latest gold/resin special
production orders
tech. & equip

Low
Frequent Delivery
Cost utilization
schedule promptness
(70%)
Large # of changes,
production short runs
control
staffs
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Stages in the Strategic Role of Manufacturing

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Manufacturing Strategy Formulation
Audit Approach
Strategic Select Identify imp
Mfg Review Imp Flys comp criteria

Identify weak
policy areas
Model and check
Develop Alternative
the strategy
Change Programs
until acceptable
Identify mfg
Opportunities
Threats

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Worksheet 1 : Initial Profiles

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Worksheet 1 : Initial Profiles

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 Worksheet 2: Basic product family data
For growth, if actual figures are not available, use scale of – 2 (declining rapidly) to + 2
(growing rapidly).

Product families Sales % Sales % Contribution Market Share Growth of Market Market
Share growth

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 Worksheet 3: Competitive criteria

Product Features Quality Delivery Flexibility Price

Family Lead time Reliability Design Volume

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 Worksheet 4: Achieved performance.
Rate performance on a scale of -2 (performance gives us a strong disadvantage v. our
competitors) to +2 (performance gives us a strong advantage v. our competitors).

Product Delivery Flexibility

Family
Features Quality Lead time Reliability Design Volume Cost

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 Worksheet 5: Opportunities and threats

Product family Opportunities Threats

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 Worksheet 6: Existing practices.
This worksheet is diagrammatic. Each of the policy areas would be expanded to allow
the entry and rating of several practices

Features Quality Delivery Flexibility

Policy area Lead time Reliability Design Volume Price
Facilities

Capacity

Span of process

Processes

Human
resources

Quality

Control policies

Suppliers

New products

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 Worksheet 7: Action worksheet

Policy area Weakness/required strength Possible actions/strategic choices

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Top-down process for developing Mfg
Strategy

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Alternative Mfg Strategy Development
Processes

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IJOPM (2001), 21(10), pp1289-1304
Alternative Mfg Strategy Development
Processes

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Mfg strategy Development Processes
and Strategic Role of Mfg

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