By Terry Hill
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Additional resources for Manufacturing Strategy: Text and Cases
Example text
Manufacturing strategy What has happened in the past decade and a half is that countries such as Japan, Germany and Italy, as well as emerging industrial nations such as Korea and Taiwan, have gained the competitive upper hand, and this advantage has been achieved through manufacturing. The Japanese, in particular, have gone for existing markets and provided better goods with few, if any, inherent benefits derived from material and energy resources. The early examples serve to illustrate this. One of the keys to this achievement through manufacturing has been the integration of these functional perspectives at the level of corporate strategy debate, and it is appropriate now to explain what this embodies and how it differs from the conventional approaches to the management of production.
Top management's view of strategy The authors of business plans and corporate marketing reviews look outwards from the business. Top executives associate themselves with these activities, seeing them as essential components in the development of corporate strategy. The result is that they give adequate and appropriate attention to the external environment in which the business operates. Manufacturing plans address stated business needs and are based on the internal dimensions of the processes involved; top executives are not likely to take part in developing these plans.
Relatively few contributors address this fundamental area. The result is that manufacturing executives are less able to explain their essential perspectives. Hence, executives from other functions are less attuned to the ideas and perspectives that form the basis for understanding manufacturing's strategic contribution. Functional goals versus manufacturing's needs In many organizations, the managers of different functions are measured by their departmental efficiency (an operational perspective) and not overall effectiveness (a business perspective).