Manufacturing strategy: the strategic management of the manufacturing function
Saved in:
| Main Author: | |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Basingstoke [u.a.]
Macmillan
1993
|
| Edition: | 2. ed. |
| Series: | Open university set book
|
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XXV, 311 S. graph. Darst. |
| ISBN: | 0333576470 0333576489 |
Staff View
MARC
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Record in the Search Index
| _version_ | 1804122599417970688 |
|---|---|
| adam_text | Contents
List of Figures xv
List of Tables xviii
List of Abbreviations xxi
Preface xxiii
j International Comparisons 1
¦*¦ 1.1 Manufacturing Output 2
1.2 Productivity: National Comparisons 7
1.3 Productivity: Plant Level Comparisons 9
1.4 Why Has This Happened? 10
1.4.1 Failure to recognise the size of the
competitive challenge 10
1.4.2 Failure to appreciate the impact of
increasing manufacturing capacity 12
1.4.3 Willingness to invest in research and
development 13
1.4.4 Top management s lack of manufacturing
experience 15
1.4.5 The production manager s obsession with
short term performance issues 16
1.5 Manufacturing Strategy 18
1.6 Conclusion 20
Notes and References 23
vii
viii Contents
2 Manufacturing Implications of Corporate
Marketing Decisions 25
2.1 Strategic Dominance: Perspectives over Time 26
2.2 Reasons for Manufacturing s Reactive Role in
Corporate Strategy 27
2.2.1 The production manager s view of
himself 27
2.2.2 The company s view of the production
manager s role 27
2.2.3 Production managers are too late in the
corporate debate 28
2.2 A The can t say no syndrome 28
2.2.5 Lack of language 29
2.2.6 Functional goals and measures 29
2.2.7 Functional support for manufacturing is
weak 31
2.2.8 Tenure 32
2.2.9 Top management s view of strategy 32
2.3 The Content of Corporate Strategy 32
2.3.1 Expressions of strategy are typified by
their general nature 33
2.3.2 Strategy formulation stops at the interface
between functions 33
2.3.3 Apparent rationale wholes v. parts 34
2.3.4 Typical outcomes 35
2.4 The Way Forward 35
2.4.1 Linking manufacturing with corporate
marketing decisions 36
2.4.2 How it works 37
2.5 Order winners and Qualifiers 42
2.5.1 Define the meaning 42
2.5.2 Strategy is time and market specific 43
2.5.3 Order winners and qualifiers 44
2.5.4 Differentiating between order winners
and qualifiers 45
2.5.5 Monitoring actual/anticipated change
over time 47
2.6 The Procedure for Establishing Order Winners
and Qualifiers 48
2.7 Understanding the Criteria Chosen and Their
Relative Weightings 50
Contents ix
2.7.1 Identifying qualifiers with potential to
become order winners 51
2.7.2 Identifying qualifying criteria which are
order losing sensitive 51
2.8 The Outputs of Manufacturing Strategy 52
2.9 Conclusion 56
Notes and References 57
Further Reading 57
3 Order winners and Qualifiers 59
3.1 Strategic Scenarios and Approaches 59
3.2 Strategic Vacuum 61
3.3 Understanding Markets 61
3.4 Characteristics of Today s Markets: Difference
and Speed of Change 62
3.5 Order winners and Qualifiers: Basic
Characteristics 63
3.6 Order winners and Qualifiers: Specific
Dimensions 65
3.6.1 Manufacturing related and
manufacturing specific criteria 65
3.6.2 Manufacturing related but not
manufacturing specific criteria 83
3.6.3 Non manufacturing related criteria 92
3.7 Benchmarking 94
3.7.1 Best in class exemplars 97
3.7.2 Ways to close the gap then surpass
exemplars 97
3.7.3 Competitors are moving targets 98
3.8 Determining Order winners and Qualifiers 99
3.9 Conclusion 100
3.9.1 The capsizing effect 101
3.9.2 Little is new and even less is complex 102
Notes and References 102
Further Reading 104
4 Choice of Process 105
4.1 The Choice of Process 105
4.1.1 The manufacturing function 106
4.1.2 The classic types of process choice 107
4.1.3 Choices of processes within a business 113
X Contents
4.2 The Business Implications of Process Choice 116
4.3 Selected Business Implications of
Process Choice 121
4.3.1 Project 121
4.3.2 Jobbing 122
4.3.3 Line 124
4.3.4 Batch 125
4.3.5 Continuous processing 127
4.4 An Overview of Process Choice 128
4.5 Hybrid Processes 131
4.5.1 Batch related developments and hybrids 133
4.5.2 Line related developments and hybrids 140
4.6 Review of the Use of Numerical Control (NC)
in Hybrid Processes 142
4.7 Technology Strategy 143
4.7.1 Flexibility a strategic cop out? 144
A.I.2 Technology push v. pull strategies 145
4.7.3 Manufacturing strategy and technological
opportunities 145
4.8 Product Profiling 146
4.9 Conclusion 149
4.9.1 The inherent nature of markets and
manufacturing 152
4.9.2 Manufacturing s strategic response 153
Notes and References 154
Further Reading 155
5 Focused Manufacturing 156
5.1 Focused Manufacturing 157
5.2 Applying the Principle of Economies of Scale in
Markets Characterised by Difference rather
than Similarity 158
5.2.1 Marketing 159
5.2.2 Increases in plant size 159
5.2.3 Manufacturing 160
5.2.4 Plant utilisation 160
5.2.5 Specialists as the basis for controlling a
business 160
5.3 Looking for Panaceas 161
5.4 Trade offs in Focused Manufacturing 162
Contents xi
5.4.1 Down sizing v. focused plants 162
5.5 Steps to Achieve Focus 164
5.5.1 Process review 166
5.5.2 Identification of manufacturing related
order winners and qualifiers 167
5.5.3 Process rearrangement 167
5.5.4 Infrastructure 168
5.6 Plant within a plant Configurations 172
5.7 Focus and the Product Life Cycle 173
5.8 Progression or Regression in Focused
Manufacturing 178
5.9 Conclusion 178
5.9.1 Supporting markets characterised by
difference rather than similarity 180
5.9.2 Ways forward halting the drift into
unfocused manufacturing 181
Notes and References 182
6 Process Positioning 184
6.1 Reasons for Choosing Alternative Strategic
Positions 184
6.1.1 Core elements of the business 185
6.1.2 Strategic considerations 185
6.1.3 Span of process and product
technology 185
6.1.4 Product volumes 187
6.1.5 Yesterday s strategies 188
6.1.6 Shedding different manufacturing
tasks 188
6.2 Issues Involved in Process Position Changes 189
6.2.1 Costs and investments 190
6.2.2 Strategic considerations 192
6.2.3 The managerial task 193
6.3 Level of Vertical Integration 194
6.3.1 Dimensions involved 195
6.3.2 Benefits of vertical integration 195
6.3.3 Costs of vertical integration 196
6.3.4 Level of integration 197
6.4 The Hollow Corporation 198
6.5 Alternatives to Widening Internal Span
Xli Contents
of Process 200
6.5.1 Joint ventures 201
6.5.2 Non equity based collaboration 203
6.5.3 Long term contracts 204
6.5.4 Customer vendor relations 204
6.5.5 Just in time production 207
6.6 Conclusion 208
Notes and References 209
Further Reading 210
7 Manufacturing Infrastructure Development 212
7.1 Manufacturing Infrastructure Issues 215
7.2 Infrastructure Development 217
7.3 Important Infrastructure Issues 220
7.4 Some Organisational Issues 221
7.5 The Role of Specialists 222
7.5.1 Concept of specialists is built on the
principle of economies of scale 222
7.5.2 Functional silos 224
7.5.3 Control from a distance 225
7.5.4 Contribution to corporate success and
reward systems 226
7.5.5 Too many layers 227
7.6 Operational Effects of Structural Decisions 230
7.6.1 The concept of an operator s job 230
7.7 Strategy based Alternatives 232
7.7.1 Functional teamwork concept 232
7.7.2 The structure of work 233
7.7.3 Cascading overheads 235
1.1 A Quality circles or productivity
improvement groups 235
7.8 Some Key Areas of Operational Control 238
7.9 Control of Quality 239
7.9.1 A reactive or proactive approach to
quality 241
7.9.2 The responsibility for quality 241
7.10 Control of Inventory 243
7.10.1 Functions of inventory as a basis for
control 244
7.11 Manufacturing, Planning and Control
Systems 250
Contents xiii
7.11.1 No strategy, poor systems 250
7.11.2 From panaceas to policy 252
7.11.3 Why don t panaceas work? 254
7.12 Conclusion 257
Notes and References 262
© Accounting and Financial Perspectives and
Manufacturing Strategy 266
8.1 Investment Decisions 267
8.2 The Need for a Strategic View of
Investments 269
8.2.1 Investment decisions must be based on
order winning criteria 271
8.2.2 Financial control systems need to be
developed to meet the needs of the
investment evaluation process 273
8.2.3 Investments are not separate decisions but
need to be considered as part of the
corporate whole 274
8.2.4 There can only be one given reason to
substantiate an investment proposal 276
8.2.5 Excessive use of RO1 distorts strategy
building 278
8.2.6 Government grants are not necessarily
golden handshakes 280
8.2.7 Linking investment to product life cycles
reduces risk 282
8.2.8 Manufacturing must test the process
implications of product life cycle
forecasts 283
8.2.9 Investment decisions must quantify
working capital and infrastructure
requirements 285
8.3 Operating Controls and Information 287
8.4 The Simplistic Nature of Accounting
Information 287
8.5 The Need for Accounting System
Development 289
8.5.1 Working on the left hand side of the
decimal point 293
8.5.2 Assessing current performance 293
UV Contents
8.5.3 Allocate, not absorb, overheads 294
8.5.4 Activity based costing 296
8.5.5 Focused manufacturing helps to identify
overhead costs 297
8.5.6 Create business related financial
information 298
8.5.7 Provide performance related financial
information 299
8.6 Conclusion 300
8.6.1 Markets are changing 301
8.6.2 Businesses are characterised by
difference 301
8.6.3 Linking process investment decisions and
the evaluation of control systems 302
8.6.4 The ways forward 303
Notes and References 304
Index 307
List of
Figures
2.1 The dichotomy of business views illustrated by the
different figures included on typical customer order
paperwork 30
2.2 How order winning criteria link corporate marketing
decisions with manufacturing strategy 41
2.3 Assessing the implications for manufacturing processes
and infrastructure of order winners 52
2.4 Manufacturing s input into the corporate strategy
debate 55
3.1 The generalised product life cycle 66
3.2 70 per cent experience curve for random access memory
(RAM) components in the period 1976 to 1984 70
3.3 Cost/volume or price/volume relationship expressed on
(a) a linear, and (b) a log log scale 71
3.4 Situations where delivery speed is an order winning
criterion to be provided by manufacturing 74
3.5 A situation where delivery speed is not an order winning
criterion 74
3.6 Overhead costs incurred in time based management
approaches compared with those involved in classic
structures 79
XV
XVi List of Figures
3.7 Examples of reductions in product development
lead times 87
3.8 The increased sales revenue element of double gain 88
3.9 The higher profit margin element of double gain 89
3.10 Improving response time in new product development
mechanical transmissions 90
3.11 Digital Equipment Company (DEC) s reduced
competition time for a new product development 91
3.12 Benchmarking quality helped IBM to identify its Best
in class six sigma target for 1994 98
4.1 Choice of process related to volume 114
4.2 The engineering, manufacturing and business dimension
phases involved in process choice 117
4.3 Potential transitions between the different choices
of process 130
4.4 The position of some hybrid processes in relation to the
five classic choices of process 132
4.5 Layout and general view of the flexible manufacturing
system at R. A. Lister 137
4.6 Group layout, its relationship to functional (batch) and
line (product) layouts to illustrate the transition from the
former to the latter 138
4.7 Hybrid NC process choice related to volume 143
4.8 The level of inconsistency on all points on the dimensions
of the vertical axis Phase 2 of the procedure 152
5.1 Orientation of a particular manufacturing facility 176
5.2 A typical product life cycle and its relationship
to focus 177
6.1 To illustrate the reduction in span of the process with
increases in the technology of the product 186
6.2 To illustrate the corresponding overhead support to the
process under review which will form part of the
corporate decision on process narrowing known as
vertical slicing 191
7.1 The inexorable link between the components of
manufacturing strategy with each other and with the
business needs 214
7.2 Companies need to determine the level of manufacturing
complexity before developing appropriate
infrastructure 218
List of Figures xvii
7.3 Typical phases in the evolution of specialist functions in
an organisation 225
7.4 The number of levels within a typical organisation at
different times 228
7.5 Shedding layers DuPont s Maitland Plant reduced
eleven levels to six between 1984 and 1988 229
7.6 The separation of the three facets of work and the gap
between them created by organisational structure 231
7.7 The doing task which now incorporates appropriate
planning and evaluating steps so much an intrinsic part of
work 234
7.8 The growth in Japan of quality circle members and
membership between 1965 and 1991 237
8.1 When developing a manufacturing strategy for a business,
the restrictions imposed at both ends of the procedure by
the necessary financial considerations are rarely
understood or their interaction acknowledged 268
8.2 Alternative approaches to investment decisions 283
8.3 Product life cycles, order winning criteria and process
investment interact 284
List of
Tables
1.1 Comparative manufacturing output, 1978 90 2
1.2 Main manufacturing countries exports of manufactured
goods selected countries only 4
1.3 Export import ratio selected sectors (1982 7) and total
manufacturing (1972, 1982 and 1987) 5
1.4 Ratio of UK imports to home demand for all
manufacturing and selected sectors 6
1.5 Trends in output per hour in manufacturing selected
countries (1950 90) 9
1.6 Estimates of car productivity (1991) 10
1.7 Production of machine tools without parts and accessories
selected countries 13
1.8 Gross domestic expenditure on R D as a percentage of
gross domestic product (GDP) 14
1.9 Technology balance of payments coverage ratio 15
1.10 Manufacturing Futures Survey, 1990: response to the
questions asking for the most important improvements in
the next two years 21
2.1 Framework for reflecting manufacturing strategy issues in
corporate decisions (steps involved) 38
2.2 The weekly volumes, order winning weightings and
xviii
List of Tables XIX
qualifiers for three products considered representative of
three product ranges 46
2.3 European Battery Company: order winners and qualifiers
for selected markets 47
2.4 UK food producer: order winners and qualifiers for
selected products 48
3.1 Superfast producers 75
3.2 Typical improvements in production flow times 76
3.3 Alternative responses to markets and their
lead time implications 78
3.4 The dimensions of quality and the function(s) typically
responsible for their provision 80
3.5 Superfast innovators 86
3.6 Average project lead times and stage length in US,
Japanese and European car makers 92
3.7 Source and levels of targeted achievement 99
4.1 Selected business implications of process choice 118
4.2 A product profile for a company in which the mainstream
products have been profiled. The 1990 profile illustrates
the dog leg shape which reflects the inconsistencies
between the high volume batch process and infrastructure
and the 1990 market position 150
5.1 Characteristics of alternative approaches to focusing
facilities 165
5.2 Change over time in production volume and the main
manufacturing task for current and future products 174
6.1 The role of customer supplier relations in a company s
competitive stance 205
7.1 Relative pay off from quality circles activity reported by
region 236
7.2 Responsibility for quality control and the type of
process 240
7.3 Baldrige Award points allocation by category 242
7.4 Linking manufacturing strategy to the design of the
MPS 253
7.5 Linking manufacturing strategy to the design of the
material planning approach 255
7.6 Linking manufacturing strategy to the design of the shop
floor control system 256
7.7 Companies which serve different markets need to identify
XX List of Tables
relevant manufacturing tasks and make MPC system
investments which provide appropriate support for
customers 258
8.1 Typical financial control system provision v. investment
evaluation requirement 275
8.2 Documents and perceived reason for all investments from
January 1987 to June 1989 UK manufacturing
company 277
8.3 Some of the different accounting approaches depending
upon the type of process 290
8.4 Rules of thumb accounting practices 291
8.5 The three phases in an investment programme 302
|
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| dewey-ones | 658 - General management |
| dewey-raw | 658.5 |
| dewey-search | 658.5 |
| dewey-sort | 3658.5 |
| dewey-tens | 650 - Management and auxiliary services |
| discipline | Wirtschaftswissenschaften |
| edition | 2. ed. |
| format | Book |
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| id | DE-604.BV008212931 |
| illustrated | Illustrated |
| indexdate | 2024-07-09T17:16:26Z |
| institution | BVB |
| isbn | 0333576470 0333576489 |
| language | English |
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| oclc_num | 27990520 |
| open_access_boolean | |
| owner | DE-19 DE-BY-UBM DE-473 DE-BY-UBG DE-634 DE-83 DE-188 |
| owner_facet | DE-19 DE-BY-UBM DE-473 DE-BY-UBG DE-634 DE-83 DE-188 |
| physical | XXV, 311 S. graph. Darst. |
| publishDate | 1993 |
| publishDateSearch | 1993 |
| publishDateSort | 1993 |
| publisher | Macmillan |
| record_format | marc |
| series2 | Open university set book |
| spelling | Hill, Terry Verfasser aut Manufacturing strategy the strategic management of the manufacturing function Terry Hill 2. ed. Basingstoke [u.a.] Macmillan 1993 XXV, 311 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier Open university set book Logistiek (economie) gtt Strategisch management gtt Production management Strategic planning Fertigung (DE-588)4016899-2 gnd rswk-swf Management (DE-588)4037278-9 gnd rswk-swf Strategisches Management (DE-588)4124261-0 gnd rswk-swf Strategisches Management (DE-588)4124261-0 s Fertigung (DE-588)4016899-2 s DE-604 Management (DE-588)4037278-9 s 1\p DE-604 HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=005421192&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis 1\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk |
| spellingShingle | Hill, Terry Manufacturing strategy the strategic management of the manufacturing function Logistiek (economie) gtt Strategisch management gtt Production management Strategic planning Fertigung (DE-588)4016899-2 gnd Management (DE-588)4037278-9 gnd Strategisches Management (DE-588)4124261-0 gnd |
| subject_GND | (DE-588)4016899-2 (DE-588)4037278-9 (DE-588)4124261-0 |
| title | Manufacturing strategy the strategic management of the manufacturing function |
| title_auth | Manufacturing strategy the strategic management of the manufacturing function |
| title_exact_search | Manufacturing strategy the strategic management of the manufacturing function |
| title_full | Manufacturing strategy the strategic management of the manufacturing function Terry Hill |
| title_fullStr | Manufacturing strategy the strategic management of the manufacturing function Terry Hill |
| title_full_unstemmed | Manufacturing strategy the strategic management of the manufacturing function Terry Hill |
| title_short | Manufacturing strategy |
| title_sort | manufacturing strategy the strategic management of the manufacturing function |
| title_sub | the strategic management of the manufacturing function |
| topic | Logistiek (economie) gtt Strategisch management gtt Production management Strategic planning Fertigung (DE-588)4016899-2 gnd Management (DE-588)4037278-9 gnd Strategisches Management (DE-588)4124261-0 gnd |
| topic_facet | Logistiek (economie) Strategisch management Production management Strategic planning Fertigung Management Strategisches Management |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=005421192&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| work_keys_str_mv | AT hillterry manufacturingstrategythestrategicmanagementofthemanufacturingfunction |