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Checklist for development of a manufacturing strategy

 

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Most companies operate with a corporate strategy and business plan, but not all of them have a manufacturing strategy. These companies can gain additional competitive advantages from developing an effective manufacturing strategy. This checklist explains the basic steps in reviewing existing manufacturing activities and developing a new manufacturing strategy.

ChecklistForDevelopmentOfAManufacturingStrategy.zip 4,5 Kb


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1. Appointing a team to manage the strategy development

  • Selecting people for the team of strategy management
  • Ensuring that each team member has a complete understanding of the following:
    • Goals and objectives
    • Products and target markets
    • Existing manufacturing technologies

2. Understanding the existing market position

  • Determining which competitive strategy is the best for the company (cost leadership, differentiation or niche market focus)
  • Defining key products in each product family
  • Using key product life cycles as a framework to determine the manufacturing requirements of different products
  • Measuring the performance of each key product
  • Identifying competitive advantage gained from each product family
  • Determining the criteria which grant the grea test competitive advantage (e.g. quality, delivery lead time, price, etc.)

3. Identifying factors of change

  • Considering business criteria such as product performance, evolution of manufacturing philosophies, market demands, and management structure
  • Assessing the level of technological development
  • Determining financial pressure
  • Examining the staff skills and capabilities to measure the influence
  • Analysing external influences
  • Identifying a group of factors that has the most influence using SWOT analysis

4. Assessing current product performance

  • Applying activity sampling and Pareto analysis techniques to facilitate competitive data collection
  • Analysing product performance features such as capital costs, quality, delivery and other
  • Assessing product performance against competitive advantage criteria
  • Defining performance gaps

5. Determining crucial components

  • Placing components on a sequence of high or low business importance
  • Adding in the strategic components list the components with a high added value
  • Considering the components with a low business content for buying-in
  • Describing manufacturing characteristics of the components with a high added value in product families
  • Defining the key requirement for manufacture the strategic components

6. Measuring manufacturing operation

  • Examining current operations with the following range of criteria:
    • Facilities
    • Span of processes
    • The way processes are organised
    • Human resources
    • Quality and control
    • Manufacturing policies
    • Suppliers' network
    • Development of new products
  • Comparing the strengths and weaknesses of each process with established competitive advantage criteria

7. Developing a new manufacturing strategy

  • Identifying the weaknesses of the existing policies basing on the knowledge of:
    • Most important product families
    • Crucial components
    • Competitive advantage criteria
    • Existing performance gaps
  • Discussing potential actions and choices for a new strategy
  • Developing a new strategy ...

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