Strategic manufacturing policy


Problem: Research a manufacturing organization of your choice, and describe its strategic manufacturing policy. (NOTE: You may choose a private sector or public sector organization; however, more information will be available for a private sector, publicly traded company). Your description should consider long-term issues (1-5 years), and include a discussion of the following topics:

  • Products/services
  • Markets and customers
  • Suppliers/vendors/supply chain partners
  • Facilities (plants, distribution centers, etc.)

Describe the following characteristics to be included in the strategic planning process:

Alignment of manufacturing strategy with corporate/business-level strategy
Product/process alternatives (make-to stock, make-to order, etc.)
Inventory policies (service levels, order quantity/frequency, etc.)
Capacity planning alternatives (chase, level, etc.)
Long-range forecasting techniques (quantitative and qualitative)
Make or buy decisions (outsourcing, etc.)
Interfaces/coordination with other business functions (marketing, etc.)
Initiatives to improve operations (continuous improvement, lean/agile, TOC, etc.)

Metrics to measure manufacturing performance:

  • Cost
  • Quality
  • Speed
  • Reliability/dependability
  • Flexibility
  • Productivity/efficiency/utilization
  • Sustainability
  • Other metrics

Finally, what manufacturing strategy improvements would you suggest for this organization?

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Strategic Management: Strategic manufacturing policy
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