STRATEGIES FOR DEPARTMENT MANAGERS 123
PRODUCTION STRATEGIES
At first glance, this part of the book might appear to be focused on traditional manufac-
turing. But the discussion here actually covers any processes that you need to create a
product or service. The processes could involve writing software or management reports,
conducting biotechnology research for other users, designing educational courses,
preparing meals, or providing any other service. Your business and product strategies
determine (or result from) a good part of your production strategy. You have already
answered questions such as the following.
1 Are you aiming to be a low-cost producer, or are you targeting specific product
features, quality, etc.?
2 Will you manufacture or outsource?
3 Are you looking for vertical integration (or disintegration)?
4 Can you exploit strengths related to production capability?
At the next level of detail, some areas of production management activities to consider
when developing a production strategy are listed below. Other critical issues worth
emphasising include:
time-to-market when introducing product modifications or new products;
the ability to run small production volumes to meet specific needs;
the provision of appropriate customer support.
Five considerations when setting production strategy
Activity Strategy includes consideration of:
Quality quality control, sampling, testing, assurance; compliance with ISO quality
and environmental standards; compliance with other relevant standards
such as US FCC and European CE marking
Process production methods and technology; location and design of production
facilities; requirements for plant, equipment and machinery; automation;
process balancing, flow and control; logistics
Capacity
minimum, optimum and maximum capacity levels; actual utilisation; seasonal
and cyclical spikes; flexibility and scheduling; effects of future demand
Inventory optimal levels of raw materials, work in progress and finished goods;
purchasing; just-in-time techniques; supplier linkages; materials handling;
order processing
Workforce
availability of skills, unskilled workers, and other support staff; job descriptions;
performance measurement; training and development; motivation