M ission Statem e n t

C o m p a n y O b jectives

E n v iro n m e n tal S c a n n ing

Internal Strength and W e a k n e s s A n a lysis

C o rporate S trategy
 Corporate Strategy
Focus: Survival

Business Strategy
Focus: D istinctive c o m p e t e n c e in the field
• C o s t l e a d e r s h ip
• P r o d u c t d iffe r e n t i a t i o n
• F o c u s ( c o s t o r d iffe r e n t i a t i o n )

M a n u facturing O p e rations Strategy O t h e r O p e ratio n s

S trategies
Focus: Competitive Strategies
M a rketing
Cost Flexibility Q u a lity D e liv e ry Finance
H u m a n R e s o u rce
E n g ineering

P o lic y

S e rvice -e n h a n c e d p r o d u c t o r d e live r e d s e r v i c e S a tisfied custom e r

 Price
Quality
Delivery

Flexibility

Time

Product Design Service

 Order Winners Qualifiers Nonissues

Characteristics that Characteristics you Characteristics that do

make your customers need to get into the not enter into the
prefer you over game competitive picture for
competitors that market niche

Source: Hill, Terry, Manufacturing Strategy, (Irwin McGraw-Hill, 1994). Reprinted with permission of Irwin McGraw-Hill.
 Process
Output
Internal Customer

Process
Output
Internal Customer

External Customer
 Elimination of Waste Respect for People

Customer

Continuous Improvement Focus on Customer

 Reprocessing
Rejects
Warranty expenses
Sorting inspection
Customer returns

Lost sales Delays

Process downtime Paperwork errors

Extra inventory Obsolete inventory

Lost discounts Loss of good will

Damaged goods Extra process capacity
Premium freight costs Overtime to correct errors
Customer allowances Incorrect orders shipped
 Defects Own Next End of the Final End user’s
found at process process line inspection hand
Cost to
the
company
l Very l Minor l Rework l Significant l Warranty
Impact to minor delay rework cost
the l Reschedule
of work l Delivery l Loss of
company
delay market
share
l Inspection
costs l Reputation