Integration and manufacturing strategy

Abstract

At the same time as manufacturing has become recognized as an important element of corporate strategy, a new reality is emerging. Integration in different aspects has become a key issue and must be reflected in manufacturing strategy. Traditionally, goals of a function or department could be broken down into subgoals for tasks or organizational units. However, three main factors have necessitated a drastic change in this mode of operation. First, the competition has taken away almost all slacks and buffers so prevailing until recently, Second, new technology has provided new means for integrating subsystems. Third, new organizations at the plant level, e.g. production groups, have shown a significant capability to integrate activities and at the same time increase the quality of working life. The objective of this paper is to provide better means for dealing with integration and manufacturing strategy. Manufacturing strategy will be related to three adjacent concepts: (1) manufacturing mission, which may establish a link to corporate strategy; (2) manufacturing concept, which will provide an overall, integrated picture of how manufacturing is intended to be in the future; and (3) a manufacturing implementation plan, which will indicate the chosen rate and scope of change. Then, four dimensions and aspects of integration will be discussed in an attempt to establish a link to manufacturing strategy. The paper moves on to present a number of models and methods for dealing with integration when developing a manufacturing strategy. The paper will conclude by outlining future trends which will call for new dimensions and forms for manufacturing strategy development.