Manufacturing Strategy and Competitive Strategy For Achieving Agility

MANUFACTURING STRATEGY AND
COMPETITIVE STRATEGY FOR

ACHIEVING AGILITY
ADVANCED OPERTIONS MANAGEMENT
MSM SEMESTER 1
SANJAYDEV
VEENA MURALI
MANUFATURING STRATEGY
1. Quick manufacturing set-ups

2. Quick response
3. Product life cycle management
4. Product service elimination
5. Automation
Quick Manufacturing set-ups
The present manufacturing scenario demands low quantity and high
variety parts (Lean Manufacturing). The present production system like
Just-in-Time manufacturing demands smaller production quantities
which in turn mean more setup times (non-productive time).
Companies should focus on reducing non-productive time in order to
remain competitive (Quick changeover). It is also known as setup
reduction which focuses on eliminating or reducing non value added
activities during the setup.
Quick Response
Quick response manufacturing (QRM) is an approach

to manufacturing which emphasizes the beneficial effect of reducing
internal and external lead times. Quick Response Manufacturing is
used by variety of companies from different sectors worldwide. As an
enterprise wide strategy, QRM has found applications in all areas of the
company from shop floor to office operations to supply chain and
beyond.
PDCA Cycle
Creating a QRM mind set
Changing of organizational structure

Product life cycle Management
PLM integrates people, data, processes and business systems and

provides a product information backbone for companies and their
extended enterprise.
Product Service Management
Service Product Management deals with managing a service product
across its complete life cycle. This organizational function is equally
common between Business to business as well as Business to
consumer businesses. A service product, unlike a hardware or software
product, is intangible and manifests itself as pure professional services
or as a combination of services with necessary software and/or
hardware.
Automation
Agile Automation software development has the potential to reduce the
development lifecycle and at the same time, encompass automated unit
testing.
The "don't repeat yourself" is the aspect of Agile object oriented

software development.
COMPETITIVE STRATEGY
1. Status of Quality
2. Status of Productivity
3. Compatible Cost Accounting System

4. Outsourcing
Status of Quality
Quality would mean delighting the customers. To achieve quality there
are four steps to follow:
1. The past history of performance of the same or similar products has
to be studied.
2. Study the techniques and manufacturing management models
requires for overcoming the failure cases.
3. Identify the best model.
4. The prototype of product and service need to be developed and
checked.
5. Customer perceptions are need to analysed.
Quality Techniques
QFD – Quality Function Deployment

DMAIC – Define, Measure, Analyse, Improve, Control
Status of Productivity
Productivity is one of the performance indicators of an organization.
The field of productivity engineering deals with: Labour
Productivity, Material Productivity, Employee Productivity. The
productivity improvement programme carried out in three phases
1. The type of productivity that influence the performance of the
company.
2. The measures of this type of productivity.
3. The system incorporated with this type of productivity is
developed.
Compatible Cost Accounting System
Costing is a major determinant of success and failure of a product

or service. Conventional costing categories are Product, Process,
Job.
Activity based costing:
It facilitates accurate costing of products and services which
facilitates agile manufacturing organization to achieve
profitability.
Outsourcing
Outsourcing refers to the transferring of a portion of activities which

are required to deliver a product or offer a service, to one or more
third parties. Outsourcing necessity factors are:
Technologies are developing at a fast pace which triggers a company
to outsource a portion of activities that employ new and advanced
technologies to accomplish those activities.
The company may not have sufficient competency to carry out a
portion of activities to the extent of delighting the customers.
Factors contd.
In case of Agile Manufacturing those two factors included is:

Goal of quickly responding in accordance with the customers
dynamic demands, or simply, dynamic demands.
Thank You

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MANUFACTURING STRATEGY AND

COMPETITIVE STRATEGY FOR

1. Quick manufacturing set-ups

3. Product life cycle management

4. Product service elimination

Quick response manufacturing (QRM) is an approach

Creating a QRM mind set

Changing of organizational structure

PLM integrates people, data, processes and business systems and

The "don't repeat yourself" is the aspect of Agile object oriented

3. Compatible Cost Accounting System

QFD – Quality Function Deployment

Costing is a major determinant of success and failure of a product

Outsourcing refers to the transferring of a portion of activities which

In case of Agile Manufacturing those two factors included is:

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