Manufacturing, has always been a field dominated by experts and specialists starting from industrial engineers to now computer experts. Apex management which formulates the corporate strategy, most of the times, is unaware and ignorant of the role of manufacturing in their corporate strategy and hence, gives the reins of manufacturing in the hands of engineers and computer specialists. Top management seems to be oblivious to the blatant fact that it's the manufacturing which, literally, limits the options of corporate strategies.
It is much more than just increasing the efficiencies and lower costs ( Read Goal: A wonderful book depicting the repercussions of this thinking on the financial health of the organization). Manufacturing policies once formulated may actually take years to turn around. There have been cases when the so called efficient plants have been doing better than expected but failed to meet the market demands due to the processes and ,hence, products. A perfect example is a company dealing in electronics, manufacturing five different types of products for different purposes goes for centralised production without keeping in mind the complexities involved just to be efficient ending up supplying lower quality products to the market and making losses. There have been umpteen examples carrying the similar story essence. Manufacturing does include daily decisions, more details, high pressure but it would be a blunder to treat it as inconsequential regarding corporate strategy of the organization. Link between manufacturing and corporate strategy is something sans which organizations are bound to flaunder. Management must not only realize the importance of the link but also the various trade-offs in any production system to ride any kind of situation. Providing modern equipments, up to date methods and procedures, cooperative work force are only the means to the outcome but it requires much more than these things to accomplish the goal organizations desire for. Slowly but surely, top management is waking up to the impact of manufacturing on the organizational goals. Lets hope manufacturing gets the place, it deserves
It is much more than just increasing the efficiencies and lower costs ( Read Goal: A wonderful book depicting the repercussions of this thinking on the financial health of the organization). Manufacturing policies once formulated may actually take years to turn around. There have been cases when the so called efficient plants have been doing better than expected but failed to meet the market demands due to the processes and ,hence, products. A perfect example is a company dealing in electronics, manufacturing five different types of products for different purposes goes for centralised production without keeping in mind the complexities involved just to be efficient ending up supplying lower quality products to the market and making losses. There have been umpteen examples carrying the similar story essence. Manufacturing does include daily decisions, more details, high pressure but it would be a blunder to treat it as inconsequential regarding corporate strategy of the organization. Link between manufacturing and corporate strategy is something sans which organizations are bound to flaunder. Management must not only realize the importance of the link but also the various trade-offs in any production system to ride any kind of situation. Providing modern equipments, up to date methods and procedures, cooperative work force are only the means to the outcome but it requires much more than these things to accomplish the goal organizations desire for. Slowly but surely, top management is waking up to the impact of manufacturing on the organizational goals. Lets hope manufacturing gets the place, it deserves
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