Manufacturing Strategy: Evaluation Implementation

Manufacturing strategy is “a pattern of decisions, both structural and infrastructural, which determine the capability of a manufacturing system and specify how it will operate to meet a set of manufacturing objectives which are consistent with overall business objectives.[Dr.Ken Platts, 'Manufacturing Strategy', University of Cambridge-2009]

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The strong link between corporate and manufacturing strategies helped organizations to become world leaders in their functional area. Time proved the importance of manufacturing strategy in organization. The mindsets of people have changed over the years from considering manufacturing as burden to manufacturing as an order winning criteria. Strong strategies guided the way to future for the organizations. The importance of best manufacturing system and the requirement of co-operation between all the levers of manufacturing has realized by industries from the market leaders.

Performance measures are feedbacks of the operations done by an organization. Evaluation can be made in financial measures, performance of employees, products, etc. Developing a manufacturing strategy is very difficult, implementation is still more complicated. It needs effort and contribution of all the functions and people in the organization.

Obstacles to implement strategy

Obstacles to implement strategy

‘Performance measures are often used to increase the competitiveness and profitability of manufacturing companies through the support and encouragement of productivity improvements’. The performance evaluations help companies to realize their position and give the scope for improvements. The below subsection also explains the views of some authors. [Mr.Stefan Tangen- "An overview of frequently used performance measures"-Emerald Insight-2003].

Need of performance evaluation as follows
 Enable organizations to learn about the internal and external environments of an organizations
 Helps to identify future trends and their implications for the organization.
 Helps to Align operations and supporting objectives for instituting a common purpose.
Apart from these there are so many other reasons for the assessment of strategy implementation. But each of the needs can be explained and can relate with many parameter, as these doesn’t have a particular definitions. They often help the organization to make the better organization. The evaluation process helps
 To locate the growth status (How well the organization is performing?)
 To take new dealings for the better growth of the company.
 Helps to discover the pitfalls in the implementation process.

Three depending factors for the performance evaluation implementation.
 The drivers (factors which had to be present for performance measurement to succeed) included senior management commitment and perceived benefits arising from performance measurement.
 The hurdles (factors all companies faced but some overcame and others did not) were the time and effort required and the rigidity of the IT systems.
 The show-stoppers (factors which blocked progress in all the companies where they occurred) were parent company interventions and management’s fear of measurement.

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