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

Focus:

Business Strategy
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

Focus: Competitive Strategies
Cost

Flexibility

Q u a lity

D e liv e ry

O t h e r O p e ratio n s
S trategies
M a rketing
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
Characteristics that
make your customers
prefer you over
competitors

Qualifiers
Characteristics you
need to get into the
game

Nonissues
Characteristics that do
not enter into the
competitive picture for
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
Process downtime
Extra inventory
Lost discounts
Damaged goods
Premium freight costs
Customer allowances

Delays
Paperwork errors
Obsolete inventory
Loss of good will
Extra process capacity
Overtime to correct errors
Incorrect orders shipped

Defects
found at

Own
Next
process process

End of the
Final
End users
line
inspection
hand

Cost to
the
company
Impact to
the
company

Very
minor

Minor
delay

Rework

Reschedule
of work

Significant
rework

Warranty
cost

Delivery
delay

Inspection
costs

Loss of
market
share

Reputation