A generic methodology for strategic auditing of a manufacturing system

Abstract

Operating without definite strategy for competitiveness is becoming a common practice in small to medium enterprises, especially those with manufacturing functions. This has seen many potential businesses failing to survive the competition in today's dynamic business environment. In order to thrive in any chosen market,an organization needs to have a well-defined manufacturing strategy that is periodically audited and reviewed. An effective manufacturing strategy must clarify and define the links between overall competitive strategy and the development of the company's resources. Strategy formulation provides direction, purpose and coherence; ensures that manufacturing's interests are taken into account at corporate level; clarifies and emphasizes priorities and potential conflicts;and helps integrate functions. An understanding of the consumer's needs is critical and a clear awareness of order winning and order qualifying criteria is essential. Thus a manufacturing strategy sets the destination, and implementation defines how to get there. This paper outlines a generic methodology for formulating a manufacturing strategy which should be of value to private enterpreneurs especially in the manufacturing domain.