Samenvatting Design and Planning of Production,
videocolleges
,Lecture 2 Manufacturing Strategy
Main choice: competitive priorities: what do you choose to be good at? Three ways to express this
choice
● Dominant orientation: what is my identity?
● Diversification patterns: which products do I offer in which markets?
● Strategy for growth: what are my goals, and how do I get there
→ Competitive priorities
You cannot be the best in everything simultaneously. Distinguish between order winners from order
qualifiers.
● Order winners: enables you to distinguish yourself. Make sure to be on the performance frontier
with order winnen, otherwise your competitors will be.
● Order qualifiers: what is the minimum level of performance? Don't invest more than necessary
→ your competitive priorities must be congruent with the decisions that you make at all levels: identity,
diversification and growth.
1st driving forde: Dominant Orientation
● Market: know what your customers want
● Product: be an expert in product, find new uses for it
● Technology: be able to exploit the newest technologies in your processes and product: push
them to the market
→ Dominant orientation drives your focus and culture
,2nd driving force: Diversification Patterns
● Multiple production the same market
● Different markets with the same product
● Multiple links in the supply chain (vertical integration). You offer a product, but you take care of
more stages in the supply chain than just one. For example, netflix creates their own movies
● Multiple products in different markets: spreading the risk. For example, Microsoft offers
consumer and professional software.
3rd driving force: Perspective of Growth
● Opportunities
○ Take new markets
○ Increase return on investment
VS
● Threats
○ Not growing means competitors will
○ High growth makes it difficult to stabilize competitive capabilities
Manufacturing strategy implements competitive priorities through its driving forces: what is my focus
and how do I pursue growth?
➢ Where do you want to go with your organization?
➢ What do you have, and where can you go?
, Lecture 3 Product Process Matrix
➢ A major choice in the manufacturing strategy is the process choice
➢ Investigates if deviating from the diagonal on the product-process matrix is indeed
uncommon/disadvantageous
Three basic design decisions of production control
● Determine how to organize resources
○ Product
○ Process
● What kind of flows we allow in our factory
○ Unidirectional
○ Multidirectional
● Physical layout
○ Organize around product
○ All machines that have certain process group together
Primary focus of Production Control
Process focus: put all resources with similar functionality together. A product must visit multiple
departments to be finished. This must somehow be coordinated. This is the most important inhibitor of
flow.
Product focus
videocolleges
,Lecture 2 Manufacturing Strategy
Main choice: competitive priorities: what do you choose to be good at? Three ways to express this
choice
● Dominant orientation: what is my identity?
● Diversification patterns: which products do I offer in which markets?
● Strategy for growth: what are my goals, and how do I get there
→ Competitive priorities
You cannot be the best in everything simultaneously. Distinguish between order winners from order
qualifiers.
● Order winners: enables you to distinguish yourself. Make sure to be on the performance frontier
with order winnen, otherwise your competitors will be.
● Order qualifiers: what is the minimum level of performance? Don't invest more than necessary
→ your competitive priorities must be congruent with the decisions that you make at all levels: identity,
diversification and growth.
1st driving forde: Dominant Orientation
● Market: know what your customers want
● Product: be an expert in product, find new uses for it
● Technology: be able to exploit the newest technologies in your processes and product: push
them to the market
→ Dominant orientation drives your focus and culture
,2nd driving force: Diversification Patterns
● Multiple production the same market
● Different markets with the same product
● Multiple links in the supply chain (vertical integration). You offer a product, but you take care of
more stages in the supply chain than just one. For example, netflix creates their own movies
● Multiple products in different markets: spreading the risk. For example, Microsoft offers
consumer and professional software.
3rd driving force: Perspective of Growth
● Opportunities
○ Take new markets
○ Increase return on investment
VS
● Threats
○ Not growing means competitors will
○ High growth makes it difficult to stabilize competitive capabilities
Manufacturing strategy implements competitive priorities through its driving forces: what is my focus
and how do I pursue growth?
➢ Where do you want to go with your organization?
➢ What do you have, and where can you go?
, Lecture 3 Product Process Matrix
➢ A major choice in the manufacturing strategy is the process choice
➢ Investigates if deviating from the diagonal on the product-process matrix is indeed
uncommon/disadvantageous
Three basic design decisions of production control
● Determine how to organize resources
○ Product
○ Process
● What kind of flows we allow in our factory
○ Unidirectional
○ Multidirectional
● Physical layout
○ Organize around product
○ All machines that have certain process group together
Primary focus of Production Control
Process focus: put all resources with similar functionality together. A product must visit multiple
departments to be finished. This must somehow be coordinated. This is the most important inhibitor of
flow.
Product focus
