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Int J Adv Manuf Technol (2013) 64:459–474

DOI 10.1007/s00170-012-3991-9

ORIGINAL ARTICLE

Configuration of manufacturing strategy decision areas


in line production system: five case studies
Sanjay C. Choudhari & Gajendra K. Adil &
Usha Ananthakumar

Received: 4 July 2011 / Accepted: 7 February 2012 / Published online: 3 March 2012
# Springer-Verlag London Limited 2012

Abstract The objective of this research is to study the are cost, quality, delivery reliability, delivery speed, flexi-
configuration of decisions in manufacturing decision areas bility, and innovation [37]. The manufacturing decision
for a line production system. A case study approach is used areas include various elements such as (1) production plan-
by analyzing the decision choices selected by five case ning and control, (2) organization structure and control, (3)
companies that satisfy characteristics of line production sourcing, (4) process technology, (5) facilities, and (6) human
system. The paper identifies decision choices specific to line resources [27, 31]. Choudhari et al. [8–10] presented a list of
shop as well as decisions that are influenced by non-process 54 decision types in these 6 decision areas from a wide range
specific factors such as competitive priorities (order win- of literature. Each decision type consists of few alternatives
ner), strategic orientation of manufacturing (stages in H–W choices that are available for manufacturing companies (see
model), top management decisions, and size of the company. Fig. 1). It is imperative that the company must make appro-
Findings on several decision choices are new to manufactur- priate choices in decisions to make their production system
ing literature. These research findings should be helpful to competitive.
practitioners and researchers. Generic classification of production systems (also called
process choices) are job, batch, line, and continuous flow
Keywords Line production system . Manufacturing [20, 21]. This classification relates the product volume and
strategy . Manufacturing decision areas . Decision choices . varieties to the process choice. Some past studies provide
Case studies description of decisions made under each process choice (i.e.,
job, batch, and line) based on conceptual or empirical research
[4, 14, 31, 32, 34–36]. However, the list of decision types
1 Introduction considered in these studies is not comprehensive. Choudhari
et al. [8–10] proposed a research framework that considers
Manufacturing function can play strategic role in providing influence of several factors for a given “process choice” to the
competitive success in the market [39]. Competitive priori- decision choices in a production system (Fig. 1). The frame-
ties and decision areas define the content of manufacturing work indicates that a specific choice selected by a company is
strategy [27]. Basic competitive priorities in manufacturing either affected by the process choice or other non-process-
specific factors as indicated by arrows. The non-process-
specific factors are product complexity, competitive priorities
(order winner), strategic orientation of manufacturing (stages
S. C. Choudhari : G. K. Adil (*) : U. Ananthakumar in H–W model), top management decisions, and size of the
Shailesh J. Mehta School of Management, Indian Institute company.
of Technology Bombay,
Kotha and Orne [26] defined “product complexity” as a
Powai,
Mumbai, India 400076 composite of product variety, product volume, end-product
e-mail: adil@iitb.ac.in complexity, and end-product experience. Some authors [4,
460 Int J Adv Manuf Technol (2013) 64:459–474

Fig. 1 A framework to study Decision area Decision types Decision choices


choices in manufacturing Type of Production system
• Planning strategy** Chase/Level/Mixed**
strategy decisions in a line 1 Production
• ------------ (e.g., Process Choice)
planning and Line shop
production system (Adapted • -----------
control (15*)
• ………….
from Choudhari et al. [8–10])
• -----------
2 Facilities (6*) • ---------- •Product volume and
• ----------- varieties
3 Sourcing (8*) • ---------- - Product complexity
• ………. •Competitive priorities
4 Process • ---------- - Order winners
technology (10*) • --------
5 Organization • -----------
structure and • ----------
control (6*) •Strategic orientation of
• ----------- manufacturing
6 Human -stages in H&W model
• ----------
Resource (9*) •Top management
decisions
Total (54*)
•Size of the company

Note:
*number of decision types included in that particular decision area (total for all areas are
54). **Planning strategy is one of the decision types in “Production planning and control” area
for which three options Chase/Level/Mixed are available to a manufacturing company.

18, 41] point out that decisions such as planning strategy for this study. The research methodology is explained in
and master planning schedule in production planning deci- Section 3. To investigate the proposed research framework,
sion area are related to product complexity. Wheelwright within-case, and cross-case analyses of five case companies
and Hayes [45], in their four-stage (H–W) model, suggest are presented in Section 4. Summary and concluding
that companies in different stages of strategic orientation of remarks are provided in Section 5.
manufacturing exhibit different preferences in their decision
choices irrespective of process choice. Some authors sug-
gest that decision choices are related to the competitive 2 Literature review
priorities of the firms [33, 35, 36, 44]. Some decisions are
influenced by considerations of top management for the This section initially introduces the literature on manufac-
reasons such as location decision and investment capability turing decision areas. Later, it discusses the literature on
of the company [38, 40]. For example, the size of the process-specific decisions in line production system. Finally,
company is determined by investment capability of company review of literature pertaining to non-process-specific deci-
or market size. These decisions may also influence other sions is presented.
decisions. For instance, the size of company is also found to
influence many other decisions in production system [6, 41, 2.1 Decision areas in manufacturing
43].
The knowledge through case studies on how manufac- Skinner [39] mentions five decision areas where strategic
turing decisions (process choice specific as well as others) decisions have to be made to assure a fit between business
are made will be of great help to the managers in configur- strategy and manufacturing. Hayes and Wheelwright [22]
ing their production system. This is a highly under have classified decision areas into two groups: structural and
researched area. Studies on process-specific factors of deci- infrastructural. Since then, numerous authors [5, 16, 22, 31,
sion choices are conceptual needing empirical validation 39] have re-organized decision areas in many different
and/or cover very few decisions. Further, non-process- ways. Leong et al. [27] compares (see, Table 1, Leong et
specific factors are paid very little attention by the research- al., [27]) previously published organizing frameworks for
ers. To fill this gap, Choudhari et al. [9] investigated decision areas and argue that there is essential agreement
process-specific and non-process-specific decision among these authors on the areas that are important for
choices for batch production systems using case studies manufacturing strategy. Miltenburg [31] studied these
of six companies. Later, they extended this study for job frameworks and rearranges decisions into six manufacturing
production system (see, [10]). Similar research for line decision areas: (1) production planning and control, (2)
production system is not available in literature and hence this facilities, (3) sourcing, (4) process technology, (5) organiza-
research. tion structure and control, and (6) human resource. Being
The rest of this paper is organized as follows. Section 2 comprehensive, the current paper considers the framework
reviews the relevant literature and identifies research gaps provided by Miltenburg [31].

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