Examples of Manufacturing Strategy Development

Your development of a manufacturing strategy that's consistent with the orientation of your marketing initiatives influences the performance of your business. A manufacturing strategy that supports and reinforces your marketing activities is a powerful tool for success in the marketplace. Your marketing strategy has to match the measures you take in manufacturing to best enhance the perception your customer has of your products and your company.

The development of a low price strategy is appropriate when you have cost advantages. Such advantages might be an exclusive source of materials, low labor costs or low-cost facilities. Optimizing your manufacturing process with lean manufacturing principles that streamline designs, eliminate waiting times and reduce errors further helps reduce costs. Your marketing initiatives can promote the value of your products and, because of your inherent cost advantages, competitors will have difficulty matching your prices.

A manufacturing strategy based on quality can be successful as long as the quality is consistently at the highest level. A matching marketing strategy will usually be able to identify a market segment that values consistent high quality. Lean manufacturing methods support the development of a high quality manufacturing strategy by ensuring the costs remain competitive and errors are reduced to a minimum. Once you have established yourself as the supplier of the highest quality in your field, it becomes difficult for competitors to replace you in that position unless your quality falters.

Rapid and reliable delivery as the basis for the development of a manufacturing strategy is appropriate only in markets where the timely availability of goods is critical. Your marketing department has to analyze accessible market segments to determine whether such a strategy can be successful. If you have customers with just-in-time production models or customers facing high losses from delays, a reliable delivery strategy can be effective. You have to organize your operations around scheduling, fast response times and consistent execution of tasks.

A flexibility strategy works well in rapidly evolving markets in which customer requirements change frequently. The aspects of flexibility that come into play are the ability to customize and make changes in volume and design. Companies that develop such a strategy must structure their manufacturing operations with variable schedules and a flexible work force. Employees must be qualified to take on different tasks when necessary. Production and marketing have to work together to achieve the customization or new designs that customers want.