Methodology for formulating the competitive strategy of manufacturing: a quantitative approach

Abstract

This work presents a new methodological approach to the development of a competitive manufacturing strategy for industrial enterprises. Its main contribution is the quantitative treatment given to the topic. Numerical indicators make it possible to choose the best strategy on the basis of the cost/benefit ratio. The methodology indicates the most adequate techniques to organize production and the degree of excellence or intensity of their implementation in order to obtain competitive advantage from manufacture. This new methodology is based on the model of Competition Fields and Weapons. From the 14 competition fields provided by this model the company extracts the five competitive characteristics of products on which it bases its manufacturing strategy. The level of performance of each one of these competitive characteristics determines the company’s manufacturing strategy, which is established by the intensity of the production techniques. By analyzing the market expectations and the competitors’ performance with respect to the five product characteristics, the company defines two or three alternatives strategies. The choice of the strategy to be adopted is made using numerical indicators that allow the company to compare the effort needed to implement the strategy with the competitive impulse obtained. The techniques of production organization are selected from the resources provided by the Fields and Weapons of the Competition model and from the so-called competitive operational strategies. The methodology is formally described and the feasibility of its application was tested by applying it to a real-life case.

Key words: competitiveness management, strategies of operations, competitive manufacturing, techniques of production organizational.