M ission Statem e n t C o m p a n y O b jectives E n v iro n m e n tal S c a n n ing Internal Strength and W e a k n e s s A n a lysis C o rporate S trategy Corporate Strategy Focus: Survival Focus: • • • Business Strategy D istinctive c o m p e t e n c e in the field C o s t l e a d e r s h ip P r o d u c t d iffe r e n t i a t i o n F o c u s ( c o s t o r d iffe r e n t i a t i o n ) M a n u facturing O p e rations Strategy Focus: Competitive Strategies Cost Flexibility Q u a lity D e liv e ry O t h e r O p e ratio n s S trategies M a rketing Finance H u m a n R e s o u rce E n g ineering P o lic y S e rvice -e n h a n c e d p r o d u c t o r d e live r e d s e r v i c e S a tisfied custom e r Price Quality Delivery Flexibility Time Product Design Service Order Winners Characteristics that make your customers prefer you over competitors Qualifiers Characteristics you need to get into the game Nonissues Characteristics that do not enter into the competitive picture for that market niche Source: Hill, Terry, Manufacturing Strategy, (Irwin McGraw-Hill, 1994). Reprinted with permission of Irwin McGraw-Hill. Process Output Internal Customer Process Output Internal Customer External Customer Elimination of Waste Respect for People Customer Continuous Improvement Focus on Customer Reprocessing Rejects Warranty expenses Sorting inspection Customer returns Lost sales Process downtime Extra inventory Lost discounts Damaged goods Premium freight costs Customer allowances Delays Paperwork errors Obsolete inventory Loss of good will Extra process capacity Overtime to correct errors Incorrect orders shipped Defects found at Own Next process process End of the Final End user’s line inspection hand Cost to the company Impact to the company l Very minor l Minor delay l Rework l l l Reschedule of work Significant rework Warranty cost l Delivery delay l l Inspection costs Loss of market share l Reputation