Manufacturing Strategy – A Neglected Success Factor for Improving Competitiveness

AbstractIn the past decades, the requirements for manufacturing have increased significantly. The major reasons are shorter product and market life cycles, a significantly increased model range but smaller batch sizes and highest technological requirements. In order to distinguish oneself from other companies and to improve the own competiveness in this challenging market, an effective manufacturing strategy is crucial. Therefore, the manufacturing strategy has to be coordinated with other functional strategies and depends on enterprise individual contents. In result, the manufacturing strategy determines the certain use of specific resources and capabilities in manufacturing, which can enable the development and expansion of competitive advantages. However, existing approaches for developing a manufacturing strategy do not allow a sufficient response to the described market situation. In fact, relevant resources and capabilities which lead to a better performance in manufacturing and a higher competitiveness cannot be identified or just with a time lag. To meet the changing market conditions, the manufacturing strategy has to be developed with a new process. Therefore, an approach for developing a manufacturing strategy is presented. This paper points out how manufacturing can enable a decisive differentiation from competitors. In this new process, the development of the manufacturing strategy is seen as an integral part of the enterprise strategy. In summary, the approach allows a unique strategic position that enhances the competitiveness through specific resources and capabilities in manufacturing