Management Module 3

Module 3 Assignment: Manufacturing Strategy

Different companies have different manufacturing strategy. There are those that produce goods for delivery to the ordering customers (make to order) and those that make goods for stock or inventory (make to stock). A prospective work order, in this case, will, therefore, be determined by the profit value and the convenience of the order (Lussier, 2008). For instance, customers are ready to pay more for quick delivery because they believe timely delivery will allow them time to plan their uses and sales.

The strategy that a manufacturer adopt needs to be in line with the overall organization strategy for ease of cohesion and smooth flow of operations(Lussier, 2008). This strategy is first based on the market during the creation and always aligned to the firm’s resources. The strategy must make space for forecast information to help balance the make to order and make to stock goods. This further improves the competency and capability of the firm which increases the efficiency and improves the reputation of the firm. The strategy must also understand the market to be aware of what is hot and in style for good sales.

In a general market structure, customers are always looking for firm reputation, quality of the products, delivery process, and the pricing accepting bids from suppliers. Whereas the price is a rather dependent factor, the firm can easily vary the quality and delivery process to improve its chances of winning bids (Mahadevan, 2009). For instance, a customer whose reputation is higher than that of the supplying firm will look for capacity to offer competitive prices, meet the delivery deadline and deliver quality products to accept a bid. Throughout the manufacturing and delivery process, the weighting system is an important consideration as it allows the firm to understand the costs and time taken for delivery and hence ensure efficiency. Further, the receiver and shipper must understand the manufacturing process to be sure of what to order and how it is to reach the customer in good condition and time.

In the activity, the main mistakes made were several. First, ordering extra wool was a problem at first and funds were overused in the ordering while the purchase of new machines was neglected. Although we made several bids, not all were accepted, which, together with the overuse made us in the red. However, we were able to produce and ship what we could to the customers.

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