Andrews Corporation Analysis Essay

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Andrews Corporation Analysis

Production Management

Also known as Manufacturing Process Management

Integration of systems to ensure a proactive and positive outcome

Considers planning, CAM/CAN, project management, time and cost estimates, quality and development theory, benchmarking

ABOVE ALL -- it is the integral and multidisciplinary communication between various aspects of the organization

Chang, J. (2006). Business Process Management Systems: Strategy and Implementation. Boca Raton, FL: Auerback/Taylor and Francis.

Competitive Strategies Overview

Business Strategy Guides. (2012). Retrieved from: http://freepptslide.blogspot.com/2012/08/business-strategy-chapter-5-where-to.html

Broad Differentiation Strategy

Maintains a presence in every segment in order to gain a competitive edge

Distinguishes products with excellence in design, awareness and ease of accessibility

Develops Research and Development competency that keeps designs new and innovative

Products keep pace with the market, offer innovation and improvement

Price is above average to show value

Capacity is expanded to generate higher demand

Tactics for Broad Differentiation

Department Tactics

R&D Offer products that match consumer (stakeholders) ideal criteria for position, age, and reliability

Marketing Aggressively promote sales in all segments by showing stakeholders positive and proactive advantages

Production Grow capacity to manage and meet the generated demand, but still avoiding overtime and excess shifts

Finance Finance through stock issues, cash from operations, loans as needed and ancillary cost saving moves

Capstone Management Guide. (2012). Broad Differentiation. Retrieved from: http://www.capsim.com/Capstone_manager_guide/content/view/4/71/1/4/index.html

5

Andrews Data

Analysis:

Production does grow over time, doubles between Year 1 and Year 8

Capacity is lower than production, resulting in additional costs and potentially lost revenue (sales)

Broad strategy seems to be working in the marketplace, but is it working in the manufacturing end?

Overview and Analysis

Production Department needed to add more automation and capacity to keep up with marketing demands

Even through additional costs arise, automation was purchased to avoid higher costs

Sell outs could have been avoided by leasing or outsourcing some manufacturing OR by using down time to increase inventories

BETTER to have the market and stakeholder interest (even with some shortages) than an overabundance of inventory and no customers

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