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
