Gs. Dangayach et Sg. Deshmukh, Practice of manufacturing strategy: evidence from select Indian automobilecompanies, INT J PROD, 39(11), 2001, pp. 2353-2393
This paper presents findings based on an extensive survey of Indian automob
ile companies. Five companies have been selected for detailed case studies.
Their experiences in the manufacturing strategy process are analysed. Alth
ough the companies represented a diversity in terms of sales volume, produc
t range and geographic location, they shared several commonalties including
use of advanced manufacturing technologies and other improvement activitie
s. Competitive strength was sustained through quality, innovation and deliv
ery. The process of strategy formulation varied among the companies in term
s of participants, complexity and degree of formalization, the practice of
each company is different. The process of manufacturing strategy formulatio
n seems to be in line with corporate strategy, though the companies followe
d a traditional top down approach in formulation of manufacturing strategy
under the umbrella of corporate strategy. A taxonomy is proposed using clus
ter analysis where the companies are classified in four strategic manufactu
ring groups: reactive enterprise, neutral enterprise, active enterprise and
proactive enterprises. Competitive priorities, order winners and critical
success factors are identified for these companies after rigorous discussio
ns with the managers. Based on strategic manufacturing issues, the manufact
uring competence index for the companies has been worked out. A framework f
or manufacturing strategy is also proposed based on experiences of the case
companies.