Practice of manufacturing strategy: evidence from select Indian automobilecompanies

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.