Developing and Implementing Production Strategy
Steps for developing and implementing production strategies are as follows:
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- Fixing organisational objectives
- Developing production and other strategies
- Selecting the production strategy to be used
- Selecting the production process
- Selecting production infrastructure
- Implementing production strategies
Now let's discuss above individual steps one by one in brief.
1. Fixing organisational objectives
First, the top-level management fixes the main objectives of the organization. The objectives give direction to the organization. They make the boundaries for strategies. All the strategies must be made within these boundaries. Strategies are the action plans which are designed to achieve the main objectives of the organization.
2. Developing production and other strategies
After fixing the main objectives of the organization, the management makes strategies for achieving these objectives. The top-level management makes Business Strategies for the entire organization while the middle-level management makes Functional Strategies for their individual departments.
The production manager makes various production strategies for which he must consult the top-level managers. He must also consider many other factors while making production strategies. Here, the main factors to be considered are; the estimated total production, the buying motives of the customers, strategies used by the competitors, industry practices, etc.
3. Selecting the production strategy to be used
The Production manager makes many different strategies for achieving the main objectives of the organization. He makes strategies about quality, reliability, price, speed, techniques, etc. He must decide which production strategy he will use. He must give prime importance to main features like maintaining good product quality and low production cost. The other features must also support this main feature.
4. Selecting the production process
After selecting the production strategy the production manager selects the production process. This selection depends upon the production strategy. If the production strategy requires a large-scale production, then a capital intensive production process must be selected.
5. Selecting production infrastructure
Production infrastructure includes procedures, systems, controls, reward system, etc. The production manager must select a right production infrastructure. Production strategies cannot be implemented without a proper production infrastructure.
6. Implementing production strategies
Here in this final step, the production strategy is implemented. Implementation of production strategy is not an easy task. To make this implementation possible, the production manager and his team must possess a sound professional knowledge along with good experience and job skills. They must choose a flexible approach. They must first study, how the consumers react to their strategy. Then they must be ready to adapt and adjust their strategy accordingly, to satisfy the expectations of the consumers.