Manufacturing - Facilities Strategy

We have written and presented extensively about the elements of developing a manufacturing capacity strategy. Once the overall macro capacity strategy decisions are made, planning then turns to two other key elements - an overall facilities strategy, and individual facilities strategy. We like to relate capacity decisions to facilities decisions at four different levels:

- Manufacturing strategy (at the highest level)
- Capacity strategy
- Facilities strategy
- Facility decisions as the operational mechanism by which capacity and facilities strategies are integrated and pursued.

In actual practice, many manufacturing firms, over an extended period of time, make a series of facilities decisions that do not appear to be guided by any facilities strategy, or even any apparent capacity strategy. This behaviour is usually the result of management being in the "reactive" mode - they respond to events as they happen. In this operating mode, when specific facility decisions arise they naturally become the focus of attention. When manufacturing firms are in a reactive mode facility decisions are seen as more concrete (and more urgent) than such abstract activities like strategy formulation. Unless all four levels of strategy are addressed explicitly, a manufacturing firm is likely to make facilities decisions that are inappropriate in the sense that the facilities may prove incapable of meeting the firm's long term needs, or capital spending is misdirected or wasted.

Synchronous experts are uniquely positioned to help you develop your manufacturing, capacity, and facilities strategy - from the "big picture" in the board room, to maintenance and reliability planning in specific facilities. Send us an information request to Sales@SynchronousLLC.com , or review our complete portfolio of service offerings on our web site www.SynchronousLLC.com