How should you organize manufacturing?

Abstract

Among the characteristics of a company that shape corporate and therefore manufacturing strategy are its dominant orientation (market or product), pattern of diversification (product, market, or process), attitude toward growth (acceptance of low growth rate), and choice between competitive strategies (high profit margins versus high output volumes). Once the basic attitudes or priorities are established, the manufacturing arm of a company must arrange its structure and management so as to reinforce these corporate aims. Examining the extremes of "product-focused" and "process-focused" organizations, the author illustrate the development of a "manufacturing mission" whereby the organization of manufacturing supports management's needs.