Production Strategy Overview and Models
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ScribdTranslationsProduction Strategy Overview and Models
Translated by
ScribdTranslationsSTRATEGY OF
PRODUCTION
INTEGRANTES:
Párraga Hurtado Miguel Gonzalo
Noya Fagalde Christian Bernardo
Serrudo Sossa Aldric Marcelo
Hugo Peña Cuellar
DEFINITION OF THE PRODUCTION STRATEGY
• The nature of Strategic Planning is based on its origin and evolution.
that transcends through time, it is essential to know its conceptions
from different points of view, determining its importance and the impact that
generates in the development of an Organization.
• where it is defined as "a long-term action plan for the function of
Production, in which the desired objectives are collected, as well as the necessary ones.
courses of action and the allocation of resources, whose fundamental requirement is
contribute to achieving the company's global objectives within the framework of its
business and corporate strategy, resulting in a consistent pattern for
the appropriate development of tactical and operational decisions of the subsystem
The most complete definition should be described from 4 points of view:
• The future of current decisions. - Strategic Planning observes the
possible alternatives for future courses of action, selecting the best and
becoming the basis for decision-making.
• Process. - It begins with the establishment of organizational goals, defines
strategies and policies to achieve these goals and develop detailed plans
ensuring the successful implementation of the strategies.
• Philosophy. - Strategic thinking is an attitude, a way of life that requires
dedication to act based on the observation of the future and a determination
to plan constantly and systematically as an integral part of management.
• Structure. - Unites three types of plans; strategic, medium-term programs,
short-term budgets and operational plans.
OBJECTIVE OF STRATEGIC PLANNING
• It is to understand the current situation and the performance pace of a company, to
in this way counteract negative aspects and maintain an advantage over the
positive, with the execution of strategies that fit their needs and
generen el crecimiento organizacional. Estimulando así, a todos los gerentes y
executives improve the chances of achieving the desired results and
possible for making the right decisions.
The following are the purposes and consequently the benefits that are generated:
• Clarify the objectives and goals to be achieved; determining the direction and its
priorities.
• Provide a framework for policy development and decision-making.
• Help in the effective allocation and use of resources, identifying critical issues of
risk.
• Improve, measure, and evaluate institutional performance.
• Improvement of internal processes
• Prioritize the aspects that require immediate and greatest attention.
• It simultaneously maintains the focus on the future and the present.
• Forces executives to view Planning from a macro perspective,
pointing out the central objectives in a way that they can contribute to achieving them.
• Encourages interdisciplinary planning and communication.
• It requires the visualization of the whole. This general understanding is valuable, for
empowers the manager to see the relationships of importance, obtains a
fuller understanding of each activity and appreciates the foundation that supports the
administrative activities.
PRODUCTION STRATEGY MODEL
Focus the strategic production planning on the critical factors that
they determine the success or failure of an organization and design a realistic process, are
the key aspects to consider for its development, the author Fred R. David (2003) in
his book Concepts of Strategic Management proposes the framework of Figure
No 1, which includes the following steps:
1. Definition of vision, this is the answer to the question What do we want to be?
Formulation of the Mission answers the question: What is our business?
How will we achieve our Vision?
2. Analysis of the current situation with the Key External and Internal Environment (SWOT)
3. Analysis and formulation of strategic goals and objectives.
4. Implementation of Strategies (Development of action plans Execution
from Strategic Planning)
5. Control and Evaluation
TYPES OF PRODUCTION STRATEGY
COMPETITIVE FOCUS
• Generic Competitive Strategies: "It consists of undertaking offensive actions or
defensive strategies to create a defensible position in a sector, to confront with
success in the five competitive forces and thus achieve superior performance over
the investment for the company
• Understood as the 5 competitive forces: the current competitors,
potential competitors, substitute products or services, suppliers and
buyers
CLASSIFICATION OF COMPETITIVE STRATEGIES
GENERIC
GROWTH FOCUS
1. Integrative: Integration strategies seek to control or acquire dominance.
from the distributors, from the suppliers, or from the competition
2. Intensive: These strategies require intense effort to improve the
competitive position of the company with existing products.
[Link]: "The diversification strategy occurs when the organization
diversifies the portfolio of products and/or services it is able to offer.
in general terms, these strategies are losing their popularity because
organizations are increasingly having problems managing activities
of diverse businesses 9
CLASSIFICATION OF STRATEGIES OF
GROWTH
There are other approaches in which it is applied.
in production
FOCUS ON THE PROCESS
MODULAR APPROACH
PRODUCT FOCUS
LARGE-SCALE CUSTOMIZATION APPROACH
SCALE
DIFFERENCES BETWEEN APPROACHES
RESPONSE TO EXTERNAL FACTORS
External factors are based on trying to influence demand to be as much as possible.
potentially beneficial to my productive capacity. Within this type, the following stand out
promotions, advertising etc.
• The legal limitations that shorten the organization's possibilities for action
• The customer satisfaction with the product/service offered, both in quantities,
time and quality
• The benefit obtained with each of the possible alternatives
• That each company adopts a series of internal policies to follow.
• It should be considered that any additional plan will have associated fixed costs.
to the production activity, such as rentals, insurance, security personnel,
depreciation of machinery, etc., which is not usually reflected in it.
THANK YOU VERY MUCH FOR YOUR ATTENTION!!!