pm i l 11 production strategies hx eng - wzl · - lectures 11 - production strategies responsible...

Production Management I (Prof. Schuh)

Production Strategies

WZL©

Production Management I- Lectures 11 -


Responsible person:Dipl.-Ing. Felix [email protected] R. 521Tel.: 80-28191

Training aims of the lecture:

• Introduction to the Management Concept of St. Gallen

• Explanation of the term “strategy“

• Analysis of the competition arena of an enterprise based on Porter's concept of “Five Forces”

• Derivation of the strategic success position

• Structure of the strategic profile (management profile)

• Dimensions and functions of the strategic programs

• Identification of the core processes with a process portfolio

L11 Page I



Index Lecture 11:

1. Brief Content of Lecture 11 L11 Page 1

2. The Management Concept of St. Gallen L11

2.1 An overview of the new Management Model of St. Gallen L11 Page 2

2.2 Productionmanagement in the Management Concept of St. Gallen L11 Page 3

2.3 The Strategic Management Process L11 Rage 4

2.4 Instruments for Strategy Development L11 Page 5

3. The Competitive Area L11 Page 6

3.1 Porter's Five Forces L11 Page 6

3.2 Detailed Information: Analysis Instrument Porter‘s Five Forces L11 Page 7

3.2 Price Spiral – Singularity increases the profit L11 Page 8

3.3 Reference Strategies L11 Page 11

4. The Strategic Success Positions L11 Page 13

5. The Strategic Profile L11 Page 15

5.1 The Strategic Profile and the Strategic Program L11 Page 15

5.2 Strategic Profile L11 Page 16

5.3 Product Program Strategien L11 Page 17

5.4 Activity strategies L11 Page 18

6. The Strategic Program L11 Page 19

6.1 The Elements of the Strategy Audit L11 Page 19

6.2 Strategic Program L11 Page 20

6.3 The Strategic Plausibility L11 Page 22

7. Derivation of the Process Strategies from the Process Portfolio L11 Page 24

8. Exercise E11 Page I

9. Case Study “Strategy Audit with the Spinntech GmbH“ E11 Page 3

9.1 Starting Situation E11 Page 4

9.2 Objective of the ProjectE11 Page 5

9.3 Proceeding for the Strategy Audit E11 Page 6

L11 Page II



Literature Index Lecture 11:Bleicher, K. Organisation,

2. Auflage, Gabler, Wiesbaden 1991

Dubs, R. Einführung in die Managementlehre,Euler, D. Verlag Paul Haupt, Bern 2002Rüegg-Stürm, J.

Eversheim, W. Betriebshütte, Produktion und Management Schuh, G. Springer-Verlag, 1996

Eversheim, W. Wettbewerbsfaktor Produktionstechnik,König, W. (AWK 1996)Pfeifer, T. VDI Verlag, Düsseldorf 1996Weck, M.

Müller-Stewens, G. Strategisches Management – Wie strategische Initiativen zum Wandel führen,Schäffer-Poeschel, Stuttgart 2001

Porter, M. E. Wettbewerbsstrategie,3. Auflage, Campus Verlag, Frankfurt 1997

Pümpin, C Management strategischer Erfolgspositionen, 3. Auflage, Verlag Paul Haupt, Bern 1986

Ulrich, H. Systemorientiertes Management, Verlag Paul Haupt, Bern 2001

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Brief Content of Lecture 11:

The establishment and development of successful production strategies is based on thefundamental elements of diagnosis, definition of objectives, and alternative ways for thedevelopment of strategic success positions and their implementation. The objective of this lecture is the demonstration of a methodology for strategy development in producingenterprises.

Based on the Management Concept of St. Gallen and an introduction to the term “strategy”, a method for the new strategic positioning of an enterprise is represented.

The presented instruments for strategy development generally result from fourcomponents, the composition of the strategy:

1. Analysis of the strategic starting situation (Porter´s Concept of “Five Forces“).

2. Determination of the future position of the strategic business units and the enterprise, considered as one unit in the environment. (Strategic Success Positions, StrategicProfile).3. Identification of the key processes and development of abilities and resources forachieving the fixed objectives or objective values in the different fields of the enterprise.(Strategic Program, Core Process Identification).4. Definition of criteria and standards, which can be communicated and used fordetermining the success of the strategies as well as the expected degree of objectiveachievement.

The combination of the mentioned instruments form the basis of a strategy audit. A caseexample is shown in the excercise, and the described instruments are practically used.

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WZL©

An overview of the new Management Model of St. Gallen

Figure 1

strate

gy

struc

tures

cultu

re renewal

optimization

Management processes

Business processes

Support processes

ressourcesstandards and values

Interests

economytechnology

naturesociety

competition

supplies

government

publicNGOs

personnel

customer

investors

Source: Einführung in die Managementlehre

Environmental sphereStake holdersThemes of interactionOrderProcessesDevelopment modes

6 basic categories

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Lecture 11

The new Management Model of St. GallenEnterprises act in an more and more complex environment. They have to maintain ground,

butcan also play a creative role in designing their surroundings. In this case, management – here the organisation, control and development of an enterprise(Ulrich, 2001) – is the handling of complexity.

Based on the system term, the new management model of St. Gallen differentiates sixcentral

categories.

Environmental sphere describes the central context of business activities.

Stake holders are groups of humans, organizations and institutions, who are affected by the processes of creating value and/or harm.

Themes of interaction are ”objects” of exchange between stake holders and enterprises.

Order gives a coherent form to the daily occurances, by directing the occurances to certain effects and aims.

Processes create value and the neccesary leadership. They can be characterized by an essential and temporal logic.

Development modes describe the fundamental structure of the business advancement.



WZL©Figure 2

Production Management in the Management Concept of St. Gallen

Enterprise development

Culture of the enterprise

Consciousness of time, costsand quality, support of

learning processes

Acting in performance and cooperations

Constitution of the enterprise

Structures and procedures, Production Management

systems

Production and logisticsprocesses and systems

Normative Production Management

Enterprise policy(aims, principles and values)

Programs for designingan efficiency bonus plan, and

business processes

Orders for developmentand production

ActingStructuresActivities

ActingStructures Activities

Normative

Strategic

Operative

Aspects of Management

Man

agem

ent l

evel

s

Strategic Production Management

Operative Production Management

L11 Page 3

Production Management in the Management Concept of St. Gallen

The management concept of St. Gallen is a complete management approach, and canbe applied for producing enterprises. (as shown above)

The distinction between three different levels of management is shown: the normative, the strategic, the operative level. These levels are once more differentiated into aspectsof activity, structure, and acting, so nine fields are considerable. This lecture isconcentrated on the strategic and operative level.

The normative management level specifies the general aims, principles, values and theculture of the enterprise. For keeping the enterprise running and progressive theseaspects must be oriented to the right direction.

The strategic level supports these aims and principles with a suitable organization, converted by programs for the organization of efficiency bonus plans and business processes. The objective is the setup, use and care of so called success potentials, thus the requirement for retaining in competition.

Finally the operative management converts the ideas of the strategic management, e.g. planning and directing the orders for development and production.

Lecture 11



WZL©Figure 3

PM: How are the strategicinititatives of the enterprise to

be observed and judged?

How is the creation of value of the enterprise to be arranged?

(inner relation)

How are strategic initiatives to bedealt with, to let them becomeeffective and create change?

How are strategic initiatives and/or their context in theenterprise to be arranged?

How is the enterprise to be positioned, considering their stake holders?

(external relation)Organization

PM: How do enterprisesobserve and judge their

strategic initiatives?

How do enterprises organizetheir creation of value?

(inner relations)

How will strategicinitatives in enterprises

get effective and changethe enterprise?

How do enterprisesposition themselves in relation to their stake

holders? (external relation)

How are strategicinitiatives built up in enterprises?

Reflection

The Strategic Management Process

PerformanceMeasurement

Creation of valueChange

PositioningInitiation

Effectiveness

Genesis

Pro

cess

(How

?)C

ontent(What?)

L11 Page 4

The Strategic Management Process

The strategic initiative is of crucial importance for the strategic management process, as seen in the chain.

Initiation means the emergence of strategic initiatives in enterprises. Every impulse, thatmay affect the development of the enterprise essentially, can be seen as a strategicinitiative. This includes the decision to enter new business fields or the consideration of cooperations.

Positioning determines the relation between the enterprise and its stake holders, theexternal relation. Stake holders are all groups, which could affect the enterprise or couldbe affected by the enterprise. Not only the exchange of money and goods plays a role, but also political and cultural influence.

The Creation of Value is connected to the interior of the enterprise, thus its abilities and value creating processes. These characteristics determine directly the freedom of actionin relation to their environment. Strategic initatives influencing the creation of valuemostly aim at the improving organisational abilities, e.g. the creation of value model orthe organisational structure.

A Change has been achieved, if the strategic initiative has become effective and theenterprise starts to change. This also concerns the basic organisational process, thus theemergence of strategic initiatives. The loop for the initiation is closed.

Finally the strategic initiative process, has to be observed and measured by Performance Measurement.

Lecture 11



WZL©Figure 4

Instruments for Strategy Development

Vision Model

Strategic Success Positions (SSP)

ManagementProfiles

StrategicProgram

Core Processes / Process Strategies

Order of Performance Business Model

Change Program

EconomyPerformance Strategy

Financial System Startegy

SocialStrategy

InformationStrategy

Keyprocesseses

New Competitors

Substitudeproducts

Suppliers Customer

Negotiation strengthof the suppliers

Threat by newcompetitors

Threat bySubstitude

products

Negotiation strength of thecustomers

Competitorsof the industry

Intensity of therivalry

Mea

ning

of

the

SSP

SSP

hold

er

today

In future

toda

y

QualityScale ofeffects

Proximity to Custumers

Innovation Ability

Aims

Method

Means

Instruments of the Strategy Development:

Substantial Components of a Strategy are:

a) the long-term aspect, with the intention of achieving the objectivesb) the decision about the allocation of resources and c) the analysis of own strengths and weaknesses

The Instruments for Strategy Development, which will be described closer, are:

1. Porter´s Five Forces supports the analysis of the competetive environment.

2. Strategic Success Positions (SSP) specify the excellence of an enterprise, which allows itto be more successful than its competitors in the long term.

3. Management Profiles are used for the visualisation of the current and future strategies.

4. Strategic Programs constitute the objectives, purposes and means for achieving the newstrategic position in four dimensions. They describe how the targeted change can beachieved.

5. Process Portfolios display the identified core processes with their objectives of effectiveness and efficiency.

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Lecture 11



WZL©Figure 5

New CompetitorsNew Competitors

Substituteproducts

Substituteproducts

SuppliersSuppliers CustomersCustomers

Negotiation strengthof the suppliers

Threat by newcompetitors

Threat by Substituteproducts

Negotiation strengthof the customers





Source: Porter

Porter's Five Forces as an Analysis Instrument for competition arenas

Porter´s Five Forces:Porter (1980, 1985) developed the concept of the five competition forces, as an

instrumentfor the analysis of the attractiveness of a special branch.The basic idea is, that the performance of an enterprise is dependant on five forces and

theirinteraction:

Power of suppliers and customers,

threat by new competitors and substitute products as well as

the rivalry of the established competitors.

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Lecture 11



WZL©Figure 6

3/5: Threat by new competitors

Price responsiveness- Price/total turnover- Product differences- Identity of the brand- Influence on quality/performance

- Customer profits- Incentives of decision-makers

- Economies of scale- Internal product differences- Identity of the brand- Conversion costs- Capital requirements- Access to distribution- Absolute cost advantage- Internal training curve- Access to required input- Internal cost-efficient

product design- Governmental politics- Expected retaliation measures

Barriers for entry regarding new competitorsNew CompetitorsNew Competitors

Substituteproducts

Substituteproducts

SuppliersSuppliers CustomersCustomers

2: Negotiation strength of the suppliers

3: Threat bySubstitute

products

4: Negotiation strength of the custumers

Competitors ofthe industry


Competitors ofthe industry


Source: Porter

Negotiationstrength- Concentration of customers vs.concentration of enterprises

- Quantity of customers- Conversion costs of customersvs. conversion costs of enterprises

- Information level of customers- Ability of backward integration- Substitute Products- Stamina

Determination of the customer strenght- Differentiation of input- Conversion costs of suppliers and enterprises of the industry- Substitute-inputs- Supplier concentration- Importance of the size of order for the suppliers- Costs in relation to the total turnover in the industry- Influence of the input on costs or differentiation- Danger of forward integration compared to the danger of backward integration caused by enterprises of the industry

Determination of the supplier‘s power

- Growth of the industry- Fix- (or Storage-) costs/creation of value- Times of overcapacity- Product differences- Identity of the brand - Conversion costs- Concentration and balance- Complex information situation- Heterogeneous competitors- Strategic interests of the enterprise- Barriers for withdrawal

Determination of the rivalry

1: Description of the industry and thecompetitive environment

12 4

3

5

Detailed Information: Analysis Instrument Porter's Five Forces

Notes to the figure:

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Lecture 11



WZL©Figure 7

B01

B02∆PB

∆PA

A01

A02 ∆PA = Price decline competitor AA01 = Product price

competitor A in 2001B02 = Product price

competitor B in 2002

∆PA > ∆PB

The majority of the investment good markets has no price elasticity!Price quality= f(Singularity)

Price Spiral – Singularity increases the profit


L11 Page 8

Lecture 11



WZL©Figure 8

Opportunity businessExternal controlSupplementary business

> 10%

< 10%

Market vitality(Marketgrowth)

TemporalDifferentiation

Long-termSingularity

Differen-tiation

Strategic Business

Innovation fieldsTechnology developmentAvailability of solutions

Innovation leadershipMarket developmentAvailability of capacities

Niche leadershipOligopolyElimination of competitors

Singularity Portfolio


L11 Page 9

Lecture 11



WZL©Figure 9

R&D - Investment

weak strong

Competitive Position/ Singularity

high

low

Mar

ket a

ttrac

tiven

ess Comparable Precepts

are applicable to:

Investments Acquisitions

Source: Schott

The funds for R&D, investments and acquisitions are assigned in accordance to the portfolio position

50%

28%

1%

15%


L11 Page 10

Lecture 11



WZL©Figure 10

Product Design/Product Technology

Production/Process Technology

Process Chain Control

Brand/ Image/Market access

Design

Lateral

Tech

nolo

gy L

ever

age

Mar

ket L

eade

r

InnovationOlig

opoly

Leverage

1. Design Strategy(Market developer)

2. Oligopoly Strategy(Dominance in theindustry)

3. Market Leader Strategy(Scale effect)

4. Technology LeverageStrategy(Competence option)

5. Innovation LeverageStrategy(Driving Innovation)

6. Lateral Strategy(Collaboration)

Reference Strategies – Overview


L11 Page 11

Lecture 11



WZL©Figure 11

Product Design/Product Technology

Production/Process Technology

Process ChainControl

Brand/ Image/Market AccessDesign

Lateral

Tech

nolo

gy L

ever

age

Mar

ket L

eade

r

Innovation

OligopolyLeverage

Examples for different Reference Strategies


L11 Page 12

Lecture 11



WZL©Figure 12

Strategic Success Position (SSP)

Source: Pümpin

Definition

By developing important and dominant abilities,Strategic Success Positions are consciously created conditions,

That allow the enterprise to achieve excellent resultsover a long period of time, in comparison with its competitors.

Examples1. Image (Technology image, social image, ...)2. Distribution network (sales agencies, distribution channels, ...)3. Scale effects (capacities, economies of scale, ...)4. Quality (Product and process quality, warranties, ...)5. Tender (Assortment, services, incentive system, ...)6. Proximity to customers (Customer consulting, ...)7. Innovation ability (First mover, technology leadership, ...)8. Financing (Finance service, prefinancing, ...)9. Cooperation ability (Partnership, structures that allow

easy cooperation, ...)

Notes to the figure:Strategic Success Positions are not identical with those factors, that would convey a customer to buy a certain product. An overlapping of both terms is possible, though.

In contrast to this is the term of the Strategic Success Factors, which is a basis for a customer decision to buy a product.

While the above terms are defined relative to the competition, Strategic Success Potentials (SSPot) or Value Potentials (VP) may be seen as fixed points.

Bleicher uses the image of “light of stars” (SSPot) vs. the “light of passing ships” (SSP), which call for a different navigation.

L11 Page 13

Lecture 11



WZL©Figure 13

Impo

rtan

ceof

the

SSP

SSP

hold

er

untiltoday

in thefuture

toda

yQuality Distribution

NetworkProximity to customers

1 3 2

Innovation ability

13C

ompa

ny

Com

petit

orA

Com

pany

Com

petit

orB

2

Ranking of the SSP according to importance and competitive position

Identification of Strategic Success Positions


L11 Page 14

Lecture 11



WZL©Figure 14

The Strategic Profile and the Strategic ProgramVision

Mission

Structures Acting

normative

strategic

operative

StrategicPrograms

The strategicprogram consists

of 4 parts

The strategicprogram consists

of 4 parts

Four aspects ofa strategicprogram

Four aspects ofa strategicprogram

Activities

Source: Bleicher and Ulrich

EconomyPerformanceStrategy

FinancialStrategie

SocialStrategy

Infor-mationStrategy

Method

Objectives

Means

Product programStrategies

CompetitiveStrategies

Activitystrategies

Resourcestrategies

stabilizingstrategy

changingStrategy

individualniche program Pioneer

Externalsynergy potential

OpenResourcehandling

Conformist

internalsynergy potential

DeterministicRessource allocation

standardizedmass program

L11 Page 15

Lecture 11

Strategic Programs:

Concerning competition, the managerial policy of an enterprise must be substantiated byspecific objectives and measures for realisation. Objectives and measures form substantial segments of strategic management. Their stimulative nature creates specificpaths for the implementation of the managerial policy. Beside the objectives provideorganisational structures and management systems, which also includes the probemhandling of their supporters.



WZL©Figure 15

Strategic Profile

Product programStrategies

CompetitiveStrategies

Activitystrategies

Resourcestrategies

stabilizingstrategy

changingstrategy

individualniche program pioneer

externalsynergy potential

openresourcehandling

conformist


deterministicresource allocation

standardizedmass program

Organisational structuresManagement systemsProblem solving

Module 1 Module 2

Module 3 Module 4

Framework for the positioning of the own enterprise

Different profiles indicatedevelopment of strategicprograms

“Fit“ is important

L11 Page 16

Lecture 11

Strategic Profile:

For the definition of strategic programs, a pattern is required, which alleges thesubstantial aspects of a strategic option. Dependent on the demands, its desiredcharacteristics are to be scaled and shaped.

The request for strategic reasoning and acting is to be detailed (Bleicher, 1993) withinfour ranges, the:

Products,Activity-(Value-creating-)chains,Competitive behaviourResources.

The four mentioned ranges can be seen in the four quadrants, illustrated in the abovepattern. The profile serves on the one hand for visualising the actual situation of an enterprise or section, on the other hand a second step can indicate the target strategywhich allows to deviate a migration path. A central positioning in the pattern complies witha stabilizing strategy (standardized mass program, conformist, internal synergy potential and deterministic resource allocation). The outer regions in the pattern point to a changing strategy (individual niche program, pionier, external synergy potential, openresource handling)



WZL©Figure 16

Product Program Strategies

Cover of a broad tender, which includes all concievable needs of a customer groupBig Assortment as an incentive for the customer contact, borne by thethought of the dispersion on a multiplicity of market segments and the“economies of scope“ Concentration on specific tenders in the context of a more comprehensiveassortmentOutstanding competence in the program emphasis as an incentive for thecustomer contactBorne by the thought of the concentration on single market segments and the “economies of scale“

Product ProgramStrategies

individualniche program

standardisedmass program

The individualisation creates an acquisitional potential, which eases the pricing pressureThe composition of the market service are specificly custom-tailored

Standardisation may allow advantages in the price warThe composition of the market service is fixed and must meet the needs of a multiplicity of customers

individual standardisedPROBLEM SOLUTIONS

narro

wbr

oad

TEN

DE

R

L11 Page 17

Lecture 11




WZL©Figure 17

Activity Strategies

ActivityStrategies

externalsynergy potential


Pronounced cost consciousness demands an expected long life of theassigned potentials (includig R&D-investments), which forms marketperformances with a low innovation levelAll value creating activities will be analysed, to achieve a rationalising withcost reductionThe will to exchange the assigned potentials also at short notice (includingR&D-investments, if an increase of satisfaction results, generates innovative market performancesAll value creating activities are analysed, with the objective, to increase thesatisfaction of the partners needs

All substantial activities are carried out on one‘s own. Competition advantages are to be built up with a very deep valuecreation, which is possibly increased by a strategy of backward and forward integration.

High capital freeze in materials and appropiate personnel expenditure, but security by control within the own systemThe strategic focus is directed toward some selected activities of the value creating chain (Centers of Excellence), which promise cost or differentiation advantages compared either to competitors or vendors

Complexity discharge by assignment of individual activities outward (outsourcing), but dependanceon the reliability of the suppliers

Autarchy UnionVALUE CREATING STRATEGY

Prof

it C

once

rnC

ostC

once

rn

PO

TEN

TIA

L FO

R R

ATIO

NA

LIS

ATI

ON

L11 Page 18

Lecture 11




WZL©Figure 18

The Elements of the Strategy Audit

Align to relevant strategic success positions

Define a strategic program for achieving the strategicsuccess positions

Specification of Objectives, Means and Methods as partsof the strategic program

Methods Means Object-ives

SSP

Strategic Program

Strategic Profile

Strategic Profile

L11 Page 19

Lecture 11

Strategy Audit:

A strategy audit serves the management for the refurbishment of the current market and enterprise situation and for the analysis of possible trends.



WZL©Figure19

Strategic Program

EconomyPerformanceStrategy

Financial Strategy

SocialStrategy

Informationstrategy

Methods

Objectives

Means

Market Objectives

Profit Objectives

EconomyObjectives

ProductionMethods

Distribution Methods

Capitalreserve

Capital structure

EconomyMethod

Means of Production

Personneloriented and

socialObjectives

AvailabilityObjectives

ManagementSystems

PersonnelFacilities

Personnel-referred

behaviourstandards

Acquisition of information

and processing

methods

L11 Page 20

Lecture 11




WZL©Figure 20

Example: Strategic Program for a Textile Machine Manufacturer

Economy PerformanceStrategy

Methods

Objectives

Means

15% increase in market share within the next 7 years

Basics development / Order engineering

Module concept / Distribution concept

L11 Page 21

Lecture 11




WZL©Figure 21

The Strategic Plausibility

Consistancy?

Cause-Effect-Net

Module conceptModule concept

Basics developmentBasics development

Strategic SuccessPositions

Scale effects

Strategic SuccessPositions

Scale effects

Standardised(Mass-)Program

Standardised(Mass-)Program

Impo

rtan

ceof

th

eSS

PSS

Pho

lder

today

in future

toda

y

Quality Scaleeffects

Proximity to customers

Innovation ability Economy Performance Strategy

Methods

Objectives

Means

15% Market share increase within the next 7 years

Module conceptDistribution concept

Basics DevelopmentOrder engineering

L11 Page 22

Lecture 11

The strategic plausibility:



WZL©Figure 22

Core Process IdentificationPositioning of the present

Functions/Departments

Develop.A

Positioning bymain processes

AfterSales

Service

Develop.B

Logis-tics

Assem-bly Dis-

tribution

Pur-chase

SU

Parts Manu-

facturing

SU

Basicsdevelop-

ment

Parts Manu-

facturing

Assem-bly

Dis-trubition

Purchasemgmt.

Orderprocessing

Order-enginee-

ring

Marke-ting

AfterSales

Service

Process efficiency

Proc

ess

effe

ctiv

ity

Process efficiency

Proc

ess

effe

ctiv

ity

Legend: SU = Start-Up

Note: Order processing from Parts Manufacturing, Assembly, SU and Logistics

Definition: A Core process is a main process, which has a significant effect on the market success of theenterprise and a substantial influance on the fulfilmentof strategic success positions (SSP's).

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Lecture 11

Core Process Identification:

Based on the business vision and the business missions derived from it (strategic program), processes can be identified, by which the enterprise wants to concentrate on the future demands. Objective of the process identification is to designate the important processes and to create a common understanding for the customer needs, as well as the creation of the necessary abilities for execution.

The process Efficiency describes the use of resources for a specific process. The lessresources are used for a certain output, the higher is the efficiency.

The process Effectivity describes the contribution of a process to the value that thecustomer actally notices, in relation to the strongest competitor.



WZL©Figure 23

Derivation of the Process Strategies from the Process Portfolio

describe the path from a

current to a

future situation

under indication of:

Objectives(efficiency and effectivity

objectives)

Means and

Methods

Process Strategies

L11 Page 24

Lecture 11

Process Strategy:

For the strategic evaluation, following the process identification, processes are usually analyzed concerning their efficiency, i.e. evaluated by their profitability. The danger exists, that a change project, since optimized by efficiency criteria, degenerates to a cost reduction program, without using the chance of a fundamental strategic reorientation. For example, the process design of a traditional distribution of a machine manufacturer, gets to its limits, if the basic business conditions are not changed. Only a consistent market development, which systemizes the world-wide know-how transfer and guarantees a professional surrounding to the salesmen, allows the necessary fundamental progress for the distribution. For keeping this option, based on the concept of the strategic success positions after Pümpin, two further aspects apart from the efficiency must be considered.On the one hand orientation at the competition must take place. On the other hand, the processes, in terms of effectiveness, will be evaluated, regarding how strongly they promote the customer needs and/or how well they support the creation or the achieving of strategic success positions.

pm i l 11 production strategies hx eng - wzl · - lectures 11 - production strategies responsible...

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