- October 25, 2015
- Posted by: greendot
- Category: hOSHIN KANRI, Kanban, Lean, Marketing, strategy, TPM, TQM, Uncategorized
Let’s face facts – most manufacturing businesses are under pressure to compete and to extract a profit from what they convert. At the heart of the competition is the need to survive, to grow, and to capture the benchmark position for their industry. So it is frightening to think that many manufacturers/ Service provider don’t have a business strategy and most struggle with how to manage change effectively (Brown, 1996). These processes are further complicated because markets and competitors don’t stand still (Hill, 1985). They are constantly changing and adding more uncertainty and confusion for managers. Add these problems together and you have a recipe for crisis management ‘Western style’ and all the necessary ingredients for business failure even if you have a great product, a good brand name and capable employees. Competition is an inevitable part of manufacturing today and the ability of a firm to compete is the final arbiter of the longevity of any business.
- New and emerging manufacturing economies with low labour costs are attracted to mature Western markets where they can exploit their ‘cost advantage’.
- The power of the internet in purchasing materials and components on a global scale and therefore access to alternative suppliers has increased exponentially.As such, power has shifted to the customer/consumer.
- Deregulation of world markets has resulted from international trading agreements and this has liberated trade and increased competition for manufacturers.
- Corporations have the ability to switch production.
- Pressure groups and lobbyists seeking to lower prices or convince the manufacturer to improve their performance in areas such as environmental management.
- Shareholders who expect a ‘year on year’improvement in the returns on their money invested and constantly compare these returns with what their money could earn elsewhere.
- Customers expect product variety, continuously improving quality levels, lead time reduction and want their stocks reduced.
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