Management Strategy Essay Example | Topics and Well Written Essays - 1500 words

Management Strategy - Essay Example The big industries with WCM status have thus become pace-setters for the smaller enterprises. Introduction WCM came into prominence following the 1986 publication of  World Class Manufacturing: The Lessons of Simplicity Applied  by Richard J. Schonberger, which was his follow-up to  Japanese Management Techniques: Nine Hidden Lessons in Simplicity. World marketplace events during the 1970s and 1980s caused competition to grow to such an intense level that many firms were forced to re-examine their concept of manufacturing strategy, especially in terms of the tradeoffs among the four competitive priorities: cost, quality, delivery/service, and flexibility. Managers began to realize that they no longer had to make these tradeoffs but could instead compete on several competencies (E-notes World Class Manufacturer Journal, 2013). What is World Class Manufacturing? WCM refers to a standard of excellence, the kind of manufacturing considered the best in the world. World class manufac turing is a collection of concepts, which set standard for production and manufacturing for another organization to follow. Japanese manufacturing is credited with pioneer in concept of world-class manufacturing. World class manufacturing was introduced in the automobile, electronic and steel industry (Management Study Guide Journals-World Class Manufacturing, 2013). In another description, WCM is often used to describe a company that has achieved a perceived, but largely undefined, level of performance. In today’s highly competitive, global marketplace, being truly excellent is not only a desirable trait but increasingly a requirement to survive and prosper, even for a small to mid-sized manufacturer. WCM is an on-going journey towards total operational excellence. In defining WCM, the following four building blocks encompass attributes that are practical and workable interpretations of WCM: Compete with competitors on the basis of time Having very high levels of product and process quality Involving all stakeholders in the conduct of business Practicing continuous improvements in all aspects of business In order to adopt these WCM building blocks, the manufacturer needs have understanding, awareness, acceptance an implementation (Shearer, 2004). World Class Manufacturers are those that demonstrate industry best practice. To achieve this, companies should attempt to be the best in the field at each of the competitive priorities (quality, price, delivery speed, delivery reliability, flexibility and innovation). Organizations should therefore aim to maximize performance in these areas in order to maximize competitiveness. However, as resources are unlikely to allow improvement in all areas, organizations should concentrate on maintaining performance in qualifying factors and improving competitive edge factors (SM Thacker and Associates). The fundamental principle governing WCM is that cost added is equivalent to waste whereas value added is equivalent to loss. Typical manufacturers relies a 70 per cent to 30 per cent cost added to value added ratio as illustrated below: Source: World Class Manufacturing Performance Journal. Management Education and Consulting. Buker, Inc. The value added is eq