Arnoldo C. Hax

Manufacturing Strategy: A Methodology and an Illustration

Manufacturing strategy is a critical part of the firms corporate and business strategies, comprising a set of well-coordinated objectives and action programs aimed at securing a long-term, sustainable advantage over competitors. It should be consistent with the firms overall strategies, as well as with other functional strategies. A methodology for designing such manufacturing strategies has been successfully tested in actual manufacturing environments, including the Packard Electric Division of General Motors.

Hierarchical Production Planning: A Single Stage System

This paper presents a hierarchical approach to plan and schedule production in a manufacturing environment that can be modeled as a single stage process. Initially, the basic tradeoffs inherent to production planning decisions are represented by means of an aggregate model, which is solved on a rolling horizon basis. Subsequently, the first solution of the aggregate plan is disaggregated, considering additional cost objectives and detailed demand constraints. Several improvements in the methodology related to hierarchical production planning are suggested. Special attention is given to alternative disaggregation procedures, problems of infeasibilities, and the treatment of high setup costs. Computational results, based on real life data, are presented and discussed.

Hierarchical Production Planning: A Two-Stage System

This paper presents a hierarchical approach to plan and schedule production in a manufacturing environment that can be modeled as a two-stage process. A conceptual framework for this approach is described. The specific mathematical models proposed for the various hierarchical levels are discussed. The methodology is evaluated in an actual setting. The performance of the hierarchical system is contrasted with an MRP design. Encouraging results are reported.

Feature Article—Organizational Design: A Survey and an Approach

The purpose of this paper is to review the major concepts underlying the proper design of an organizational structure for a business firm. It provides a review of the various managerial processes to support decision making in an organization. It discusses the major organizational archetypes (functional, divisional, and matrix organizational forms); presents a brief historical overview of various organizational theories; and finally concludes with recommendations of steps to be undertaken in the design of an organizational structure.

Linking Technology and Business Strategies: A Methodological Approach and an Illustration

Linking technology and business strategies is a demanding task that has central importance in strategy formation. Now that technology is a critical source to achieve and sustain competitive advantage, the ability to incorporate technology into a business strategy can make the difference between a winning or a losing strategic alternative. This paper discusses a methodology that can be used to explore systematically the way to link business and technology strategies. The authors illustrate the application of the suggested methodology in a real life setting.

Hierarchical planning systems — a production application

Many authors have attempted to provide definitions to characterize the essence of planning. One definition, which we find particularly suitable for the purposes of this chapter, was presented by Peter Drucker [10] in an old article where he explored the role of management sciences in long range planning. Although his definition was intended to describe primarily long range or strategic planning efforts, we will use it as a vehicle for discussing the most significant element of planning in general. This is what Drucker had to say: ‘Planning is the continuous process of making present entrepreneurial (risk-taking) decisions systematically and with the best possible knowledge of their futurity, organizing systematically the efforts needed to carry out these decisions, and measuring the results of these decisions against the expectations through organized, systematic feedback.’

Designing a manufacturing strategy

Abstract A manufacturing strategy is a critical component of the firms corporate and business strategies, comprising a set of well-coordinated objectives and action programs aimed at securing a long-term, sustainable advantage over the firms competitors. A manufacturing strategy should be consistent with the firms corporate and business strategies, as well as with the other managerial functional strategies. We present a process and a structured methodology for designing such a manufacturing strategy. This methodology has been successfully tested in actual manufacturing environments.

Automatic generation of customized, model based information systems for operations management

Abstract : The paper discusses the need for developing a customized, model based system to support management decision making in the field of operations management. It provides a critique of the current approaches available, formulates a framework to classify logistics decisions, and suggests an approach for the automatic development of logistics systems. (Author)

Corporate Strategy: The Core Concepts

In a formal strategic planning process, we distinguish three perspectives — corporate, business, and functional. These perspectives are different both in term of the nature of the decisions they address, as well as the organizational units and managers involved in formulating and implementing the corresponding action programs generated by the strategy formation process.

The Delta Model: Creating New Sources of Growth and Profitability in a Networked Economy

Our fundamental premise is that the essence of strategy is to achieve customer bonding. At the core of bonding are the attraction, satisfaction, and retention of the customer. We have identified three very distinct strategic options for attaining this objective, as displayed in the triangle in Fig. 2.1. We have chosen the triangle to depict the different strategic options not simply because it is a visual icon that is easy to remember, but also because it represents the letter delta, which stands for transformation and change. The delta theme extends to the labeling of the business model in this book. We refer to the three strategic options for customer bonding as Best Product, Total Customer Solutions, and System Lock-In. Initially, we will introduce them as if they were completely different ways of positioning the business. Ultimately, you will see that a sophisticated strategy plays simultaneously in every corner of the triangle, depending on the way you choose to serve the heterogeneous diversity of your customers.