A strategic management system for manufacturing: linking action to performance

Abstract

How the manufacturing function can reach its operational goals is one of the enduring questions in manufacturing strategy. We address this question in two ways. First, we examine the existing literature and empirical evidence on why the implementation of manufacturing strategies may fail. Second, in order to aid implementation of manufacturing strategies, we develop a conceptual framework and managerial tool that explicitly links operational actions with operational performance. Specifically, we focus on how the whole operations or manufacturing function should be viewed and managed from a strategic perspective, and how we should conceptualize the notion of manufacturing capabilities and competitive manufacturing. We illustrate the use of the tool by examination of a manufacturing strategy case study.

Keywords:

• manufacturing task
• strategic decision-making
• strategy implementation
• conceptual framework

MIKKO A. KETOKIVI (born 1970, Asikkala, Finland) is Researcher and Lecturer at the Department of Industrial Engineering and Management at Helsinki University of Technology. Dr Ketokivi received his MSc at Iowa State University in 1997 and his PhD in Operations Management at Minnesota in 2000. Dr Ketokivi is member of the Academy of Management, Decision Sciences Institute and European Operations Management Association and has published articles in leading academic journals, such as the Strategic Management Journal, Structural Equation Modeling, and Journal of Operations Management.

JUSSI HEIKKILÄ (born 1959, Rauma, Finland) is Professor (acting) of Industrial Management at Helsinki University of Technology, Finland. He holds a DSc (Tech) degree from Helsinki University of Technology and an MBA degree from Webster University, Geneva, Switzerland. He has several years of work experience in building and building materials industries in the Middle East, Asia and Western Europe. Dr Heikkilä has also worked as Research Associate at International Institute for Management Development - IMD, Lausanne, Switzerland, and as Research Director at TAI Research Centre of Helsinki University of Technology. He has twice been recipient of the European Foundation for Management Development case writing award. His present research focuses on operations strategy, demand/supply chain management and project management. He is the author or co-author of several conference papers, research articles and book chapters. His articles have been published among others in Production and Operations Management, International Journal of Logistics: Research and Applications, International Journal of Project Management, International Journal of Technology Management, Journal of Strategic Change, and Journal of Operations Management.