Identifying the relationships between competitive priorities and competitive advantage in jordanian manufacturing. This equation is also known as product line length. Here, the company does not depend only on one product for its survival and growth. Key terms test mix flexibility the operations ability to produce a wide range of products and services. A product line refers to a unique product category or product brand a company offers. Although product mix problems are seldom encountered in their simple textbook form in practice, they very frequently constitute important. Reference 30 supports the definition of flexibility by 26 as the ability to change or react with little penalty in time, effort, cost or performance.
If a company has 4 product lines, and 10 products within the product line, than the length of the product mix is 40. The effect of strategic flexibility configurations on product. Tech mahindra is one of the leading technology firms based out of india. Impact of marketing strategy on business performance a. A product mix is a group of everything a company sells. When was the last time we measured lost sales to end customers. Total number of items in the product mix of the company. Increasing customization requires flexible investments. Thus, the total number of products against the total number of product lines forms the length of the product mix. Sequencing in process manufacturing the product wheel approach shellyanne wilson shellyanne. Mix flexibility is considered when predicting the changes associated with product life cycle. Manufacturing industry today is facing many new challenges. Product mix pricing strategies pricing the product mix. Furthermore, to answer rq3, a production strategy perspective was taken on information exchange by relating information exchange to the design of the production system.
These aspects of internal and external context are likely to be incomplete. Product mix ability to cope with changes in the product mix. A framework for measuring flexibility performance is developed for use in measuring and monitoring manufacturing performance for handling productmix and changeover. Framework for productmix and changeover manufacturing. In this paper, however, we will focus on the flexibility related to product mix. The paper first summarizes the state of the field of flexibility, exploring different definitions and understandings of the flexibility concept from the literature. In this paper we address flexibility and investigate the relationship between volume and product mix flexibility. Pdf marketing mix practices in the industrial market. Massachusetts institute of technology sloan school of. This paper is submitted for publication in a special issue on role of flexibility in. A population of 88 jordanian manufacturing firms, registered on the amman stock exchange, was targeted using a crosssectional survey employing a.
This paper addresses the empirical verification of hypotheses that relate to the strategic use and implementation of manufacturing flexibility. Manufacturing strategy should devote less effort to customizing a production system and more effort trying to adopt the principles of the alreadyproven lean production system. Traditionally, investment appraisal is based on net present value and other discounted cash flows techniques. It refers to the relationship of various product line either in their end use, production requirement, distribution channel or other way. Product differentiation involves establishing superiority of products over the competitors. Pdf mix flexibility and volume flexibility in a buildtoorder. To learn more about cookies and their benefits, please view our cookie policy if youd like to disable cookies on this device, please view our information pages on choices about cookies. Tech mahindra marketing mix 4ps strategy mba skoolstudy. Jan 22, 2018 product policy is defined as the broad guidelines related to the production and development of a product. The objective of a process strategy is to build a production process that meets customer requirements and product specification within cost and other managerial constraints. September 1984 abstract a manufacturing strategy is a critical component of the firms corporate and business strategies, comprising a set of wellcoordinated objectives and action programs aimed at securing a longterm, sustainable advantage over. Jun 01, 2017 general motors products product mix this aspect of the marketing mix pertains to the outputs of the business. At the same time, flexibility interacts with marketing strategy in which it enables an organization to respond effectively and efficiently to change product mix, customization of product and introducing new products.
Configurations of manufacturing strategy, business. Does our manufacturing strategy increase product line flexibility while continuing to drive down overall production costs. However, flexibility is still not well understood and. Manufacturing strategies supporting competitiveness in small and.
Apr 19, 2020 the product strategy and mix in tech mahindra marketing strategy can be explained as follows. Top 8 alternative product mix strategies your article library. Configurations of manufacturing strategy, business strategy. Does our manufacturing strategy increase product line. Framework for productmix and changeover manufacturing flexibility. An empirical study of manufacturing flexibility in printed. The investment in flexible manufacturing equipment and the subsequent ability for customized products is generally greater than the investment in equipment that aims a standard mix based on a limited range of products. Spillovers, complementarities, and specialization in the hospital industry. Flexibility in manufacturing the literature presented below is not meant to be exhaustive.
Development of production strategy with focus on flexibility. A product mix is a group of products, which are sold by the same company. Mix flexibility, also known as product flexibility, is the ability to switch. In the light of the arguments presented in section 2, figure 1 depicts the research model, which suggests that the competitive advantage of a firm is generated by four competitive priorities. These policies are generally decided by the top management of a company i. A growing body of literature has begun to recognise that in the era of supply chain management it is important to look beyond the flexible factory to the flexible supply chain. Resource mix ability to cope with changes in the resource mix. In general motors case, the product mix shows limited business diversification. It uses a product mix because it offers many advantages to the company.
Framework for productmix and changeover manufacturing flexibility rhythm suren wadhwa hig, teknologivegen 22, gjovik, norway abstract facing new challenges and more uncertainty, manufacturers see the need for flexible solutions and the need to strive to achieve flexibility. Product is a good tangible or a service intangible that is offered to the customer to meet a requirement or satisfy a need. There are several stakeholders like investors, end users, distributors, suppliers, government owned regulatory bodies, etc. Its production incurs cost and its sold to the target. A framework for measuring flexibility performance is developed for use in measuring and monitoring manufacturing performance for handling product mix and changeover.
Manufacturing strategy, capabilities and performance. In the end, the role of flexibility is evaluated and how this can lead to a competitive advantage. General motors companys marketing mix 4ps analysis. At the same time, flexibility interacts with marketing strategy in which it enables an organization to respond effectively and efficiently to change product mix, customization of product and. Competitive priorities and competitive advantage in.
Product mix strategy and manufacturing flexibility. Each of the four ps is a variable you control in creating the marketing mix that will attract customers to your business. Competitive priorities and competitive advantage in jordanian. Next, we examine some of the propositions in the framework using data from 31 printed circuitboard plants in europe, japan. Assortment of size, colour and models offered in each item of a product line. Sequencing in process manufacturing the product wheel. They observed that the equipment flexibility is dependent on. Flexibility configurations exploring volume and product mix flexibility, working paper wp346, department of management and engineering, linkoping university, linkoping, sweden.
One view of flexibility is that of being a capability in itself. The essential ingredient in each of the dimensions of manufacturing flexibility is reducing the time and effort involved in setting up for production of a different product. It explains what cookies are and how we use them on our site. Dec 19, 2014 the objective of a process strategy is to build a production process that meets customer requirements and product specification within cost and other managerial constraints. Massachusetts institute of technology sloan school of management. A manufacturing strategy is, after all one of the means to ensure a fit with the external environment. Request pdf product mix strategy and manufacturing flexibility the manufacturing industry is facing a turbulent and constantly changing environment, with growing complexity and high levels of. Product policy is defined as the broad guidelines related to the production and development of a product.
For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc. Apr 08, 2020 a product mix is a group of everything a company sells. Captive product pricing is an extremely powerful strategy in the set of product mix pricing strategies. We analyze volume flexibilitythe ability to produce abovebelow the installed capacity for a productunder endogenous pricing in a twoproduct setting. Service operations strategy, flexibility and performance. Product development should be organized through crossfunctional teams, which pursue activities in parallel rather than sequentially. The concept of marketing mix was introduced over 60 years ago. The role of demand correlation and product substitution. The purpose of this research was to explore and predict the relationship between the competitive priorities quality, cost, flexibility and delivery and the competitive advantage of firms in the jordanian industrial sector. It is like a long term planning with respect to the productmix of the company in order to deliver maximum customer satisfaction. They observed that the equipment flexibility is dependent on the technology flexibility factor, mix index and. Instead, it is a summary of some important papers in the area. There is one exception, events in the manufacturing strategy decision area, new product introduction, are likely to strongly overlap with development and marketing strategy.
May 04, 2015 a manufacturing strategy is, after all one of the means to ensure a fit with the external environment. Under this strategy, the company produces and sells a product mix. Manufacturing strategy, capabilities and performance diva. These aspects are illustrated with three case studies in which supply chain structures have been evaluated in two different kinds of markets. We discover that the value of volume flexibility is a function of demand correlation between products, an outcome that cannot be explained by classical riskpooling arguments. Flexibility is generally regarded as the ability to. Sequencing in process manufacturing the product wheel approach. Each product line represents a group of outputs or products.
Companies in the technology sector must address the risks and disruptive potential of their products and services. A manufacturing strategy could only be acted upon when interests of these stakeholders are also considered. White paper five steps of integrated business planning. Product mix and product line understanding product. Service operations strategy, flexibility and performance in. As supply increases and oil prices rise, volatility will continue to drive strategy.
Flexibility in manufacturing capability to be responsive or readilyadjustable to changing conditions product flexibility ability to introduce new or modified products mix flexibility ability to produce a wide range or mix of products volume flexibility ability to change the level of output. Finally, strategic output flexibility covers the start of production of new products, making modifications in product design and. Marketing mix product strategy marketing mix definition. Number of different product lines carries by the company. The process selected will have a long term effect on efficiency and flexibility of production as well as on cost and quality of the goods produced. Download this short white paper and learn the 5step process for improving your supply chain by using integrated business planning ibp at your company. Do we have an efficient system to get pos data from retailers. The astrocosmo problem considered earlier is an example. The product strategy and mix in tech mahindra marketing strategy can be explained as follows. Jun 26, 2007 where appropriate, additional insights have been obtained from related streams such as manufacturing flexibility, agility and supply chain responsiveness. Production strategy in project based production within a. However, the product line is a subset of the product mix. In 1953, neil borden mentioned it in his presidential address to the american marketing association ama in general terms, marketing mix is a variety of different factors that can influence a consumers decision to purchase a product or use a service.
Productservice flexibility the operations ability to introduce new or modified products and services. He use a total of 29 questions to measure new product marketing strategy and seven. Mix flexibility is considered when planning manufacturing strategy. Product mix strategy and manufacturing flexibility journal of manufacturing systems, vol. Your marketing mix should be something you pay careful attention to because the success of your business depends on it. Besides automobile manufacturing, examples include the computer, apparel, and. Manufacturing flexibility has traditionally been achieved at a high cost by using. We report methods that can be used to measure product mix flexibility. Product mix strategy and manufacturing flexibility request pdf.
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