nm1220: this morning [1.7] namex and i will give a sort of joint session [0.6] 
looking at how you formulate a manufacturing strategy [0.5] we talked a lot 
yesterday but-, [0.5] about how you need to integrate [0.6] your operations 
strategy with all your other strategies we looked at s-, [0.5] some tools and 
[0.5] for doing that with namex [0.4] we had a look at the effect of that on a 
small real company H-G Plastics [0.7] last night [0.7] now we're actually going 
forward to look at [0.4] what goes into an operations strategy [0.7] and [1.2] 
how you then go through a process of putting it together we'll look a-, be 
looking at some academic models [0.8] as i say that sounds very boring but they 
are ones [0.2] we'll see later [0.2] that real companies use in real life [1.4] 
and [0.4] basically [0.4] do something different can we ask you all [0.6] to 
shut your manuals please [0.6] just manage without the slides for a while [0.3] 
you'll see why in a minute [0.3] 'cause we're going to 
ask you to do an exercise and the answer's on the slides [1.0] so [0.6] just to 
make it slightly more difficult for you if you could close your manuals [0.8] 
er just for the first few minutes of the session [0.8] and i'll now pass over 
to namex who's going to start this morning off [1.0] 
nf1221: okay good morning [0.4] 
ss: good morning 
nf1221: oh hurray [laugh] [1.1] right [0.5] we're looking at the development of 
manufacturing strategy then [0.3] and we're taking it from the work that we did 
yesterday on strategy integration so you'll need to remember some of the things 
we did yesterday [0.4] can you remember that far back [0.7] yes just about good 
[0.7] the objectives then of the session for this morning are [0.4] to be able 
to understand what manufacturing strategy is and be able to define it so you 
should [0.2] have a much better understanding of what it actually is today [0.
6] er 
operation strategy too [0.4] and you should be able to discuss and give 
examples of how it can be formulated [0.5] so we're looking at the actual 
process [0.5] and the content of of [0.2] making man-, of developing 
manufacturing strategy [3.7] we're going to look at how you'd formulate 
manufacturing strategy and we're going to ask you the questions for that [0.7] 
er [1.4] hence why we don't want you to look in your manuals yet [1.0] and then 
we're going to introduce three [0.2] different frameworks for developing 
manufacturing strategy [0.3] there are more than three [0.3] we have 
preselected these three [0.3] because we believe it gives you a variety of 
different frameworks [0.3] to consider [0.4] er there are many more for which 
at your leisure you're welcome to go to the library [0.3] we've referenced more 
in our notes which are very comprehensive [0.4] but we're only covering three 
today [0.5] Terry Hill [0.4] Platts and Gregory and John Miltenburg so they're 
the three that you'll be using [0.4] and 
you may wish to use some of the material as well [0.3] when you do your S-C-L 
case study which i believe you start this afternoon [0.5] okay so [0.6] do take 
some note of this [2.1] we will remind you of some of the key strategic tools 
for formulating strategy we will link back to what we did yesterday [0.5] er 
you will also cover more analytical tools [0.5] in your S-C-L case study which 
you will do for the remainder of the week okay so we'll be bringing some of 
them in today [0.4] because they do come i-, [0.2] under the frameworks [0.7] 
and at the end we'll be just reviewing summarizing if you like [0.2] the key 
characteristics of the different frameworks [0.3] obviously as i was saying to 
you yesterday about Master's level [0.3] about understanding and application [0.
4] one of the key things that we'll be measuring is your ability [0.4] for 
critical analysis [0.7] okay [0.4] and critical analysis is looking at things 
like [0.4] what are the characteristics of all these frameworks what are the 
strengths what are the weaknesses [0.3] what are 
m-, what is my view how can i compare the two [0.3] so we'll be sharing that [0.
2] with you at the end [1.2] okay [0.8] as a general [0.3] set of guidelines 
i've got some slides on the principles of strategy [0.5] er [0.3] and then i'll 
ask you to do an exercise er without hopefully the use of your manuals [0.4] so 
[0.3] again for the purposes of this lecture [0.5] you are all directors of [0.
6] hypothetical companies [0.4] okay [0.4] and you're thinking about how you're 
going to develop a manufacturing strategy [0.6] so what i'm putting up next is 
some information on just general principles [0.4] for strategy formulation [0.
3] and this is applicable to any type of strategy formulation [0.4] okay [0.3] 
so it's not just true for manufacturing [0.4] and i have to say that if i asked 
you to brainstorm [0.2] these you'd probably come out with them all yourself so 
i'm not going to go through them in [0.4] laborious detail [0.4] okay [0.3] 
just some prompts for common sense [0.6] so strategy is long term [0.2] okay [0.
3] we're looking at five ten fifteen years [0.3] most companies that i work 
with 
in the food industry consider five years to be a long time [0.4] we were 
talking the aeronautical group yesterday [0.4] twenty years is probably the 
same [0.4] vision for them [0.2] so it depends on the company and the industry 
[0.3] but y-, it's a long term view that you're taking [1.4] you're dealing 
only with the major issues you're not dealing with tactical or operational [0.
5] issues you're dealing with the major long term issues [0.9] you're looking 
at what differentiates the company from its competitors and we looked yesterday 
[0.4] about that differentiation didn't we starting with the Porter [0.4] grid 
[0.4] about differentiation or cost focus et cetera [0.4] er so [0.2] you're 
actually stating there [0.5] within the strategy the actual identity for the 
company what is it that's different about your company [0.4] and you should see 
that throughout the strategy [1.2] you're concentrating the effort then on 
those particular issues and we did look yesterday about 
focus [0.4] with the Puttick grid and other things [0.3] so that's where that 
would come in [0.2] in terms of the strategy [0.4] we're looking at a pattern 
of decision making over time you don't make all the decisions in one go [0.3] 
you set down some policies [0.2] in which you can make decisions in the future 
[1.5] pervasive means that it affects the whole organization so the argument is 
that everybody in the organization should know about the strategy [0.6] er [0.
3] that is easier said than done in my experience [0.4] er when we teach these 
programmes to [0.3] er participants who already work [0.3] a lot of them are [0.
2] unaware or a little bit unclear [0.3] about the actual strategy of the 
company that they work for that is not unusual [0.7] it sounds amazing but it 
isn't actually unusual [0.4] so er [0.6] i think this one is very important so 
strategy should affect everything [3.4] and just to ca-, a point at the bottom 
there just for you to note that this is what we believe distinguishes strategy 
from tactics and operational plans [0.7] okay [3.9] 
so it's a formal procedure [1.7] one involving a multidisciplinary team [1.2] 
different strategies should be formally evaluated before making decisions 
because you obviously can predict a set of different futures can't you [0.5] 
yeah [0.4] will we have a war in Iraq will we have an oil crisis [0.3] et 
cetera [0.3] er and you can predict different futures and set your strategies 
to suit them [1.6] should [0.2] strate-, strategies should be communicated as i 
mentioned [0.3] you should look at the risks [0.5] associated with the external 
factors and we spent [0.3] half an hour yesterday looking at external drivers 
didn't we in the in the companies [0.3] so you need to look at the risks and be 
able to have some [0.8] contingency plans [0.2] to meet [0.4] most of those 
potential [0.7] external events [0.4] and monitoring events [0.6] should be 
carried out continuously [0.3] okay but we'll perhaps come back to that [0.4] a 
little bit later on [0.4] and the strategy should be reviewed regularly [0.2] 
okay so they are the general points for strategy [0.3] which hopefully you'll 
all have in your 
minds now [0.4] when we ask you [0.3] to do [0.3] this task [0.8] what we'd 
like you to do is to answer those four questions in the groups [0.2] er are you 
going to [0.5] organize it into S-C-L groups or just let them sit in their 
nm1220: er i think it'll probably [0.8] be easier to do it geographically in 
the room rather than S-C-L groups 
nf1221: okay [0.2] so the groups that we had yesterday when i did order winners 
and qualifiers and the external drivers okay [0.6] and i'd like you on one 
sheet of flip chart paper [0.4] one sheet per group [0.2] okay so you have to 
fit the entire thing on one sheet of paper [0.3] that we can read on the board 
[0.3] so please [0.3] no writing at ten [0.2] points [0.2] okay [0.8] and [0.4] 
we'd like you to answer these questions [0.5] from your own [0.5] general 
knowledge [1.4] okay [0.7] this is not a test [0.3] this is for us to be able 
to pitch the lecture [0.8] do you 
understand [0.4] if if i know what you understand then i know what to teach you 
[0.8] okay [0.3] so i'm trying to understand what you know [0.3] and this is in 
all this is about i will do it in groups [0.3] and we will understand [0.4] 
from these [0.5] questions [0.3] what you know [0.3] i would be grateful if you 
don't look at your books it's not a test [0.3] but all the answers are in the 
manual so [0.8] you're likely to be bored if you just read it all out of there 
put it on there [0.3] i think you know everything [0.3] and leap off [0.5] into 
a higher level [0.4] of manufacturing strategy [0.3] nobody's going to win 
there [0.3] okay [0.4] so please try not to use your manuals if you're stuck 
then look [0.4] all right i don't want you to [0.2] to have not do anything [0.
3] but in your groups you should be able to answer these questions [0.4] 
pretend that you own a company or that you run a company [0.3] even the [0.2] 
in the sectors that you were doing yesterday [0.7] the other example you could 
use is [0.2] the business that you designed for your context of [0.5] business 
module [0.7] did you all 
develop your own company [0.2] 
sf1222: mm 
nf1221: yeah [0.2] well use that one then [0.4] okay use that product [0.5] 
okay [0.3] so think of a product [0.5] think [0.3] how you would develop a 
manufacturing strategy [0.7] okay that's that's that's what we'd like you to do 
[0.7] so we want you to define it [0.4] as if you were writing it for a 
dictionary [0.6] we'd like you to just [0.2] indicate who should be responsible 
[0.6] er don't just say everybody [0.3] i would like a little bit more detail 
than that [0.5] how often should it be reviewed [0.7] and then the major [0.3] 
question is the last one [0.3] which is what should be in it [0.5] what 
decision areas do you need to make what goes into a manufacturing strategy [0.
3] what kind of decisions will you have to make [0.4] when you're deciding [0.
4] what to make [0.3] and what not to make [0.3] okay [0.4] does that make 
sense does everybody understand the questions [0.4] yeah [0.3] 
obviously namex and i will come round as often as you wish [0.5] er [0.3] we'll 
give you [0.4] twenty minutes we'll give you till twenty to ten [0.3] to do 
this [0.3] please put your syndicate number on the [0.7] top [0.4] of the page 
it was one two three wasn't it four and five [0.4] syndicate groups yeah [0.2] 
group one group two group three group four and group five [0.6] okay [0.4] er 
[0.2] because we will be putting your answers on the board and using them [0.4] 
for the rest of the lecture [0.9] okay [0.7] good any questions please [2.3] no 
right just glazed looks sorry i'm making you work so early in the morning 
[laughter] right 
nf1221: if you've finished if you'd like to come and put your er [1.4] sheets 
[0.5] on the 
board [0.8] don't worry if you [36.6] if you could stay sitting in your groups 
please [3.3] so that i know who to talk to [23.8] 
nm1220: or we could the second page [0.7] 
nf1221: okay [35.6] 
nf1221: oh [8.4] hurray [laughter] the technology works [0.9] [cough] [1.0] 
okay [2.0] what we're going to do now is we're going to ans-, [0.8] answer look 
a-, read out your [0.2] read your answers for each question [1.9] and then we 
will show you [2.5] our answer that we prepared earlier [0.7] 
okay but we'll discuss what you've put first and see how [0.4] similar it is to 
what we've [0.2] already prepared [0.3] please now open your manuals because 
we're we're following the notes [2.4] so the first question [1.3] is [1.1] can 
you define manufacturing strategy or what is your definition [0.5] for 
manufacturing strategy [0.8] and i'm sure we have a variety there on the board 
[0.5] because you're all obviously in different groups and had your own ideas 
[0.5] so from group one we've got a long term guideline [1.2] move towards 
where the company wants to be from where they are now so [0.4] somebody was 
listening yesterday which is refreshing [0.4] so it's about how [0.4] companies 
move [0.3] from where they currently are [0.2] the current situation [0.4] to 
where they want to be [1.0] and it's long term and it's it's a set of 
guidelines which is one way of putting it so yes [0.5] i agree [0.4] with that 
definition [0.3] we have [0.6] group two [0.9] said it's the utilization of 
manufacturing techniques tools and methods so [0.4] good we've got [0.2] the 
word manufacturing 
in there which is er [0.4] refreshing because we are trying to reflect 
manufacturing strategy [0.5] and we're looking at the tools techniques and 
methods excellent [0.6] used in an organization so i guess that's like the 
resources that we were talking about yesterday [0.8] and we've got to gain 
competitive advantage so again very good because you're now [0.7] thinking 
about how you [0.3] get that distinctive [1.0] er element to your business all 
right what distinguishes you from the competition [0.4] okay so you need to p-, 
have that in place [0.3] so very good to that one [0.3] three 
nm1220: group three yes [0.2] 
nf1221: the long term guideline for a company to achieve its goals [0.5] and 
objectives [0.5] by considering the productivity and profitability so [0.5] on 
the one hand we're looking at making lots of money [0.9] and on the other hand 
we're [0.2] looking at doing it very efficiently [0.3] i assume that's where [0.
3] we're looking at here [0.6] er alo-, achieving the goals and objectives 
which is 
excellent because you're aligning that back to corporate strategy which is 
something else we talked about yesterday [0.4] and again long term [0.8] 
guidelines excellent [0.6] group four then are saying [0.2] choosing the right 
drivers to make the decision [0.4] about what to produce how to produce and who 
to produce it for [0.5] within the capacity constraints of the company 
considering the uncertainty of wow [0.2] [laughter] [0.3] very [laughter] [0.4] 
er i've d-, [0.3] thinking of a descriptor for that but i can't [laugh] [0.5] 
er [0.9] ha-, [0.6] choosing the right drivers so i guess that's linking back 
to what we were talking about yesterday in terms of [0.4] external drivers or 
[0.2] perhaps other things within the business like [0.4] what the sis-, d-, 
directors want 
sm1223: strategic drivers 
nf1221: yeah 
sm1223: depends on the business 
nf1221: absolutely [0.2] so it's not just what's happening outside it's what 
the actual people within the organization want to do [0.3] so those 
sf1224: another thing from question four as well that all the stuff that all 
the areas that [0.2] the decision kind of all of that stuff [0.2] [0.6] 
nf1221: yes [0.6] yes good which is refreshing because normally they take no 
notice of that at all [0.6] so looking about what to produce yes [0.2] it's 
about what you produce but that's also the job of marketing too [0.4] so 
there's there's two elements to that [0.5] it's the manufacturing's definitely 
about how to produce it [0.6] okay [0.6] and who [0.2] to produce it for again 
that's where the link with marketing would come in [0.3] and sales i guess [0.
5] er looking at the constraints that you have [0.4] but you may not let them 
be constraints any more but you you're looking at current situation [0.7] and 
considering the uncertainty in the marketplace which is something we did look 
at yesterday 
sf1225: mm 
nf1221: with the Puttick grid didn't we [0.2] 
sf1225: yep [0.2] 
nf1221: okay [0.3] so well done [0.2] very good [0.2] er [1.4] group five a 
long term planning and operation guideline to achieve the goals of the 
organization yes that's group five here isn't it well done so we're looking 
again at long term [0.5] er specifically at planning an operation because you 
have to plan in order to have your operations [0.8] and to achieve the goals [0.
4] of the organization so you've got that alignment there [0.4] okay [0.3] 
nm1220: right let's have a look at who's responsible for it [0.8] group one [0.
9] the boss [0.4] yes [1.4] along with er the manufacturing manager along with 
talks with sales and purchase manager [0.5] involving representatives from 
separate units on the shop floor [0.9] interesting [0.3] so we've got [0.7] 
someone responsible manufacturing manager responsible [0.4] but talking to 
other people including the shop floor [1.1] that may well happen [0.4] but the 
involvement there most definitely has to come [0.4] when you are implementing 
the strategy [0.7] realistically you've got ten-thousand people in the company 
you 
can't actually talk to every single one of them about your strategy [0.6] but 
certainly once you get to implement it every single one of them's got to know 
and understand it [1.3] group two [1.8] manufacturing director R and D 
department yes [0.2] new products coming through what's that going to do to us 
[1.0] finance director chairman sales director [0.5] so one group [0.3] all 
very much at the top of the company there [2.0] group three [0.4] top manager 
production manager [0.2] C-E-O finance manager et cetera [0.4] again a grouping 
at the top of the company [0.7] but a grouping taking in various views [1.4] 
group four [0.3] we've got a primary responsibility we've got it split down 
primary responsibility [0.2] we've put on the production management [0.6] yes 
in the end someone's got to be responsible someone's got to tie it together [1.
3] but yes we've got input drivers from just about everybody else [0.3] so 
we've got [0.7] primary responsibility there but again taking information and 
advice [0.3] and comment from lots of other people [1.3] group five [0.6] 
simple 
top management [0.2] i think [0.7] perhaps a little bit vague term [0.5] er [0.
4] but yes [0.3] seen generally its strategy is a senior responsibility [0.2] 
that's what they're paid for that's what they get their large salaries for [1.
7] 
nf1221: okay let's look what er we prepared er [0.4] before our definition [0.
4] we put up was [0.2] this that the primary function [1.2] of a manufacturing 
strategy is to guide the business in putting together the set of capabilities 
[0.5] that will help it to pursue its chosen strategy competitive strategy over 
the long term [0.5] so lots of words there that have been [0.5] reflected in 
what you've put [0.2] in your definitions [0.4] so it's really looking at how 
it can deliver [0.3] the competitive strategy of the business [0.4] so how [0.
3] manufacturing can harness its resources [0.4] to deliver that [0.2] 
competitive strategy over the long term [0.6] to supplement that [0.5] we have 
this at the bottom which says it's a framework for planning [1.8] it should 
adapt successfully to environmental changes and some 
of you put i-, uncertainty of the marketplace et cetera [0.8] and it's a focus 
sometimes on what's needed for survival [0.6] now that's not always true [0.4] 
but in certain companies [0.2] i'm sure you can think of examples at the moment 
United Airlines springs to mind which which [0.6] from the news yesterday [0.3] 
er [0.3] they're very much into survival [0.5] okay [0.4] so it's about 
thinking about that when you're t-, [0.2] you're looking at strategy [0.3] and 
manufacturing can obviously support that or operations [2.6] and then who 
should be responsible we've we've [0.2] d-, we've used a survey here done in 
America looking [0.5] at just at six firms but they did some detailed 
interviews with them [0.7] they asked them [2.5] who's responsible for 
developing manufacturing strategy [0.5] five of them use corporate level 
multifunction teams [0.4] so [0.3] that would be what some of you represented 
here so we're looking at directors [0.4] and from all the different functions 
within the business [0.4] okay that's what i would expect [0.6] 
one firm said the vice-president of production and engineering [0.9] er [0.2] 
our argument with that is generally you would only use one person to develop 
the strategy if [0.5] you had a particularly strong [0.4] leader [0.4] or [0.2] 
if you had a relatively small business [0.4] because then you don't have the 
spare people to sit around making strategy you have to kind of run it [0.2] by 
yourself [0.4] but generally i would expect to see [0.3] corporate level 
multifunction teams there [1.2] okay [1.6] so the third question [1.1] was how 
often should it be reviewed [1.4] and we have [2.7] a variety of er answers 
we've got yearly [0.6] we've got [0.5] every season according to the football 
shirts good [0.3] or or maybe three times a season given what Manchester United 
do [0.9] no fixed time depends on the situation again i'd like [0.6] probably a 
little bit more detail with that [0.4] in terms of [0.4] what you mean [0.3] 
you are absolutely right but er examples would be [0.3] more helpful with that 
[0.4] so [0.4] for 
the mobile phone industry what what's the life cycle of a mobile phone [1.3] 
product life cycle of a mobile phone do you think [0.5] 
sf1226: a few months 
sm1227: half a year
sf1228: mm 
nf1221: half a year 
sf1228: 
nf1221: yeah it's about [0.3] three months [0.8] yeah some people say it's even 
less than that [0.7] okay [0.3] so [0.3] if you've got that life cycle then 
obviously you're going to do this [0.5] much more frequently [0.6] if you go 
back to our aero engine then we're looking maybe [0.7] every year [0.2] every 
two years [0.7] every five years [0.3] okay so it [0.2] you're absolutely right 
but examples [0.3] would have helped me understand what you meant [0.6] er er 
er three oh wow [0.4] review period is industry dependent so [0.5] this is what 
i guess you've reflected in this graph yeah [0.4] so [0.4] rapidly changing 
trends here [0.5] in terms of mobile phones [0.4] you did the teenage market 
one yesterday didn't you 
sm1229: yeah 
sf1230: mm-hmm 
nf1221: so that would be more frequent [0.5] here [0.5] and slow changing 
trends here [0.4] okay so that's a very useful diagram there well 
done [0.2] first time i've seen that [0.6] and group one whenever the need 
arises [1.9] yes although [0.4] you have to be careful with strategy that [0.4] 
you do set something in stone we would say [0.4] and you don't just respond to 
every single change in the environment because the environment will change [0.
5] okay [0.3] er [0.2] the thing about strategy is that you have a set of 
policies that you can actually fix [0.3] that you may [0.7] flex a little bit 
but the general f-, [0.4] er [0.3] path of the company is fixed [0.3] unless 
something major happens obviously like September [0.3] the eleventh [0.4] but 
other than that [0.2] you you fix a direction [0.4] because that's what will 
give you the focus [0.3] and enable you [0.2] to make a profit and take 
everybody with you in the company [0.2] so there is that trade-off there with 
not not too responsive [0.9] predicting the changes in the environment yes good 
luck [laughter] [0.6] er keep on confirming alignment of manufacturing yes 
absolutely [0.5] er i agree with that [0.6] and i think [0.2] i've covered [0.
2] yeah 
i've covered them all there [0.4] we've put [0.7] er we we use this these 
conference again with these firms [1.7] one firm said continuously [0.5] and er 
namex and i [0.3] think if you're going to monitor strategy continuously [0.4] 
then you unless you've got a fantastic real time data monitoring system [0.3] 
then you're not actually [0.3] going to do what you say [0.4] okay so unless 
you've got the fancy electronic [0.5] data systems equipment to help you [0.4] 
er [0.2] you're probably wasting your time [0.3] all right i would say 
continuously monitoring strategy [0.2] isn't that helpful [0.2] four said 
quarterly combined with a major review so four are saying they review it every 
three months and then they'd have a major review [0.5] and the recommends [0.2] 
recommendations for that major review [0.5] range from [1.2] yearly [0.4] to 
three to five years okay [0.3] so generally [0.2] it's it's rolling [0.3] the 
the firms that i deal with my food companies [0.5] they [0.4] consider strategy 
five years out but they have like a th-, rolling three year strategy [0.5] so 
even big multinational blue-chip 
companies [0.3] still only look [0.2] just that far ahead [0.3] to actually put 
things down [0.2] set things in in stone [0.9] okay [0.2] well done [0.7] and 
finally then [0.3] we're looking at what goes into a manufacturing strategy so 
the elements of manufacturing strategy [1.0] and we have [0.8] things like 
capacity [1.3] resources technology logistics demand [1.9] yes demand in terms 
of what feeds into capacity [0.7] er [0.4] economy [0.2] in terms 
sm1231: the situation and [0.5] 
nf1221: okay 
sm1231: 
nf1221: okay so yes i'd i'd take that at a higher level but yes it will 
indirectly influence [0.5] er bill of materials and procurement yes costs [0.2] 
good [0.5] competition and then your scheduling systems M-P-S and er [0.4] M-R-
P and E-R-P [0.3] do we know what they are you've all done logistics haven't 
you good [0.5] excellent [1.4] capacity perce-, er human resources good supply 
chain excellent whoever group five are well done [0.5] er [0.5] quality 
marketing and finance yes all of those things 
will [0.2] you would ma-, need to make decisions about [0.4] some of them [0.5] 
would have [0.6] more weight [0.4] and have more detail in manufacturing 
strategy than others [0.7] okay there will be a financial department [0.3] 
obviously manufacturing have to think about costs and finance [0.5] okay [0.9] 
er [1.2] capacity yes planning machines [0.7] flexibility in production good 
logistics and inventory yes [0.5] very important [0.4] er and infrastructure in 
terms of organization and facility so that's nicely organized there by group 
two [0.8] that's that group there isn't it [0.4] and then group three [0.2] 
looking at capacity [0.3] customer relationships excellent somebody cares about 
the customer here [laughter] [0.5] well done group [0.2] three that's right at 
the back isn't it well done [0.5] er [0.2] finance suppliers R and D good [0.4] 
because you need to link that into manufacturing [0.3] although that wouldn't 
be [0.4] s-, [0.3] those decisions wouldn't only be made in manufacturing [0.4] 
i 
nm1220: so think back to H-G Plastics yesterday evening [0.4] all their major 
problems [0.5] their inability to cope with [0.5] their new products and change 
and then you were in the fashion business [0.3] where it was their lifeblood [1.
1] so R and D yes [0.3] dealing with new product introduction [0.6] expecting 
that things will change very very important [0.6] and something that not all 
the companies are terribly good at [0.5] 
nf1221: good [0.7] and then [2.2] group [0.4] one we've got inventory [0.3] 
machine efficiency yes because that [0.3] will help you deliver i guess [1.6] 
were you the ones that put oh no this is group one were you the ones that put 
profitability no that was here [0.2] okay [0.5] er packaging [0.4] good 
packaging 'cause we talked about packaging yesterday didn't we [0.3] capacity 
and production and H-R [0.4] excellent [0.3] so well done you you know [0.5] er 
quite a lot about manufacturing strategy already don't you [0.9] yes [1.0] so 
you think great she can say we can all go home now this is wonderful [laughter] 
but er [0.3] unfortunately no that doesn't mean that [0.3] it means i'm just 
going to talk [0.4] er [0.3] in more detail [0.2] about the things that we 
think you already know [0.9] okay [0.4] so what we're going to look at now is 
[0.4] our response to [1.1] group [0.3] the your your question four [0.4] which 
is on the content of manufacturing strategy [0.5] and of course i've given you 
all my pens haven't i let's take a pen [0.5] so manufacturing strategy can be 
divided into two things [0.8] content [3.7] and process [0.3] so when you think 
about manufacturing strategy [0.6] you can think about it in these two ways [0.
5] now the content [0.2] of a manufacturing strategy is what's in it [0.4] okay 
that's relatively obvious [0.3] and that's what [0.2] you've responded to [0.3] 
for your question four [0.4] okay what are the decision areas of manufacturing 
strategy [0.3] what is in manufacturing strategy [0.3] that's forms the content 
of it [0.6] the process of manufacturing a strategy [0.3] is [0.2] how you make 
those decisions [0.5] it's the procedure the method [0.9] 
the framework [0.7] so the three frameworks that we'll be taking you through 
later [0.4] will detail the process of making a manufacturing strategy [0.3] so 
there are two elements to it [0.4] we've asked you to brainstorm the content [0.
6] er we're going to now show you [0.3] what the academics say should be in the 
content [0.5] and then we'll take you after the break through [0.4] three 
examples of how the process works [0.5] and we'll have an exe-, exercise to do 
there too [0.3] so that you can understand [0.2] these particular frameworks [0.
7] do you understand that does that make sense yeah that's that's what we'll be 
doing [2.6] okay [0.6] so we're now looking at the content of manufacturing 
strategy and your response [0.4] to [0.2] question four [1.2] we've taken these 
writers er Hayes and Wheelwright [0.2] they work from America [0.3] and they've 
been writing about manufacturing strategy from the nineteen-eighties [0.4] so 
they've been around quite a long time [0.6] the reason we go back that far [0.
4] is because this [0.3] not only [0.2] 
being one of the first [0.4] texts on the subject [0.6] it's also been used a 
number of times subsequently [0.3] in various other frameworks [0.3] okay [0.4] 
so [0.7] other academics have used this work [0.3] further down the line [0.3] 
and hopefully you'll see that reflected in the frameworks that we take you 
through [1.8] so we've got [0.2] manufacturing strategy there [0.2] and around 
the outside of this circle we've got the eight elements of manufacturing 
strategy [0.3] as proposed by Hayes and Wheelwright [0.9] and i'm going to talk 
about four of them to you [0.5] and then i shall hand over to namex who's going 
to talk about the other four [0.9] going up to the break [1.7] the four that 
i'm going to talk about are the major decision areas the ones that set the 
boundaries of your business [0.4] the ones that define [0.3] the bricks and 
mortar [0.3] if you like [0.7] and you'll see that in your texts [0.4] that 
you've got in front of you [0.5] we divide it like this [0.6] so i'm going to 
be talking about [0.4] capacity issues [0.2] facilities technology [0.5] and 
vertical integration and i will explain 
what that is [0.4] when we get there [1.3] we call these the structural 
decisions okay so they define the boundaries of your business [0.3] they are 
the big decisions the major capital investment that you will make as a company 
[2.1] namex will then talk about the infrastructural decisions [0.3] which are 
about the supporting mechanisms [2.7] in order to make the most effective use 
of the [0.4] the structure that you've defined [1.5] the analogy that we use 
for this [0.3] er [1.2] is one [0.7] of computing [1.3] i'm presuming you all 
have a computer [0.4] given that you're on this course [0.7] when you go out [0.
2] and buy a computer [0.2] and you'll have to correct me if i'm wrong here 
having never gone out and bought one myself [0.8] you go out and you decide [0.
6] what memory [0.6] you can afford [0.4] yeah and you buy a computer with [0.
4] the maximum memory you can afford [0.3] because that [0.3] sets doesn't it 
defines the boundary [0.4] the limits [0.3] of what your computer will do [0.3] 
when you've got it [0.4] okay so it's the memory [0.4] that actually fixes [0.
3] the limits the boundary of your [0.2] your 
computer [0.5] and it's like the the structural bit isn't it it actually 
defines [0.6] outlines [0.8] what you can do with it [1.3] then i assume you'll 
choose your software your operating systems or whatever [0.4] and you'll choose 
[0.3] based on what you can afford [0.4] the best software that will maximize 
the use [0.4] of that memory space that you have [0.5] yeah so what's the 
memory now namex is it about [1.6] every time i ask this it goes up thousands 
of bytes [laugh] [0.6] gigabytes or [0.6] what's what's the [0.4] 
sm1232: forty to eighty gigabytes 
nf1221: forty 
sm1232: to eighty [0.4] 
nf1221: forty to eighty gigabytes now is what you would generally have as your 
memory [0.2] yeah [0.3] okay [0.3] every th-, yeah every year we do this it [0.
2] it it [0.3] it jumps [laugh] [0.3] quite a lot [0.3] okay so that would set 
the boundaries of your computer [0.3] and then you would choose software [0.2] 
to give you the best [0.8] and most effective operation of that computer [0.3] 
okay so the the software 
sm1232: [0.5] 
nf1221: you choose the software first 
sm1233: yeah and if you 
sm1234: everyone wants to use Windows so you can choose the software and then 
[0.5] go for the maximum 
sf1235: [0.6] 
nf1221: okay but choosing software doesn't necessarily set the size of your 
computer does it [0.4] the memory does that 
sm1234: er [0.4] mm 
nf1221: the memory fixes the boundary of your computer 
sm1234: yeah 
nf1221: but i accept that you might do one before the other [0.4] okay [0.2] so 
the memory is like the structure here the hardware [0.3] okay that sets the 
boundary of your computer [0.4] and the software [0.4] is the thing that makes 
it run as effectively as possible [0.3] and as namex says generally now [0.3] 
we have to have Windows don't we [0.6] er [0.2] thanks to Bill Gates [0.3] all 
right [1.5] okay [0.4] so that's the analogy i'll be covering structural and 
namex will be covering infrastructural [1.4] so we're going to take each one in 
turn [0.4] and we're going to think about [0.5] what [0.4] goes into [2.1] 
manufacturing 
decisions [0.7] in these areas [2.1] so the first one is capacity [0.5] now can 
i have some examples of the businesses that you developed in the context [0.6] 
what 
sf1236: rental business [0.4] rental business 
nf1221: rental business renting what [0.7] 
sf1236: everything [laughter] [0.4] er we had this 
sf1237: electronic items 
sm1238: electronic 
sf1236: electronic items and 
nf1221: electronic items okay what else have we got so we've got a rental 
business for electronic items [0.7] what else 
sm1239: transportation 
sm1240: transportation 
nf1221: transportation [0.2] okay what kind of transporta-, 
sm1240: cars 
nf1221: cars renting [0.2] you did renting as well [0.8] right anybody else do 
anything anybody make anything [1.1] 
sf1241: 
sm1242: well we did a restaurant [0.5] 
nf1221: 
you did a restaurant [0.3] okay what type of restaurant [1.0] 
sm1242: Chinese food 
nf1221: Chinese food [laughter] good er we could do with that in this country 
[laugh] [0.5] okay [0.9] anything else [0.6] 
sm1243: cafe [0.3] 
nf1221: cafe [1.3] 
sm1244: restaurant [0.2] 
nf1221: restaurant [0.6] wow at the back [1.2] 
sm1245: restaurant [0.5] 
nf1221: restaurant 
sm1246: [0.4] 
sm1247: [0.7] 
sm1246: 
nf1221: you're all in the same group [0.2] so how many [0.6] how many groups [0.
4] are in this room then are you all in 
ss: [0.3] 
nf1221: okay [0.2] okay so different groups [0.3] right so we've got a 
restaurant [0.3] and we've got a rental business [0.4] okay [0.5] what [1.4] 
did you decide how did you decide on the capacity [0.9] how did you decide on 
how big your restaurant would be [0.3] or how big your car rental business 
would be 
sf1236: [0.5] we were looking at er the money that was given to us and like how 
much can we afford [0.6] and also at the lifetime of the products 
sm1249: it was the lifetime of the goods and how productive are your goods [1.
0] er to [0.2] you know to keep up to date with technology and stuff because 
it's electrical items [0.4] T-Vs have only a shelf life of what three years or 
something you know so 
nf1221: yeah okay [0.4] 
sm1249: yeah we thought about that too [0.3] 
nf1221: okay so you looked at the market 
sm1249: mm-hmm 
nf1221: and you looked at developments of technology [0.3] how how in terms of 
the restaurant namex sorry to put you in s-, 
sm1248: demand [0.8] on the demand [0.3] 
nf1221: on the demand [0.4] how did you decide what the demand's going to be [0.
7] 
sm1248: 
it's like [0.7] research [0.3] 
nf1221: research through research 
sm1248: yeah 
nf1221: you know this is absolutely right because this is what companies do [0.
3] they do market research [0.3] to try and work out what the demand is likely 
to be [0.4] okay [0.3] in order to set your capacity you've got to have some 
understanding [0.3] of what the demand's going to be [0.3] now you can do that 
through looking at technologies and how far [0.4] you think that's going to 
develop [0.3] you can also do it through surveys focus groups all kinds of 
market research [0.3] but you need to understand what that [0.4] demand is 
going to be [0.3] in order to be able to set [0.5] your capacity [1.2] so [0.2] 
how does the capacity compare with past present and future demand [0.2] so 
that's what you'll be thinking about [0.3] when you're def-, deciding [0.2] 
what capacity you need [0.4] okay [0.4] capacity is how big [0.8] how big a 
restaurant [0.4] how big a rental business [0.6] yeah how big a cafe [0.2] how 
many chairs are going to go in it [0.5] yeah how do i decide that [0.9] okay 
it's all the same thing making these 
decisions [7.4] 
nm1220: extra facilities for free [0.2] 
nf1221: yes [laughter] [0.6] when you're going to invest okay [0.3] if [0.5] 
your restaurant really took off namex [0.3] and it was really popular [0.7] er 
[0.2] would you consider building another restaurant or would you consider 
extending the one you've already got [0.3] or would you consider [0.6] putting 
more tables in the same restaurant yeah [0.5] okay all of these things you've 
got to think about [0.3] and you would have to decide [0.4] do i do that [0.4] 
do i have a new restaurant [0.2] ready [1.1] do i build double the capacity i 
think i'm going to need and hope that i'm going to expand [0.4] or do i wait 
until i've got [0.3] my full restaurant and then decide to build [0.7] or 
recruit more people and and this same is true for your businesses [0.3] and 
your cafe at the back there [0.3] so [1.5] when are you going to invest the 
money that you need are you going to do it before [0.2] the demand grows [0.4] 
or when the competitors do [0.7] 'cause if somebody 
opened a r-, Chinese restaurant down the road [0.6] you may er [1.3] you may 
have a problem on your hands or your [0.2] restaurant may be so good that it 
doesn't make any difference [0.3] okay [0.6] and when demand is assured are you 
going to wait till you've definitely got that demand [0.4] before [0.2] you 
take [0.2] the plunge [0.4] now there's always a risk involved in any business 
set-up which is why so many of them fail [0.5] okay [0.3] but [0.2] there are 
also many that succeed [0.6] okay but you have to make these risks here [0.4] 
so you can see here it's the big decisions here you've got a set amount of 
money generally [0.5] generally it's what you can borrow [0.4] or what you 
already have [0.4] and you have to decide [0.2] how big an organization are you 
going to make [0.3] and the same is true [0.3] for manufacturing if you're 
actually going to make [0.4] you're going to make a pen or a bottle of water [0.
4] or in my case a Mars bar [0.4] or an ice cream [0.2] yeah you have to decide 
[0.2] how big [0.6] that [0.3] how much what the demand is likely to be [2.1] 
okay looking now at [0.4] 
we call it facilities or process choice [1.4] once you've decided what the 
demand's likely to be then you can decide [0.2] how many plants or restaurants 
or rental premises [0.5] or cafes you're going to need [0.3] so how many of 
them [0.9] the size of them [1.5] and [0.4] the location [1.6] so are they 
going to be near the markets [0.2] near the near the major markets near 
customers [0.4] or near the natural resources [0.4] in the industrial 
revolution the beginning of the industrial revolution in this country [0.5] all 
of our plants were based near the natural resources [0.6] the textile mills 
were based in the north everything was based near water [0.3] because 
everything was steam powered [0.3] okay [0.5] er [0.3] so [0.8] nowadays that 
tends not to be true it's true in some places in the world still like the big 
steel firms in India [0.3] Tartar Steel et cetera [0.4] er [0.3] they tend to 
have [0.2] place [0.7] their plants near the natural resources [0.3] but 
generally [0.2] companies go near the markets or their customers [0.7] okay so 
you're tend-, if you've got an international company [0.3] they'll 
have a hub in Europe somewhere [0.3] for their European operations [0.3] 
they'll have somewhere in America [0.3] somewhere in the Far East [2.0] new and 
up and coming markets at the moment we discussed that yesterday some examples 
[1.3] what are growing markets at the moment growing economies 
sm1250: China [0.3] 
nf1221: China is an enormous [0.9] potential [0.2] when er [0.3] i went to 
China [1.0] ten years ago [0.6] everybody rode bicycles now everybody wants 
cars or has cars [0.3] yeah it's an enormously developing [0.2] successful 
nation [0.4] and [0.4] companies are falling over themselves [0.4] to get into 
China [0.3] and have a plant there because they'll be near the market [0.3] and 
they can tailor their products to the specific Chinese [0.3] requirements okay 
[0.6] er and that same is true for any other [0.4] er nation South America [0.
5] Africa i guess [0.3] will be will be the next one [0.4] okay 
sm1249: 
is that is that just to reduce the transportation costs in getting the goods to 
the coun-, to that country [0.3] or is it so that there can actually be a 
physical presence of those people as well [0.4] 
nf1221: there's lots of issues and namex covers a lecture on international [0.
3] er [0.3] manufacturing in which you'll cover this in more detail [0.4] but 
er [0.2] a lot of the time it is down to the markets [0.3] it's also down to [0.
2] the government in the country [0.3] demanding that you can't just import [0.
2] 
sm1249: mm 
nf1221: you've got to set up a business there [0.3] and employ local people [0.
3] so there's often [0.2] a lot of other reasons [0.4] but er [0.3] generally 
[0.3] people go out there because i-, [0.6] in order to be able to tailor your 
product you've got to understand what the people want [0.4] and the only way to 
do that is to try and employ some of them [0.4] 
sm1249: mm 
nf1221: okay 
sm1249: right 
nf1221: so it you tend to [0.2] see companies actually positioning out there [0.
4] er it's easier [0.5] transporting most goods is difficult [0.9] people will 
it's 
easier to transport raw materials [0.2] generally [0.6] especially when 
everything's packaged so highly now it's so easy to damage [0.3] the packaging 
and then [0.3] 
sm1249: yeah [0.3] 
nf1221: you've wrecked it [3.3] organization of the plants not only have you 
got to decide [0.2] how many and where they are you've got to decide how you're 
going to arrange them [0.5] so [0.3] are you going to arrange them in products 
[0.2] process based are you going to have dedicated plant to making one or two 
particular products [0.3] or are you going to have a plant that makes a variety 
of products [0.4] you would have seen [0.3] with the [1.4] the example 
yesterday H-G Plastics they made [0.3] was it kit-, old kitchenwa-, new kitchen 
range and 
sf1251: homeware 
nf1221: old [0.7] 
sf1251: homeware 
nf1221: office or whatever other plastic equipment it was 
sf1251: no it was homeware 
nf1221: homewares yeah [0.4] so do you have one plant that does everything [0.
3] or do you split it [0.4] and have [0.3] the new ideas and the new designs in 
one area [0.3] and the old designs in the other [0.2] yeah these are the things 
that you need to think about at this level [1.4] and process choice then which 
would be line batch or jobbing [0.4] and we talked about what jobbing was 
yesterday what a job shop was [0.4] if we look at this diagram now [1.0] we can 
see [0.8] that [3.2] we can select the process [0.4] the manufacturing process 
[0.5] for our strategy [0.3] it tends to be dependent on the volumes that we li-
, we think we're likely to make [0.4] so if we're making a nuclear submarine 
which was one of my examples yesterday [0.5] then we're really looking at a 
project aren't we because [0.2] not many people [0.3] make nuclear submarines 
[0.8] if [0.2] we're looking at [0.3] glass [0.5] er [0.8] er [0.3] steel 
whatever we're looking at continuous process [0.4] okay very high volume [0.6] 
er [0.3] i guess [0.3] my biro i haven't got one today but the biro [0.4] 
anything card paper 
industry [0.3] anything that you'll make in very high volumes the commodity 
products that we talked about yesterday [0.4] in the Puttick grid [0.4] then 
you're looking really at continuous process [0.3] or a line a production line 
[0.8] most [0.2] products because of the variety that we have [0.4] tend to 
fall in the middle [0.4] which is batch some form of batch production [0.5] 
okay [0.3] but you can combine them [0.3] as hopefully you would have seen [0.
4] in your logistics module [1.5] okay technology then [1.7] once we've decided 
[0.4] where we're going to put our plants and how big they're going to be [0.6] 
then we have to look at [0.8] what we're going to put in them [0.3] so what's 
the equipment going to be [0.6] and this is where we pull in technology which 
Paresh talked about earlier [0.5] is it going to be general purpose [0.5] that 
means you have some flexibility with the equipment [0.4] is it going to be 
dedicated [0.5] is it going to be state of the art [0.2] which means we'll need 
a very [0.2] high level of skill [0.6] labour but [0.4] f-, less labour [0.3] 
or is it 
going to be general purpose where we'd need more labour [0.4] er to do the 
operation generally [0.4] okay so you need to think about these things here [1.
5] level and type of technology employed [0.3] okay so is it as i said is it 
going to be state of the art [0.3] or is it going to be [0.6] cheaper much 
cheaper general more general purpose machines [1.6] the degree of automation 
will affect [0.5] what labour you choose [0.4] in this country we tend to have 
highly automated processes [0.4] in some of your countries you tend to have 
more labour intensive processes [0.2] it's whatever suits [0.2] your country 
and your economy [0.3] you have to run with whatever's whatever you have [0.4] 
okay [0.3] er [0.6] i think that we we overdo it here we th-, we spend too much 
on automation [0.4] and we just get things going wrong much quicker [laugh] [0.
4] because the proce-, [0.2] automation speeds everything up [0.5] okay [0.2] 
so i don't think it's worth every time [0.2] removing [0.2] huge amounts of 
labour [0.4] er unless you understand [0.2] exactly what your process is doing 
[0.6] okay [5.0] 
identifying key processes [0.5] deciding what you're going to do about set-ups 
what you're doing to do about maintenance [0.4] changeovers [0.4] supervision 
[0.7] flexibility [0.5] and skill levels all will need to be considered [0.5] 
in terms of your [0.9] rentals business your restaurant your cafe [0.4] you 
would have thought of all of these things yeah [0.5] er how what people how 
many waiters you're going to need how many chefs you're going to need [0.4] how 
many [0.2] what equipment you'll need [0.4] what equipment in terms of if 
you're renting electronic stuff you've got to buy it all to rent it [0.5] what 
level you're going to use to buy that okay what level of equipment you're going 
to use [1.5] and the final one for me [0.4] is vertical integration [0.6] does 
anybody know what that means [0.8] 
sm1232: it's when you buy up er different companies at different stages of the 
[0.4] process 
nf1221: 
yes 
sf1252: the amount of control in er 
nf1221: that's right 
sf1253: 
nf1221: yeah [0.2] yeah [0.2] 
sm1232: like er when Ford bought up the railways and the [0.2] rubber er 
factories 
nf1221: absolutely yes it's it's the amount [0.3] to which you own the supply 
chain so it's exactly what you said it's about con-, how much you control of 
the supply chain processes [0.6] er [0.2] how many companies you bought at 
different stages in the supply chain it's the amount of the supply chain that 
you own [0.5] the example you would have been given yesterday with [0.2] Ford 
Model T [0.6] was that [0.2] Henry Ford owned the entire supply chain [0.2] 
okay [0.5] er from mining the ore [0.3] to make the steel panels [0.3] to 
actually selling the car to the customer [0.5] and he had a totally vertically 
integrated company [0.4] i have to say it is more of an academic term [0.2] 
than the [0.3] one that's used in 
practice [0.4] but when you see it that's what it means [0.6] other people call 
it process positioning [0.6] er [0.9] it means the same thing [0.5] you're 
looking at the direction of it o-, [0.2] do you want to buy [0.3] your 
distributors [0.4] do you want to buy some of your suppliers [0.5] okay these 
decisions [0.3] will form part of your manufacturing strategy [1.1] what 
relationship are you going to have with the supply chain where is the power [0.
5] in the supply chain how are you going to respond to that [0.7] er what kind 
of relationships are you going to have with the other p-, [0.4] other companies 
in the chain [1.7] are you going to go for joint ventures and this is tends to 
be what happens when people go [0.3] abroad like to China [0.3] some form of 
collaboration [0.3] so that you can actually partner companies [0.3] that are 
in other countries and that [0.2] that tends to be [0.5] quite typical [0.6] er 
and what m-, [0.2] m-, make buy decisions are you going to have [0.3] and s-, 
[0.7] some time this week [0.3] you'll do a le-, a lecture on outsourcing [0.4] 
and that will go through this in more detail [0.2] the the 
make buy decision [0.5] what elements of this pen are you going to make 
yourself [0.5] and what bits of it are you going to buy in from suppliers and 
subcontractors [1.4] okay 
nm1220: sorry it's technology [0.4] i'm too old for it [2.3] right we've now 
got a factory [2.5] we've decided where it is how big it's going to be [1.2] 
how we're going to lay it out [0.4] what level of technology what machines 
we've put in it [0.6] and it's no darn use to us at all [2.4] 'cause we can't 
actually do anything with it yet can we [2.1] first thing we need are some 
people [3.2] how are we going to select them [1.7] do we need people with lots 
of skills who are going d-, have to do three day assessment centres [1.1] or 
are they just [0.2] lumping things around and we can grab the first twenty 
people that walk past the gate [1.3] how are we actually going to select [0.2] 
our employees what criteria do we use [1.5] what skills do we need [2.2] do we 
need nuclear scientists [1.0] 
do we need skilled technicians [0.6] lab technicians plumbers [0.3] bricklayers 
[0.7] people with particular skills they've taken several years to get [1.8] or 
do they just need specialist skills [0.8] from our business [0.3] that we don't 
actually want anybody else to have [0.4] that we've got to train people in 
ourselves [3.6] what training have we got to do [1.4] are we going to take 
people in and train them from scratch in our way of doing things [0.4] in the 
way to work our machines the way we do our processes [1.1] or are we going to 
[0.2] try and take people trained from other companies just by offering a 
little bit more money [0.6] [sneeze] [1.3] job content [2.4] are they there [0.
5] just [0.7] to join things together [0.3] every ten seconds for eight hours a 
day [0.6] are they going to rotate through lots of diferent jobs [0.4] are we 
going to make their jobs interesting are we going for a cellular layout [0.5] 
where they've got responsibility for particular things [0.4] what job content 
are we giving people [1.8] and they'll certainly be interested in that [0.6] 
how are we 
going to pay them [1.2] is it just payment by results [1.8] are they paid 
hourly on attendance [0.4] are they paid weekly are they paid monthly on a 
salary [0.8] are they on a bonus system [0.3] is it a group bonus individual 
bronus company bonus [0.4] how are we going to pay them [0.7] certainly [1.0] 
as i say our workforce if nobody else is vitally interested in that and it's 
obviously a significant part of our costs [0.3] again where are we going to 
pitch our pay [0.7] are we going to pay the minimum we can get away with [0.7] 
pay [0.9] the average for the area [0.6] or are we going to be paying sort of 
[0.7] top dollar we want the best people we want to be seen as the best 
employer [2.6] what job security are we giving [0.9] are we a Japanese company 
with our s-, middle managers [0.5] offering them effectively lifetime 
employment [1.7] or are we in [0.2] California [0.8] with at will employment [0.
7] when for no reason at all [0.5] at a moment's notice you can be sacked or 
you can walk out [0.6] perfectly reasonable standard conditions in California 
[0.4] what are we 
going to do about job security [2.9] so we've now got some people [1.3] how are 
we then going to organize them we've got to actually organize them [0.3] so 
they know what they're doing [1.0] where they are who they report to who's 
responsible for what [2.9] are we going to have the traditional functional silo 
system [1.2] where we've got [0.2] accounts [0.2] R and D sales [0.4] 
production et cetera [0.4] and then within production have we got department 
one with its manager department two with its manager [1.1] or is it going to be 
a product based thing [1.0] where you've got a department [1.8] making small 
round products [0.2] another department making big square products [1.1] is it 
going to be customer based where you've got this department working for Ford [0.
5] different department working for Toyota [0.8] is there a matrix organization 
are you in a product ty-, [0.3] pro-, er sorry [0.2] project type environment 
[1.0] where you've got people working on a project but also responsible for [0.
3] to the manager for their particular skill [0.6] 
very common in fairly technological [0.3] and technical enterprises [3.0] what 
type and style of management [0.4] traditional old fashioned supervisors with 
bowler hats [0.4] cell leaders and team management [0.5] matrix style way t-, 
[0.3] if you've got a matrix who's the more important of the two managers you 
report to [1.4] and very very importantly we've mentioned it before [0.4] this 
afternoon we'll be looking at it in a lot more detail [0.5] your measures [0.7] 
we said if you've got a strategy [1.1] how do you know it's working [0.6] 
because you measure it [0.8] you've got key measures [0.9] to tell you [0.5] 
what is important to tell you you're succeeding [0.5] and probably even more 
importantly to tell you where you're [0.6] not doing well enough or even 
failing [0.5] if you've not got appropriate measures [0.3] you haven't got any 
sort of system [0.4] so measures for success [0.2] vitally important to go 
alongside any strategy [1.6] and communications how are you going to actually 
communicate [0.8] with [0.2] the workforce [0.9] from [0.4] top 
management through to middle management to team leaders [0.5] to the actual 
workforce [0.2] are you going to have big banner headlines as you walk in every 
morning [0.4] flashing lights giving you the message and [0.3] moral for today 
[0.4] going to have a firm's newspaper [1.0] are you going to have [0.2] team 
briefings daily weekly monthly [0.5] team meetings [0.4] away weekends to build 
team spirit how are you going to actually communicate [0.5] or are you [0.5] 
are you deciding that you're not actually bothering to tell anybody anything [0.
4] 'cause all your strategies are too secret for everyone to know [2.5] then [1.
0] you've got some people you've got some organization you can actually start 
making things [1.8] but at what quality have you got to make them [0.8] what is 
driving your quality system who de-, [0.3] who determines your quality [5.5] 
are you going for ISO nine-thousand type [0.4] certification [1.2] often a good 
selling point to say that [0.3] but what does it really mean is that really 
important [0.8] means you've got very 
good quality systems it doesn't necessarily mean you've got very good quality 
[1.7] your quality systems purely internal are they your own systems [0.8] are 
you controlling that are you setting the standard [1.1] perhaps they're legally 
required some industries absolutely vital [1.0] aircraft industry aerospace 
industry [0.3] never mind what you think about the quality [0.5] the C-A-A and 
the F-A-A will tell you [0.4] whether things are good enough or not [1.0] also 
pharmaceuticals every government in the world [0.3] has its own standards for 
pharmaceuticals [0.4] what can be sold at what quality at what strength and so 
such [0.3] there may well be legal [0.2] quality standards [1.2] or [0.7] they 
may be customer imposed [0.5] certainly as i said i was many years in the auto 
components industry [0.8] most of our factories [0.4] were ISO nine-thousand 
registered [0.5] but that didn't really matter a lot [1.1] Ford's Q-one status 
was far more important [1.4] Ford weren't really bothered they assumed we'd got 
our ISO nine-thousand [0.5] but to continue doing business 
with Ford [0.4] we had to pass Ford's [0.2] quality system inspections [0.5] so 
that [0.5] who's imposed it [0.5] whose quality have you got to meet to be in 
business [1.4] [1.4] who's responsible for quality [1.2] have you got [0.4] a 
quality manager [0.3] an inspection department [2.4] or does everybody accept 
responsibility [0.4] for their own quality [0.3] they do their own S-P-C 
checking their own gauging [0.4] their own passing off and stamping [0.4] in 
legally required [0.9] industries [0.3] are you going for total quality 
management are you going for t-, quality [0.5] as the driving culture of the 
organization [0.3] how are you dealing with quality [4.7] and then how are you 
controlling it day to day [0.6] are you going for S-P-C systems [1.0] are they 
done manually are you going to automate it [0.8] put things to automatic [0.6] 
inspection checks part way down the line [0.5] how are you actually going to 
control it how are you going to measure it [0.5] or are you going to the 
ultimate [1.4] to have capable processes [0.7] the six sigma approach in ul-, 
in the ultimate [0.5] go into condition 
monitoring we know [0.3] this process is good [0.5] all we need to s-, [0.2] 
measure [0.2] is the vibration and temperature of these bearings on the machine 
[0.3] and so long as they're within [0.7] patr-, control parameters we know the 
product will be right [0.5] because it is working [0.2] so far within the 
agreed specification [0.5] that we know so long as the process is right [0.2] 
the product will be right [1.5] the best way of doing quality one could say but 
[0.5] it's very expensive [0.3] very technologically demanding [0.4] is that 
what your market needs [0.3] do you need that level of quality [2.3] and then 
finally [0.6] we've got all these things [0.3] we've actually got to decide [0.
3] what we're making when we're making it [3.5] so we need some sort of 
production planning we need to be able to get [0.4] the materials and parts [0.
6] we need [0.8] and all the services the electricity the water [0.4] whatever 
[0.6] so how are we going to try and forecast [0.6] forward how are we trying 
to know [0.3] what is required of us in the future [0.7] are we trying to guess 
that or are we 
only working make to order we don't do anything [0.2] till an order arrives [0.
4] how do we load the factory [0.5] how do we schedule it [0.4] how do we 
decide which we're doing next er what order we're doing things [0.5] what goes 
on which machine next what goes where next [0.3] how do we actually decide what 
the factory is doing [0.9] and even if you've got a production line [0.6] 
sounds easy 'cause you [0.9] you know the next thing down the line is a Toyota 
Corolla [0.2] and the one after that's another Toyota Corolla [0.7] but what 
colour is it going to be is it two door or four door [0.4] does it have air con 
or not [0.4] is it left-hand drive is it right-hand drive [1.1] scheduling all 
those things within the overall pattern [1.4] how are you controlling it [1.9] 
not going to go into a lot of detail here and i mean [0.5] most of the 
logistics and ops management module is talking just about those things [0.9] 
have you got an M-R-P system are you trying to work J-I-T [0.2] are you using 
Kanbans for pulling material [0.4] are you using [0.8] complex mathematical 
scheduling models 
because you've got [0.5] a high variability [0.3] high route change [0.3] sort 
of manufacturing [0.5] er [0.5] what level of automation because that affects 
it [0.7] we've talked about the technology [0.3] but perhaps different 
factories different levels of automation because [0.5] different requirements 
in different countries [0.8] people [0.7] are you going to give them [0.3] any 
flexibility [0.6] are you having a cell [0.9] where all you do is say to the 
cell and the team leader [0.3] here is this week's work [0.5] you sort it out 
[0.5] or are you saying when you finish this job the next one will have arrived 
along the conveyor belt to you and that's the one you do next [0.6] do you have 
to go to the computer system and that tells you [0.3] because we're updating in 
real time [0.3] or are we giving you a day's work [0.3] a week's work what 
flexibility have we got [0.4] how much planning and flexibility do we allow our 
people in what they do next [1.7] and our sourcing [0.3] subcontracting [1.9] 
who are our suppliers how do we choose suppliers [0.4] how do we relate to them 
[0.4] how do we 
order from them [0.5] have we got an automatic [0.3] level switch [0.3] in the 
tank [0.7] that when that's triggered it sends the [1.3] order automatically 
and the tanker rolls up four hours later [1.1] do we have some sort of 
subcontracting policy [0.4] have we set a [0.2] maximum level [0.8] on our 
capacity [0.3] because we know we're all right if there's a short term boom [0.
2] Heartland Engineering down the road [0.3] can do some for us at a short 
notice [0.4] how do we deal with all of these sort of things [0.6] when we can 
answer those sort of things [1.4] we can say [0.6] we know we have the basis [0.
7] for running a manufacturing organization [0.6] so what Hayes and 
Wheelwright's eight steps are doing [0.4] they're almost a ticklist check these 
[0.3] can you answer this can you answer that [0.4] because if you've got an 
answer in each of those boxes [0.4] you've probably covered [0.4] most of the 
[0.3] contents [0.9] of your manufacturing strategy [0.6] and just to take it 
broader [0.4] you think of those same [0.2] eight headings [1.3] and 
effectively you can apply those same eight headings [0.5] to a restaurant [0.5] 
to a 
hairdresser's to a cinema [0.5] to a finance company [0.6] so yes we're talking 
manufacturing today [0.4] but the same conditions apply to any [0.3] 
operational organization that's doing anything at all [0.4] they've got to [0.
2] make decisions under those same things [0.3] sure the headings [0.4] under 
each of those major headings might be slightly different to reflect the 
different business [0.6] but they've got to still go through those same sort of 
decisions [0.4] so that as i say is how you broaden this subject out [0.4] from 
narrow manufacturing [0.4] to the wider broader [0.3] operations [0.2] front [1.
0] so there we've dealt with content [0.4] i think now is a very appropriate 
time to [0.4] take a break [0.8] and then after the break we'll spend the 
second session [0.5] we'll just looking at some of the academic models and the 
things behind [0.3] the actual process of getting there [0.3] so see you [0.2] 
about ten to