SUNConferences, 27th Annual Conference of the SA Institute for Industrial Engineering

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IMPACT OF MANUFACTURING STRATEGY ON OPERATIONAL PERFORMANCE: A CASE STUDY OF ZIMBABWEAN MANUFACTURING INDUSTRY
Brian Chindondondo, Sithabile Chindondondo

Last modified: 2016-09-16

Abstract


The relationship between manufacturing strategy and operational performance was studied within the ambit of world class manufacturing. The study investigated the extent to which manufacturing strategies were being applied in the case of an alcohol manufacturer in Zimbabwe as well as in the Zimbabwean manufacturing industry as whole. The derivation of manufacturing strategies for successful manufacturers; and the linkage of these strategies to corporate strategies of the firms was assessed. The study evaluated the involvement of manufacturing managers in strategy development; and determined the manufacturing strategies being employed. Data from the alcohol manufacturer and a sample of forty members of the Confederation of Zimbabwean Industries’ (CZI) manufacturing firms were used. Ninety percent of the manufacturers had a corporate strategy and there was a significant relationship between existence of corporate strategy, manufacturing strategy and operational performance. The alcohol manufacturer had no documented manufacturing strategy but considered two competitive priorities (cost and quality) in planning. The study also revealed that manufacturing firms used a combination of competitive priorities in coming up with manufacturing strategy, with corporate strategy being derived from manufacturing strategy. This study recommends that manufacturing priorities drive the strategic management process necessitating the presence and input of manufacturing technical managers in the strategy formulation process.


Keywords


Production/Manufacturing Systems & Processes; Quality Management/Engineering