Strategic decisions in production management. Production management Strategy in production management

Ministry of Education and Science of the Russian Federation
federal state autonomous educational institution
higher professional education
"Russian State Vocational Pedagogical University"
Faculty of Economics and Management
Department of Management

Test
By discipline " Production management»
Topic: "Mission production system and strategic decisions in production management"

Performed:
Group: ZGMU 302 -S
Number record book
Checked:.

Yekaterinburg 2016

?
Introduction
The development of the mission and setting the goals of the organization are the most important starting points of the management process.
An organization is a complex multi-purpose system that is closely connected with the outside world and has a comprehensive impact on it. The management of such a system requires the definition of: the entire set of goals and objectives that it must solve in its daily activities; the range of products and services it will produce and the markets it will serve; necessary resources to achieve the planned goals and ways to achieve them.
A clear understanding of the mission is of such great importance that it affects both the further development of the organization and its very survival in a highly competitive environment. The overall purpose of the organization or the reason for its existence is the mission, which is necessary as a criterion for acceptance. management decisions.
The goals of the company's management determine the concept of its development and the main direction business activity. Goals will be a significant part of the process strategic management, if management articulates them correctly, then effectively institutionalizes, communicates about them and stimulates their implementation throughout the organization.
This term paper is the study of the development of the mission and formulation of the strategic decisions of the organization.
In accordance with the goal, a range of tasks has been defined:
prove that the development of the mission of the organization is an integral part of strategic management;
identify the dependence of goals on the chosen mission.

1 Mission of the organization
1.1. Definition of the mission of the organization
Mission is one of the fundamental concepts of the strategic management of an organization. The importance of the corresponding mission, which is formally expressed and effectively presented to the employees of the organization, cannot be overstated, since the goals developed on its basis serve as criteria for the entire subsequent process of managerial decision-making.
There is a broad and a narrow understanding of mission.
Mission (in a broad sense) is a statement of philosophy and purpose, the meaning of the organization's existence. The philosophy of an organization defines the values, beliefs and principles in accordance with which the organization intends to conduct its activities. A mission defines the activities an organization intends to do and what type of organization it intends to be. The philosophy of an organization usually rarely changes. As for the second part of the mission, it may vary depending on the depth of changes that may take place in the organization and in the environment of its functioning.
Mission (in the narrow sense) is a formulated statement regarding why or for what reason an organization exists, that is, a mission is understood as a statement that reveals the meaning of the existence of an organization, in which the difference between this organization and its similar ones is manifested. A correctly formulated mission, although it always has a general philosophical meaning, nevertheless necessarily carries something that makes it unique in its kind, characterizing exactly the organization in which it was developed.
The target principle in the activities of the organization arises as a reflection of the goals and interests of various groups of people, one way or another connected with the activities of the organization and involved in the process of its functioning ....

Conclusion
important task management is to establish a balance of interests of various social institutions and groups of people interested in the functioning of the organization and influencing the nature, content and direction of its functioning. The balance of interests determines where the organization will move, its target orientation in the form of a mission and goals.
The definition of the mission and goals of the organization, considered as one of the processes of strategic management, consists of three processes, each of which requires a lot of and extremely responsible work. The first process consists in the formation of the mission of the company, which in a concentrated form expresses the meaning of the existence of the company, its purpose.
The mission gives the organization originality, fills the work of people with a special meaning. Next comes the sub-process of setting long-term goals. And this part of strategic management ends with the sub-process of setting short-term goals. The formation of the mission and the establishment of the goals of the company lead to the fact that it becomes clear why the company operates and what it strives for.
The basis of Toyota's success lies in the perfect management of production and the quality work on the creation of new models, which allows us to offer consumers new model lines every two years. The company produces 60 basic models for Japan and many options for foreign markets, while the degree of unification is very high - Toyota very successfully uses components and assemblies from old ones in new models. Created by Toyota Motor Company under the leadership of Taichi Ohno, the just-in-time production system involves the elimination of those activities that do not generate income, and the transition to " lean manufacturing, flexible enough to accommodate a variety of customer requirements.
One of the principles of Japanese management is total quality control (TQC), which initially emphasized the management of the quality assurance process. Subsequently, it developed into a system covering all aspects of management.
The task of senior management is to analyze the current state of the company in the market and set priorities for quality, cost and delivery improvement policies.
Employees must understand Toyota's way of thinking and operations, and then engage in the process of continuous self-improvement and company management.

Bibliography
1. Ilyenkova O.V., Bandurin V.F. Production management: account. For universities, St.Petersburg: Peter, 2013;
2. Kozlovsky V.A. Production and operational management, M.: Infra-M, 2014;
3. Chase R.B. Production management, Knorus, 2002.
4. Management of the organization / Ed. Z.P. Rumyantseva, N.A. Solomatina. -M.: INFRA-M, 2014;
5. Mironosetsky N.B. Modeling the creation and release processes new products. -Novosibirsk: Nauka, 2012;
6. Fatkhutdinov R.A. Production management. -M.: Banks and stock exchanges, YuMITI, 2012;
7. Makarenko M.V., Makhalina O.M. Production management. -M.: PRIOR, 2013

The concept and types of strategic decisions in production. A production strategy is a long-term program of specific actions to create and sell an enterprise's products. Strategic Decisions in the field of production are accepted in the following areas:

• focusing of production capacities;
• usage production staff;
• development of the organization of production;
• product quality management;
• development of production infrastructure;
• organization of relationships with suppliers and other cooperation partners;
• manufacturing control.

Basic production strategy. The essence of this strategy is to balance the production capacity of the workforce and the volume of output. When forming the basic strategy, the following are taken into account:

• technical level production process and the possibility of upgrading equipment;
• qualification potential and level of security of the production process labor resources;
• the possibility of quick changeover of equipment and other necessary actions related to possible changes in the structure, volume and timing of production orders.

Can be distinguished three alternatives to the basic production strategy:

1. Full satisfaction of demand - the company produces as many products as it is required in the market. Product inventories are minimal, and production costs can be high due to the constant change in intake volume.
2. Production of products at the average level of demand, accumulating stocks of products when demand falls and satisfying the increased need of the market through these accumulations.
3. Production at the lowest level of demand (pessimist's strategy) - when goods missing in the market are produced by competitors or partner enterprises.

Production location strategy. This strategy is being developed for large enterprises, which have developed intra-company specialization and cooperation, and is associated with the choice of a place for the manufacture of components and assembly finished products. When developing a placement strategy, it is necessary to take into account economic, socio-political and geographical factors, the main of which are:

• remoteness of the branch and related transportation costs;
• availability of qualified labor force;
• availability of sources of raw materials and markets;
• economic benefits offered by the regional leadership.

Production organization strategy. Distinctive feature modern approach to the development of a strategy for the organization of production is the recognition of the need for "customer orientation". The development strategy for the organization of production with a focus on the consumer is determined as follows: the volume of output, assortment, quality and delivery time of products are set based on the forecasts of the needs of future users of these goods, deliveries are made in required quantity and at the set time.

The production organization strategy is carried out through the development and implementation of the following three programs.

1. The production synchronization program defines a set of actions to organize a production system that responds quickly to changes in consumer demand. In this case, the range, volume and terms of production are determined by the customer; synchronous (simultaneous) with production supply of components and synchronous with installation production is provided. This program involves the solution of the following tasks: determination of methods for synchronizing individual stages and works; establishment of forms and rules for the organization of synchronized production, the formation of strategic alternatives for its implementation.
2. Control program material flows at the enterprise characterizes the complex related works on the formation of an integrated material flow management system. Its implementation involves the formation of a logistics approach to the organization and management of production; substantiation of the principles and development of a production logistics system; definition of functions and development of a system of end-to-end management of material flows, covering the stages of procurement of materials, production and marketing of products.
3. The program for increasing the organizational flexibility of production characterizes a set of actions to establish and mutually link organizational, technical and economic decisions related to the formation of flexible production. The development of this program is connected with the decision-making process on the practical implementation of measures to increase the flexibility of the system and involves: determining the main forms of manifestation of organizational flexibility and directions for its increase; development of a methodological approach for assessing, analyzing and planning the flexibility of the system, the formation of flexible production.

Production management provides a rational combination of production factors in time and space in the production activities of the organization, i.e. rational organization of production processes.

The following are most often used as target parameters (operational priorities) of production management:

time (term) of order fulfillment (customer service);

production costs (production cost of production);

use of production capacity;

the duration of the production cycle;

flexibility (adaptability) of production, i.e. ability to respond to changing demand, flexibility and speed of development of new products;

production losses (due to marriage, etc.);

Others depending on the type of product.

Comparative analysis and dynamics of production management priorities can be done graphically.

According to the target orientation, two types of managerial decisions in production management are distinguished:

structure-oriented

process oriented

Structural solutions production management are aimed at forming a rational structure of the organization and consist in dividing the processes into separate tasks assigned to them for certain, specially created structural elements of the organization.

Structural management decisions provide the organization business processes in space and find expression in the statutory documents of the organization and the system of provisions governing the tasks and responsibilities of departments.

procedural decisions, aimed at the formation of rational procedures in the organization and represent the division of business processes into separate tasks, their distribution over segments of the calendar period and the assignment of work to specific performers.

Depending on the content, managerial decisions in production management are differentiated into strategic, tactical and operational.

In production management, two alternative criteria are used to evaluate management decisions:

minimization of possible costs with a certain result;

maximization of the result with given resources.

To evaluate the managerial decisions made in production management, two concepts are widely used:

performance;

degree of resource use.

Performance - the most general criterion for measuring the efficiency of the use of its resources (or factors of production) by an enterprise.

In the broadest sense, it is defined by the following relationship:

total output

Total input

Performance is a relative measure.

The choice and use of various meters is carried out taking into account the control tasks:

comparison with a competitor;

comparisons with planned values;

study of dynamics;

identifying reserves, etc.

There are three types of performance indicators:

• multifactorial;

Examples of private performance indicators by areas of activity:

Restaurant:

the number of visitors (dishes served) per working hour.

Retailer:

sales volume per sq. m area.

Poultry farm:

kilogram of poultry meat per 1 kg of feed.

Power station:

the number of kilowatt-hours of electricity per 1 ton of coal.

Paper factory:

the number of tons of paper per 1 cu. m timber.

The degree of resource use (efficiency) internal efficiency, economy, measuring the use of resources and the rationality of the organization of production processes.

Degree of resource utilization - a narrower concept in production management than productivity; it is used to measure the level of resource utilization - "inputs" - through utilization rates.

Example.

Equipment Utilization Rate = Unit of Equipment Used Hours Fund / Equipment Unit Actual Hours Fund.

Material utilization rate = Materials in stock and in production (at the procurement stage) / Materials in finished products.

Methods.

In production management, the same methods and models of decision theory are used that are characteristic of management in general. The most widely used in production management:

decision trees;

decision tables (pay tables).

They are used especially successfully in the decision-making process under conditions of risk and uncertainty.

To develop an effective organization strategy, first of all, it is necessary to identify the possibilities of the economic system. Then the purpose of our organization is determined, i.e. what contribution it will make to society. This reason for the existence of the organization is its mission. Once the organization's mission is defined, each functional area within the organization (ie marketing, accounting, and manufacturing/operations) defines its supporting mission. The mission for each subsystem is developed to support the mission of the organization as a whole.

The mission is accomplished through strategies. A strategy is a plan created to accomplish a mission. Each functional area has a strategy for fulfilling its mission and for helping the organization achieve its overall mission. At its core, a strategy is a set of decision-making rules that guide an organization in its activities. There are four different groups of such rules:

rules used in assessing the performance of firms in the present and in the future. The qualitative evaluation criterion is usually called the course or benchmark, and the quantitative content is called the task or plan.

The rules governing a firm's relationship with its external environment and which determine what types of products and technologies it will develop, where and to whom it will sell its products, how to achieve superiority over competitors. This set of rules is called product-market strategy or business strategy.

The rules by which relationships and procedures are established within an organization are called the organizational vision.

The rules by which a firm conducts its day-to-day activities are called basic operating procedures.

The process of developing and implementing the strategy is shown in the figure pic 3-1. The strategy development process does not end with any immediate action. It usually ends with the establishment of general directions, the promotion of which should ensure the growth and strengthening of the company's position.

3.2. Strategic and tactical decisions in p/om.

Strategic decisions tend to have long-term applications (greater than one year) and may take more than a year to implement. Tactical decisions are those that can be modified, significantly changed within a year or less. In P / OM, the following strategic and tactical tasks are required.

Strategic decisions of operational management:

product strategy that determines the manufacturing process. Manufacturing cost, quality and human resource decisions interact strongly with product design, i.e. product decisions often set a lower cost limit and an upper limit on quality.

The process strategy is the process capabilities that are available to produce the good. Process decisions relate to technology, quality, human resources and equipment maintenance. The various expenses and capital expenditures made will determine the cost structure of the firm.

Location strategy. Location decisions for both production and service can determine the ultimate success of production. Mistakes made in doing so can obscure the benefits.

placement strategy. Capacity, staffing, supply and warehouse planning will depend on the location strategy.

Human resources strategy. Human resources are an integral and most expensive part of the project of the entire system. Therefore, the quality of the labor force, the required skill, skills and costs for this must be determined.

Supply strategy. Determining what needs to be done and what needs to be procured, focusing on quality, delivery and innovation at an affordable price in an atmosphere of mutual trust between buyer and supplier, is essential to efficient sourcing.

Tactical decisions of operational management:

inventory management tactics. Inventory decisions can only be optimal when considered for customer satisfaction, taking into account delay times, production schedules, and human resource planning.

Scheduling tactics. An effective production schedule must be developed, manpower and equipment requirements must be determined and controlled.

Quality tactics. Decisions must be made in order to determine the required quality. Policies and procedures must be developed to achieve this quality.

Tactics of reliability and repair. Decisions must be made according to the desired level of reliability and repair.

A successful P/M strategy consists of considering:

requirements environment(i.e., in what economic and technological conditions the company is trying to execute its strategy);

competitive requirements (taking into account the strengths and weaknesses of competitors, their possible actions);

company strategy (its possible intentions);

product life cycle (i.e. at what stage life cycle the company is located).

P/OM strategy also:

defines and organizes P/OM tasks (i.e., what this particular P/OM function should do and how it should be organized in relation to other elements of the organization in order to contribute to the mission of the firm);

makes the necessary choices within the P/OM function (i.e. which particular tasks the P/OM should focus on);

finds a competitive advantage (i.e. how the P/OM function contributes to the organization's unique strengths).

Among the characteristics associated with strategic P/OM decisions are:

high quality of goods in comparison with competitors;

high power usage;

high production efficiency (ratio of calculated and actual productivity);

low capital costs (the amount of capital required by production for the amount of sales);

low direct costs per unit of production (compared to competitors).

The P/OM manager develops the strategy, groups the activities in the organizational structure and the staff that will carry out the work. The manager's work with subordinate managers includes plans, budgets, and programs that will successfully support strategies and achieve the mission.

Rice. 3-1

The process of developing and implementing a strategy can be represented as follows:

Competitive situation

Analysis of the situation within the organization

Mission development

Consideration of strategy

Strategy formation

Creation and implementation of strategic decisions in functional areas

Marketing.

Service, distribution, price, distribution channels, product positioning.

Finance/accounting.

financial leverage, cost of capital, working capital, accounts receivable, accounts payable, financial control, credit lines.

Production.

Commodity: custom or standardized.

Process: power, technology.

Schedule: constant or changing production rhythm.

Stocks: when to check, how much to have on hand?

Aprrrr

test questions

What is the strategy development process?

List strategic decisions in production management.

List tactical decisions in production management.

Literature

Main

Ilyenkova O.V., Bandurin V.F. Production management: account. For universities, St. Petersburg: Peter, 2003;

Kozlovsky V.A. Production and operational management, M.: Infra-M, 2004;

Chase R.B. Production management, Knorus, 2002.

Additional

Management of the organization / Ed. Z.P. Rumyantseva, N.A. Solomatina. M.: INFRA-M, 1995;

Mironosetsky N.B. Modeling the processes of creation and release of new products. Novosibirsk: Nauka, 1996;

Fatkhutdinov R.A. Production management. M.: Banks and stock exchanges, YuMITI, 1997;

Makarenko M.V., Makhalina O.M. Production management. - M.: PRIOR, 1998

Plan

1. Introduction to production management strategy

2. Universal strategies.

3. Strategic principles of operational management (according to Schoenberger and Nod).

4. Stage of implementation of the operational strategy

5. Integration formations in production.

Introduction to Production Management Strategy

Strategic management is not a set of rules, but rather certain philosophy or ideology business and management.

Strategic management can be viewed as a dynamic set of five interrelated management processes:

definition of the mission and goals (long-term and short-term);

Analysis of the environment (macro environment, immediate environment and internal environment of the organization);

choice of strategy;

implementation of the strategy;

Evaluation and monitoring of implementation.

The most important component of strategic management is implementation of the strategic plan. At the same time, the execution process has an active feedback effect on planning, which further enhances the significance of the execution phase.

2. Universal strategies .

Michael Porter (Harvard University) argues that an enterprise can follow one of three types of strategy:

· Price leadership;

· Product differentiation;

· Focus on the customer or product.

Distinction and main (axial) competence.

Gaus principle or Grinel's axiom - In nature, two kinds of animals never occupy the same niche; if two species are in the same niche, they will develop different behaviors, or one species will oppress the other.

Professors Prahalad and Hummel advise company management to "string" a company's strategy around its core competencies.

Continuous improvement as a strategy. The Japanese use the term " kaizen".

The term is used in banking and in diplomatic relations. When used in business, it is understood that all contribute to the continuous improvement of the processes implemented by the company or organization. Changes are small, but they are many and the process is almost continuous.

As an alternative way, the term "kairayo" is used, meaning a sharp, significant change(also for the better). In European-American terminology, this corresponds to the term "Business Process Reengineering.

Strategic principles of operational management (according to Schonberger and Nod).

Strategy Development Phase

· In relation to consumers.

2) Know your nearest and final customers and work with them as a team.

This is the first and most important principle. All others describe how serve the consumer better.

3) Be committed to continuous, rapid improvement in quality, flexibility, parameter variation and service, cost and time reduction.

· In relation to your company.

4) Achieve common goals through an open exchange of information and the involvement of the entire staff (team) in the planning and implementation of changes.

· In relation to competitors.

5) Know competitors and world-class leaders.

You need to know about competitors:

development methods;

power;

basic abilities;

communication with suppliers and customers;

· expenses;

· quality;

Flexibility

The study and knowledge of the best samples is denoted by the term Benchmarking. it ongoing process comparing products, services and activities of your company with the most powerful competitors and companies - recognized leaders in the industry.

Stand out:

· Internal Benchmarking;

· Benchmarking among competitors;

· Functional Benchmarking;

· General Benchmarking.

Stage of implementation of the operational strategy

- Development and organization.

5) Reduce the number of products or service components or operations and the number of suppliers to a few of the best.

6) Organize resources into "consumer chains", targeting each chain to a product, service, or user group; create workflow teams, oriented cells, and plants within a plant.

In order to ensure good coordination, error prevention and continuous improvement, the customer - ideally a specific person in the next operation - should be known, familiar, a real partner or team member.

Production capacity

7) Continually invest in human resources through cross-training to master many skills; learning; job rotation and career paths; and maintaining health, safety and security.

The old practice is to divide the work into small and simple operations, such that an inexperienced person masters them in one day. Continuous improvement, on the contrary, implies that each employee continuously masters more operations and skills, methods of problem solving and self-management. By switching from job A to job B, employees learn the impact of job A on job B, they learn both their collective contribution to the entire service or product, and its impact on customer satisfaction.

8) Maintain and improve existing equipment and human labor before thinking about new equipment; automate if process variation cannot be reduced by other methods.

The most rational way to make progress is for employees to abandon habitual laxity and bad practices. This eliminates the cost and complexity of automation.

9) Look for simple, flexible, relocatable, low cost equipment that can be purchased in multiples - for workflow teams, oriented cells and "plants within a plant".

Personal computers are better than mainframes.

10) In order to manufacture/provide goods or services without defects and process instability, try to simplify the process in every possible way.

Do it right the first time

Do it right now!

11) Reduce travel time (waiting time), distance and inventory along the entire customer chain.

12) Reduce installation, changeover, preparation and start-up time.

13) Work in rhythm with the consumption of the product by the user (or in a smoothed version of this rhythm); reduce cycle time and batch size.

Problem solving and control.

14) Record and store data on quality, process and issues in the workplace. Ensure that the working groups (teams) solve the problem first - before the staff specialists.

15) Reduce requests and reporting, control causes, not symptoms.

Integration education in production.

Factors determining integration decisions.

Fierce competition on a global scale, saturation of most markets, instability of economic and political systems demanded different types of reactions manufacturing enterprises to these changes and, accordingly, other organizational and structural decisions. First of all, these are new forms of enterprise integration - strategic partnerships.

The term "strategic partnership" refers to various forms of cooperation between independent organizations: long-term supply agreements, license sales, strategic alliances, joint ventures, and supplier-manufacturer collaborations that aim to achieve strategic goals and objectives that are mutually beneficial for organizations.

Types of integration formations (strategic partnerships).

	Unifying partnerships	Alliance	mutual agreement
social power	Authority	Negotiation	Influence
Formalization	The central authority develops written instructions	Participating organizations develop written guidelines	Informal conditions without written prescriptions
Sanctions	High	Some	Not
Communication type	horizontal, rigid	Horizontal medium hard	vertical, non-rigid
Relationship types example	- Agency - Joint venture - Corporation - Association - Joint-stock company- FIG - Consortium	- Coalitions - Unions - Joint programs	- Informal committee - Sponsor agency relationships - Customer-manufacturer relationships - Buyer-supplier relationships - Distribution channel relationships

Mutual agreements. Connect suppliers, manufacturers, distributors and buyers, as well as end users of products and services in vertical channels.

Potential Benefits:

lower costs for the purchase of raw materials and materials, sales of products;

Greater reliability of supply of raw materials and components and distribution of products;

Greater efficiency in coordinating the various stages of the production chain;

· expansion of opportunities and areas for potential innovations;

Raising barriers against entry of competitors into the business.

Negative aspects of vertical ties:

· the introduction of significant capital investments into the newly integrated areas of activity does not always provide even an average profit;

It is difficult to achieve a balance between stages along the production chain;

· separate production divisions, as a rule, are rigidly tied to traditional technologies, and it is more difficult for them to adapt to changes in the market;

· the pursuit of optimal scale can result in a loss of specialization at individual stages of the production chain, each of which requires certain forms of organization, control and management style.

strategic alliances.

A strategic alliance between two industries is an agreement to cooperate to achieve one or more common goals. It is a unifying relationship between organizations at the same level of product distribution.

Horizontal links may involve competitors and others in the industry.

The main reasons for an alliance may be to acquire market access, use existing distribution channels, share technology development costs, or acquire specific skills and resources. Both partners benefit from the distribution of functional complementary responsibilities.

In Kazakhstan, there are significant problems for alliances:

· changing strategic requirements and instability of the market and technologies, as well as the lack of sufficient responsibility for decision-making;

Differences in goals, cultural differences and differences in decision-making styles;

Decreased long-term interest and awareness of one of the partners;

· determination of the feasibility and risks associated with the transfer of skills and technologies to a partner;

The level of access to confidential technology and other competitive advantage;

· the level of mutual trust and directness of relations with the partner in the alliance.

Horizontal integration usually brings together producers of competing or complementary products and services. Thanks to such a merger, all organizations get a leading position or close to it.

test questions.

1. It is known that in order to ensure competitiveness at the global level, companies need to manage four types of resources, name them.

2. List the functions that are within the competence of operational managers?

3. What are the five most important conditions for the survival of American industry in the 21st century?

4. Which of the conditions you listed are the most significant for the Kazakh industry?