At the moment, the concept of strategy is becoming increasingly important in production management, since the effectiveness of the future activities of any enterprise directly depends on the choice and methods of implementing the strategy. Thus, for any future entrepreneur it is necessary to set the following tasks related to strategic management: 1) planning an effective company strategy for the long term; 2) identifying the most productive ways to implement the strategy at the enterprise; 3) the reality of achieving the goals set by the organization. If the manager’s activities turn out to be the most rational, then there will be no problems or losses with the implementation of the strategy at the enterprise.
Strategic management in production management is understood as management based on human potential as the basis of the enterprise, which focuses production on consumer needs, reacts flexibly and promptly carries out changes in the enterprise.
When creating a strategy, production management must answer one very important question: how to achieve its goals, taking into account the position and prospects of the organization. Goals are what the organization strives for, and strategy is the means to achieve it. Achieving a goal requires thoughtful and targeted actions, if necessary, a response to unforeseen events, changed market conditions and increased competition, as well as constant collective learning of the organization - the organization must constantly learn and improve its competitiveness. Strategy is more than a thoughtful and methodically implemented abstract plan. The strategy is adjusted by adding some parameters and abandoning others in response to changes in the market, consumer needs and preferences, strategic maneuvers of competing firms, acquired experience, new opportunities and threats, unforeseen events, and new ideas. The latest approaches to studying the essence of organizational systems and their management make it possible to put forward the hypothesis that, like any system, organizations are characterized by a desire for self-preservation and development, which is aimed at maintaining sustainability through the choice of effective management methods determined by the internal structure of the system. The sustainability and stability of an enterprise can be achieved by developing an appropriate strategy, which involves choosing goals and means to achieve them. This means that there is a need to develop a general concept of sustainable development of enterprises, taking into account their specific features. Ensuring economic sustainability at the present stage is becoming an important point in the intra-organizational management of an enterprise, allowing it to withstand sudden changes in market factors that can significantly affect its economic situation.
Rice. 1 Components of strategy
The stable development of an enterprise presupposes the practical implementation of a system of decisions that, in terms of content and functional orientation, determine the strategy of its internal development. Such decisions are made within the framework of the joint activities of all functional subsystems of production management and imply the development of new products, the design of production processes for new products, the use of new materials, allocation of human and production resources, etc.
Rice. 2. Stages of strategic management
There are five main types of strategically important decisions in production management, which include:
1) product strategy;
2) process strategy;
3) location strategy;
4) human resource development strategy;
5) logistics strategy.
For the enterprise to operate most effectively, an entrepreneur must understand how to combine all of these strategies in such a way that the organization does not lose stability, but only increases its own productivity. In order to be able to distinguish, differentiate and understand the difference between each type of strategy in production management, here is a brief description of each:
Product strategy involves selecting, defining the product and its design. Commodity products vary widely and can be tangible or provided to the consumer as a service. The product strategy is designed to ensure its competitive advantages in the market and the sufficient duration of its life cycle to recoup the investments made in its creation. The marketable product must be selected, defined, and decided upon in design.
Process strategy shows the determination of an effective method of producing a product using the resources at the disposal of the enterprise. The choice of process depends on the expected volumes of production of goods, their range, technologies available to the enterprise, the composition and nature of the enterprise's machine subsystem, personnel qualifications, etc. The system of processes adopted at the enterprise determines production costs and the quality of the goods received. Strategic manufacturing process selection may be based on an existing or proposed manufacturing type or the preferred nature of process specialization.
Business location strategy.
When choosing a location for a business, founders are faced with a variety of environmental influences that affect the organization in different ways and to varying degrees. The highest priority environmental manifestations for an enterprise, based on available data, include: political, economic, social, technological, environmental. The factors influencing the external environment on the choice of MCI are unique; for each individual case, its own system of factors is formed. Their importance and intensity of influence vary from one specific situation to another.
Human Resource Development Strategy
An enterprise's labor resources are one of its most important strategic resources. It is this resource that determines the ability of an enterprise to achieve its strategic development goals. The enterprise's labor resources are characterized by the qualification structure, demographic structure of workers, their capital-labor ratio, and ability to adapt to changing development goals of the production system. Accurate forecasting of the organization’s development trajectory will make it possible to develop and implement an appropriate strategy for the development of its labor resources, i.e., timely upgrade the skills of workers, retrain them, increase the capital-labor ratio and adjust the composition of personnel. A correctly defined and implemented human resources development strategy allows you to successfully achieve both current and strategic development goals of the enterprise.
Logistics strategy
The function of material and technical supply of a manufacturing enterprise is associated with the provision of implemented production processes with all types of material and material resources. When implementing this function, the organization’s management resolves many issues that are strategically important for its development. In this series, we can highlight such questions as: buy material and technical resources or produce them yourself; how to choose a resource supplier, what requirements it must meet; how many resource providers are desirable to have.
The task of translating and implementing strategy is the most difficult and time-consuming in all strategic management. It affects all aspects of management and is addressed in almost all departments of the company. Work on implementing the strategy begins with searching for areas where performance improvement is possible. Each manager must decide what needs to be done in the department entrusted to him to implement the overall strategy and how to do it effectively. Full implementation of the strategy may take from several months to several years.
One of the main responsibilities of managers is to evaluate the organization's performance and progress in its activities. Managers need to constantly monitor the company's internal and external environment. Low efficiency, insufficient progress, important and sudden circumstances require changes in the company's long-term course of development, goals, business model and/or strategy.
If the implementation of the strategy is not carried out as planned, then management turns to such basic methods as revising the budget, reorganizing certain activities and work processes, reshuffling personnel, developing new opportunities, changing the corporate culture and remuneration system. Effective implementation of strategy is always the product of comprehensive organizational learning, which, unfortunately, occurs quite unevenly in different parts of the company. Therefore, it is necessary to constantly monitor progress in the activities of the enterprise, look for new ways of development and adjust actions.
Thus, having examined in detail in this article all the most important aspects and nuances of strategic planning in an organization, we can conclude that strategy is not only a reflection of the goals of the enterprise, because it must be flexible so as not to be strongly influenced by suddenly changed circumstances or those influencing it from the outside factors. It is necessary to evaluate the effectiveness of the process organization in order to identify in advance the weaknesses of the organization and eliminate the contradictions in the strategy that have arisen in the system, caused by a sharp change in circumstances. The more non-standard and sustainable the methods of implementing the strategy, the better the company will strengthen itself in the market with the least losses for it.
2. Production management cycle
2.1. Planning as a component of production management
The management process is associated with planning, organizing the implementation of plans and monitoring the final results. . The better developed and interconnected these important functions are, the more effective the management.
Planning allows you to determine the nature, forms and sequence of future actions.
In general terms, planning involves:
- formulation of goals and likely strategies;
- establishing priority tasks and determining actions to solve them.
The result of planning is a system of plans - long-term, medium-term, operational.
The most difficult problem is developing a strategy.
The word "strategy" is widely used in military science. Strategy affects the interests of any organization, defining the main directions of its development for a long period. At the same time, medium-term and operational plans must be subordinated to strategic goals.
In modern management, strategic planning issues occupy a central place. This is due to the fact that the absence of a clearly chosen strategy is fraught with many dangers, leads to uncertainty and does not contribute to the conscious participation of workers in the production process.
Strategic planning is a function of senior managers.
In modern literature on strategic management, three levels of strategic planning are distinguished:
- summarized strategy;
- strategic economic plans;
- functional strategy.
The listed levels of strategic planning form the so-called “pyramid of strategies” (Fig. 4).
At the senior management level, a general strategy is being developed that takes into account the opportunities to take a certain position in the market in the near future. This takes into account the company’s own role, the types of activities carried out, the expected increase in effect and profitability. Taking into account the general strategy, economic strategic plans are developed, focused on specific structural divisions (structural units within the company that produce products intended for specific markets). Economic strategic plans reflect expected profits, market share, product range and its renewal, and possible advantages over competitors.
Rice. 4. Pyramid of strategies
The functional strategy takes into account specific functions: sales, inventory management, purchasing, production, optimal use of human and material resources, etc.
Thus, all levels of strategic planning are interconnected and aimed at implementing the chosen strategy.
The most important phases of strategic planning are:
- strategy formulation;
- giving the strategy a concrete form;
- assessment and control.
To formulate a strategy, it is necessary, first of all, to determine the purpose of the activity, evaluate the qualifications of personnel, investment opportunities, production potential and other factors that may affect the implementation of the strategy. The company's goals reflect very specific indicators: products, their volume and range; profitability and others.
It is also important to analyze the influence of external factors on the company's activities.
In-house analysis of production and financial activities is of great importance. Particular attention should be paid to the professional knowledge and qualifications of personnel, their attitude to work, and turnover; product production technology; state of marketing. Intra-company analysis will reveal the strengths and weaknesses of the company itself.
Giving a strategy form involves its design in the form programs, plans, budget.
Evaluation and control are the final phase of strategic planning. At this stage, deviations from the intended goals are identified and the strategy is adjusted if necessary.
Manufacturing firms can use different strategies, which presupposes their specific structure (division into areas by type of activity).
In modern management, the following typical (type) strategies are used:
- cost control;
- differentiation strategy;
- focusing.
The cost control strategy is based on reducing its own costs compared to the costs of competitors. This strategy aims to reduce costs. Mandatory cost control is carried out, thanks to which high production efficiency is achieved. With lower costs, the firm strives to maintain a high level of profit, although prices are lower than those of competitors. In addition, low prices may be a barrier to the entry of new competitors.
A differentiation strategy is associated with a specific target: the entire market or most of it. The strategy is aimed at supplying the market with goods or services that are more attractive in quality than those of competitors. Additional qualities may include: image; customer service (for example, high level of service); quality. Differentiation is a long-term strategy to achieve profit levels above the industry average.
Focusing. The main idea of this strategy: you need to concentrate your efforts on what you can do best and not try to act on all fronts.
The client (consumer) is at the center of any strategy. Therefore, the strategy takes into account the company's customer-oriented goals, resource allocation scheme; its development requires information about competitors. Consumers may prefer the goods or services of a particular company for the following reasons: low price of the product or service; high quality; timely receipt of goods or services; distinctive properties of a product or service.
Strategic planning involves the constant collection and analysis of information.
Production management is primarily concerned with functional strategy. Functional strategy or production process strategy is aimed at supporting the company's strategy by solving problems that are formed taking into account the needs of the client. It is associated with the distribution and use of resources necessary to carry out the production process. It is production services that can play a decisive role in implementing a cost control strategy by reducing the consumption of raw materials and materials, labor costs, overhead costs and other costs that form the production cost of products.
At the same time, the production strategy is built taking into account the overall strategy of the company and is closely related to the strategies of other functional divisions.
Production strategy addresses various aspects of production activities.
A production strategy cannot be implemented without an advertising plan, which is developed together with a sales plan. This takes into account the results of market research and measures taken by competitors.
- plans for current events (by advertising means; by time of individual events);
- plans for participation in exhibitions and expositions;
- final general plan of promotional activities;
- separate plans for special advertising campaigns.
In modern management, the following groups of decisions are distinguished: structural decisions; decisions about processes and decisions about relationships. Structural decisions: vertical integration, production capacity, scale and orientation of production.
Let's consider the essence of structural solutions.
Vertical integration.
Decisions may be made to establish a certain closeness of ties with partners (suppliers, clients).
Production capacity.
Production capacity decisions are strategic. They relate to the volumes and types of capacity that need to be added or reduced in a certain period. They can arise in a growth situation when products are in demand. Additional capacity is required to meet demand. However, the company may undergo a change in its organizational structure. In this case, old and excess capacity is often retained.
More details about production capacity are provided in the section on the production program.
Scale and orientation of production.
Decisions about the scale and orientation of production are linked to decisions about production capacity and include issues: enterprise size; location; what will be produced. For example, many market economies place great importance on small enterprises located close to the market. Such enterprises are widespread in Japan.
The orientation of production is related to its specializations
(homogeneous or heterogeneous products). The number of different production processes and their degree of complexity depend on this.
The next stages of the production management cycle are determination of conditions, organization, execution.
2.2. Determination of conditions, organization, execution
After developing the plan, the next phase of production management begins. It is necessary to assess the conditions for the implementation of the plan and begin to organize its implementation. First of all, you need to assess external and internal factors that may influence the implementation of the plan.
When determining the conditions for implementing a plan, it is difficult to overestimate the importance of initial information about the market situation. This is due to the fact that in the activities of many enterprises the sales area is a bottleneck. The enterprise must respond to changes in the market situation.
When determining the conditions for implementing the plan, it is useful to have the following information:
- Population dynamics by region and age group. This information is important when organizing the sale of goods and services.
- Consumption of goods and services per capita, which allows us to identify trends in consumer behavior.
- Dynamics of income of the population (customers). This information is important for developing production strategy and cost planning.
- Dynamics of purchasing power.
- Dynamics of overall demand for comparable goods and services on the market.
The latter is important for justifying the likely transition to the production of interchangeable goods.
1. Dynamics of changes in the production capacity of competitors or the number of employees in a competitive area.
2. Information on clauses 4-6 allows us to identify three groups of goods and services:
- goods and services with growing demand;
- neutral goods and services;
- goods and services with falling demand.
Depending on the type of customers or customer groups, the structure of the organization is created. Enterprises that supply their products to different groups of consumers are interested in organizing their work in a way that allows them to satisfy the needs of all customer groups as fully as possible. Based on market segmentation, appropriate divisions within the organization can be created.
The chosen form of organization can operate for quite a long time. However, the enterprise may have temporary tasks related to the implementation of the plan. In this case, create temporary organizational structures. Temporary organizational structures are called design organizations. This structure is created to solve specific problems within the organization and often exists quite autonomously. Typically, an organization consists of one or more groups of employees from various departments of the enterprise (main organization). Employees included in the project organization are relieved from their main work for some time and become subordinate to the project manager. When creating a temporary structure, it is necessary to clearly define its task, appoint a project manager, and establish the scope of responsibility of each project executor.
Example of a project organization: creating a dealer network to promote goods to the end user.
To implement the plan, a sound structure of administrative units is required. This is due to the fact that in every organization there are tasks related to creating conditions for work and control.
All administrative tasks can be divided into two large groups:
- general support of the production process, when administrative structures do not interfere with its content (department of external relations, etc.);
- administrative structures directly related to the content of the production process (planning department, quality control, etc.).
When creating administrative units, the following aspects need to be taken into account:
- What tasks will be within the competence of administrative services?
- How will administrative tasks be performed (centralized or will each department have its own administrative service)?
- Will administrative structures influence the production process, what powers will they receive?
- How will administrative costs be taken into account when determining production costs?
When creating an organizational structure and defining its functions, it is necessary to evaluate its effectiveness for the activities of the entire organization and the implementation of the plan.
In foreign management practice, there is a tendency for changes in the structure of organizations. These changes are the rule rather than the exception. To create an effective organization, it is necessary to constantly study the situation outside the company and predict customer requirements.
The most important component of the “defining conditions and organizing” phase is assessing your own competitive position in the market. The assessment is carried out to determine the position of the enterprise in the industry market; to attract investor funds into promising production; developing programs to enter new markets.
Any enterprise exists thanks to its consumers. Rapidly changing markets require an agile and flexible organizational structure that can adequately respond to all kinds of changes.
Implementation of the strategy presupposes a clear setting of tasks for the performers; determination of expected results and target dates.
The final phase of the production management cycle is management(analysis, control, decision making). Let's consider this phase.
2.3. Management
First of all, let us clarify the concept of “leadership”.
Leadership is behavior in which one person actually influences the activities of others, ensuring movement towards a set goal.
Modern management is based on taking into account the achievements of theory and practice in the field of management. Various theories in the field of leadership are described in detail in foreign and domestic literature. Therefore, we will focus only on leadership techniques, as well as some methods of analysis and control.
First of all, you should pay attention to goal setting.
Goals must meet the following requirements:
- specificity:
- visibility;
- consistency;
- realism.
The manager and employees together determine the goals of the organization/department and or the goals of the planned work, determine responsibilities and expected results. The results are used to guide the department/unit; to assess deviations from intended goals and justify decisions to adjust goals.
As a rule, methods of management through goals presuppose the presence feedback between the leader and subordinates. It is necessary to pay attention to work attitude, not on personal qualities. Given that focusing on the production aspect activities, employees are more open to feedback. Should be be specific and not generalize, strengthen employees’ self-confidence and self-esteem.
Management of any company activity will be effective provided that the time of the manager and subordinates is rationally distributed. In this regard, it is worth recalling the principle of V. Pareto and the principle of D. Eisenhower, which are widely used in various areas of management.
Thus, V. Pareto believed that the achievement of the desired results is most influenced by concentration on vital problems. He developed the 20/80 rule: concentrating 20% of the time on vital problems provides 80% of success.
D. Eisenhower’s principle is associated with the distribution of tasks according to their importance and urgency:
A-tasks: important and urgent should be completed immediately;
V-tasks: important, but not urgent. Completion deadlines need to be set;
C-tasks: Less important tasks that should be delegated.
In management practice, the following methods are used for more rational use of a manager’s time:
- A thorough analysis of the time structure.
- Distribution of upcoming tasks according to the ABC principle.
- Formulation of long-term goals.
- Time planning.
- Reducing wasteful costs and wasted time.
Note that the principles of Pareto and Eisenhower are widely used in inventory management, quality management and other tasks of production management.
The components of the production management cycle are planning, analysis, control. Without the use of modern methods of planning, analysis and control, effective management is not possible. The functioning of a production system is a purposeful process through which elements are transformed into a useful result.
A clearly formulated strategy is extremely important for the effective operation of an enterprise; it ensures the achievement of its goals and strengthens competitiveness.
Planning consists of the following stages:
- formulation of goals;
- formulation of intentions;
- drawing up plans
Control: comparison of planned and achieved results; identifying deviations and analyzing them, making decisions.
Planning and control appear only together.
Control questions
1. Is it true that the production management cycle begins with planning?
a) yes; b) no.
Explain your position.
2. Should medium-term and operational plans be subordinated to strategic goals?
3. Do you agree with the statement that strategic planning occupies a central place in modern management?
Yes; No. Explain your position.
4. How many levels of strategic planning are allocated in management?
Two; three; four.
5. Are there differences between strategic plans and functional strategy?
Yes; No. Explain your position.
6. Which of the following strategies is aimed at reducing costs:
- Focus strategy.
- Differentiation strategy
- Other (explain which one).
7. Are there differences between differentiation and focus strategies?
Yes; No. Clarify your position.
8. Do you agree with the statement that the main strategy is the idea of focusing - concentrating on what works best?
Yes; No. Explain your position.
9. Are there differences between strategic plans and functional strategy?
Yes; No. Explain your position.
10. Can a production strategy be implemented without an advertising plan?
Yes; No. Explain your position.
11. The final sales plan is being specified:
after developing an implementation plan;
before developing an implementation plan.
12. Should structural decisions on vertical integration, production capacity, scale and orientation of production be linked;
Yes; No. Explain your position.
13. Information on the dynamics of general demand for comparable goods and services on the market is needed for:
- transition to the production of interchangeable goods;
- for cost planning.
Does the type of customer affect the structure of an organization?
Yes; No. Explain your position.
14. Are there differences between organizational structure and temporary (project) structures?
Yes; No. Explain your position.
15. Do you agree with the statement that changes need to be made to the structure of the organization?
Yes; No. Explain your position.
16. Do you agree with the statement that the most important component of the “defining conditions and organizing” phase is assessing your own position in the market?
Yes; No. Explain your position.
17. Are classical management theories applicable in production management?
Yes; No.
18. If the answer to paragraph 17 is positive, give examples of the use of various theories in the field of leadership in production management.
19. Are there any requirements for goal formulation?
Yes; No. Explain your position.
20. Should there be feedback between the manager and subordinates?
Not really. Explain your position.
To implement the overall strategic plan of the enterprise, the production manager must make a number of strategic decisions. These solutions can be classified into the following general categories:
- Choice of production process. Assembly line? Labor specialization?
- Production capacity solutions. What is the size of the enterprise?
- Vertical integration. Should we buy or produce our own raw materials?
- Organization of the workforce. Labor specialization?
- Technology. Leadership or using the experience of others?
- Inventory. Production for stock or specific orders?
- Location. Near markets or sources of raw materials?
Strategic decisions in production typically involve long-term commitment of resources. Tactical decisions are short-term and serve to ensure the implementation of strategic decisions.
In recent years, in the course of international competition, three very important principles of production strategy have emerged. Firstly, this production is based on the principle "just on time": The company strives to receive all materials and components exactly at the time they are needed to produce the final product. Just-in-time management is gradually replacing traditional production management methods that involve the supply of materials and components in large quantities and with less frequency.
Second principle— comprehensive quality control (the so-called “do it right the first time” concept): quality is ensured by including responsibility for it in every job description of a production worker. The worker learns the principles of quality management at the same time as learning to operate the equipment. The role of a dedicated special quality control function is reduced, and the role of quality control at each workplace increases.
Third principle— comprehensive preventive maintenance. Production workers have the responsibility to carefully carry out preventive maintenance and maintenance of equipment to prevent breakdowns or failures. In most branches of domestic industry, routine maintenance and preventative maintenance of equipment is carried out by a special repair and maintenance service.
The main thing in increasing efficiency is to ensure production in such a way that customer demands are met. Increased efficiency increases revenue by making the organization more competitive. Increasing efficiency certainly reduces costs, but it should never come at the expense of efficiency.
The production process of an enterprise is characterized by many elements (subjects of labor - materials, semi-finished products, products; means of labor - equipment, tools, accessories, vehicles, etc.; labor resources - workers, technical and managerial workers, etc.), complex the variety of movement of objects of labor at all stages of production in the process of their transformation from raw material into a finished product.
The complexity of the production process and the need to achieve the goals of the enterprise require comprehensive coordination of all individual operations during production, synchronization of the actions of all elements of this process with continuous changes in external and internal conditions.
The main indicators of the efficiency of the production process at the enterprise are:
- high level of rhythm and synchronization of production
- rational reserves of raw materials, materials, components
- acceleration of turnover of working capital
- saving material and labor resources
- high quality of products
This requires comprehensive coordination of all individual operations during production, synchronization of the actions of all elements of this process with continuous changes in external and internal conditions.
In the main production of the organization, the transformation of objects of labor into finished products is carried out. In each of the main production workshops, workers participate in the production process and realize the goals set for them for the manufacture of products. Here production and information processes are directly combined. If the first of them is production labor, then the result of the information process is the development of management decisions that ensure clear organization, consistency in work between departments and individual employees, and regulatory regulation of their actions to implement a given production program. Management decisions influence teams of employees to achieve the goals of the organization.
Management purposefully influences not only work teams, but also production processes, which can be presented in various forms and carried out by various methods. The forms of organization of the production process are influenced by the degree of automation of production and the relationships between people in this process. Regardless of the form of organization and location of production processes, management connects them into a single flow covering all levels of production - workshops, sections, production lines, teams, workplaces. Production management is carried out on the basis of performing management functions.
The organization is characterized by strategic goals that determine the direction of its functioning in accordance with a given range, output volume and product quality. The implementation of these goals requires a clear definition of tactical goals by units and. specific tasks, as well as appropriate resources and activities for their implementation. Goals and objectives are the final milestones towards which the unit’s activities are aimed. Each department may have its own goals and objectives. They must contribute to the achievement of the organization's goals.
The task can be represented as the final result of the implementation of the production program, and the goal as quantitative and qualitative indicators of the work of the enterprise and its divisions. Thus, for the current month, the production site foreman can be tasked with producing parts of a certain range, quantity, quality and cost. The workshop manager may have the following goals: to produce a certain number of products at certain costs for their production, to reduce the percentage of defects, to prevent labor turnover, to purchase and install new equipment or to rearrange existing equipment by a given date, etc. These are quantitative indicators of the performance of a production unit. Qualitative performance indicators are more vague and reflect the goals of the unit in general terms for a certain period - a year, a quarter, a month. These include, for example, the following goals:
- improve the organizational structure of production management in connection with the creation of automated workplaces for management specialists, economists, and accountants
- carry out retraining of personnel of functional services of workshops
- organize and staff the management apparatus with qualified personnel so that this contributes to increasing the efficiency of production and management
- eliminate non-productive losses of workers' time and. employees, etc.
Since collective activities of workers are organized in workshops, each goal set is a group goal. In this regard, it is important that the goal is known to each employee and is set in a form that would make it possible to verify its achievement and thereby measure the effectiveness and efficiency of the team.
The tasks of production departments may be different, but the main management goal remains the same for each of them: the unconditional implementation of a given production program for the production of products and at the same time achieving minimal costs of materials, labor, time and money.
The practical implementation of the management process is expressed in periodically repeating work on the formation of production programs for workshops, operational shift-daily tasks for sections, teams and continuous monitoring of their implementation. The first part of these works relates to production planning, which is carried out in accordance with established planning periods (once per quarter, month, week, day, shift). The second is associated with monitoring the implementation of planned tasks, with the collection and use of the information received to regulate the progress of production.
The use of new forms of information technology ensures sufficient completeness, quality and timeliness of information for the preparation and development of management decisions in order to regulate the progress of production in real time and prevent critical deviations from the planned course of the process.
Management work is related to workshops and their structural divisions, varied in nature, scale, type, organizational features and level of production automation, which requires the use of computers, various methods and methods for solving planning problems, taking into account the specifics and features of the organization of production processes in each of them. them. In addition, the planning process is influenced by internal and external relations of workshops and the organization as a whole. These conditions must be taken into account by managers in the process of production management.
The implementation of adopted management decisions is accompanied by regulation of the work of departments, the creation of a regulatory framework for planning, briefing of performers, organization of interaction (coordination of work) of units and levels of production management. The above actions of management personnel should provide for a certain degree of responsibility of department heads and their functional bodies for possible failure to fulfill production programs and assignments. In this regard, there is a need for constant monitoring of production progress.
Thus, the production management process can be represented as a set of sequential actions of management personnel to determine goals for management objects and their actual state based on the registration and processing of relevant information, the formation and approval (decision making) of economically sound production programs and operational tasks. Procedures for communicating decisions made to executors, organizing and coordinating the work of all departments involved in the production process and, if necessary, regulating the progress of production are the final stage of the management process.
Manufacturing system design decisions are important for three main reasons:
1. They require a large investment of effort and money.
2. Mistakes made in the course of solving this strategic task can manifest themselves over a long period of activity of the enterprise and are sometimes difficult to correct in the future.
3. These long-term decisions have a significant impact on the efficiency of the current activities of the enterprise.
Organizational design of a production system- the process of preparing and justifying management decisions aimed at organizing a new enterprise or production.
During organizational design the following is carried out:
1. Conceptual design of a production system which includes:
1.1. Selecting production products and determining the scale of its production
1.2. Technological calculations of production
1.3. Choosing a business location
2. Design of main production, during which the following is carried out:
Formation of the production structure of the enterprise
Spatial layout of workshops, departments and services
Design of workshops and areas
3. Design of production infrastructure (auxiliary and service production)
4. Calculation of the main technical and economic indicators of the organization
5. Control system design
6. Formation of a master plan for the enterprise.
1. Concept and phases of the product life cycle.
2. Specific features of the product of printing industry enterprises.
3. Marketing product development
4. Formation of a product program and the procedure for carrying out technological calculations of production when designing a printing enterprise.
Issues related to the product life cycle, marketing strategy and product planning are studied in the Marketing course. But since the conceptual design of a production system includes, first of all, the issue of selecting production products and determining the scale of its output, this topic briefly examines this problem from the perspective of production management.
One of the methodological achievements of the twentieth century is the evolutionary approach to the study of production systems.
Any economic product develops along an S-shaped curve and goes through various stages in its development (see Fig. 4.1).
The period of time between the moments of occurrence and cessation of use of a product is usually called life cycle.
The concept of the life cycle of goods (services) is based on the fact that any product, no matter how excellent its properties, is sooner or later forced out of the market by another, more advanced economic product. The life cycle length of different products varies. But, despite the fact that there is a wide variety of forms and types of products that satisfy different needs, the phases of their life cycle are quite specific:
1. The stage of creating a new economic product.
2. The stage of introducing a new economic product to the market - the development stage
3. Growth stage
4. Maturity stage
5. Stage of decline and aging
At the product creation stage
An innovative idea is being formed to create a new type of product (service)
Conducting marketing research on the market for a new product, searching for a potential niche in the market in terms of the possibility and scale of its implementation
Production volumes and timing are estimated in accordance with capabilities and expected demand
A preliminary feasibility study for the development of innovation is being carried out
If the innovation is assessed positively, a set of works is organized to carry out the necessary scientific research and development work
At the stage of product development
A range of work is being carried out to prepare for production (design, technological, organizational)
Production is launched and brought to the specified production capacity.
The main task of the first and second stages is to ensure that the new product works and is in demand by the consumer.
The first two stages of the product life cycle are characterized by an excess of expenses over income, that is, the economic result of the activity is a loss, not a profit.
Typically, these stages are carried out either at the expense of own funds or at the expense of investors.
The growth phase is characterized by:
- Increasing production capacity
- Increase in sales
- Development of new markets
- Formation of a sustainable supplier network
- Improving technology and production organization
- Increase in the number of workers
- Increasing the level of job specialization
- Development of a flexible and dynamic pricing policy
- Profit growth
In the growth phase, productivity usually increases in proportion to the investment of capital, including intellectual capital.
The product maturity phase is characterized by a slowdown in product sales growth and stabilization of production. This is due to a number of factors:
- Changing customer needs
- Entering the market of new goods and services that better meet modern needs
- Increased competition
- The unprofitability of this type of product.
The product maturity phase is characterized by stabilization of production capacity for the production of this type of product; stabilization of sales volume; well-functioning technology for manufacturing products; improvement of technology and production organization; search and implementation of internal production reserves; real assessment of your own competitive advantages for the future; product modernization; the tendency to combine the development product with other products and the formation of hybrids; stable profit
This phase continues as long as there is a social need for a given product or a new product appears that is focused on the same tasks, but implements a more effective principle.
The aging phase of the product is characterized by a decrease in the competitiveness of the product, which entails: a reduction in production volumes and the number of workers; deterioration in product quality; loss of markets; depreciation of fixed production assets; excess of expenses over income; removal of the product from production.
The aging phase is not an organic consequence of the maturity of the product. It can occur at any time and the reasons for this can be both internal and external. One of the signs of the onset of the aging phase is a decrease in sales volume.
Production management must carefully monitor the phase in which a particular product of the enterprise is located and the state of the market to which this product is supplied to timely upgrade or replace an outdated product.
Product development plays a strategic role in determining the extent to which an organization's goals are achieved. The reasons for the design and creation of new products can be to increase the competitiveness of the enterprise and both the expansion of an existing one and the creation of an alternative business in order to increase profits. But in all these cases, the key factor is customer satisfaction with the newly created or redesigned product.
All products produced by printing enterprises are included in a certain calculable group and can be classified according to two criteria:
1. by type of product
2. according to the processes of their manufacture.
Let's present a list of calculated groups by type of product (costing unit - 1 copy).
1. Book, magazine, visual and label products:
- Books, brochures, magazines, ongoing publications, newsletters;
- Booklets, yearbooks, directory calendars
- Almanacs
- Sheet music editions
- Inlays, inserts, capes, covers, dust jackets, endpapers
- Fine albums, reproductions of paintings, engravings, prints, postcards
- Invitation cards, record sleeves, stamps
- Posters, visual aids, illustrated wall calendars, posters, slogans, announcements.
- Printed labels, wrappers, packaging
- Other publications that have independent consumer value.
2. Cartographic products
3. Newspapers
- Republican, regional, regional, district, district
- Large circulations of enterprises and organizations
4. Blank products
- Forms of accounting documentation forms, including with numbering, including subscriptions and transport tickets
- Forms of reporting and planning documentation (sheets, in the form of books, brochure albums, receipt and subscription books, notepads, rolls and endless forms)
5. Other products
- Lottery tickets and securities
- Passports, military ID cards, work books, identity cards, membership cards of societies, unions, diplomas
- Spectacular tickets
- Other products not included in the list of previous types of finished products
6. Other non-food consumer goods (consumer goods)
Paper and white goods:
- general notebooks
- school notebooks
- drawing books
- albums and folders for drawing and drawing
- folders for dissertations
- souvenirs
Toys and Christmas tree decorations.
Table 4.1. List of calculated groups by process
Untitled Document
Name |
Quantity |
Periodicity |
Sheet size and share |
Average volume, physical volume |
Average circulation, units |
colorfulness |
|
Popular science publications |
|||||||
Textbooks for universities |
|||||||
Popular science magazines |
|||||||
Scientific journals |
|||||||
School textbooks |
|||||||
Magazines for children |
|||||||
Desk calendars |
|||||||
Wall calendars |
The printing industry is characterized by a significant length of the product life cycle as a type. Life cycle theory should be applied to the processes by which these products are made rather than to the products themselves. In this regard, the innovative processes taking place in printing enterprises have a greater emphasis on processes than on products.
The main driving force when creating a new product is the consumer. If the consumer's requirements for the product are not met, then the enterprise may lose a certain market share, which will inevitably lead to a decrease in profits. In order to begin the process of designing a new product or redesigning it, an organization must have some ideas. And marketing plays an undeniable role in solving this problem.
When planning a new product, you need to have information:
1. about the state of the market and trends in its development
2. about competitors, their potential and development plans
3. about consumers, their requirements for products and purchasing power.
Marketing research for a product should answer the following questions: Who is the potential buyer of the product being created? What is the possible scope of his needs and purchasing power? On what factors does this volume of consumption depend? What competitors are possible in the market and what are their competitive advantages? What are the advantages and disadvantages of the new product? What needs to be done to improve its competitiveness? What factors influence the life cycle of a product and the scale of demand? How is market demand for a product formed? What market segment does it cover? How is the product positioned on the market, what market share can it occupy?
In order to answer all the above questions, it is necessary to conduct an analysis of potential consumers of new products, competitor analysis, segmentation of target markets, and product positioning.
Segmentation of target markets represents the process of differentiating potential consumers of a product into groups that are relatively homogeneous in terms of the nature of their demand.
Product positioning- provides for actions to ensure its competitive position in the market.
Printing enterprises are among the organizations that implement the final stages of innovation processes. In this case, product planning is expressed in the formation of the enterprise's product portfolio and planning its production program for a certain period.
The design of printing enterprises involves the selection of technology and equipment for the production of the intended product program.
The initial data for the design of technological processes are the technical qualitative and quantitative indicators of technologically homogeneous groups of publications, for the production of which the most rational production technology must be determined. These initial data are united under the name “industrial task for the manufacture of products of a printing enterprise.” Thus, the product program in strategic production management takes the form of an industrial task (industrial task). It is in the industrial task that the nomenclature and volume of production of specific types of products of a printing enterprise are determined. And it is according to the given industrial specifications that the design of a new production is carried out.
The industrial task is compiled in the form of tables, separately for each type of product: books, magazines, newspapers, sheet publications, forms, etc. Based on the indicators of the industrial task and knowledge of the scope of applicability of various methods of reproducing printed products, industry technological instructions, standards, technical conditions and regulatory data, the production technology of the designed enterprise is formed.
A specific feature of the work of printing enterprises is the production of products under contracts with customers. The efficiency of an enterprise largely depends on how densely the enterprise is loaded with orders. Therefore, when designing new enterprises, it is first necessary to assess the possibility of supplying future production with orders of the chosen type and assess the competitiveness of the work being performed. At the same time, it is not enough to limit oneself only to the choice of the type (or types) of printed products produced. It is necessary in the industrial task to determine the parameters of the publications, the size of which will determine the choice of both technology and equipment for their production. So, for example, if you decide to create a new production for the production of label products, then you need to know what printing method it will be produced (for example, offset or flexographic), what the expected circulation is, what the color of the label is, its size, the complexity of its design and the technological complexity of its production.
To the most important technical indicators necessary for design book and magazine products include: types of publications; number of publications in a technologically homogeneous group; number of exits per year (frequency); publication format; average volume of the publication in physical printed sheets; average circulation of publications in thousands of copies; colorfulness; content of in-text illustrations in the publication as a percentage.
The technical indicators of publications, summarized in the industrial task, make it possible to calculate the annual volume of work, that is, the amount of products that must be produced by the plate, printing and post-press production of the enterprise being designed or reconstructed. It must be emphasized that the amount of work is calculated before any design decisions are made, since the quantity of products planned for production does not depend on the technology and equipment that will be selected during the process design process.
One of the main tasks that are solved in the process of technological design is the formation of a complex of printing equipment for the main production of the designed enterprise. In order to form this complex, it is necessary to have the following information about the equipment with which the enterprise will be equipped: stability and stability of the equipment; compliance of the design parameters of the equipment with the conditions of its operation; degree of automation and range of speed modes; reliability, durability and safety; conditions of metrological support; approximate time and output standards; ergonomic and environmentally friendly design of equipment and materials used; requirements for the qualification level of workers servicing this equipment; ease of maintenance, maintainability and availability of a service system; range of materials used and their parameters; interchangeability of materials, etc.
When designing a printing enterprise, technological production calculations begin with printing production. There are two possible calculation options. The first of them involves a pre-established industrial target, which clearly states the annual volumes of output. In modern conditions, publishing complexes use this payment scheme when creating their own printing database, since they have reliable information about the volume of printing work performed. In this case, the calculation procedure may be as follows:
1. Based on the generated task, the volume of work of the printing department is determined in the corresponding accounting units.
2. Taking into account time and production standards, the time to complete a given annual volume of work is calculated, that is, the load for individual types of printing equipment is calculated. The actual calculations must be preceded by detailed design of the technological process. The planned operating time fund for individual types of printing equipment is determined.
3. The number of units of printing equipment required to complete the industrial task is calculated and the staff of workers servicing it is determined.
4. Taking into account the given industrial task, a production program is formed in the appropriate accounting units for pre-press and post-press equipment. Taking into account the formed product program, the selected printing equipment and the time and output standards for the corresponding printing production processes, the load for individual types of pre-press and post-press equipment is calculated.
5. The planned fund of operating time for individual types is determined pre-press and post-press equipment. The number of units is calculated pre-press and post-press equipment necessary to implement the product program and determine the staff of workers servicing them.
In modern conditions of business development, at the stage of creating an enterprise, quite often one can ask only a list of publications and their main characteristics. The number of such publications at the initial design stage is not strictly regulated. In this case, the second option for designing a printing enterprise is used, which involves carrying out technological calculations of production based on a fixed value of the production capacity of printing equipment. For this option, the following calculation procedure can be proposed:
1. Taking into account the time and production standards for the corresponding printing equipment, the time for printing each type of publication included in the product program of the designed enterprise is determined.
2. The planned operating time of printing equipment is calculated.
3. Based on the established areas of applicability of printing equipment, orders are formed into appropriate groups.
4. Setting the percentage of the number of orders of a certain type in the formed group, taking into account the time for printing it and the planned operating time of this unit of printing equipment, a production program is formed for the number of titles for each type of publication.
1. Define the concept of “product life cycle”.
2. Name the phases of the product life cycle.
3. What are the features of the product life cycle of printing enterprises?
4. What are the features of the individual phases of the product life cycle?
5. Product marketing tasks.
6. What is product positioning?
7. How is the product program of a printing enterprise formed?
8. What is the procedure for carrying out technological calculations when designing printing enterprises?
Plan
1. Introduction to production management strategy
2. Universal strategies.
3. Strategic principles of operational management (according to Schonberger and Naude).
4. Operational strategy implementation stage
5. Integration education in production.
Introduction to Production Management Strategy
Strategic management is not a set of rules, but rather a certain philosophy or ideology business and management.
Strategic management can be viewed as a dynamic set of five interrelated management processes:
· definition of mission and goals (long-term and short-term);
· analysis of the environment (macroenvironment, immediate environment and internal environment of the organization);
· choice of strategy;
· strategy execution;
· evaluation and control 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 importance of the execution phase.
2. Universal strategies .
Michael Porter (Harvard University) argues that a company can follow one of three types of strategy:
· Price leadership;
· Product differentiation;
· Focus on the consumer or product.
Difference and main (axial) competence.
Gaus' principle or Grinnell's axiom - In nature, two species 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 "link" the company's strategy to its core competencies.
Continuous improvement as a strategy. The Japanese use the term for this " kaizen".
The term is used in banking and diplomatic relations. When used in business, it is understood that All contribute to the continuous improvement of processes implemented by a company or organization. The changes are small, but there are many of them and the process is almost continuous.
As an alternative path, 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 Naude).
Strategy development stage
· In relation to consumers.
2) Know your immediate and final consumers and work with them in one team.
This is the first and most important principle. Everyone else describes How better serve the consumer.
3) Be committed to continuous, rapid improvement in quality, flexibility, parameter and service variation, cost and time reduction.
· In relation to your company.
4) Achieve common goals through open exchange of information and involvement of the entire team in planning and implementing changes.
· In relation to competitors.
5) Know your competitors and world-class leaders.
You need to know about competitors:
· development methods;
· power;
· basic abilities;
· connections with suppliers and clients;
· expenses;
· quality;
· flexibility;
The study and knowledge of the best examples is denoted by the term Benchmarking. This is an ongoing process of comparing your company's products, services and activities with the most powerful competitors and companies - recognized leaders in the industry.
Stand out:
· Internal Benchmarking;
· Benchmarking among competitors;
· Functional Benchmarking;
· General Benchmarking.
Operational strategy implementation stage
- Development and organization.
5) Reduce the number of products or service components or operations and the number of suppliers to the best few.
6) Organize resources into “customer chains,” focusing each chain on a product, service, or user group; Create production flow teams, cell oriented teams, and “plants within a plant.”
In order to ensure good coordination, error prevention and continuous improvement, the customer - ideally the specific person in the next operation - must be known, familiar, a real partner or team member.
Production capacity
7) Continuously invest in human resources through cross-training to master multiple skills; training; 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 can master them in a day. Continuous improvement, on the contrary, assumes that each employee continuously masters more and more operations and skills, methods of problem solving and self-management. By switching from job A to job B, workers 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 the variation in process parameters cannot be reduced by other methods.
The most rational way to achieve progress is for employees to abandon their habitual slackness and bad practices. This eliminates the cost and complexity of automation.
9) Look for simple, flexible, movable, low-cost equipment that can be purchased in multiples - for production flow teams, oriented cells and "plants within a plant."
Personal computers are better than mainframes.
10) In order to produce/provide goods or services without defects and process instability, try to simplify the process as much as possible.
Do it right the first time
Do it right right away!
11) Reduce travel time (waiting time), distance and inventory along the entire customer chain.
12) Reduce installation, setup, setup, and startup time.
13) Work according to the rhythm of the user’s product consumption (or 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 workplace issues. Ensure that working groups (teams) solve the problem first - before staff specialists.
15) Reduce queries and reporting, control causes, not symptoms.
Integration education in production.
Factors determining integration solutions.
Fierce competition on a global scale, the saturation of most markets, and the instability of economic and political systems required different types of reactions of manufacturing enterprises to these changes and, accordingly, other organizational and structural solutions. 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, as well as supplier-manufacturer cooperation, which are aimed at achieving strategic goals and objectives that are mutually beneficial for organizations.
Types of integration entities (strategic partnerships).
| Connecting 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 instructions |
| Sanctions | High | Some | No |
| Communication type | Horizontal, rigid | Horizontal medium hard | Vertical, non-rigid |
| Example of relationship types | - Agency - Joint Venture - Corporation - Association - Joint Stock Company - Financial Industrial Group - Consortium | - Coalitions - Unions - Joint programs | - Informal committee - Sponsor agency relationships - Customer-producer 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 supplies of raw materials and components and distribution of products;
· greater efficiency in coordinating various stages of the production chain;
· expanding opportunities and areas for potential innovation;
· increasing barriers against competitors entering the business.
Negative aspects of vertical links:
· the introduction of significant capital investments into 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;
· individual production divisions, as a rule, are strictly 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 the level 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 link between organizations at the same level of product distribution.
Horizontal connections may involve competitors and other industry representatives.
The main reasons for an alliance may be to gain access to a market, to use existing distribution channels, to share technology development costs, or to acquire specific skills and resources. Both partners benefit from the distribution of functional, complementary responsibilities.
In Kazakhstan, alliances face significant problems:
· changing strategic requirements and market and technology instability, as well as lack of sufficient responsibility for decision-making;
· differences in goals, cultural differences and differences in decision-making styles;
· reduction of long-term interest and awareness of one of the partners;
· determining the feasibility and risks associated with the transfer of skills and technologies to a partner;
· level of access to confidential technology and other competitive advantages;
· level of mutual trust and directness of relations with the alliance partner.
Horizontal integration typically brings together producers of competing or complementary products and services. Thanks to this merger, all organizations receive a leading or close to it position.
Control questions.
1. It is known that to ensure global competitiveness, companies need to manage four types of resources, name them.
2. List the functions that fall within the competence of operational managers?
3. Name the five most important conditions for the survival of American industry in the 21st century
4. Which of the conditions you listed are most significant for the Kazakh industry?