UNIVERSITI KUALA LUMPUR

MALAYSIAN SPANISH INSTITUTE

MANUFACTURING STRATEGIES
PROJECT OPERATION MANAGEMENT

NAME : NUR’AIN KAMILAH BINTI AMRAN

ID NUMBER : 54211117100
CLASS : S11-3A
LECTURER : DR. RAHIM BIN JAMIAN
INTRODUCTION TO MANUFACTURING STRATEGY

In general terms, manufacturing strategy can be defined as the set of the co – coordinated

objectives and action programmes that are applied to a firms manufacturing function and

aimed at securing the medium and long term, sustainable advantage over that firm’s

competitors.

Manufacturing strategy generally involves issues like the following –

1. Manufacturing capacity

2. Production facilities

3. Use of the technology

4. Vertical integration

5. Quality

6. Production planning/materials control

7. Organization

8. Personnel
MANUFACTURING COMPANIES

WEST

1. FORD MOTOR COMPANY

Ford Motor Company is an American multinational automaker headquartered in Dearborn,

Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16,

1903. The company sells automobiles and commercial vehicles under the Ford brand and most

luxury cars under the Lincoln brand. Ford also owns Brazilian SUV manufacturer Troller, an

8% stake in Aston Martin of the United Kingdom, and a 49% stake in Jiangling Motors of

China.[5] It also has joint-ventures in China (Changan Ford), Taiwan (Ford Lio Ho), Thailand

(AutoAlliance Thailand), Turkey (Ford Otosan), and Russia (Ford Sollers). The company is

listed on the New York Stock Exchange and is controlled by the Ford family; they have

minority ownership but the majority of the voting power.

Ford has had manufacturing operations worldwide, including in the United States, Canada,

Mexico, China, the United Kingdom, Germany, Turkey, Brazil, Argentina, Australia, and

South Africa. Ford also has a cooperative agreement with Russian automaker GAZ.
Mission

One Team: People working together as a lean, global enterprise for automotive leadership,

as measured by: Customer, Employee, Dealer, Investor, Supplier,

Union/Council, and Community Satisfaction.

One Plan: Aggressively restructure to operate profitably at the current demand and

changing model mix; Accelerate development of new products our customers

want and value; Finance our plan and improve our balance sheet; Work together

effectively as one team.

One Goal: An exciting viable Ford delivering profitable growth for all.

Vision

People working together as a lean, global enterprise for automotive leadership.

2. PEUGEOT
The family business that preceded the current Peugeot company was founded in 1810, and

manufactured coffee mills and bicycles. On 20 November 1858, Émile Peugeot applied for the

lion trademark. Armand Peugeot built the company's first car, an unreliable steam tricycle, in

collaboration with Léon Serpollet in 1889; this was followed in 1890 by an internal

combustion car with a Panhard-Daimler engine. Due to family discord, Armand Peugeot

founded the Société des Automobiles Peugeot, in 1896.

The Peugeot company and family are originally from Sochaux, France. Peugeot retains a large

manufacturing plant and Peugeot museum there. In February 2014, the shareholders agreed to

a recapitalisation plan, in which Dongfeng Motors and the French government each bought a

14% stake in the company.

Peugeot has received many international awards for its vehicles, including five European Car

of the Year awards. In 2013 and 2014, Peugeot ranked the second lowest for average

CO2 emissions among generalist brands in Europe, the Renault car maker group being ranked

first, with 114.9g CO2/km. Peugeot is known as a very reliable brand, citing how its 1950s and

1960s models are still running in Africa and Cuba in the 2010s, where Peugeot is called "the

lion".

Mission

Is to manufacture each day, vehicles that meet both the design teams’ expectations and

customer requirements while complying with cost targets and delivery deadlines.

Vision

Pursue useful technological innovations, whose design and implementation reflect and skills

of the workforce:

- Meet all economic, social and environmental responsibilities

 - Maintain relations, based on ethical values and trust-based dialogue with all partners.

EAST

1. PROTON Holdings – Malaysia

PROTON Holdings Berhad, (PHB; informally Proton) is a Malaysia-based corporation

active in automobile design, manufacturing, distribution and sales. Proton was established in

1983 as the sole national badged car company until the advent of Perodua in 1993. The

company is headquartered in Shah Alam, Selangor, and operates additional facilities at Proton

City, Perak. 'Proton' is a Bahasa Malaysia acronym for Perusahaan Otomobil Nasional

(National Automobile Company).

Proton was originally a manufacturer of rebadged Mitsubishi Motors (MMC) products in the

1980s and 1990s. Proton produced its first indigenously designed (though Mitsubishi-engined),

non-badge engineered car in the year 2000, and elevated Malaysia as the 11th country in the

world with the capability to design cars from the ground up.
Proton was originally owned in majority by HICOM, with minority stakes being held

by Mitsubishi Group members. By 2005, Mitsubishi had divested their stake in Proton

to Khazanah Nasional, and in 2012, Proton was fully acquired by DRB-HICOM.

Proton, predominantly reliant on its domestic market, is presently undergoing a transformation

process as part of a long-term turnaround plan, with hopes of returning to profitability and

regaining an international presence. Proton's tie up with Geely is expected to put the company

back on track with the introduction of the much-awaited SUV named Boyue touted to go on

sale by end of 2018.

Mission

Continuously Create Innovative Processes, Products, & Services that win people’s hearts and

minds.

Vision

A leading Global Mobility Solutions Provider.

2. HONDA Motor Company – Japan

Honda Motor Company is a Japanese publicmultinational conglomerate corporation primarily

known as a manufacturer of automobiles, aircraft, motorcycles, and power equipment.

Honda has been the world's largest motorcycle manufacturer since 1959, as well as the

world's largest manufacturer of internal combustion engines measured by volume, producing

more than 14 million internal combustion engines each year.[4] Honda became the second-

largest Japanese automobile manufacturer in 2001. Honda was the eighth largest automobile

manufacturer in the world behind Toyota, Volkswagen Group, Hyundai Motor

Group, General Motors, Ford, Nissan, and Fiat Chrysler Automobiles in 2015.

Honda was the first Japanese automobile manufacturer to release a dedicated luxury

brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda

also manufactures garden equipment, marine engines, personal watercraft and power

generators, and other products. Since 1986, Honda has been involved with artificial

intelligence/robotics research and released their ASIMO robot in 2000. They have also

ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and

the Honda HA-420 HondaJet, which began production in 2012. Honda has three joint-

ventures in China (Honda China, Dongfeng Honda, and Guangqi Honda).

In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in research and

development. Also in 2013, Honda became the first Japanese automaker to be a net exporter

from the United States, exporting 108,705 Honda and Acura models, while importing only

88,357.

Mission

A dynamic growth oriented company through market leadership, excellence in quality and

service and maximizing export, ensuring attractive returns to equity holders, rewarding

associates according to their ability and performance, fostering a network of engineers and
researchers ensuing unique contribution to the development of the industry, customer

satisfaction and protection of the environment by producing emission friendly green products

as a good corporate citizen fulfilling its social responsibilities in all respects.

Vision

Market leader in the motorcycle industry, emerging as a global competitive centre of

production and exports.

3. HYUNDAI – Korea

Hyundai Motor Company is a South Korean multinational automotive manufacturer

headquartered in Seoul, South Korea. The company was founded in 1967 and, along with its

32.8% owned subsidiary, Kia Motors, and its 100% owned luxury subsidiary Genesis

Motors, altogether comprise the Hyundai Motor Group. It is the third largest vehicle

manufacturer in the world.

Hyundai operates the world's largest integrated automobile manufacturing

facility in Ulsan, South Korea, which has an annual production capacity of 1.6 million units.

The company employs about 75,000 people worldwide. Hyundai vehicles are sold in 193

countries through some 5,000 dealerships and showrooms.

Mission

To create exceptional automotive value for our customers by harmoniously blending safety,

quality and efficiency. With our diverse team, we will provide responsible stewardship to our

community and environment while achieving stability and security now and for future

generations.

Vision

Our Team provides value for your future.

4. Great Wall Motors – China

Great Wall Motors Company Limited is a Chinese automobile manufacturer headquartered

in Baoding, Hebei, China. The company is named after the Great Wall of China and was

formed in 1984. It is China's largest sport utility vehicle (SUV) and pick-up truck producer. It

sells passenger cars and trucks under the Great Wall brand and SUVs under the Haval brand.

In 2016, Great Wall Motors set a historical sales record of 1,074,471 cars worldwide,

increased by 26% compared to 2015.

Mission

To maintain the highest Customer satisfaction levels within the market standards by

supplying Products and Services that suits our market and customer expectations.

Vision

To be the pioneers in each sector we operate in.

Why mission and vision statement are important to manufacturing strategies?

It has been found in studies that organizations that have lucid, coherent, and meaningful

vision and mission statements return more than double the numbers in shareholder benefits

when compared to the organizations that do not have vision and mission statements. Indeed,

the importance of vision and mission statements is such that it is the first thing that is

discussed in management textbooks on strategy.

Importance of Mission

The mission is a statement that helps employees and customers understand why the company

exists. You might have a mission that's similar to that of other companies in the same market,

such as providing pizza to local customers. Or, your business could have a unique mission,

such as selling a one-of-a-kind product that customers can't buy anywhere else. Update the

mission when your company shifts away from current product or service offerings to new

markets. It's important to keep the mission at the focus of organization strategy so you aren't

wasting resources on extraneous business activities.

Importance of Vision

Employees may understand the mission of your company, but the vision will also link the

mission to strategic business goals. A well-written vision will frame those strategic goals in a

meaningful context, explaining to employees why those goals are good for business. For

example, your vision may be to become your region's most preferred source for home-

delivered pizza. Some businesses will use the strategic goals as long-term targets and will

also describe their business model in more general terms. The final strategy is a roadmap for

the staff, and they should work towards the business goals incrementally to attain your vision.

Why is it important to have manufacturing strategies?

1. Even the smallest amount of waste per item or time adds up incredibly fast when

you take into account the sheer numbers and volume of what is being

manufactured. For example, whether it is the manufacturing of one million

wingnuts a day or twenty vehicles, waste means money. Let's say you make one

million wingnuts a day. On each wingnut, due to no strategic plan, you or your

employees spend 3 seconds more than they should or need to spend on it. 3

seconds does not seem like much, but 3 million seconds times 7 days a week times

52 weeks a year, times the number of years you are or plan to be in business can

be thousands and millions of dollars being wasted. The numbers do not have to be

this large for the principle to stay the same. Any wasted time or material is wasted

money. A strategic plan can help to eliminate waste, streamline efficiency, and

thus mean larger bottom lines.

2. While waste is a big issue, quality is even bigger. If you have a strategic plan it is

like setting up a checks and balances system. Nothing moves forward until it is

complete, which means, the job is done. You do not have waste, but you also do

not have dissatisfied customers because things are done poorly or incorrect.

3. A plan gives people a goal and something to work toward. Working just to work is

not common. However, working toward something, and having an end game is

motivation. While for many their motivation is a weekly, biweekly, etc. paycheck,

showing that person how they fit in your overall plan, and how if they don't fit,

they don't get paid becomes motivation inspired by a strategic plan.

There are tons of reasons why having a manufacturing strategic plan is critical to

your business. Bottom line, without one you waste time, energy, and money; three

things no one wants to waste.

CONCLUSION

Manufacturing strategy can be considered as an approach to improve the performance of a

company. Manufacturing strategies that were used by the eastern companies can be perceived

as LM (TPS), which focuses on the customer rather than the product. LM encourages

production of a variety of products at low volume, but results in higher total volume. Eastern

companies also empower employees to make decisions and continuous improvement thus

providing them a share in responsibility. They emphasize adaptability and flexibility to

eliminate waste and add value to the manufacturing process in the long term.

In contrast, the western companies is concerned with production of high volume of a

standardize product. The westerners usually utilize the long moving assembly line and push

system. The hierarchical and decision-making among low-class workers enabling the

management to assume full responsibility. Manufacturing in west involves the mass markets,

standard designs and the utilization of interchangeable parts to achieve high volume of

production.

Different manufacturing strategies exist because of the unique work practice and

cultural characteristics of east and west. Integrating the advantages between east and west

will be a challenge that if conquered would result in the improvement of manufacturing

strategies.
REFERENCE

1. https://en.wikipedia.org/wiki/Ford_Motor_Company

2. https://corporate.ford.com/company.html?gnav=footer-aboutford

3. https://en.wikipedia.org/wiki/Peugeot

4. https://www.bartleby.com/essay/Proton-Holdings-Berhad-Company-Vision-Mission-

Critique-FK2FZE3VC

5. https://en.wikipedia.org/wiki/PROTON_Holdings

6. https://en.wikipedia.org/wiki/Honda

7. https://www.atlashonda.com.pk/vision-mission/

8. https://www.hmmausa.com/our-company/vision-mission/

9. https://en.wikipedia.org/wiki/Hyundai_Motor_Company

10. https://www.managementstudyguide.com/importance-of-vision-and-mission-

statements.htm

11. http://www.greatwalljordan.com/company/index.html

12. https://en.wikipedia.org/wiki/Great_Wall_Motors

13. http://businessknowledgesource.com/manufacturing/the_importance_of_having_a_ma

nufacturing_strategic_plan_021626.html