Manufacturing Strategies and Decentralisation

Major decisions in manufacturing have often been treated as a management task. Investments and changes in manufacturing have become more complex in the last few decades. This implies that more functions and individuals have to be involved in the decision‐making processes. The final decision, when investments are made in manufacturing, is either the result of many decisions influenced by the individuals, or on the basis of advice from individuals who have no formal power to make decisions. To ensure that the decisions made are strategically connected, manufacturing strategies and goals have to be broken down to, and understood by, the functions and levels that influence the decisions. A study of 125 manufacturing units in Sweden shows that companies with a manufacturing strategy break down goals and strategies to lower levels than companies without a manufacturing strategy. The companies having a manufacturing strategy also plan manufacturing on longer terms, are more active in future plans and are less concerned about short‐term goals when they invest in manufacturing technology.