Model of a strategic analysis of manufacturing: application of general planning and analysis process methodology

There is a real need for improved management processes to develop manufacturing strategies. The paper studies analysis as a part of the strategic planning process. In order to guarantee effective decision-making, the role of the analysis in the process of planning has to be understood. This phase of the planning process is not getting enough attention from practitioners. This results in decision-making for which quick jumping to solution-seeking is characteristic without appropriate determination of problems before hand. The purpose is to discuss the phases of strategic analysis of manufacturing which is the basis of manufacturing strategy formulation. The aim is to develop a model of process of analysis which will provide managers with a practical approach to improve their operations. Development of a model has to be based on the conceptual frameworks for strategic planning of manufacturing developed in the past theoretical work. Based on the differentiation between two levels of strategic decision-making, the role of strategic analysis in the process of strategic planning at business and functional levels is identified. By taking into account relations between strategic planning processes at both levels and relations between strategic analyses at both levels, we define the purpose and objective of strategic manufacturing planning and consequently the purpose and objective of strategic analysis of manufacturing.