Manufacturing Strategy
Spring 2001
Second revision of syllabus
Prof. Don Rosenfield: E40-419, 253-1064, e-mail: donrose@mit.edu
Teaching Assistant: Melissa Falkowski, Office TBD, mfalkow@mit.edu
Manufacturing strategy examines strategy for manufacturing and operations within the firm. The course will examine how manufacturing and operations can be used as competitive weapons. Traditionally, these areas have been viewed as narrow, functional areas, and management of them was based on some simple criterion such as cost minimization. In recent years, managers and business observers have understood that manufacturing and operations have to be managed in the broader context of business strategy. In this sense, decisions on manufacturing capabilities must fit and be consistent with the business strategy. Furthermore, decisions about different areas of manufacturing must be consistent with each other. Choices about facilities, capacity, vertical integration, process technology, control and information systems, sourcing, human resources, organization and other areas are all strategic choices that significantly affect what the business brings to the marketplace. The course will examine how decisions in these areas can be made in a coherent manner. We will also explore operations in general and not just in a manufacturing environment.
Beyond integration of manufacturing decisions with business strategy, manufacturing and operations strategy emphasize the concept of leveraging manufacturing and operations. Using the broad notion of operations, a company's strength in manufacturing or operations can gain a significant competitive advantage. Such an advantage can accrue through superior product development, cost, quality, features, etc.
The course will be divided into five parts. In the first part, we will examine general concepts such as competitive leverage using manufacturing and operations, the fit of the various elements of