Abstract:
A strategic plan is an essential part of the manufacturing process and can be considered from different perspectives, such as a market-based view or a resource-based view. This study investigates strategic planning in manufacturing from the resource-based perspective, which uses functional capabilities as determinants for manufacturing strategy. Automotive component manufacture is adopted for the case study. This includes both automobile and motorcycle component manufacture. Multiple regression analysis is used to describe statistically the relationship between the manufacturing strategies and the functional capabilities. The major finding of this paper is that capability in production or operations significantly influences all aspects of manufacturing strategy. The study also shows that functional capabilities carry extensive influence in strategic manufacturing planning as leverage points to help a company achieve its goals.
