Measuring the congruence between market requirements and manufacturing: a methodology and illustration

Measuring the congruence between market requirements and manufacturing: a methodology and illustration

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Article ID: iaor20083639
Country: United States
Volume: 28
Issue: 1
Start Page Number: 121
End Page Number: 150
Publication Date: Jan 1997
Journal: Decision Sciences
Authors: ,
Abstract:

This paper presents a measurement methodology, based on existing research in the manufacturing strategy and general strategy areas, for evaluating the congruence between market needs and manufacturing plant capabilities. The proposed methodology has several important advantages over current approaches. First, the methodology uses available data and statistical techniques to measure market–manufacturing congruence. As a result, it is not dependent on assumptions about ‘classic’ process choices. Second, the proposed methodology can evaluate the strategic fit between market needs and manufacturing in light of one or more performance criteria. Third, the methodology can be used to derive scalar measures of market–manufacturing congruence, allowing users to evaluate congruence for a large number of products, customers, or market segments. The theoretical basis, research objectives and major steps of the methodology are discussed, followed by an illustrative example from a North American manufacturer. Finally, the applicability of the methodology to a wide range of strategic manufacturing decisions is discussed.

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