Production models 4

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The quality strategy may look like old, but each time the gap between rich and poor is growing, a rebirth can occur. With time, these luxury products became more affordable for more people, sometimes because of a mix with another profit strategy.

The diversity and flexibility strategy

This is generally what we called the handcraft strategy. That was the strategy chosen by the firsts american manufacturers and the english producer before they got together to form British Leyland.

This strategy is working for either the whole product or just a particular piece or arrangement of the product. It is also profitable if you can react in term of costs, quality or quantity, conception or fabrication, faster than the opponent.

Because of the diversity, the scale economies are small, and because of the flexibility, the fixed costs must be small. Innovation is not mandatory and the cost reduction is a wrong direction as the most important is to be in harmony with the product, not with the price reduction.

Market, work and growth

The market must be heterogeneous instead of slightly changing from the low to the high panel of products.

The work must be flexible (the time of work is depending of the volume of the production). this is the case for the competitive growth forms: competitive and in competition and competitive and consumption for instance. The workers are always changing from one company to another, following the production, and they are creating organizations to defend their advantages.

The social conflicts are generally strong, as nothing is sure and the social identity becomes strong.

This strategy allow the market to grow up by proposing a product for each incomes or specific needs.

Shortly said

The products must be clearly attached to their own market, so they generally are only few pieces in common.

The production must be fast and with low costs, allowing production to change very quickly as often as necessary.

The conception teams are small and highly related to the production teams.

The fabrication can not use big immobilization of tool machines, which could slow the process.

The tools must be renewing fast and with few costs.

The less intermediary stocks, the better. And quick between each please.

The flexibilty comes from the workers first.

The salary must counterbalance the flexibility.

The taylor strategy : a diversity and flexibilty answer

Or let's change the usual cliché

Surprisingly, this strategy was not created for mass production...and is not synonym of rigidity and uniformity...

The goal is to reduce the deliberate slowing pace initiate by the workers to control the speed of the production. To do it, the pace is based on the speed of the chain production.

Taylor said that paid a worker with a salary based on the number of pieces and control the number of workers according to the production volume was a mistake.

He decides to pay his workers more! (30 to 100%) considering a good worker could be four time more efficient than a bad worker.

In exchange of a rising salary, the worker must follow the chain speed with a full efficiency...

Taylor thought than with an enginner, a couple of efficient worker and a precise clock, he could find a ''scientific'' way to create time optimization for each productions sequences that can get the best speed of production. It is important to precise he wasn't thinking about reconsidering the intelligency of the operations by splitting the operations to saturated the cycle time for example.

The woollard strategy

the woollard strategy is less famous. Instead of controlling the flux of the product in the fabrication, Frank woollard was controlling the flux of the components necessary for the production. the salaries were pieces based with particular or group bonus to allow the maunfacturer to control the volumes of production.

....to be continue