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Trade-offs? What trade-offs?

Author: Van Wassenhove, Luk N. ; Corbett, Charles J.INSEAD Area: Technology and Operations Management Series: Working Paper ; 91/25/SM/TM Publisher: Fontainebleau : INSEAD, 1991.Language: EnglishDescription: 20 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: The traditional view of manufacturing strategy is that manufacturing performance is measured along five clearly discernable dimensions: cost, quality, dependability, flexibility, and innovation. This performance depends on the firm's manufacturing strategy, which consists of a number of structural decision components (the "hardware" of a firm, its capacity, location, technology, and vertical integration) and infrastructural decision components (the "software", namely, human resource management, quality control, production planning and inventory control, information management, performance measurement, and organizational structure). For a long time, it was generally believed that the five competitive priorities should be traded off against one another -"quality requires a cost premium" and "flexibility hurts dependability". This paper revisits the competitive priorities, puts them in a different perspective and suggests an alternative dynamic framework for explaining sustainable manufacturing excellence
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The traditional view of manufacturing strategy is that manufacturing performance is measured along five clearly discernable dimensions: cost, quality, dependability, flexibility, and innovation. This performance depends on the firm's manufacturing strategy, which consists of a number of structural decision components (the "hardware" of a firm, its capacity, location, technology, and vertical integration) and infrastructural decision components (the "software", namely, human resource management, quality control, production planning and inventory control, information management, performance measurement, and organizational structure). For a long time, it was generally believed that the five competitive priorities should be traded off against one another -"quality requires a cost premium" and "flexibility hurts dependability". This paper revisits the competitive priorities, puts them in a different perspective and suggests an alternative dynamic framework for explaining sustainable manufacturing excellence

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