In the past decade only, this management has gained a lot of the importance as before that the same was realised by the management of the organisation but the same was avoided at the various times under the pressure from the various other resources that needed to be done on the priority as compared to the management of the materials. It was after when the organisations realised that there was a large amount of the wastage that was taking place as at the certain point of the time the company or the firm was not at all knowing what all of the resources the organisation was having and all that was required to be purchased, the resources that the organisation was having were not being used as they were not in the knowledge of the firm and instead of all this, the products that were already present, were being purchased and all that were needed to be purchased were not being bought by the organisation. Hence in the other words it can be said that the organisation must be having the complete form of the knowledge of the various types of the materials that are with the organisation and all that needs to be purchased and all that need not to be purchased.

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Introduction
The present scenario in the manufacturing is that the amount of the capacity fat and the inventory fat present in the supply chains have been reduced a great deal by the various hard efforts put in by the competitive businesses in the last some of the years (nearly a decade). By this, the operational efficiency has also increased handsomely, along with the emergence of the lean and the responsive manufacturing strategy. Both these steps act as critical steps in the arena of competition and are also surely required for achieving the success in this arena.

But a very common observation among the various companies is that for the achievement of the full competitive status, the companies integrate its comprehensive business strategy to the manufacturing strategy. The distribution links with good free – flow are very much necessary for the business efficiency but a very important point to be kept in mind here is that these good, free – flowing distribution links play a very vital role towards the business efficiency, only when they have full support of the manufacturing process, that responds as needed to the changing conditions and factors.

The companies must possess the following in order to create a manufacturing strategy linked to the comprehensive business strategy and the process that is continuously aligned with the current requirements –
1. Applications and the technology for making a connection with the ‘plan – execute – sense – respond – learn’ operations, should be leveraged very intelligently.

2. Link the factory processes, production equipment and the factory systems to the supply chain operations.

Fat includes the inventory, capacity, labor and this fat drains continuously – as a result of this the companies in which the manufacturing capabilities are not able to respond quickly to the variable demands, ultimately become very vulnerable in the nature.

In the scenario existing today, the companies mainly prefer to integrate all of their manufacturing activities and then connect them with the comprehensive business strategy. It has been observed that the companies which are able to lead their peer groups surely show much faster asset velocities. This is called as the Return on Assets (ROA). The ROA can be referred to as the most important and essential performance indicator and also helps in the measurement of the manufacturing effectiveness. ROA is a direct function of the profit margin and the asset turns. There are mainly two types of the asset turns and these can be categorized as follows –

1. Fixed Asset Turns –
a. Refer generally to the machinery and the equipment on the shop floor.

2. Variable Asset Turns –
a. Refer to the inventory impacted by the manufacturing.
b. This inventory can be the raw material (RM), the finished goods (FG) or the work in progress (WIP).

Although a lot is said and some amount has also been done in the field of the manufacturing – but it is not that easy to produce stuff that is near to the real time demand and the driving forces that are responsible for the increase in the variability and ultimately that help in the achievement of the adaptive capabilities can be summarized as follows –

1. Fragmented manufacturing facilities.
2. Mass customization.
3. Shrinking the life – cycles.
4. Response velocity.
5. Zero defect quality.

Meaning of strategy
The concept of the strategy comes from the military, so usually it is said that it has been borrowed from the military and is used in the business.

First of all the strategies, like in the military, in business bridges the gap present between the policy and the tactics. Then both the strategy and the tactics work together and also help in bridging the gap between the ends and the means. Strategy is actually considered as a element present in a four – part structure, first are the ends that are to be obtained, second are the strategies for obtaining them, third are the tactics and the last are the resources.

According to George Steiner (a professor of management and one of the founder members of The California Management Review), a strategy is “that which the top management does and which is of great importance to the organization. Strategy refers to the basic directional decisions that are to the purposes and the missions. Strategy consists of the important actions necessary for the realization of these directions.”
So now strategy can be defined as the term referring to a complex web of thoughts, ideas, insights, experiences, goals, expertise, memories, perceptions and the expectations that are responsible for providing the general guidance for carrying out the specific actions in pursuit of the particular ends.

Key steps towards a Strategic Plan
1. The vision
a. Can be presented as a pen picture of the business in three or more year’s time in terms of its likely physical appearance, size, activities etc.

2. The mission
a. Depicts the nature of a business.
b. Indicates the purposes of the business.

3. The values
a. Governs the operations of the business.
b. Addresses the relationships with the society at large, customers, suppliers, employees, local community and also the other stakeholders.

4. The objectives
a. Decided in terms of the results that are required to be achieved.
b. Can relate to the expectations and the requirements of the entire major stake – holders.

5. The strategies –
a. Acts as the guidelines by which the mission, objectives etc may be achieved.
b. Can cover the business as the whole.
c. Can relate to the primary matters in the key functional areas.

6. The goals –
a. Act as the specific interim or the ultimate time based measurements to be achieved by implementing strategies in pursuit of the company’ s objectives.
b. Should be quantifiable, consistent, realistic, and achievable.
c. Can relate to the factors like market, products, finances, utilization etc.

7. The programs –
a. Set out the implementation plans for the various essential strategies.
b. Should cover resources, objectives, time – scales etc.

Manufacturing Strategy
In general terms, manufacturing strategy can be defined as the set of the co – coordinated objectives and action programmes that are applied to a firms manufacturing function and aimed at securing the medium and long term, sustainable advantage over that firm’s competitors.
Manufacturing strategy generally involves issues like the following –
1. Manufacturing capacity
2. Production facilities
3. Use of the technology
4. Vertical integration
5. Quality
6. Production planning/materials control
7. Organization
8. Personnel

Procedure for the formulation of the manufacturing strategies is
Hill Methodology –
a. Provides a connection between the different levels of the strategy making.
b. The first step involves the understanding of the long term corrective objectives of the organization.
c. The next step involves the development of the marking strategy in order to achieve the corporate objectives.
d. The third step is the translation of the marketing strategy into the ‘competitive factors’ which are further split into the ‘order winners’ and the ‘order qualifiers’.
e. The fourth step is the selection of the manufacturing process.
f. This selection depends on the volume/variety analysis ‘structural feature’.
g. The last step is selecting the ‘infrastructural features’ of the manufacturing process.

SWOT: Key to business strategies
SWOT stands for strengths, weaknesses, opportunities and threats and after building the picture of the company’s past aims and the achievements – SWOT analysis can start its operation in the framing of the business strategy.

1. Strengths
a. Are internal to the organization.
b. Relate to the resources, programs and the organization in the key areas.
c. R and D almost complete.
d. Basis for the strong management team.
e. Key first major customer acquired.
f. Initial product can evolve into range of the offerings.
g. Located near a major centre of the excellence.
h. Well – rounded and managed business.

2. Weaknesses
a. Are internal to the organization.
b. Over – dependent on the borrowings, insufficient cash resources.
c. Board of the directors is too narrow.
d. Lack of the awareness amongst prospective customers.
e. Also relate to the resources, programs and the organization in the key areas.
f. Need to relocate to the larger premises.
g. Absence of the strong sales/marketing expertise.
h. Over – dependence on few key staff.
i. Emerging new technologies may move market in the various new directions.

3. Opportunities
a. Are external to the organization.
b. Market segment is poised for the rapid growth.
c. Export markets offer a great potential.
d. The distribution channels seeking new products.
e. Scope to diversify into the related market segments.

4. Threats
a. Are mostly external to the organization.
b. Major Players may enter the targeted market segment.
c. New technology may make products obsolescent.
d. Economic slow – down could reduce demand.
e. Euro/Yen may move against $.
f. Market may become price sensitive.
g. Market segments growth could attract major competition.

Lean Manufacturing
Lean Manufacturing can be defined as the manufacturing philosophy, which plays a very vital role in the shortening of the time line between the customer order and the product shipment by eliminating the waste.
Objectives of the Lean Manufacturing can be summarized as follows –
1. To identify the waste elements in a system.
2. To apply value stream analysis to a complex engineering or a manufacturing system.
3. To implement 3 M’s in a complex engineering environment.
4. To be able to identify and then implement the 5 S’s of the lean.

Composition of the Lean Manufacturing can be summarized as –
1. Cells or the flexible assembly lines.
2. Broader jobs, highly skilled workers, proud of product interchangeable parts, even more variety.
3. Excellent quality mandatory.
4. Costs being decreased through the process improvements.
5. Global markets and the competition.

Elements of the Lean Manufacturing are –
1. Waste reduction.
2. Continuous flow.
3. Customer pull.
4. 50, 25, 25 (80, 10, 10) percent gains.

Benefits of the Lean Manufacturing are –
1. 50 % – 80 % reduction in the waste.
2. WIP
3. Inventory
4. Space
5. Personnel
6. Product lead times
7. Travel
8. Quality
9. Costs
10. Delivery

Lean Manufacturing analysis –
1. Value stream
2. Head count
3. WIP
4. Inventory
5. Capacity
6. New business
7. Supply chain

Tools of the Lean Manufacturing are –
1. Waste reduction.
2. Full involvement.
3. Training
4. Learning
5. Cellular mfg
6. Flexible mfg
7. Kaikaku
8. Kaizen
9. 5S
10. Jidoka
11. Poka – yoke
12. Shojimka
13. Teien systems
14. SMED

Introduction
Production activity control can be defined as the process which involves the co – ordination of the manufacturing resources – scheduled and controlled. Production activity control includes the various activities related to the scheduling, releasing and the tracking production orders and schedules and then reporting the materials and the resources used and the results of the production process. Production Activity Control involves the various plans associated with the action, reporting the results achieved and reviving the plans etc.

So it can be said that the Production Activity Control is responsible for the conversion of the plans into the actions by providing a much needed proper guidance.

With the help of the Production Activity Control, one can easily meet the timely completion of the various orders by starting the various operations in time as per the plan. Effective Production Activity Control is also responsible for meeting the delivery commitments. Production Activity Control acts as the modules of the MRP/ERP systems, and involves mainly four procedures – releasing, scheduling, monitoring, updating.

According to McMahon, a simple Production Activity Control architecture consists of the following five building blocks –
1. Scheduler
2. Dispatcher
3. Monitor
4. Mover
5. Producer

Functions of the Production Activity Control
1. Helps in the planning.
2. Helps in the execution of the plan.
3. Ensures availability of the resources.
4. Releases the shop orders.
5. Schedules start and completion dates of the jobs.
6. Collects required information for the shop order.
7. Helps in controlling the operations.
8. Establishes order priority.
9. Maintains order priority.
10. Checks actual performance.
11. Monitors and controls WIP, lead times.
12. Reports work center performance.

Role of the Production Activity Control
1. Manages the shop floor production task.
2. Controls the production work flow.
3. Aims achievement of the production plans.
4. Prepares the schedules.

The Production Activity Control cycle
Tasks of the Production Activity Control are cyclic in the nature as the Production Activity Control involves the execution of the work authorized by the release of the documents like the shop order to the shop. Here the planning is compared with the actual production. Production Activity Control helps in the scheduling jobs.

Scheduling and the loading techniques
1. Finite loading –
a. Involves the capacity constraint.
b. Assumes capacity to be finite at any work centre.
c. This type of loading is very realistic in the nature.
d. Planner can know in advance the jobs which can be completed and the jobs which cannot be accommodated.

2. Infinite loading –
a. Assumes the capacity to be finite at any work centre.
b. Capacity constraints are not taken into consideration.
c. Jobs are loaded on the work center without considering the adequacy of the capacity.

3. Forward scheduling –
a. Jobs are scheduled as soon as an order is received.
b. The completion date is evolved by the scheduling of the jobs at the work centers.
c. Due date is ignored while scheduling.
d. Release date is 1st.

4. Backward Scheduling –
a. Jobs are scheduled from end to start.
b. Last operation is scheduled first from the due date.
c. Scheduling continued to be done in the sequence of the operations till all the activities of the jobs are scheduled.
d. Release date is 2nd.