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Slovak University of Technology
Faculty of Material Science and Technology in Trnava
Planning in
production systems
2. Management production
Strategy of company
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Resource of creation objective, strategic
measure planning and basic assumption
creation for business operation
It must be flexibly and momently updated
Elements of Strategy
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Conception of performance (products, services)
Conception of development and structural
change labour power and firm organization
Aspect of strategic management
of the manufacturing
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Conception of product / market – area
performance definition and basic market
determination
Conception of resources – resources and
definition of their goals
Conception of competitive position formation –
strategic intention definition from views
competitive advantage
Basic operational parameters of
strategic management:
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strategy of new products
strategy of new market
strategy of market channel
strategy of new technologies
construction of competitive priority
it is needed
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- to know development factors in surroundings and their
effect on own creation performance
- create assumption for realization of working
competition ability
Tactical management of the
manufacturing
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continuation of the strategic management
decision about
 products
 equipment
of production system
 organization of production system
Tactical targets
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minimize of variable unit production cost
 new
technology implementation
 modification of business size
 general improvement of product
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winning qualitative competition
Objective of tactical management of manufacturing:
new project of product system – system of
products
 new project of production system - system of
production
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New project of product system
The strategy of product policy:
 diversification
 innovation
 differentiation
 variation
 elimination
Support of analysis of production schedule:
 analysis
of product life cycle
 analysis of product portfolio
Conflict of interests between
marketing and production
PRODUCTION
MARKETING
cost minimization
TARGET
maximization of selling
simplification of
product advice
PLAN
maximum of variety
products
Prognostication, estimate of
necessity, application
of prognosis
prognostication
 forecasting
the future by science
 modification of uncertainties measure of
future development
 its result is prognosis – setting of qualitative
and quantitative parameters of future events
and the term of their creation
Basic methodological process of
prognosis creation
definition of prognosticate event and
selection of temporal horizon
 structuring of examined system
 data analysis
 creation of possible future of existent
system by the models and scenarios
 selection of strategy on reaching of
desired future
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Technology Forecasting
Techniques that reduce over-optimism and
provide more rigour:
 Extrapolative
planning… but only (a) if there
are trends to extrapolate and (b) you believe
that trends grow up and have baby trends that
look like their parents.
 Projective forecasting: use expert opinion to
forecast technological futures (e.g., Delphi
Method, prediction market).
The BCG matrix product
portfolio method
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Cash cows are units with high market share in
a slow-growing industry. These units typically
generate cash in excess of the amount of cash
needed to maintain the business.
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Dogs, or more charitably called pets, are units
with low market share in a mature, slow-growing
industry. These units typically "break even",
generating barely enough cash to maintain the
business's market share.
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Question marks (also known as problem
child) are growing rapidly and thus consume
large amounts of cash, but because they have
low market shares they do not generate much
cash. The result is a large net cash
consumption.
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Stars are units with a high market share in a
fast-growing industry. The hope is that stars
become the next cash cows.
The Delphi method
The Delphi method is a structured process
for consolidating the opinions of a group of
experts into a judgment on an issue,
usually about the future.
 a panel, a facilitator and a question
 research/brainstorm some answers
 panel comes to some conclusions using a
series of surveys with controlled feedback
Brief History of Delphi Method
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The Delphi method
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Developed by Rand
Corporation to assess impact of
technology on warfare.
Used for a variety of forecasting
studies, including technological
predictions.
Increasingly being used for
consensus building in policy
development, strategy planning,
etc.