One of the more common problems in major product manufacturing companies is the alignment and collaboration of the marketing and sales function with the manufacturing function. Too often, they are not well aligned, resulting in sales of products that are difficult to manufacture, too many products that provide too little margin, products chasing market share that aren’t aligned with corporate strategy, or because of the timing, disrupt a previously agreed manufacturing schedule. The result, of course, is predictable relative to its impact on on-time, in-full delivery, cost, customer satisfaction, and market share over the long term.
In this session we’ll review a model for aligning the two functions, and three case studies on how companies have addressed this issue. Issues to be considered include: 1) a review of historical markets, product sales histories, and key customers; 2) an evaluation of strategic markets; 3) An understanding of “what wins orders” in a market; 3) The development of a product mix profile – historical sales quantities and gross margins; 4) Mapping the manufacturing capability into the markets and product mix profile; 5) An understanding of “what wins orders”; 6) A structured process for rationalizing product mix and manufacturing capability as needed; and 7) Based on this, refining and re-targeting marketing, sales, products, and manufacturing strategy. This will be followed by a discussion of the case studies.
We hope you enjoy this episode!
About the Author
Ron MooreContributing Host, RELIABILITY CONNECT
Author of 1) Making Common Sense Common Practice; 2) What Tool? When? A Management Guide; 3) Where Do We Start Our Improvement Program?; 4) Business Fables & Foibles; 5) A Common Sense Approach to Defect Elimination; 6) Our Transplant Journey; and 70+ papers
Authority on strategies and practices for operational excellence
Clients in North & South America, Australia, Europe, Asia, Africa,
Managing Partner of The RM Group, Inc. for 27 years
Prior to consulting – President of Computational Systems, Inc. (CSI)