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Management article
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Reference no. 78106
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1978
Length: 13 pages

Abstract

The structure and management of manufacturing should reinforce corporate priorities. The company''s "manufacturing mission" is to help the company do what it wants to without wasting resources in lesser efforts. Any shift in corporate strategy usually requires changes in both the infrastructure and facilities of manufacturing. Approaches to the design of an appropriate manufacturing system range from a "product- focused" to a "process-focused" organization. While simplicity of organizational design is important, both can be allowed to operate in the same company if the operations are separated to avoid cross purposes. The proper choice between these organizational types smoothes a company''s growth by lending stability to its operations.

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Abstract

The structure and management of manufacturing should reinforce corporate priorities. The company''s "manufacturing mission" is to help the company do what it wants to without wasting resources in lesser efforts. Any shift in corporate strategy usually requires changes in both the infrastructure and facilities of manufacturing. Approaches to the design of an appropriate manufacturing system range from a "product- focused" to a "process-focused" organization. While simplicity of organizational design is important, both can be allowed to operate in the same company if the operations are separated to avoid cross purposes. The proper choice between these organizational types smoothes a company''s growth by lending stability to its operations.

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