Production strategy decisions a simulation model approach

Model building in physical, statistical, simulation or other form, is making an increasing contribution to the problem solving methodology in economics, industry, government, and technological development (1). More specifically, in the present context, simulation models can offer a distinctive and valuable contribution to the understanding by management of complex business systems, interactions and environment and indicate ways toward improvement, financial and otherwise (2). The advent of powerful computers in the last few years is the decisive factor which has decided the means of realizing the full potential of simulation models, hitherto unattainable because of the vast amount of data processing and calculation required. The purpose of this article is to indicate the approach to and scope of a computerized simulation model for long term production strategy decision making (3). While the model relates to the system and data of a specific production unit, manufacturing electronic components, the principles are widely applicable in any size and type of company. It is not a specifically large company technique.     

New venture development at Du Pont

New Products are the life blood of a growing company, but traditional methods of introducing new products are no longer adequate. Du Pont is using a new approach called Venture Management. A New Venture Development provides an ideal environment for making and carrying out decisions involved in introducing new technological developments. It combines the advantages in mobility and communications enjoyed by a small venture-orientated company with the strong technical and financial advantages of a large company.     

Organizing the corporate planning function

A survey of corporate Planning in Britain suggests that the way the process is organized varies with the need of the firm. There appear to be two types of needs which foster the development of the planning activity—strategy development and co-ordination. In capital intensive companies, threatened by technological or market change, there is a need for reappraisal of the firm's overall strategy. On the other hand, in a large diversified firm the requirement may be to co-ordinate the plans of different divisions and departments, particularly investment proposals. This article suggests a framework for the analysis of these planning needs.