The extended enterprise-a context for manufacturing

Today's manufacturing enterprises face tremendous competitive pressures. Global competition, together with market demands for customized products delivered just in time, place tremendous pressures on manufacturers. The emerging global economy is rapidly replacing local markets. The emergence of open markets, reductions in trade barriers, and improvements in transportation and communications links have led to a situation where local competition and markets operate in the context of global standards. This open infrastructure allows manufacturers to respond to these challenges by working more closely with their suppliers and customers, and by building extended enterprises across the whole value chain. Such extended enterprises present great challenges in terms of redesigning business processes to create a competitive advantage from the linkages they include. This paper describes the manufacturing philosophies currently in vogue. Any manufacturing or related business will need to use them, albeit tailored to its own circumstances, in one form or the other, to ensure its prosperity.