Manufacturing strategy: A study of machine tool companies in the UK

This paper describes findings from an empirical study carried out in a group of small to medium sized companies within the U.K. machine tool industry. Notions of manufacturing strategy are discussed and a contingency model of change within production systems is proposed. Based on the model, a research programme is described, the object of which was to determine why firms adopt particular production systems, under what conditions these are changed, and the criteria and procedures which are used. A focus for change is taken to be the make-or-buy decision. The results showed that the key criteria used by the firms in their evaluations were: capacity, utilization and process capability (technology). From the study, it is concluded that response to change was largely based upon operational considerations and that the firms lacked a framework for reviewing the strategic implications of their decisions. Hence, the need is argued for a methodology whereby firms can establish consistent functional strategies, with the plans and policies to achieve them.