Co-ordination of Productivity Policies in Manufacturing Strategies

The formulation of productivity policies at the various levels of an organization can generate incoherence and confusion toward the achievement of the overall organizational objective. Even though each level may attain significant productivity gains, the overall productivity improvement from the total corporate effort may be insignificant. The issues involved in the coordination of productivity policies for maintaining congruency toward corporate goals are addressed. Recognition of the importance of the manufacturing function in corporate performance implies that improved productivity in manufacturing is a strategic commitment to enhance a firm's competitive profile. The design of productivity policies should take into consideration the interaction and interdependence of policy variables at the various organizational levels. Their dynamic relationship is better understood in holistic terms. The operating and enforcement procedures across horizontal and vertical levels of the organization should be based on this perspective. The experiences of two firms in developing an integrated productivity framework are briefly related. The implications of the discussion provide the rationale on which a broad framework for policy formulation and coordination is developed.