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A Service-oriented Manufacturing Strategy (1994)

Fry, Timothy D. ; Steele, Daniel C. ; Saladin, Brooke A.

Bingley : Emerald

International journal of operations & production management 14 (1994), S. 17-29

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ISSN: 0144-3577

Source: Emerald Fulltext Archive Database 1994-2005

Topics: Economics

Notes: Introduces the concept of a manufacturing strategy based on a serviceorientation. Traditional manufacturing strategies have often beendriven by cost minimization decisions and have encouraged theover-reliance by managers on inventories to satisfy demand. In today'sbusiness environment, a reliance on inventory is often not feasible.Suggests a reliance on capacity available to meet demand, as used by theservice industry. Such a strategy is in direct conflict with mostcost-accounting systems because of the absorption of overhead costsbased on direct labour. Proposes two alternatives for changing theaccounting system, to enhance the move towards the service-basedstrategy. Lastly, presents a case study of a US plant to illustrate theresults that a company adopting this approach should expect.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1108/01443579410067225

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