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Framework for Categorizing Manufacturing Operations PPT


This PPT slide, part of the 25-slide Manufacturing Strategy: Make vs. Buy PowerPoint presentation, presents a framework for categorizing manufacturing network operations based on their strategic value and performance. It features a two-dimensional matrix with "Manufacturing strategic value" on the vertical axis and "Performance" on the horizontal axis. The matrix is divided into 4 distinct categories: Core, Supporting, Secondary, and Marginal.

The Core category, located in the upper right quadrant, signifies operations that are both high in strategic value and performance. These are critical to the network's success and should be prioritized for investment and development. The Supporting category, adjacent to Core, also holds high strategic value, but may not perform as well. These operations are important, but may require enhancements to reach their full potential.

In the lower half of the matrix, the Secondary category indicates operations that have moderate performance, but low strategic value. These may not be essential to the core business, but still contribute to overall operations. Lastly, the Marginal category represents operations that are low in both strategic value and performance. These should be evaluated for potential divestment or restructuring.

The framework provides a structured approach for decision-making regarding manufacturing operations. It helps organizations identify where to allocate resources effectively, ensuring that high-value operations receive the attention they need while also recognizing areas that may be less critical. This categorization can serve as a foundation for guiding make-or-buy decisions, enabling companies to align their manufacturing strategies with overall business objectives.




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