Austal Ships Pty Limited (ASPL) is a manufacturing company based in Henderson, Western Australia in Australia. It is a subsidiary of Austal Limited (AL) that happens to be the largest defence contractor in Australia and one of the largest worldwide. It is one of the shipbuilding and repairing sites. It has estimated staff strength of 519 employees, according to EBSCO company information. In this report, the corporate objectives of Austal Limited and ASPL’s strategy are evaluated according to their position in the market, the product range, sector trends, company’s competition and its customers. ASPL’s order winners and order qualifiers are identified and used to drive the manufacturing strategy. The proposed manufacturing strategy would be designed using the Terry Hill framework, showing decisions made on the process choice and infrastructure, as shown in table. 1. The proposed manufacturing strategy will later be compared to the deduced existing strategy of ASPL to indicate the benefits of the former over the latter. The implementation and communication issues of the proposed manufacturing strategy are addressed with relevant evaluation measure indicators proposed and discussed. Last, the analyses on the methods and tools to be used to ensure that the proposed strategy remains current within a dynamic environment.
Table of Contents
1. KEY
2. MANUFACTURING STRATEGY DOCUMENT
3. STRATEGIC BUSINESS UNIT - AUSTAL SHIPS PTY LTD
3.1 AL'S PROFILE
3.2 ASPL’S PROFILE
3.3 MARKET TRENDS AND COMPETITORS
3.4 ASPL'S PRODUCTS
3.5 ASPL'S CURRENT STRATEGY
4. AUSTAL SHIPS PTY LTD'S MANUFACTURING STRATEGY
4.1 COMPANY OBJECTIVES ANDMARKETING STRATEGY
4.2 ORDER WINNERS AND ORDER QUALIFIERS
4.3 MANUFACTURING STRATEGY
4.3.1 PROCESS CHOICE
4.3.2 INFRASTRUCTURE
5. COMPARISON BETWEEN PRESENT AND PROPOSED STRATEGIES
6. IMPLEMENTATION/COMMUNICATION ISSUES
7. STRATEGY EVALUATION MEASURES
8. STRATEGY TO IMPLEMENT IN CHANGING ENVIRONMENT
Objectives and Research Focus
This report evaluates the corporate objectives of Austal Limited and the manufacturing strategy of Austal Ships Pty Limited (ASPL) to optimize their market position. The primary research focus is to design a proposed manufacturing strategy using the Terry Hill framework, specifically addressing process choice and infrastructure to improve operational efficiency and competitiveness.
- Analysis of corporate market position, product range, and sector trends.
- Identification of order winners and order qualifiers to drive manufacturing decisions.
- Design of a robust manufacturing strategy using the Terry Hill framework.
- Comparison of proposed strategies against existing operations to indicate performance benefits.
- Development of implementation, communication, and strategy evaluation measures.
Excerpt from the Book
PROCESS CHOICE
The process type suitable for this is project process. This is so because it lies at the high customisation and low volume end of the process choice continuity. The sequence of operations involved is unique to each project made according to the customers’ requirements. Projects may seem similar however each is unique. This is the appropriate process because the products are big and not easy to carry about.it is a one – off and non – repetitive process as no two customers should require the same and exact ship.
Due to the size of the product, the order volume would be between low and medium to enable the use of infrastructure, equipment and labour thereby encouraging economies of scale. No flow, high flexibility with extremely low capital investment would exist. It also possesses high variable cost, labour content and skill. According to businesscasestudies.co.uk in 2016, working on single jobs as the project process involves, level of satisfaction is derived from coping with variety of tasks, small teams’ formation all working towards the same goal.
Summary of Chapters
STRATEGIC BUSINESS UNIT - AUSTAL SHIPS PTY LTD: Provides an overview of the organization’s corporate profile, market trends, and product portfolio within the defense shipbuilding industry.
AUSTAL SHIPS PTY LTD'S MANUFACTURING STRATEGY: Details the company’s objectives, defines order winners and qualifiers, and outlines specific manufacturing strategies including process choices and infrastructure requirements.
COMPARISON BETWEEN PRESENT AND PROPOSED STRATEGIES: Contrasts existing deduced strategies with proposed improvements to demonstrate potential gains in efficiency and operational performance.
IMPLEMENTATION/COMMUNICATION ISSUES: Discusses the human and organizational factors, such as change management and employee motivation, required to successfully implement new strategic initiatives.
STRATEGY EVALUATION MEASURES: Defines key performance indicators across corporate, business, and functional levels to track the success of the proposed strategy.
STRATEGY TO IMPLEMENT IN CHANGING ENVIRONMENT: Proposes methods like SWOT and PESTLE analysis for periodic review to ensure the strategy remains current and effective in a dynamic industry.
Keywords
Manufacturing Strategy, Austal Ships, Shipbuilding, Terry Hill Model, Order Winners, Order Qualifiers, Project Process, Just In Time, ISO 9001, Infrastructure, Market Share, Operational Efficiency, Strategic Management, Aluminium Vessels, Defence Industry.
Frequently Asked Questions
What is the core focus of this manufacturing strategy document?
The document focuses on evaluating and redesigning the manufacturing strategy for Austal Ships Pty Limited (ASPL) to enhance its competitive advantage and market share.
What are the primary thematic areas addressed?
The report covers organizational profiling, competitive market analysis, process choice selection, infrastructure planning, and strategy evaluation metrics.
What is the central research goal?
The goal is to develop a proposed manufacturing strategy using the Terry Hill framework that aligns with the company’s corporate objectives and operational needs.
Which scientific methods are employed in this analysis?
The study utilizes the Terry Hill Model (THM), BCG Matrix, SWOT analysis, and manufacturing assessment approach matrices to inform strategic decisions.
What topics are covered in the main section of the document?
The main section details the company's current and proposed strategies, including specific considerations for process choice, inventory management, make-or-buy decisions, and organizational structure.
Which keywords best describe the paper?
Key terms include Manufacturing Strategy, Shipbuilding, Order Winners, Terry Hill Model, and Operational Efficiency.
Why is a 'project process' chosen for ASPL's manufacturing?
It is chosen because ship manufacturing involves high customization, low volume, and unique requirements for every individual vessel, making it a non-repetitive production environment.
How does the proposed strategy impact the company's workforce?
The proposed shift to a matrix and post-bureaucratic structure encourages employee skill development, modern work practices, and improved communication regarding organizational goals.
- Quote paper
- Ibitayo Ajiboye (Author), 2016, Manufacturing Strategy for Austal Ships Pty Limited, Munich, GRIN Verlag, https://www.grin.com/document/441147
