Monday, August 27, 2012

Cost Leadership Strategy and Industrial Engineering

Industrial engineering with its focus on efficiency, productivity and cost reduction has an important role to play  in companies which have decided to compete on cost leadership. In these companies there is special emphasis on examining product as well as processes to identify inefficiencies and wastes and minimize resources.

Industrial Engineering curriculums must include an elective subject on developing strategy perspective in IEs especially in relation to the cost leadership strategy.


Investigating the tradeoff between cost leadership and differentiation
M.Sc these of Stockholm School of Economics

Term Paper on Cost Leadership - Tata Steel and Reliance Industries are covered in the paper - 2008

Cases Studies on Total Productive Management and Competitive Advantages

Li Chang-Chung, (Department of Industrial Engineering and Engineering Management, National Tsing Hua University, Hsinchu, Taiwan, ROC), Tsai Ping-Chen, (Department of Industrial Engineering and Engineering Management, National Tsing Hua University, Hsinchu, Taiwan, ROC)
Asian Journal on Quality, Vol. 2 Iss: 1, pp.106 - 116

Abstract: The purpose of business strategy is to achieve competitive advantages which includes higher efficiency, better quality, more innovation and faster customer response. In other words, the business strategy is to build unique capability of lower cost and/or differentiation. In production aspect, unique capability means better production power with better performance at 3M(Man, Machine, Material) of input and PQCDSM (Product, Quality, Cost, Delivery, Safety, Moral) from output. The Total Productive Management (TPM), a series of improvement activities focused on reduction of equipment loss, is a tool to establish business competitive advantages.

In this paper, several domestic companies who won the Japan TPM Award have been studied. It is found that there is a strong cause-effect relationship between TPM and competitive advantages because: (1) TPM can change employees mindset effectively; (2) TPM can upgrade employees capabilities; (3) TPM can lead to excellent productivity.

Achieving Cost Leadership - A Sustainable and Pragmatic Approach
Booz Paper

Cost Leadership Strategies

Leadership in Operational Excellence - Spencer Stuart

Business Level Strategies and Performance - Ph d thesis 1998

Cost Leadership - Leadership - Deloitte

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