The formation of manufacturing strategy in small and medium sized brazilian companies

The present study is exploratory in nature and aims at achieving a better understanding of the formation of manufacturing strategy in small and medium size Brazilian manufacturing companies. An analytical tool (a matrix) is developed to help classify and analyze manufacturing strategy formation processes, and this matrix utilizes two main dimensions: the predominant direction (top down or bottom up) and the consideration (or not) of trade-offs between manufacturing performance criteria in the formation of manufacturing strategy. The proposed matrix is then applied in the in-depth analyses of four case studies of Brazilian medium size manufacturers. Conclusions are drawn and hypotheses formulated as to how small and medium size Brazilian companies form their manufacturing strategies in terms of (a) definition of competitive priorities, (b) establishment of performance objectives for the manufacturing function, (c) ranking - in terms of priority - of manufacturing improvement programs and (d) definition of manufacturing effectiveness indicators. Some hypotheses are formulated, among which that there may be a correlation between the level of emphasis on bottom-up manufacturing strategy formation and the level of contribution that manufacturing brings to the company's competitiveness.