ENGINEERING STRATEGY

Manufacturing Strategy of the Heritage Oil Plc



Manufacturing Strategy of the Heritage Oil Plc

Introduction

Wise planning, well-complied implementation, outcome production analysis and constant evaluation of the strategies are the four basic steps in order for a company to increase its annual or monthly production. However, it is important to note that these four stages or procedures are not as simple and easy as they may seem while discussing them in general scenarios (Wheel Wright, 1984, pp.80). There are a number of other factors that must be considered during all these four mentioned steps or stages. The Heritage Oil Plc is a company that currently faces a need of change in its manufacturing strategy. This is simply because the company wishes to increase its production thereby utilizing all the resources. The company is an independent gas and oil exploration and production organization and is known to be associated with the FTSE 250 Index. In addition, the company also has Premium Listing on London Stock Exchange. The Company also possesses Exchangeable Shares that are listed on the HOX (London Stock Exchange) and HOC (Toronto Stock Exchange). The Company is known to possess producing properties in countries including Russia and Nigeria, in addition to the exploration assets in Tanzania, Malta, Libya and Pakistan.

Discussion

For any smart company, it is essential to consider and acknowledge that a manufacturing strategy that can be regarded as optimal and smart depends solely on working out a slight equation, which involves the materials. This material goes into the product, and also the expected growth in the customer base (Sharma & Vredenburg, 1998, pp.733). These factors must be controlled and monitored constantly so that the logistics and manufacturing solutions can be both flexible and dynamic in order to meet all the ongoing variations and changes that occur in the market.

Objectives and Strategies

Since the last couple of years, the company has off shored or outsourced a few of its manufacturing operations. However, for most parts, one crucial important factor was the cheap oil. The very long supply lines were economically feasible and convenience simply because of the fact that the transportation costs were observed to be relatively low. It is obvious that the Heritage simply wished to solve all to problems of the company thereby focusing on decreasing the manufacturing costs. The important thing however is what ways the company adopted to achieve this aim (Wagner & Schaltegger, 2004, pp. 560). However, it is important to note that that the overall changes in the various political and economical factors in the overall market has resulted in change in the equation for the company. For one, the transportation costs and the crude oil prices have risen significantly. This change has made these factors far more essential to be considered as opposed to the inventory, the fixed facility costs and most importantly the overall Oil production by the company.

The next important thing to note that is that the basic aim of the company to date remains the ...