MANAGEMENT

Engineering Strategy

Engineering Strategy

Summary of manufacturing strategy for SBU

Fine tubes limited are the market leader in metal tube industry and develop some of the most superior precision tubes. The company has been operating for over 65 years and has led to break through innovations. The company employees 377 staff members at present (Eatwell, 2009, p.6). The products which Fine tubes limited manufactures are seamless tubes and welded tubes. The seamless tube includes steel, nickel, titanium and zirconium alloys giving customers a variety to make choice from.

Even though the investigation in the area of manufacturing strategy, has significantly increased in the past few years. The competitiveness in the market has given rise to the strategic thinking at top level. The top management makes strategic plans and directs them to the managerial level where they provide guidelines to the lower managerial level to accomplish the task responsibly (Gaal & Fekete, 2012, p.54). The conventional thinking of top bottom approach has been shifted to bottom top approach in the 21st century.

The corporate executives are seeing the strategic planning from a new perspective to ensure that all the essential elements are gathered and then the strategy is formulated. However, manufacturing strategy formulation is not the only part of planning but proper execution is the real aim (Gaal & Fekete, 2012, p.54). It does not matter how exceptional the strategy is, the implementation on it must take place. Fine tubes limited have their own manufacturing facility based in England. The company has divided its operations into different SBUs which are Oil and Gas, Nuclear Power, Aerospace, Medical and High purity manufacturing. The manufacturing strategy has been developed for one of the strategic business unit of Fine tubes limited which is oil and gas tube.

The manufacturing strategy is based on the Terry Hill Model which is discussed in the main body of the report. The changing dynamics of the business manufacturing marketplace had made it complex for the companies to maintain their existence. Fine tubes limited being the market leader ensured that the future and present strategies devised have features of adaptability in them.

Process Choice

Choice of process

The two major product categories of Fine tubes limited are seamless pipelines and welded pipelines. The choice of process for the new manufacturing strategy for oil and gas SBU is following:

For seamless pipes

The raw material is converted into steel bars

These steel bars are moulded according to the specification provided by the customer

These steel bars are manufactured in different rolling machineries which are according to the finished good they want to sell

The tubes are then shaped into required diameters and thickness

For Welded pipes

During the process of producing welded pipes a high frequency electric current is transmitted to material to initiate fusion

The oil and gas tubes undergo two phases in the process which is inside and outside of the pipes.

They are further protected through oxidation allowing the large diameter pipes strength as they are produced from narrow plates.

Role of inventory

At present, Fine tubes limited does not stocks extra inventory, but they make sure smooth ...