Manufacturing Strategy at Sico

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Resume
 of
 case
 study:
 “Manufacturing
 strategy
 at
 SICO”
 
Sico
 is
 a
 paint
 producer
 company
 founded
 in
 1937
 in
 Québec
 city,
 Canada.
 The
  company
  manufactures
  paints
  and
  coatings,
  intended
  for
  protection,
  decoration,
  renovation
  and
  maintenance
  of
  consumer
  goods
  along
  with
  industrial
  products
  and
  equipment.
 
  In
  1993
  Sico
  is
  leader
  in
  architectural
  and
  industrial
  paint
  and
  had
  several
  facilities
  in
  Beauport,
  longueueil,
  St-­‐Hubert
  and
  Etobicoke.
  About
  85%
  of
  production
  ended
  for
  consumers,
  the
  remainder
  consists
  of
  specialized
  industrial
  products.
  Sico
  presents
  a
  three-­‐sector
  structure
  focused
  in
  Consumer
  products,
  Industrial
  products
  and
  related
  products,
  to
  achieve
  profitability
  above
  industry
  average.
  In
  the
  year
  of
  1994
 Sico
 is
 facing
 fierce
 competition
 in
 the
 market
 of
 paints
 and
 due
 to
 that
 and
 to
  solidify
  it´s
  competitive
  position
  the
  company
  must
  cute
  with
  costs
  and
  boost
  productivity.
  This
  measures
  must
  be
  taken
  quickly
  because
  the
  profitability
  is
  fluctuating
  wildly
  and
  is
  following
  below
  industry
  average.
  Sico
  sales
  have
  a
  greet
  dependence
 of
 Quebec
 market,
 which
 impossibilities
 the
 explore
 of
 new
 markets.
 
 

 

Important
 definitions
 to
 the
 case
 study:
 
v Operations
 strategy
 -­‐
 According
 to
 Schroeder
 Operations
 strategy
 is
 a
 vision
 for
  the
  operations
  function
  that
  sets
  an
  overall
  directions
  or
  thrust
  for
  decision
  making.
 This
 vision
 should
 be
 integrated
 with
 the
 business
 strategy,
 and
 is
 often,
  but
 not
 always,
 reflected
 in
 a
 formal
 plan.
 The
 operations
 strategy
 should
 result
  in
  a
  consistent
  pattern
  of
  decision
  making
  in
  operations
  and
  a
  competitive
  advantage
  for
  the
  company
  (1).
  Operations
  strategy
  consists
  in
  a
  functional
  strategy
  that
  involves
  decisions
  related
  to
  the
  design
  of
  a
  process
  and
  the
  infrastructure
  technology,
  sizing
  the
  process
  over
  time,
  the
  role
  of
  inventory
  in
  the
 process
 and
 locating
 the
 process.
 So,
 it
 can
 be
 viewed
 as
 part
 of
 a
 planning
  process
  that
  coordinates
  operational
  goals
  and
  serves
  of
  direction
  to
  realize
  all
  functions
  of
  an
  organization.
  It
  also
  defines
  general
  policies
  and
  plans
  to
  use
  resources
 of
 a
 company
 to
 better
 support
 the
 strategy
 of
 a
 competitive
 company
  of
  long
  term.
  Is
  typically
  driven
  by
  the
  overall
  business
  strategy
  of
  the
 

organization
  and
  it´s
  designed
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