Quantification in manufacturing strategy: A methodology and illustration

Strategic decision-making is often based on conceptual and qualitative models. Considering the vast amount of quantitative models in the literature, it is most interesting and important to explore the possibilities to expand the modelling base for decision-making with quantitative models that can provide deeper analysis, new insights and allow for finer sensitivity analysis. The purpose of this paper is to explore various aspects of quantification in manufacturing strategy-related issues. We review current approaches to quantitative modelling and study how quantitative models are being used and can be used for strategic decision-making in manufacturing. We create a framework and methodology for quantitative modelling for manufacturing strategy, based on market requirements, manufacturing capabilities, manufacturing actions within decision categories, and quantitative modelling approach. The framework methodology includes seven stages of quantification, for the purpose of measuring, linking, comparing, and modelling. The aim of the paper is to provide a structure that can aid in the modelling of strategic manufacturing decisions to improve the capabilities to meet market requirements.