1 March 2006                       www.strategosinc.com

What Is Manufacturing Strategy?

The Great Nuclear Fizzle At Babcock & Wilcox

This classic case study from Wickham Skinner describes the sea of troubles surrounding Babcock & Wilcox in the 1960's. These included high costs, delivery failures, technology problems, quality issues, labor troubles, lawsuits, personality conflicts and the suicide of a key manager. Skinner traces all of this to a single issue: B&W's failure to identify their "Key Manufacturing Task."

Manufacturing Strategy derives from the Greek word Strategos that translates as "the General's art". The word retains much of its original meaning: 

• Decisions and actions with long-term and wide-ranging consequences.

• Pinpointing vulnerabilities in the opponent's position.

• Exploiting resources and deployment relative to opponents.

• Using topography, and technology for advantage.

Manufacturing Strategy ensures a match, or congruence, between the company's markets and the capabilities of production. It addresses issues that include:

The Great Nuclear Fizzle also demonstrates why Lean Manufacturing should be tailored for each individual firm. An unthinking use of another company's (or even division's) Manufacturing Strategy is often dangerous. 

A version of this case study is available for free download on our website. It comes with new and expanded teaching notes. I hope you find The Great Nuclear Fizzle interesting and useful.

All the best from the Strategos team.

Quarterman Lee