Learning objective

The aim of this module is to support SMEs’ managers in mainly manufacturing companies to better plan and manage their production strategies. The basic elements of innovative production strategies are discussed and presented in a structured way to support you to make reasonable decisions according to your company’s needs. The complexity someone meets in a real manufacturing context as well as several peculiarities related to the product, the sector, the method, etc suggest that you should always adopt the theoretical models presented here to meet your needs. After reading the component you will be aware of:

  • The importance of having a production strategy
  • Some basic elements on how to make decisions about production
  • The three decision making levels (strategic, tactical, operational) in production units. The estimated time to go through this module is about 40 minutes.


The following text provides an SME production manager with the proper framework for better decision-making in the production context. There are a big number of different production methods and technologies available and each of them should be used and carefully applied by the manufacturing companies according to their special needs, type of product, production capacity, etc.

In addition if you consider the complexity and scale of modern process manufacturing facilities, which can include massive process units outfitted with a variety of rotating and stationary equipment, plus large inventories, continuously changing demand models, etc it is easily concluded that decision-making in a production context is basically managing the difficulties associates with coping with a large range of diverse internal and external factors. Therefore, in this innovation guide, we decided that European SMEs should have a reference point on how to focus their managerial activity and their attention to implement better production strategies. You should also remember that most of production strategies are supported by sophisticated software programs such as MRP, MRPII, ERP, etc.

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