Four Types of Manufacturing Process Innovation and their Managerial Concerns

Abstract

Manufacturing process innovation (MPI), an organization-wide effort involving radical redesign of manufacturing related processes and systems to achieve dramatic improvements in critical manufacturing performance measures, encompasses various kinds of activities. Some MPI initiatives focus on technological innovation and others may intend to change work processes and organizations’ behavioral routines. Some organizations adopt new technological solutions or work methods that are externally available, while others may develop and adopt novel technologies or organizational routines which are new to the state of the art. Different focus in MPI initiatives requires different approaches and preconditions for achieving desired outcomes. However, MPI has been mostly treated as one type of innovation in literature and further classifications of MPI have not been made. This paper presents four types of MPI and discusses what managers can expect and prepare for each type of MPI. Basic strategic directions in terms of what type of MPI can be conducted at a specific organization is also discussed. The four types of MPI is developed through a literature review of various research fields, for instance manufacturing strategy, process innovation, organizational innovation, typology of innovation, and new product development.