Implementation of new manufacturing technologies and quality management systems in the Thai automotive industry

Abstract

In the Thai automotive industry supply chain, customer companies expect varying product specifications, higher manufacturing process flexibility and effective management practices for ensuring quality. ISO/QS9000 is the most popular quality management system (QMS) used in this industry. However, management is unable to fulfil all customer needs and expectations with conventional technology. Thus companies need to review their manufacturing processes strategically with a view to introducing new manufacturing technologies (NMT). This paper examines the strategic use of NMT by the Thai automotive industry. Three research questions are explored: (1) how does the concept of QMS affect the need for implementing NMT? (2) how does the presence of QMS affect the implementation process of NMT? and (3) how does the adoption of QMS help for the successful implementation of NMT? This study is based on (1) direct interviews with managers of 20 companies that have adopted NMT, and (2) a mailed questionnaire survey of 625 automotive manufacturing companies in Thailand. The samples represent a variety of NMT and manufacturing processes including assembly, machining, and fabrication. Using descriptive statistical analysis, the study concludes that the companies who have adopted a QMS and those that have not, differ in terms of motivation and process for implementing of NMT. Furthermore, NMT performance appears to depend upon adoption of a QMS; however, this could not be statistically validated. Finally, the study also identifies some of the problems that appear during and after implementation of NMT.