Manufacturing Strategy Process Research Articles

HUBUNGAN STRATEGI MANUFAKTUR DAN BUDAYA ORGANISASIONAL Suatu Studi Empiris Pada Perusahaan Manufaktur di Indonesia

This study investigates the possibility of a relationship between manufacturing strategy and organizational culture within manufacturing plants. Survey data were collected from 138 respondents in 16 plants. These plants included random samples of textile, beauty and pharmaceutical industries, which located in Jakarta, Bogor, Tangerang, and Bekasi areas. Al necessary data for this study were obtained from a questionnaire through a mail survey. The questionnaires were designed so that multiple respondents answered all perceptual ques- tions. The definition of manufacturing strategy in this study is primarily process-based, it does notinclude such content dimensions. Manufacturing strategy and organizational culture were found to exhibit a statistically significantrelationship within the plant. The analysis indicates that awell implementedmanufacturing strategy, which includes formal planning processes, com- munication of strategy, contribution to competitive position, and a long range orientation. It coexists with a dan oriented organizational cufture characterized by the use of groups and teams, low emphasis on hierarchy, and high level of loyalty and share plant-wide philosophy. This analysis suggests several implications regarding the manufacturing strategy process. First, itmay be necessary to involve mutiple decision makers at different organizational levels in the implementation of manufacturing strategy in order to help them to come up with the right decisions. Second, it may be useful to view culture as a mechanism, which controls the behavior of individuals by defining it certainly.

Withstanding the economic recession: Examining the efficacy of manufacturing strategy alignment and process integration

In this paper, through the lens of contingency theory, we examine how manufacturing strategic alignment and process integration affect manufacturing plant performance under two distinct environmental contexts presented by long-term macroeconomic instability. A large-scale dataset was specifically assembled for the purpose of this research investigation by combining plant-level survey data on practices and performance with secondary macroeconomic data for 14 countries from multiple sources. The results from multi-level regression analyses indicate that while manufacturing strategy alignment and process integration are beneficial for plant performance, they have distinct effects when the contingency factor, macroeconomic instability, is taken in consideration. Notably, when plants face high macroeconomic instability, process integration has a stronger effect on performance whereas in low instability environment manufacturing strategy alignment provides higher performance benefits. We discuss the theoretical and managerial implications of these findings and offer directions for future research.

An extended approach for manufacturing strategy process base on organization performance through Fuzzy QFD

This paper provides an extended model base on the Quality Function Deployment (QFD) framework to develop a manufacturing strategy process through linking manufacturing competitive factors with organization performance. Performance factors will guarantee alignment between manufacturing strategy and organization strategy. Performance analysis using entropy methods and the improvement ratio in all stages of this model is an advantage. A further advantage of model is the quantity control of correlation between manufacturing competitive factors, which causes factors to achieve higher rank such that their development will proceed the development of other competitive factors and increase the values of selected performance factors; similarly, quantity control of the correlation between manufacturing strategy decisions will increase effectiveness of this model in prioritizing manufacturing strategy development. The proposed model in this paper is implemented in an automotive rubber profile manufacturer in Iran. The results of application of the model are provided at the end of the article.

High strain rate compressive deformation behavior of an additively manufactured stainless steel

In this work the effect of manufacturing strategy and post process treatment on the high strain rate (HSR) compressive deformation behavior of additively manufactured powder bed fusion 17-4PH stainless steel is studied. Specimens were fabricated using three different laser vector path strategies to impart different thermal histories and resulting microstructures in the material. The effect of post processing in the form of hot isostatic pressing and heat treatment and their effect on HSR compressive deformation response of the material was studied. Defect characteristics were quantified using x-ray micro computed tomography. HSR behavior was characterized using split Hokinson bar testing at rates from 1000–4000 s−1. It was found that the laser vector strategy had a strong influence on the development of microstructure and defect characteristics and spatial distribution in the materials which strongly influence the HSR response and the HSR compressive flow stresses of the materials varied by as much as 43% in the regimes tested.

Manufacturing strategy process: the role of shop-floor communication

Purpose The purpose of this paper is to analyze the link between manufacturing strategy formalization and manufacturing strategy implementation, considering the potential moderating role of shop-floor communication. Design/methodology/approach Multiple linear regression models considering main and interaction effects of strategy formulation and shop-floor communication on strategy implementation were performed using data from the fourth round of the international HPM Project. This includes plants with more than 100 employees in the automotive, machinery and electronics industries from 10 different countries. Unlike other research studies, this research takes into account plant management’s and plant supervisors’ perceptions. Findings The findings show that formal strategic planning positively influences manufacturing strategy implementation. Furthermore, both feedback and instructive communication practices moderate the manufacturing strategy process, resulting in successful manufacturing strategy embeddedness, and prompt adaptation to change. Practical implications This study provides a better understanding of the manufacturing strategy process for scholars and practitioners. In addition, the results suggest that the adoption of some shop-floor communication practices can benefit firms through the strengthening of strategy implementation. Originality/value This paper provides empirical evidence to the emerging discussion on whether formal strategic planning helps to adopt a strategy or on the contrary make decision making inflexible.

Strategic consensus on manufacturing strategy content

Purpose– Strategic consensus between operators and managers is an important means to accomplish a successful manufacturing strategy (MS) process. Previous studies largely left out individual operators from this concept. Therefore, the purpose of this paper is to empirically examine the level of strategic consensus on the MS within the operations function, that is, the operators’ and managers’ perceptions of MS.Design/methodology/approach– Interviews were conducted with both operators and managers at three small- and medium-sized enterprises in Sweden. The MS dimensions were selected based on previous research; the data were analysed by using thematic coding.Findings– The study shows that the levels of strategic consensus on the MS vary among companies. Even when strategic consensus exists between operators and managers, their underlying reasons often differ. Furthermore, the levels of strategic consensus vary among MS dimensions. The companies’ usage of information-sharing channels, along with their size and position in the supply chain, can be important for the level of strategic consensus.Originality/value– This paper contributes to the body of knowledge in three ways. First, it expands the scope of the MS dimensions under study, thus offering a stronger, resource-based perspective on MS and strategic consensus than what earlier studies showed. Second, it goes beyond the management level by including both managers and operators as the unit of analysis. Third, compared to previous research, it focuses on a new context and is based on in-depth case studies.

The relationships between manufacturing strategy process, manufacturing-marketing integration, and plant performance: an empirical study of Korean manufacturers

The purpose of this study is to examine the interrelationships between manufacturing strategy process (manufacturing strategy formulation and manufacturing strategy implementation), manufacturing-marketing integration and plant performance. For this study, a survey was conducted on 221 manufacturers from the machinery, automotive and electronics in South Korea. Subsequently, the related hypotheses were tested using structural equation modeling. According to the results, positive relationships were observed between the manufacturing strategy process, manufacturing-marketing integration and plant performance. Specifically, manufacturing strategy formulation positively influenced both manufacturing strategy implementation and manufacturing-marketing integration. Further, not only manufacturing strategy implementation, but manufacturing-marketing integration also has a direct positive influence on plant performance. Although manufacturing strategy formulation does not directly affect plant performance, its influence on plant performance is transmitted through two paths intermediated by both manufacturing strategy implementation and manufacturing-marketing integration, respectively. In contrast to quite a number of studies focused on the manufacturing strategy content, there only exists a relatively small number of studies related to the manufacturing strategy process. Therefore, this study is one of the few broad empirical studies that investigated the interrelationships between manufacturing strategy formulation, manufacturing strategy implementation, manufacturing-marketing cooperation and plant performance using structural equation modeling. Furthermore, it also verified that the manufacturing strategy process can be a source of plant performance improvement.

Modeling and control of a direct laser powder deposition process for Functionally Graded Materials (FGM) parts manufacturing

Functionally Graded Materials (FGM) parts are heterogeneous objects with material composition and microstructure that change gradually into the parts. The distinctive feature of FGM structure gives the possibility of selecting the distribution of properties to achieve the desired functions. Today, multi-material parts manufactured with additive manufacturing processes are not functional. To move from these samples to functional and complex parts, it is necessary to have an overall process control. This global approach requires a control of process parameters and an optimal manufacturing strategy. This paper presents a process modeling and a system control to manufacture FGM parts with a direct laser deposition system. This works enable to choose an adapted manufacturing strategy and control process parameters to obtain the required material distribution and the required geometry.

Manufacturing strategy process and organizational knowledge: a cross‐country analysis

PurposeThis paper aims to analyze manufacturing strategy process (MSP) from a knowledge‐based view (KBV) of the firm. MSP considers the ways that manufacturing organizes its resources in order to create/strengthen manufacturing‐related capabilities. In this context, managers often are under pressure to find quick answers in highly complex environments. By viewing MSP as a knowledge creation process, managers may choose a company's objectives based upon previous experiences and knowledge. MSP addresses the level of planning and decision making related to building competitive operations capabilities over the long term.Design/methodology/approachA survey research was used to make cross‐country comparison. The constructs were empirically confirmed in both country samples, attesting to measurement invariance. The proposed model was tested in both samples and analyzed the differences between them.FindingsThe results suggest that knowledge is a key resource in MSP in both samples. Resource‐based orientation presents higher levels of influence over MSP in Brazil. In the Spanish sample the influence of external knowledge in MSP and market performance is more relevant.Research limitations/implicationsOne limitation of this study is that the Brazilian sample is located in a specific region and therefore some regional characteristics may be present. Another limitation was the use of a questionnaire in two different countries that was originally developed in a non‐native language.Practical implicationsAs a practical implication, manufacturing should seek to integrate the strategic process in order to be more responsive in dynamic environments.Originality/valueThe paper uses a cross‐country sample for scale validation, which is rare in management research. Manufacturing strategy process was analyzed from a knowledge‐based view, bringing new possibilities for academic studies. For managers, the paper highlights the importance of manufacturing developing a proactive role through knowledge integration in cross‐functional activities during the strategic process.

A study on the relation between manufacturing strategy, company size, country culture and product and process innovation in Europe

With the goal of contributing to the manufacturing strategy formulation discussion within international manufacturing networks, a set of data analyses were performed with the aim of empirically supporting conceptual approaches. This article presents the results of establishing correlations between four sets of data pertaining to 14 European countries. Six inter-relations are investigated between the datasets, pertaining to manufacturing strategy, distribution of company size, product and production related innovation and measures of culture of the countries. The analyses draw on empirical data, collected independently by EU organisms and within the International Manufacturing Strategy Survey (IMSS) IV consortium, with less than three years apart in date of collection. Hofstede’s (1980, 2001) measures of power distance, masculinity, individuality and uncertainty avoidance constitute the cultural measures considered. Pearson correlations resulted mostly in low levels of correlation, but considerable levels of determination were unveiled. These concern inverse correlations between rates of specific kinds of innovation in manufacturing companies and the percentage of large companies per country as well as the employment of a specific kind of manufacturing strategy. The results provide an overview of European specific dimensions of manufacturing and how they match each other, based on a recent time frame (2003 to 2005).

Linkages between manufacturing strategy, benchmarking, performance measurement and business process reengineering

An empirical analysis is presented for researching linkages between manufacturing strategy, benchmarking, performance measurement (PM) and business process reengineering (BPR). Although the importance of these linkages has been described in conceptual literature, it has not been widely demonstrated empirically. The survey research was carried out in 73 medium and large-sized Slovenian manufacturing companies within the mechanical, electro-mechanical and electronic industries. The resulting data were subjected to reliability and validity analyses. Canonical correlation analysis was used to test six hypotheses. The results confirmed the need for a strategically-driven BPR approach and the positive impact of performance measurement on BPR performance.

Manufacturing strategy auditing for garment making companies

PurposeTo illustrate the development and use of a manufacturing strategy audit tool for both assessing the current manufacturing strategy and for selecting appropriate alternative strategies with a view to implement benchmarks, specifically in garment making companies.Design/methodology/approachThe paper is a supplement to the existing literature on the process of manufacturing strategy. The methodology is mainly based on the generic frameworks proposed by Platts and Gregory and Skinner and involved the development of a manufacturing strategy audit tool through the use of manufacturing system models constructed for the purpose using the IDEF0 technique. An analysis of the manufacturing system models together with company surveys led to the compilation of data regarding poor, average and better practices within garment‐making companies. The developed audit tool is a compilation of extensive data with regards to these practices for comparison purposes and for setting strategic targets.FindingsThe manufacturing strategy audit tool has been used in five case study companies which have been selected on the basis of their turnover, size and products manufactured. Only one case study has been presented here, as an exemplar, to illustrate the appropriateness of the audit tool for identifying poor, average and good practices for each of the functional areas within the company. Moreover, the use of the audit tool as a guide for the formulation of alternative strategies is illustrated.Research limitations/implicationsThe use of the audit approach supported by manufacturing system modelling has been found to be very appropriate for manufacturing strategy formulation and analysis. The present research illustrates its relevance and importance in the garment‐making sector for benchmarking purposes among others. The use of this methodology needs further investigation in other sectors.Practical implicationsUse of the tool has shown promising results in the set of companies considered for the research. It is in fact seen as a vital instrument for garment making companies around the world, willing to achieve enhanced product competitiveness in an era of liberalised apparel trade.Originality/valueThis paper fulfils the needs of companies, which see the process of manufacturing strategy formulation and analysis as a myth. It adds to the literature on the process of manufacturing strategy. The novel methodology using the case study technique sets the foundation for all people involved in the organisation to work in teams for identifying areas of poor performance and while appreciating benchmarks within the sector, set targets for meeting better performance levels.

Organizational knowledge and the manufacturing strategy process: A resource-based view analysis

The current competitive environment is characterized by new sources of information, new technologies, new management practices, new competitors, and shorter product life cycles, which highlights the importance of organizational knowledge in manufacturing companies. We integrate some of those knowledge-based approaches seeking to understand how aspects related to cross-functional orientation, new technologies, and increasing access to information affect manufacturing strategy. In this paper, “know-what” (where to find the needed information) and “know-how” (how to run operations smoothly) are considered key components of organizational knowledge in the process of manufacturing strategy formulation. Assuming that knowledge accumulation may lead to competitive advantage, we propose a model of manufacturing strategy process from a resource-based view perspective. We used a survey to collect field data from 104 companies. The results indicate that cross-functional activities integrate manufacturing knowledge and contribute to the creation of valuable and rare product characteristics.

The content and process of automation strategies

If automation is to support the competitiveness for a manufacturing company, strategic as well as operational issues need consideration. To best support competitiveness, decisions concerning automation should be treated as one of several decisions in a manufacturing strategy. Furthermore, to fully utilize the advantages from automation, the manufacturing strategy content and process needs refinement. In this paper, improvement of the manufacturing strategy theory is suggested, mainly based on employment of human factors engineering.

The contribution of manufacturing strategy involvement and alignment to world‐class manufacturing performance

PurposeThe purpose of this paper is to explore links between the process of strategy formulation and subsequent performance in operations within firms.Design/methodology/approachAn in‐depth literature review on resource‐based and operations strategy naturally led to three hypotheses. These are then tested using evidence from field‐based case studies of manufacturing/assembly plants in the computer industry.FindingsThe research suggests that world‐class plants incorporate both strategic operations content and strategic operations processes, whilst low‐performing plants do not.Practical implicationsIt is argued that involving manufacturing/operations managers in the strategic planning process helps align manufacturing and business strategy, and this alignment is associated with higher manufacturing performance. This should be of interest to operations managers and strategists within firms.Originality/valueBy linking strategic alignment and the manufacturing strategy process to world‐class manufacturing practices and performance, this research adds a new dimension to the study of world‐class manufacturing and more generally to the best practices and practice‐performance debates.

The co-evolution of product, production and supply chain decisions, and the emergence of manufacturing strategy

In this paper, adopting the necessary evolutionary economics perspective, we investigate how manufacturing strategy emerges as a result of a coordinated search in the three correlated fitness landscapes of product, production and supply chain decisions. In a complex evolving systems view, product, production system and supply chain requirements, which are used to define manufacturing strategy performance objectives, are also thought to constitute, in a dialectic fashion, decision variables for achieving these objectives. Using a system dynamics simulation model of a resource-based view of operations-driven competition, we have investigated the effect of two contextual variables (underlying pattern of interaction among tasks/decisions, and limits of managerial ability), and three organisational structure ones (tasks/decision decomposition, incentives system, and degree of vertical hierarchy) on the efficiency and effectives of the overall manufacturing strategy process. The contribution of the paper is twofold: first, simulation results justify empirical views and provide new insights on the effect of organisation in the manufacturing strategy as an evolutionary process, and secondly, by combining complex systems science with the resource-based view of strategic management, it presents a novel methodological stance for investigating complex issues involved in this area.

A computerized knowledge management system for the manufacturing strategy process

This paper presents Co-MASS, a computerized knowledge management system for the collaborative development of manufacturing and operations strategy. The system supports the social and knowledge processes of collaborative strategy development by integrating a domain-specific modelling formalism based on the resource view of the firm, an associated structured dialogue scheme, an argumentation-enabling mechanism, and an efficient algorithm for the evaluation of alternatives. The competence-based manufacturing strategy paradigm behind its design rationale, its main elements, and a use case in a real setting are presented. Evaluation results provided positive feedback for the usability of the system, the discourse structure and the functionality of the user interface. The main contribution of our system lies in the integration of knowledge management, decision support and argumentation features, which constitutes a novel approach to develop manufacturing strategy.

Manufacturing flexibility and manufacturing proactiveness

PurposeImprovement of flexibility is among the top concerns of manufacturing managers, however, managers are advised to choose the appropriate types of flexibility needed in their plants. The purpose of this study is to investigate the effects of manufacturing proactiveness dimensions (manufacturing involvement, commitment to manufacturing technology advancements and multi‐skilled workforce developments, and manufacturing's integration with marketing and design functions) on three types of manufacturing flexibility (new product, volume, and product mix).Design/methodology/approachUsing the data collected from 108 motherboard manufacturers in Taiwan, this study develops valid and reliable measures of manufacturing proactiveness and flexibility. The study used multiple regression analysis to examine how different proactiveness dimensions link with specific types of manufacturing flexibility.FindingsThe study found that manufacturing involvement, multi‐skilled workforce developments, and manufacturing/design integration have significant positive effects on new product flexibility. Statistical results indicated that manufacturing technology advancements, multi‐skilled workforce developments, and manufacturing/design integration lead to better product mix flexibility. In addition, manufacturing involvement, manufacturing technology advancements, and manufacturing/marketing collaboration are determinants of volume flexibility. This research provides deeper insights regarding the impact of manufacturing flexibility upon the proactiveness programs.Research limitationsThis research focuses on the effect of manufacturing proactiveness only on external manufacturing flexibility. It does not address the issue of internal manufacturing flexibility. The use of a single indicator for the manufacturing flexibility measure may limit the generalization of the statistical results.Practical implicationsThese findings have two main managerial implications. With rigorous and comprehensive measures of proactiveness, investigations of its impact on competitive priorities (e.g. delivery, cost, and quality) are issues to be addressed in future studies of manufacturing strategy. Outcomes of the research also enable practitioners to implement the appropriate practices of manufacturing proactiveness based on the specific types of manufacturing flexibility which their plants require.Originality/valueThe uniqueness of this paper is twofold. It is the only empirical study to explore the relationship between manufacturing proactiveness and flexibility from the manufacturing strategy process aspect. This may inspire researchers to focus on other related process issues such as the effect of supplier or customer involvement on manufacturing flexibility. The study also generated five dimensions of manufacturing proactiveness that differ from previous empirical works which overlooked the critical factors of manufacturing/design integration and manufacturing/marketing collaboration. Future researchers and practitioners should be able to apply these results to study and assess related issues of manufacturing proactiveness more rigorously and precisely.

An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India

This paper presents findings of a survey on manufacturing strategy practices adopted by the Indian machinery manufacturing companies (IMMC). Based on the survey, three companies have been selected for detailed case studies. Their experiences in the manufacturing strategy process are analyzed. Although the companies represented diversity in terms of product type, sales volume, and geographic location, they share several commonalties including use of advanced manufacturing technologies and use of several improvement techniques. The process of strategy formulation varied among the companies in terms of participants, complexity and degree of formalization. Competitive priorities, order winners and critical success factors are also identified for these companies. Based on strategic manufacturing issues, manufacturing competence index and business performance index for the companies has been worked out.

The complexities of the manufacturing strategy formation process in practice

This paper describes case study research undertaken in six small manufacturing companies aimed at advancing the understanding of the manufacturing strategy formation process. Concepts and methods more commonly used in corporate strategy research are used to overcome the limited view of the manufacturing strategy process taken in existing operations management literature. The research concludes that manufacturing strategy is formed in a complex process involving a combination of deliberate and emergent actions and decisions. A unique set of internal and external contextual factors influences the manufacturing strategy process for each company. In particular, the interpretative processes of managers, individually and collectively, under the influence of individual managerial, cultural and political factors significantly affect the manufacturing strategy formation process.