AN EMPIRICAL STUDY OF MANUFACTURING STRATEGY THINKING AND PRACTICES IN SINGAPORE

Abstract

Increased global competition, rapid technology changes and product differentiation present a new set of manufacturing challenges for firms worldwide. A more effective manufacturing function would be the prerequisite for meeting this new form of competition. Hence, the adoption of a strategic view towards manufacturing may be the first and important step in responding to this new set of competitive challenges. Manufacturing strategy is a concept based on the need for effective use of manufacturing strengths as a competitive weapon for the achievement of business and corporate success. It reflects the goals and strategies of the business and enables the manufacturing function to contribute to the long term competitiveness and performance of that business. Although much have been written on manufacturing strategy, only four empirical research on manufacturing strategy have been published to date. This academic exercise is undertaken to provide firsthand knowledge of the current status of manufacturing strategy thinking and practices among the local manufacturing firms. Specifically, this study seeks to assess the general attitude of production managers towards manufacturing; to investigate the understanding and practice of manufacturing_ strategy; and to assess the state of manufacturing effectiveness of the manufacturing companies in Singapore by adopting Hayes et al 's( 1988) framework of 4 stages of manufacturing effectiveness which represents the state-of-the-art thinking in manufacturing strategy. From the data obtained, three key findings can be deduced. Generally, the current thinking of the production managers are far from strategic. Although they do recognize that manufacturing can and should contribute to corporate planning, they view the role of manufacturing as merely reactive to other functional areas. Secondly, the concepts of manufacturing strategy is not well understood though most companies do have some forms of manufacturing strategy that support the business strategy. Thirdly, the stage of manufacturing effectiveness of the sample companies as a whole is between stages 2 and 3 but moving towards stage 3 indicating that the manufacturing function is moving towards providing better support for the overall business. The above findings suggest a widespread need for education of production managers in manufacturing firms on the concepts and practices of manufacturing strategy.