MANUFACTURING STRATEGY PARADIGM: WORK METHODS ORIENTED CONTINUOUS IMPROVEMENT (KAIZEN) ON OPERATIONAL PERFORMANCE AND MANUFACTURING STRATEGY

Abstract

Continuous improvement (Kaizen) programs have evolved from traditional manufacturing focused systems that concentrate on the production line to reduce waste (Cost) and improve the product quality, into comprehensive, systematic methodologies that focus on the entire organization. Consequently, the main purpose of this study is to find the impact of Work methods oriented Continuous Improvement (WI) on Operational Performance and how does the application of the methodology (WI) vary with the manufacturing strategy focus of the organizations. Two cases from Garment industry were selected after conducting a pre survey. In year 2005 the quota for the industry has terminated and all manufacturers in the industry in developing countries have entered to an open competitive market. Thus, the risk of business has also increased. As a whole the major problem faced by every one is reducing the operating cost without damaging the quality of the product. The research design is a contrasted group, post-test design’ and the study is primarily quantitative in nature. The key source of data collection was a structured data sheet for a period of five years. Mean analysis, Regression analysis and Correlation analysis were used to analyze data. The study found that Work methods oriented Continuous Improvement approach positively correlated with operational performance and strategic focus moderate the above positive relationship. The study suggests that work method improvements are appropriate for quality focus organizations than cost focus organizations. Further organizational culture makes direct impact on operational performance.

Keywords: Continuous Improvement, Cost , Operational Performance, Quality, Work Methods Oriented Continuous Improvement

For full paper: fmscresearch@sjp.ac.lk