Effect of Key User Empowerment, Purchasing Strategy, Process Integration,Production System to Operational Performance (original) (raw)

The Impact of Employee Involvement and Empowerment in Lean Manufacturing System Implementation towards Organizational Performances

International Journal on Advanced Science, Engineering and Information Technology

Lean Manufacturing System (LMS) implementations in Malaysia's automotive industry has not been extensive in its expected reach, as extensive inquiries revealed it being adopted as a "pick-and-choose" system for certain processes or only upon determined levels within the industry. Current implementation strategy does not permit the industry to gain total benefits from the system itself. Undeniably, a few significant factors are being given less significance in multiple stages of LMS' execution. Employee involvement and employee empowerment have been identified as part of these contributing factors in a successful implementation of LMS in an organization. However, important criterion with its contributing aspects of these factors is not given the necessary attention, translating into a lamer impact upon companies embarking on a LMS deployment. This paper examines the impact of these two factors in the implementation of a lean manufacturing system towards achieving the organizational performances in the automotive industry. A questionnaire-survey was administered to gauge the impact of these two factors in an implementation process of a lean manufacturing system and later analyzing the effect towards their organizational performances. Data from 204 automotive parts manufacturers were gathered and analyzed. The correlation between the influencing factors, 5 lean activities and 6 organizational performances were measured. The results gained suggest that the integration between employee involvement and employee empowerment will be a valuable critical organizational capability impacting organizational performances towards the successful implementation of LMS in the Malaysian automotive industry.

The role of empowerment in improving internal process, customer satisfaction, learning and growth

Management Science Letters, 2020

The objective of this research was to identify the role of empowerment in enhancing Safeway Company's performance in Jordan using structural equation model (SEM). The authors used a predictive-descriptive strategy to determine Safeway Company's levels of empowerment. To evaluate the role of empowerment and performance, a questionnaire was designed and circulated. The data were examined using means, standard deviations, and multiple linear regression analyses. Empowerment and its dimensions from the Safeway company workers' viewpoint were ranked high in this survey. The performance level and its dimensions were also considered high from the Safeway company workers' perspective. Furthermore, the results suggest that both of the experienced groups showed significant differences regarding their empowerment's and performance perspective, meaning that employees with less than five years of job experience were more likely to perceive empowerment and performance, positively. In light of this result, the authors suggested the Safeway Company to increase and improve its performance to obtain customer satisfaction by encouraging employees to provide the company with feedback which improves the provided services to customers.

Integrated manufacturing, empowerment, and company performance

Journal of Organizational Behavior, 2004

There is controversy over whether integrated manufacturing (IM), comprising advanced manufacturing technology, just-in-time inventory control and total quality management, empowers or deskills shop floor work. Moreover, both IM and empowerment are promoted on the assumption that they enhance competitiveness. We examine these issues in a study of 80 manufacturing companies. The extent of use of IM was positively associated with empowerment (i.e., job enrichment and employee skill enhancement), but, with the minor exception of AMT, bore little relationship with subsequent company performance. In contrast, the extent of empowerment within companies predicted the subsequent level of company performance controlling for prior performance, with the effect on productivity mediating that on profit.

Organizational Culture and Employee Empowerment at National Strategic Manufacturing Companies

Proceedings of the 2nd Workshop on Language, Literature and Society for Education, 2019

The national strategic manufacturing companies have a great contribution to GDP. However, these developments and growth are very volatile towards a drastic decline in 2016. The purpose of this study is to know and analyze the influence of leadership, organizational culture, and job characteristics on employee empowerment at the National Strategic Manufacturing Companies in West Java. This research was conducted by using survey method with quantitative approach. The research was conducted on five national strategic manufacturing companies located in West Java, Indonesia, with a population of 879 leaders equivalent to lower managers and a sample of 274 leaders. Data were obtained from survey through questionnaires distributed to the leaders. Data were processed using descriptive statistical analysis and SEM analysis. The results show that organizational culture, leadership, and job characteristics have positive and significant influence on employee empowerment.

AN EXPLORATORY STUDY OF THE IMPACT OF PROCESS AUTOMATION AND EMPLOYEE EMPOWERMENT ON COMPETITIVE CAPABILITIES AND PERFORMANCE

Increasing market turbulence and customer sophistication compel companies to manufacture customised quality products in arbitrary order quantities, within short time scales without cost penalties. These competitive requirements are important for customer loyalty and long-term survival but they can eat deep unto profits. The solution to stable profits and long term survival therefore lies in further development of resource competencies and elimination of trade-offs amongst them. Two such resources are empowered employees and process automation. More importantly, the two should be complementary in their impacts. This is a means of eliminating trade-offs amongst manufacturing capability and performance measures. A literature review discusses the relationship amongst the concepts of employee empowerment, process automation, manufacturing capability and performance. The discussion of process automation focused on cellular layout of plants as a means of introducing a hybrid system of flexible and intelligent automation. A hybrid system enhances ability to cope effectively with varying machining, forming and assembly requirements of product families. Also, the discussion of empowerment focuses on training and teaming as the means of earning worker cooperation , involvement and commitment. The following variables were used in the study. Empowerment was measured by teaming spirit amongst individuals and functions, employee training and development, employees' commitment to their jobs and company, involvement, and autonomy over methods and tools. An assessment of the type of process automation was based on cellular design, range of automated processes, machine flexibility, machine intelligence and plant mobility. Manufacturing capability was valued in terms of low cost, quality conformance, dependability, speed, customisation, volume flexibility and new technology leadership. Finally, performance as gauged by sales turnover, net profit, market share, proportion of sales turnover from new products, customer loyalty and performance relative to competitors. In order to enable a compact analysis, the variables were reduced to ten factors using principal component analysis. The ten factors were used to propose a path model of expected relationships. The main hypothesis was that higher levels of process automation and employee empowerment result in higher levels of manufacturing capability and business performance. Multiple regression analysis was used to identify significant path coefficients, using a cutoff probability level of 0.10. Data analysis shows that empowerment and automation have positive impacts on manufacturing capability and business performance. However, out of twenty-four expected relationships, seven were significant at p< 0.05 whilst two others were significant at p < 0.10. However, the significant relationships have far reaching implications for research and practice. For example, factor analysis identified two dimensions of business performance-financial and market standing but the former was not significant. and therefore excluded from the results. This result is important in that most prior studies of this type tend to focus on financial performance measures alone. In addition, flexible automation and cost leadership were insignificant. Intelligent automation impacts on quality leadership and also bypassed manufacturing capabilities to exert a direct influence on performance.

Increased Competitive Advantage and Supply Chain Management Improve Company Performance (Case Study in Mild Steel Rollforming Companies in East Java)

KnE Social Sciences

This research aims to identify the impact of supply chain management to company performance and advantage of roll-forming light steel manufacture company in East Java. The data collection was done by submitting list of questions. The data was analyzed using path analysis. This research elaborates supply chain management variable (X1), company performance variable (Y1), and competitive advantage (Y2). Results of the path analysis show that there are 3 positive and significant hypotheses. The first hypothesis is that supply chain management brings significant impact to company performance. The second hypothesis is that supply chain management brings significant impact to competitive advantage, and the third hypothesis is that competitive advantage brings significant impact on company performance. VAF (Variance Accounted For) score for intermediary variable tends to be partial mediation. Keywords: supply chain management; company performance; competitive advantage

The Effects of Top Management Commitment on Operational Performance Through the Use of Information Technology and Supply Chain Management Practices

SHS Web of Conferences

The company's performance must be continuously improved to be able to face the increasingly fierce global competition. The improvement of the company's performance can be made by implementing supply chain practices. The implementation of supply chain practice is a policy set by the company's top management by making the system integrated. Integration of all functions, internally and externally, is done by using integrated information technology. This study takes data from companies in East Java, engaged in machinery that has a workforce of more than 100 people categorized as medium and large companies. Respondents were set on employees with a minimum of 2 yr of working experience and a middle manager position. There were 55 respondents in this study, with data analysis using partial least square (PLS) to test the research hypothesis. The result of the data processing found that the commitment of top management affects the supply chain practices and the use of information...

The effect of Supply Chain Management Practices and Supply Chain Integration on Information Technology, Innovation and Business Performance in the Manufacturing in the East Java

2023

The purpose of this study was to examine and analyze the significance of the influence of Supply Chain Management Practices, Supply Chain Integration, Information Technology and innovation on Business Performance in manufacturing companies in East Java. This study uses a survey research design to top management who is responsible for the operations of manufacturing companies in East Java Province, Indonesia on a large scale where the number is 1,231 companies based on data processed by the East Java Industry and Trade Office that received convenience facilities during 2020. Based on the Slovin formula, the research sample required a number of 93 respondents the data analysis technique in this study used Partial Least Square (PLS).

Implementasi Strategi Terhadap Supply Chain Management, Keunggulan Bersaing Dan Kinerja Perusahaan

Jurnal Soshum Insentif

This study aims to find out and analyze the influence of Strategy on Supply ChainManagement (SCM), Competitive Advantage and Company Performance. The research was conducted in a manufacturing company in Jababeka 6 Cikarang with employees as respondents from manufacturing companies. Sampling using purpose sampling technique. The sample used was 333 respondents. According to the level of explorations, this study is a causal associative type using a questionnaire measured by a semantic differential scale and analyzed using Structural Equation Modeling (SEM) AMOS 24. The results showed that the strategy had a positive effect on SCM (β = 0.780 p <0.05), SCM has a positive effect on competitive advantage (β = 1.035 p <0.05), competitive advantage has a positive effect on company performance (β = 0.734 p <0.05), SCM has a positive effect on company performance (β = 0.248 p <0.05), SCM has an indirect effect on company performance through competitive advantage as a mediation of 0.760.

The Relationship between Employee Empowerment, Team Work and Recognition on Company Performance: An Investigation In Malaysian Manufacturing Industry

In current globalization business competition scenario, every organization or company is striving to maximize it earning profits. This study attempts to explore the relationship between employee empowerment, team work and recognition which could potentially influence company performance. Company Performance is the main criteria for a company continue to growth, gain market place, success and survival in near future more or less affecting by the employee involvement and emotional commitment to the company. Through a survey, a total 84 companies representing various industries in Northern Region of Malaysia had responded. The hypotheses involved were tested using correlation and regression techniques. The results of the study support all the hypotheses. The multiple regression analysis indicates that there are significant relationships among the factors on each criterion to manufacturing capabilities.