Manufacturing best practices in Malaysian small and medium enterprises (SMEs)

Purpose – The purpose of this paper is to investigate the current level of best manufacturing practices in Malaysian ISO 9000 certified small and medium enterprises (SMEs).Design/methodology/approach – The authors conducted a survey on 270 ISO 9000 certified manufacturing SMEs. Based on an extensive search of literature on performance requirements, eight areas were identified. Thus, the questionnaire was designed consisting of the eight areas which are management, human resources development (HRD), technology and product innovation, marketing strategy, quality, production process, supply chain management (SCM) and customer focus. Data were analysed using the SPSS software.Findings – The results showed that among the eight areas, customer focus is the most implemented area with the highest mean of 4.16, followed by quality (3.92), management (3.78), SCM (3.56), HRD (3.27), marketing strategy (3.05), production process (3.02) and technology and product innovation with a score of 2.95. The results showed tha...

[1]  Sanjay L. Ahire,et al.  Development and Validation of TQM Implementation Constructs , 1996 .

[2]  K. C. Chan Intelligent Corporate Strategy: Beyond World‐class Manufacturing , 1993 .

[3]  Valeria Belvedere,et al.  District's manufacturing performances: A comparison among large, small-to-medium-sized and district enterprises , 2006 .

[4]  J. Scott Armstrong,et al.  Principles of Marketing , 1999 .

[5]  Malaysia,et al.  Ninth Malaysia plan, 2006-2010 , 2006 .

[6]  Jim Todd,et al.  World-Class Manufacturing , 1996 .

[7]  John Naylor Operations Management , 1995 .

[8]  Melanie Older Gray,et al.  The use and effectiveness of benchmarking in SMEs , 2001 .

[9]  Dave Crick,et al.  Design and innovation strategies within “successful” high‐tech firms , 1999 .

[10]  Rosnah Mohd Yusuff,et al.  Manufacturing best practices of the electric and electronic firms in Malaysia , 2004 .

[11]  Elizabethann O’Sullivan,et al.  Research Methods for Public Administrators , 1994 .

[12]  Amrik S. Sohal,et al.  Comparing American and British practices in AMT adoption , 1999 .

[13]  M. Sadiq Sohail,et al.  TQM practices and organizational performances of SMEs in Malaysia: Some empirical observations , 2003 .

[14]  Wen‐Hsien Chen,et al.  The human side of total quality management in Taiwan: leadership and human resource management , 1997 .

[15]  U. Sridharan,et al.  Implementation of supply chain management and its impact on the value of firms , 2005 .

[16]  T. S. Raghunathan,et al.  The best commonly followed practices in the human resource dimension of quality management in new industrializing countries: The case of China, India and Mexico , 1999 .

[17]  Mario Bourgault,et al.  Linking manufacturing improvement programs to the competitive priorities of Canadian SMEs , 2003 .

[18]  Stanley B. Davis,et al.  Quality Management , 2005 .

[19]  Carlos Cordón,et al.  Lessons from the ‘made in Switzerland’ study: What makes a world-class manufacturer? , 1996 .

[20]  Mohamed Zairi,et al.  Benchmarking: The Best Tool for Measuring Competitiveness , 1994 .

[21]  Lawrence M. Corbett Benchmarking manufacturing performance in Australia and New Zealand , 1998 .

[22]  T. S. Ragu-Nathan,et al.  The best quality management practices in small and medium enterprises: an international study , 2001, Int. J. Manuf. Technol. Manag..

[23]  A. Kochhar,et al.  Manufacturing best practice and performance studies: a critique , 2002 .

[24]  P. Kotler,et al.  Principles of Marketing , 1983 .

[25]  A. Sohal Assessing manufacturing/quality culture and practices in Asian companies , 1998 .

[26]  S. Chopra,et al.  Supply Chain Management: Strategy, Planning & Operation , 2007 .

[27]  Benita M. Beamon,et al.  Measuring supply chain performance , 1999 .

[28]  Jaideep Motwani,et al.  Performance measurements in worldclass operations: A strategic model , 1995 .

[29]  A. Gunasekaran,et al.  The successful management of a small logistics company , 2003 .

[30]  Chris W. Clegg,et al.  Exploring human resource management practices in small and medium sized enterprises , 2002 .

[31]  D. Sinclair,et al.  Benchmarking best‐practice performance measurement within companies , 1995 .

[32]  T. Thiagarajan,et al.  An empirical analysis of critical factors of TQM: A proposed tool for self‐assessment and benchmarking purposes , 1998 .

[33]  Berend Denkena,et al.  Knowledge‐based benchmarking of production performance , 2006 .

[34]  Louis Raymond,et al.  Short‐term effects of benchmarking on the manufacturing practices and performance of SMEs , 2004 .

[35]  Soo Wook Kim,et al.  The effect of supply chain integration on the alignment between corporate competitive capability and supply chain operational capability , 2006 .

[36]  Thomas Lager,et al.  Success factors for improvement and innovation of process technology in process industry , 2002 .