Global manufacturing : study of company integration within a country : a thesis presented in partial fulfilment of the requirements for the degree of Master of Technology in Production Technology at Massey University

Abstract

A number of studies on Global Manufacturing Practices and the establishment of global company integration based on the similarity of practices among countries or regions have been conducted in the past. However, very few studies have been conducted on the integration of companies within a country. This study, using a survey approach, investigates an integration method based on Global Manufacturing Practices data collected from small and medium manufacturing companies in Indonesia. The development of successful joint ventures, integration, and other forms of collaboration depend on the ability to successfully integrate the production activities (Gyula Vastag, 1993). Global Manufacturing Practices developed by D). Clay Whybark, describe methods to examine the aspect of manufacturing activities based on the compatibility index (i.e. manufacturing practices) among participating companies around the world. The measurement of compatibility developed in his study is based on the data compiled by the Global Manufacturing Research Group (GMRG). Several comparisons, primarily based on statistical analysis, are helpful in understanding differences in manufacturing practices. Using the Global Manufacturing Practices survey, the study examines the participant perceptions of the manufacturing practices within their companies. The survey subjects are small and medium manufacturing firms (SMEs) from different regions of Indonesia. In addition to making general conclusion about manufacturing practices, the research proposes suggestions for development of integration based on measurements of the compatibility index of manufacturing practices relative to the Polman1

Politeknik Manufactur Bandung (Bandung Polytechnic for Manufacture), an Educational institution (see chapter 4). base region. The study evidence indicates the following major finding: • Hie participating companies indicated that a manufacturing activities database of Global Manufacturing Practices is an important knowledge resource and should be established on the basis of being clearly defined and accessible to all, including people outside the contributing companies. • To gain the most potential benefit, this data should be used for strategic planning prior to collaboration. The findings of the study suggest that a successful production activities integration process is dependent, to some degree, on the compatibility of manufacturing practices between collaborative parties. Further work, to confirm the suitability of the Compatibility Index for predicting actual compatibility, will be needed, but was judged to be beyond the scope of this thesis.