Development of Manufacturing Strategy- Influence of Technology orientation and Customer orientation: An Empirical Study Approach

Using survey data, this research identified the relationship between technology orientation (manufacturing flexibility and advance manufacturing technology), and customer orientation (customer focus and customer satisfaction) to development of manufacturing strategy. This framework is then tested on a sample of 52 firms in plastics injection industry, Taipei County, Taiwan. The results show significant relationships in the framework with four models. They support the argument found in the literatures that manufacturing strategy builds should related to technological development and market place. Implications of the findings are discussed. Introduction The firms that operate in developing, and industrialized countries, face many uncertainties when venturing into the modern global business environment, they should be able to survive and adjust to this continuously changing realm. More importantly, can they meet the challenge of strategically implementing, advanced manufacturing technology (AMT) in an flexible environment where the ability to adopt has become the manufacturing flexibility and therefore integrated into development manufacturing strategy (MS) and the information from the needs of customers. Today, throughout the 20 th century, management has embraced the mass production philosophy, and the factories have realized unprecedented gains in efficiency and productivity. Mass production insulates the factory from variability in customer demand, but it does so by categorizing customers and products and trivializing customer interaction [1]. Firms must now maintain a manufacturing strategy of customer focus and concentrate on those factors with provided value to customers included not only low cost, but also high quality, flexibility of product characteristics and dependability of supply [2], which is referred to the manufacturing competitive priorities of Hayes and wheelwright manufacturing strategy framework [3]. In order to clarify the manufacturing strategy, Swamidass [4] defined as the development and deployment of manufacturing capabilities in total alignment with the firm’s goals and strategies. Currently, the manufacturing strengths and weaknesses are critical factors in the determination of the most effective bases on which a company should attempt to compete in the marketplace or external information [5]. However, from a management perspective, Materials Science Forum Vols. 505-507 (2006) pp 883-888 online at http://www.scientific.net © (2006) Trans Tech Publications, Switzerland Online available since 2006/Jan/15 All rights reserved. No part of contents of this paper may be reproduced or transmitted in any form or by any means without the written permission of the publisher: Trans Tech Publications Ltd, Switzerland, www.ttp.net. (ID: 130.203.133.33-14/04/08,13:16:20) the manufacturing strategy still has attaining a high degree of manufacturing flexibility implies the commitment of a substantial amount of the organization’s resources such as AMT selection or implementation. Therefore, decisions made to adopt new manufacturing technologies and management practices are like to be associated with MS assessment. Williams [6] resulted on the manufacturing emphasis on technology orientation and market orientation provide consistent finding, both are the most significant variables dealt with an aspect of quality or manufacturing function. The fundamental design principles pursued throughout the research used a customerfocus approach. Similar to developing a market-oriented product to reflect customer needs in R & D, the manufacturing strategy workshop took shape by working closely with customers to explore and exploit their need/satisfaction, also contribute to the quality of the workshop as well as their commitment to the MS development process [7]. The main objective of this research is to determine what extend the impact of customer orientation and technology orientation to MS development. Figure 1. Presents the proposed theoretical model and associated hypotheses. The framework proposes that technology orientation (Manufacturing flexibility and AMT) and customer orientation (Customer Focus and Customer satisfaction) impact on MS. Hypothesis 1. Technology orientation is not related to MS development H1.1. Technology orientation is not related to Role of MS interact with external environment H1.2. Technology orientation is not related to Role of MS with worker participation Hypothesis 2. Customer orientation is not related to MS development H2.1. Customer orientation is not related to Role of MS interact with external environment H2.2. Customer orientation is not related to Role of MS with worker participation Research Methodology Data collection. The data for the empirical investigation of the model were obtained through a field study. Data were collected from participating firms predominantly via face-to-face interviews with vice president and executives/managers in charge of the manufacturing function from 52 selected plastics injection firms in Industrial Parks in Taipei county, Taiwan. Measurement instrument. Prior to data collection, the survey instrument was pre-tested for content validity in two stages. In the first stage, six experienced researchers were asked to critique the questionnaire for the ambiguity, clarity and appropriateness of the items used to operationalized each construct, based on feedback received from these researchers, the instrument was modified to enhance clarity and appropriateness of the measures purporting to tap the constructs. In the second stage, the survey instrument was mailed to five management executives affiliated with the Philippines institute of industrial engineering (PIIE). These executives were asked to review the questionnaire for structure, readability, ambiguity and completeness. This process yielded a survey instrument that was judged to exhibit high content validity. The dependent /independent variables 884 Progress on Advanced Manufacture for Micro/Nano Technology 2005