Impacts of an Integrated Manufacturing Strategies on Organizational Performances: Findings from Thai Automotive Industry

Abstract

The main objective of this study is to investigate the relationship among manufacturing strategies and their impacts on organizational performances. These three strategies, Lean Manufacturing, Total Quality Management and Supply Chain Management, are studied to understand their implication and integration. The surveys were carried out from 150 automotive companies in Thailand in which 53 companies replied or 35.5% response rate. The surveyed result from correlation analysis showed that these three strategies have relation and support each others. By using multivariate regression analysis for business performances, it is found statistically significant that JIT practice of Lean Manufacturing supports on-time delivery and a small lot-size practice supports cost reduction in a company. While a supplier-relation practice of Total Quality Management supports cost reduction and a continuous improvement practice supports customer satisfaction.