Data Analysis and Interpretation
This part of the study discussed
the findings based on the collated information on the survey and interview
conducted by the researcher. The primary objective of this study is directed
towards the analysis on the effectiveness of Lean Manufacturing and
Outsourcing among International Business Organisations in the electronics
industry. The study intends to investigate the effects of lean manufacturing
and outsourcing to international electronic business industry. For this study,
primary research and secondary research was used. Primary research was
conducted using anonymous questionnaires that were sent to selected
individuals in different organisations. The researcher also be conducting
focus group interview with managers and administrators. The questionnaires
were used to collect quantitative data and the interviews were used to provide
qualitative insights into the data collected. This study was divided into
several parts. The first part shall provide a general description of the
respondents. Particularly, it conversed to the respondents’ age, gender, civil
status, educational attainment and occupation. The second part discussed the
perception of employees pertaining to the status of lean manufacturing and
outsourcing. The third part discusses the perception of the interviewed
respondents regarding lean manufacturing and outsourcing. And lastly the final
part of the study discussed the analysis of the collated data that includes
the discussion of problems and solution and statistical analysis. The
researcher place figures for greater clarity on the discussions.
Part I. Profile of Respondents
This part of the chapter shall
be discussing the general profile of the respondents. The first to be taken
into consideration is the age of the respondents. The responses are summarised
in the figure below. The exhibit shows that a major part of the respondents
are rather mature (31 above), consisting of 65%. This might be reflected by
the fact that the predominant positions of the respondents are in the
managerial level, which requires a considerable amount of working experience.
This is further asserted by the 37% who were in their early thirties and the
35% in their late twenties.
Exhibit 1.
Age of Respondents

The next to be taken into
consideration is the gender of the respondents. Apparently, a major part of
the respondents constitute the male gender. This also states that majority of
the respondents related to electronic industry adheres to more masculine
perspectives. Nevertheless, a 47% of the respondents are female. On the other
hand, with the seemingly patriarchal culture in organisation, it could be
posited that females were not that good in the position.
Exhibit 2.
Gender of Respondents

Exhibit 3.
Civil Status of Respondents

Exhibit 3. The above illustration shows the civil status of the respondents.
33% of the total respondents, which is the dominated response is single. There
are only 43% who are married from the overall respondents. As the figure was
interpreted, there is a little percentage of respondents who are separated or
widow. Likewise, the respondents were asked for their civil status and the
report shows 33% of them are single and 43% are married. This is due to the
large number of young adult in the sample as compared to those who are adult.
Exhibit 4.
Educational Attainment of Respondents

Exhibit 4. Likewise, the
respondents were asked for their educational attainment and the report shows
53 % of them are college level. The survey indicates that most of the
respondents are college level that is engage to the study. The diversity of
the population is further asserted when the respondents were asked regarding
their professional history. This data illustrate the maturity of the
respondents particularly in terms of experience. On the other hand, the
apparent youthfulness of the respondents, provided by their age and their lack
of professional experience could not be considered as deterrence to their
responses considering that the researcher has made sure the respondents have
been connected with the business industry for at least a month. Moreover,
there is a noticeable distinction of the respective positions of the younger
generations in their respective perceptions towards the impact of lean
manufacturing and outsourcing to international electronic business industry.
Exhibit 5.
Occupation of the Respondents
|
Occupation of the
Respondents |
% |
|
Business Managers |
16 |
|
Supervisors |
20 |
|
Business Executive |
25 |
|
Staff |
33 |
|
Admin-assistant |
5 |
|
Student |
1 |
Exhibit 5. The above table shows the different occupation of the respondents.
From the surveyed individuals, the researcher gathers 6 different positions of
the respondents that are illustrated on the above table. The most dominated
occupation according to the survey is the staff that is 33% of the total
respondents. Followed by business executives that is only 25% of the surveyed
individuals. The analysis shows the fair distribution of occupation. The table
also indicates that most of the respondents were in the company because of
their own business transaction. However, there were 1% respondents who were
students. Meaning to say, most of the surveyed individuals are all
knowledgeable about outsourcing. Some respondents are very much interested
about lean manufacturing and outsourcing because they wanted to determine the
possible impact of variables with respect to their business interests.
Part II.
Perception of the Respondents
This part of the
study illustrates the perception of surveyed respondents. As discussed in the
previous chapters, a total of 150 respondents were surveyed. Their perception
towards lean manufacturing and outsourcing were sought.
Exhibit 6. Survey Question
Results
|
Statements |
5 |
4 |
3 |
2 |
1 |
Weighted Mean |
Interpretation |
|
Lean
practices are widely used in the electronics industry. |
65 |
42 |
31 |
7 |
5 |
4.01 |
Agree |
|
Outsourcing practices are widely used in the electronics industry. |
44 |
64 |
28 |
12 |
2 |
3.93 |
Agree |
|
Your
company is satisfied with the current Lean tools implemented. |
56 |
54 |
23 |
11 |
6 |
3.91 |
Agree |
|
Your
company is satisfied with the current outsourcing tools implemented.
|
48 |
59 |
31 |
12 |
0 |
3.95 |
Agree |
|
The
Lean tools of the company are advantageous to the operations of the
system of the organisation. |
68 |
36 |
36 |
10 |
0 |
4.08 |
Agree |
|
The
outsourcing tools of the company are advantageous to the operations of
the system of the organisation. |
59 |
36 |
22 |
18 |
15 |
3.61 |
Agree |
|
The
Lean tools of the company present disadvantages to the operations of the
system of the organisation. |
65 |
35 |
40 |
4 |
6 |
3.95 |
Agree |
|
The
outsourcing tools of the company present disadvantages to the operations
of the system of the organisation. |
54 |
39 |
31 |
16 |
10 |
3.67 |
Agree |
|
The
advantages of using Lean tools and strategies are more significant
compared to its subsequent drawbacks. |
58 |
59 |
32 |
1 |
0 |
4.16 |
Agree |
|
The
advantages of outsourcing tools and strategies are more significant
compared to its subsequent drawbacks. |
58 |
54 |
25 |
12 |
1 |
4.03 |
Agree |
|
The
disadvantages of using Lean strategies are more significant compared to
its advantages. |
1 |
6 |
18 |
56 |
69 |
1.30 |
Strongly Disagree |
|
The
disadvantages of using outsourcing strategies are more significant
compared to its advantages. |
5 |
5 |
32 |
52 |
56 |
1.63 |
Disagree |
The perception regarding lean
manufacturing and outsourcing and its impact on international marketing
considering that the subjects are from different electronic industry were
analysed and discussed.
The
previous table shows the result of the survey statements of the respondents in
regard to their perceptions. The columns five (5), four (4), three (3), two
(2), and one (1) signify the number of respondents who answered on a
particular ranking score. In statement number one, sixty-five respondents
answered five, forty-two for four, thirty-one for three, seven for two, and
five for one. The weighted mean column shows the mean answer of that
particular question that is 4.01 and interpreted it as ‘agree’. The Table
above shows that most of the respondents agreed on the given survey
statements. All the statements from the survey were clear to the respondents.
According to the respondents, lean practices are widely used in the
electronics industry. There are several factors that affect the development of
a certain business. In electronic industry, it is very important to determine
if the tool used is effective. Based on the surveyed respondents, their
current was satisfied with the current Lean tools implemented. In addition,
the company is also satisfied their outsourcing tools. In fact, majority of
the respondents agreed that the lean tools of the company are advantageous to
the operations of the system of the organisation. Similar to the previous
results in lean manufacturing, the outsourcing tools of the company were also
advantageous as perceived by the selected respondents.
Although most of the surveyed
individual agreed that lean and outsourcing tools shows several advantages,
still majority of them agreed that these tools (i.e. lean manufacturing and
outsourcing) has some disadvantages. Basically, there are also hitches and
situations where these tools are not always the best approach to use.
Actually, most respondents agreed that lean manufacturing is more difficult to
implement when there are significant demand variations, major changes in the
product mix or complex global supply chains. On the other hand, outsourcing
in electronic industry has also weaknesses but most of them agreed that, the
advantages of using lean and outsourcing tools and strategies are more
significant compared to its subsequent drawbacks as shown in the previous
table.
Part III.
Interview Results
This part of the
study discusses the perception of the interviewed respondents regarding lean
manufacturing and outsourcing practices.
Section A:
Lean Manufacturing and Outsourcing Practices
With regards to the response of
the interviewed respondents, they mostly said that the success of an industry
largely depends on its performance based on its human resources and skills, as
well as the management and organisation approaches decided by the leaders in
order for the company to continue its smooth function and accessibility to
their clients and customers. At the same time, there is a need for each
department within the organisation to operate efficiently and for each system
within these departments to be carried out professionally and competently in
order for the industry to be found as reliable and trustworthy in the eyes of
their clients. Thus, lean manufacturing and Outsourcing tools should be
considered since these tools directly affect the relationship of Original
Equipment Manufacturers (OEM) and Electronic Manufacturing Service (EMS)
providers in the Electronic Industry.
It is said the electronic
business industries has changed the way contemporary businesses are being
operated. With these lean manufacturing and outsourcing tools, many
organisations especially those in the business field had been given the chance
to evaluate their performance. In its application many industries had survive
in the stiff competition within the marketplace. In addition, the application
of lean manufacturing and outsourcing tools had given many industries the
chance to implement a more strategic decision making due to the information
that they have gathered. However, the management of these industries must
always take into consideration the some ethical issues that can be faced. In
this manner, the management must know how to handle such issues and provide
ways in order to make their business more appealing to their target market.
In general, it is important that the industry must be able to utilise this
electronic business in accordance with their existing corporate culture so as
to avoid further conflicts that may result in the industry’s downfall.
Actually, building up effective information channel and create the basic
"trust" are the key for handling the obstacles. From the interviewed subjects,
all of them stated that their respective companies practice both lean
manufacturing and outsourcing operations strategy because it offers excellent
business process.
Section B:
Obstacles and Problems in Utilising Lean Manufacturing and Outsourcing
In every organisation, lean
manufacturing and outsourcing or any other method used to stimulate
development and growth has still significant drawbacks. From the interviewed
subjects related to electronic industry believes that business strategy is
very important for maintaining the competitiveness in today's fast moving
market in the electronics industry. Therefore, the linkage and the lean
manufacturing and outsourcing are very important. Company needs to think about
how to build up a good relationship with the buyer and supplier and pay
special attention on the data integration.
By using lean manufacturing and
outsourcing practices, some of them argued that they can share the real time
data with the supplier (EMS), they can use more accurate data to prepare their
production and material requirement plan so as to have better inventory
management. It is a kind of collaboration and strategic alliances model and
company can not implement is smoothly without intimate relationship with the
business partners.
Apparently,
the world of lean
manufacturing and outsourcing
remains a constant source of confusion of high promise and gut-wrenching
disappointment. According to the respondents, improving logistics operations
will be hard, and there are plenty of opportunities for misfires along the
way, but respondents are hoping that corporate goals will forever elude. They
also believes that it take time, talent, energy, focus, money and guts to
reach those goals--but that's exactly what it took for the world's best-run
companies to make it to the top. It's not easy, but it's worth it. Despite
the culture problem that respondents elaborate they still believe that they
should focus a large amount of attention on whether one’s supply chain is
being managed to optimum benefit. Thus, there is a need to enhance the
relationship of OEM and EMS in accordance to outsourcing practices.
As companies expanded and
outsourced more of their operations to third-party manufacturers and service
providers, the need for visibility across the extended supply chain grew
geometrically. But according to respondents are calling for a reduce in
inventory and noting that supply chain management tools revealed a discrepancy
between forecasts and historical data, according to them if they reduce their
pipe line they can also reduce their liability in the management, they also
noted that liability reduction is significant, in meaning there are literary
millions of dollars of mitigated liability in the market.
Essentially, lean manufacturing
is recognition of the direct link between planning and control of the
manufacturing process and corporate competitiveness. It is seen by a growing
number of business managers as the least explored and most promising avenue to
competitive advantage available to companies in today's business climate. It
starts from the premise that such traditional areas for developing competitive
strategies as marketing, finance, production, and design are yielding
progressively declining results in terms of winning competitive advantage. In
the other direction it holds that supply has been relatively unexploited as a
competitive resource. According to respondents, what’s important in
electronic industry today is collaboration and proactive event management,
ability to relay information internally between groups and externally with
partners in business. Even though some companies achieve impressive
bottom-line results, such as a 50% inventory reduction with a 40% increase in
on-time deliveries, there are reports of lean manufacturing initiatives that
are blamed for profit shortfalls. According to some respondents, companies are
becoming aware that lean manufacturing and outsourcing is complex and involves
a new generation of technology, which does not solve existing barriers to
successful implementation. Some of these barriers include organisational
behavior, weak leadership, return on investment that is hard to measure, scope
creep, integration of legacy systems, integration with small businesses, and
poor data quality. In meaning, respondents are aware that companies have
become cautious about supply chain investments. Instead of projects with
large, long-term development cycles, companies are developing strategies that
will result in lean manufacturing processes that are implemented as
incremental, short-term, high value solutions while minimising risk.
On the other hand, the important
considerations made by most companies to ensure the effective and efficient
lean manufacturing and outsourcing practices are the following:
a.)
Effective performance
measurements,
b.)
Better supplier relationship
management,
c.)
The capability of information
system technology between supplier and buyer.
Actually, the advantages and
benefits of lean manufacturing practices that affect the outsourcing practices
among electronic companies is that companies can gain long-run competitive
advantage by integrating, synchronising and collaborating the missing links
through the business model of lean manufacturing practices. By doing this,
electronic business can build up such intimate relationship so as work
together, hand in hand to achieve the common objectives.
Section C:
Management Practices to Overcome the Obstacles and Problems in the Production
From the interviewed
respondents, there are several ways and management practices that their
respective companies do in order to attain success in production. Basically,
product or service management in electronic company includes a wide range of
management activities, ranging from the time that there's a new idea for a
product to eventually providing ongoing support to customers who have
purchased the new product. Every organisation conducts product management,
whether it is done intentionally or unintentionally. Businesses can generate
revenue from selling more of the current products to more of the current
customers, more of the current products to new customers, new products to
current customers, or new products to new customers. In other words,
businesses can generate revenue through customer maximisation, customer
development, product development, or diversification.
According to some interviewed
managers, in order to boost up the production process and enhance the
production management style, the company uses several management analyses to
overcome the obstacles in business. According to them, production process is
not only the factor in business success or failure, the company should also be
aware to other variables. How does a company succeed in today’s business
world? For all types of firms, large and small, manufacturing and service or
even to electronic industry, the answer given today might very well be
different than that given just a few years ago. These managers were also
saying that the area of operations management is receiving more attention as a
way to compete in the world arena, where recently such areas as marketing and
finance were considered more important. Similarly, the types of managers who
rise to the top positions of a company seem to run in cycles. When those
managers from the ranks of marketing, for example, reach the top, they
naturally give that area a greater weight in decision-making. Conversely, if a
company feels that marketing is crucial to its success, this belief would tend
to produce top managers from that field. Some of the areas traditionally
emphasised in successfully competing would include: product innovation and
entrepreneurship; marketing, advertising, and distribution; finance; and
price.
The ‘‘better mousetrap’’
approach is a tried and true way to capture a market. Fad items would be
included here, such as hula hoops and Rubik’s Cubes. However, in most stable
industries it is also important to continue innovating. Computer companies are
continually working to make faster, smaller products and to find new
applications for their products. Even food producers continually strive for an
edge through more convenient products. Finally, of course, there are those
companies that take a leap by introducing entirely new products, such as copy
machines, videocassette recorders, fax machines, and the whole array of
products now taken for granted that didn’t exist a generation ago. It is
apparent that the strategic weapon of innovation will continue to be a
powerful one in worldwide competition. In electronic industry, innovation is
also important in making successful business operations.
Aside from this, marketing is
also an essential part of converting an innovative idea into a profitable
product for a company. Also, in those industries where innovation comes more
slowly, marketing has been necessary to differentiate one’s product from those
of competitors. Indeed, to some extent it has been accepted that marketing can
make up for deficiencies in other aspects of a company, resulting in
continuing suboptimal results in these other areas.
Marketing can also be used as a
strategic weapon in several ways. Marketing research can help to discover
existing demands and to develop market segments that can then be pinpointed.
Advertising can be used to differentiate products, to promote awareness of new
products, and to provide information on the benefits of products. It can sell
politicians as well as products and services. The distribution system can
enhance the marketing effort by making it easy for customers to find and to
purchase products and services. The location of retail outlets and the use of
mail order are examples of distribution strategies for products. Mobile car
washes and veterinarians are similar examples in service industries.
By providing an infusion of
money for capital and for operating expenses, the finance area is also a
strategical weapon. For example, a company may decide that it can enjoy
certain economies by expansion. A company can ensure reliable supplies through
vertical integration. Horizontal integration or simply building new facilities
can provide for increased volume. Even without expansion a company can compete
by purchasing more sophisticated or more efficient equipment. In any of these
endeavours there are many financing avenues that must be explored.
Other things being equal, price
is still probably the main competitive weapon available. In order to compete
through price, a company must either keep its costs lower than its competitors
or reduce its profit margin and make it up through high volume. The costs of
providing a product or service are materials, labour, and overhead.
Traditionally, companies have focused on improving their methods of producing
a product or service, through automation, for example, and on reducing their
labour costs, through such strategies as motivation, more efficient
procedures, or finding a source of less expensive labour. Automobile plants
are good examples of the use of improved methods to contain costs, while the
clothing and electronics industries are examples of those that locate their
plants in areas where wages are low. As opposed to the previously mentioned
strategic weapons, these cost-cutting strategies do fall under the province of
operations management. Along with the other strategies, they will continue to
be important means of competing.
According to the interviewed
subjects, in order to meet the competitive advantage that has been set to take
full accountability of the mishaps that have been occurring. This means that
there should be no room for bickering and pointing fingers as to should be
responsible for the shortcomings that resulted to the problems they are
facing. Only then can they go about on picking up where the left and attempt
to finish everything themselves. Priorities must be set. For example, if the
use of recent technology through internet media is not responding to the calls
of the company as the internal people can do the job, then they must resort to
foregoing within technology innovation to meet the demands of competition and
immediately begin working on lay-outing themselves. After which, they would
have to sacrifice more capital to the project for the purchase of the upgrades
needed to set up for necessary changes at hand and that there must be
continuous activities done in order to convince the writers and the management
that their interests will be for the good of the company and maintain growth
and stability.
Section D:
Significance and Benefits of Lean Manufacturing and Outsourcing Practices
With
regards to the production management executions, these managers stated that
lean manufacturing and outsourcing practices are one of the contributing
factors in business success. Basically, the interviewed subjects stated that
they also adopts the lean manufacturing model, having a culture of democracy
and civic responsibility, with high levels of education and skills, with
highly coordinated labour relations, with the desire to maintain social
cohesion, with job enrichment, with high levels of worker democracy and
autonomy, and with union-management co-determination. The combination of these
allowed their respective companies to establish, encourage and enhance
teamwork, which is being used by the company in its competitive advantage.
On the other hand, outsourcing
is also important to electronic industry since it is not a new
phenomenon--although the subject has hit the headlines only recently. Many
companies particularly in electronic industry started creating jobs overseas
to gain access to foreign markets. Basically, the interviewed individuals
stated that they audit, consult, and repair where customers are located. To
put it mildly, they do not tell the overseas customers to come here. Moreover,
many foreign markets are growing quickly as numerous domestic ones have become
saturated. More than half of the employees in American information technology
companies are estimated to originate overseas. That is not unique. In various
industries--ranging from banking to consumer products to .job placement to
aerospace-leading firms report that their overseas revenues exceed their
domestic sales.
Remember, too, that some
businesses hired specialised workers overseas to adjust to immigration limits.
When they could not get those workers here, they had to send the work to them.
While doing so, the companies learned how to use modern technology to shift
the location of work economically. They become accustomed to taking advantage
of lower costs, domestic and foreign. Telecommuting from employees' homes may
have paved the way for some enterprises to extend the process to new
suppliers, at home and abroad.
Most fundamentally, a great many
companies are focusing their efforts on their core competence. They
subcontract out most of their activities to domestic suppliers. Viewed from
that perspective, overseas sourcing is a minor part of the trend to
decentralise business operations. In addition, these companies have learned
that, in many cases, the higher productivity of workers offsets the wage
differentials and other costs of operating overseas.
Outsourcing can help a company
operate in an increasingly competitive global marketplace. Lower costs are the
key to maintaining a firm’s position in the modern global economy. Outsourcing
can enable a business to provide 24/7 coverage, especially for customers who
need around-the-clock support. On the other hand, it is impractical for a firm
to adopt a unilateral policy against outsourcing work—especially when its
foreign and domestic competitors are doing it. The specific decisions are made
on hard-nosed business grounds--including balancing productivity and labour
costs.
Section E:
Production Practices and Tools for Success in the Electronics Industry
(For the last part, the surveyed
and interviewed subjects were asked regarding the most appropriate production
practices or tools for supporting the success of electronic industry.
Basically, there are several production practices and tools to enhance
business practices. Actually, there are disadvantages that company’s practices
encounter in utilising such lean manufacturing and outsourcing practices and
tools. Some of the interviewed subjects believe that Information sharing and
system integration between OEM and EMS are very costly and it is also involved
very complex work flow to create the information platform and design the
information networks. Other stated that Software and Hardware investment are
the major concerns of lean manufacturing disadvantages. Also, the system
integration, data synchronisation process are complicated, it involved extra
manpower to monitor the whole process from time to time.
According to these individuals,
productivity is one of the major keys in gaining competitive advantage. Those
who have high quality production with the most production are generally those
with higher profit margins and lower costs. This allows them to hold a larger
market share, proving that productivity improvement efforts are worth the
changes in operation, culture, and philosophy that such implementations incur.
Through the successes of
productivity and quality leaders, electronic companies find that enhancing
productivity (and quality) is based not only on resources, processes, and
techniques but also a correct set of corporate attitudes and goals that
recognise and incorporate this goal into its strategies.
In international electronic
business industry, coordination among different divisions is very important.
Manufacturing, marketing, distribution, logistics, security and other
variables in business should have proper coordination. This coordination in
the movement of independent divisions that is observed in TQM programs
characterises the orchestration of activities in Supply Chain Management. It
focuses on (1) inventory control and planning, (2) advanced planning and
scheduling, (3) warehousing and distribution strategies, (4) product design
for mass customisation and product postponement, (5) procurement/scouring, and
(6) fleet management. Here, mutual competitive interests motivate a
manufacturer to coordinate activities of suppliers and purchasers to get
products on the market effectively.
In
the case of surveyed managers, there are some suppliers and purchasers that
deal with a manufacturer’s competitors, making the lines of cooperation and
competition blurred in most cases. In this sense, Supply Chain Management uses
the core competencies of these companies to reach a mutual well-being, a
distinctly Japanese approach to business that has enabled them to compete with
American businesses (single business vs. a strategic alliance that allows
internal support to member companies). Through the alignment of these core
competences, operations managers involve themselves with the upstream and
downstream companies, using their inner workings in an integrated whole to
develop a competitive advantage.
Innovation in the relationships
between consumer-supplier is more notable in the JIT system in international
electronic business industry. Using a system that is a variation of the
“two-bin system”, they actuated a very real cost advantage over other beef
manufacturers by arranging for their suppliers to deliver needed materials
only shortly before they were actually. This eliminated bloated inventories,
lowering their labour costs significantly compared to other global competitors
of that time.
This “Kanban”, or more popularly
known as the Just-in-time (JIT), inventory system made the buyers of the parts
supremely dependent on their suppliers, integrating them into the
international electronic business industry. in such a way that their
traditional adversarial role was broken. The system was used by most of the
leading electronic manufacturers in Japan where improvements in quality and
productivity were noted in direct relation to the decrease in inventory size.
In this system, suppliers need to be located that can meet the delivery cycles
required, changing the way business was done between them.
The old approach of having
multiple commodity sources has since shifted. While having multiple suppliers
keeps competition on its toes between them and offers manufacturers lower
prices in which to gain sales, this meant that buying would be in the form of
solicited bids, often in annual basis. The exchange in suppliers and buyers
were then laden with demands as the buyers drove to yield immediate cost
savings by thriving on this competition between suppliers. The reduction of
source base means that there must be a primary source for a commodity,
building long-term supplier relationships based on trust.
Status of
Lean Manufacturing and Outsourcing among International Business Organisations
in Electronics Industry
From the given results of the
interview and survey analysis, it seems that lean manufacturing and
outsourcing among the said organisation play significant role to their
development and success. Thus from this, the increased market competition
identifies continuous adjustment and improvement in the production lines,
outsourcing and supply chain management of companies.
Actually, both EMS and OEM among
International Business Organisations were asked regarding the important aspect
of lean manufacturing and outsourcing in the electronics industry. According
to OEMs, lean manufacturing is a very important management tool and business
strategy for the electronics industry since the industry is moving very fast,
product life cycle is getting short and competition is very keen. In
connection this, OEMs asserted that it is very difficult to face the
competition if company do not have the suitable strategies to control the
total cost as well as continuous improvement for the customer services level.
In accordance to lean manufacturing practices of OEMs, they have different
measurements to keep check the performance in different areas. However,
according to them the most critical point is to use a right strategy and
approach to integrate with upstream and downstream partners so as to create
the synergy by using a collaboration business model. In accordance to these
issues, most interviewed EMS respondents believes that lean manufacturing is a
consumer driven management practice, satisfying the needs of consumers. In
contrast to the response of OEM, EMS argued that the information flow within
the supply chain is crucial to integrate diverse business functions and to
co-ordinate activities across different organisations around the world. Today,
most EMS can rely on a single party to fulfill the sophisticated needs of
customers since they need a total commitment and full collaboration of all
trading parties such as suppliers, manufacturers, distributors, etc.
Apparently, both OEM and EMS
were asked regarding outsourcing practices. In this regard, outsourcing is not
applicable to EMS but they believe that outsourcing strategy is one of key
elements for driving the growth of electronics industry. Without the EMS
support, OEM can not focus on his core competency and reduce the product
development cycle time. Also, consumer can not enjoy such low cost product as
EMS provider can enjoy the low cost production by using large production
scale. For this part, OEM respondents asserted that most of them are using
outsourcing strategy for both logistics (use 3PL) and manufacturing (use EMS)
functions. In fact, outsourcing can support OEM business growth by using less
investment as we can shared the risk with our suppliers (i.e. EMS). Also, OEM
can focus on R&D, design and brand management rather than the details
operations. It is good for most OEM to have better ROI and they can easily
manage the inertial resources as well. Actually, interviewed OEMs understand
that outsourcing strategy is vital for electronics industry, outsourcing is
part of our lean manufacturing strategy and company needs focusing on the
quick response to ever-changing market needs and shortened purchasing lead
time, also adding value to increasingly demanding customers at the lowest cost
and time, otherwise, they can remain competitive in today’s global economy.
Actually, there are some
criteria set by both OEM and EMS to be able to provide efficient and effective
lean manufacturing through outsourcing practices. For OEM they have cost
saving, reduced the total cycle time for product development, better resources
management and better ROI. On the other hand, most EMS considers time-to
market, product development cycle time, and total cost saving.
Similarly, the selected
respondents were also asked regarding their perception towards the outsourcing
tools used in their respective companies. From the responses of the selected
individuals, there are several benefits of outsourcing such as: cost and
flexibility; lessens the need of an organisation to maintain in-house
capability for activities having a high degree of technical specialisation and
saves on overheads by maintaining flexibility in responding to internal and
external fluctuations; and as a tool to extend product range, to test the
market for new products, to supply short demand products and to avoid having
to produce small batches of products themselves which could disrupt long-run
production schedules. However, contrary to its benefits, outsourcing also has
a number of drawbacks that would make organisations think twice before
implementing the strategy. The drawbacks of outsourcing include: some
organisations experience problems due to the complexity of the many activities
that organisations outsource; it can take up to two years before an
organisation starts to achieve any financial benefits from outsourcing and in
some cases the process may be cost neutral; the main problems companies in
contracting out activities, like quality of service, communication with
suppliers, redundancy costs, co-coordinating different suppliers, reduced
flexibility, dependence on a few suppliers, and communication with a few
suppliers; problems that threatened the viability of the activity due to lack
of strategic integration and poor senior manager communication; loss of
control; difficult to reverse decision; long-term contracts can lead to a lack
of flexibility; requires management of organisation / outsourcee alliance;
outsourcers can put themselves at risk from lack of responsiveness, poor
service, etc.; subject to new costs if changes are required; difficult to
quantify advantages; and possibility of being locked into older technology.
From the
surveyed and interviewed personalities, the summary of the responses of the
respondents in accordance to the advantages and disadvantages of outsourcing
and lean manufacturing are shown below.
Advantages and Disadvantages of
Lean Manufacturing
Lean manufacturing Advantages:
According to the respondents
Lean manufacturing
a)
reduce the
inventory cost,
b)
provides
better ROI,
c)
improve the
customer services,
d)
reduce total
logistic costs,
e)
provides
flexible manufacturing,
f)
less
inventory,
g)
improve the
cash flow ,
h)
provides
better product availability,
i)
lower
warehouse operation cost, shared risk with suppliers
j)
flexible
production planning,
k)
reduce total
material and inventory costs,
l)
focus on core
competencies,
m)
provides
faster time-to market,
n)
less stock,
and
o)
less manpower
Lean manufacturing
Disadvantages:
Here are the
disadvantages of Lean manufacturing tools as perceived by the respondents.
a)
effective
supply based management is requested,
b)
supplier
shipment delay or quality issue will affect the production plan seriously
c)
high risk on
manufacturing and product distribution as there is no buffer stock and it is
only rely on supplier managed inventory
d)
too rely on
supplier,
e)
no safety
stock for handling the uncertainness,
f)
not easy to
manage the supplier performance,
g)
not easy to
provide accurate forecast to supplier for planning the inventory level,
h)
higher
investment on IT system and data exchange,
i)
inflexible for
handling the unpredictable demand,
j)
need to use
more effort on building the relationship with the suppliers,
k)
request
effective data exchange platform,
l)
need a
superior management on warehouse operation,
m)
too depending
on 3PL's support,
n)
no capability
to support the rush order and meet customer's urgent requirements,
o)
not easy to
roll out the EDI with the business partners, and
p)
need to spend
more resources on building an effective communication interface with supplier.
Advantages and Disadvantages of
Outsourcing
Advantages of
Outsourcing
a)
focus on
company's core competencies,
b)
better Return
On Investment (ROI),
c)
better cost
control,
d)
more focus on
R&D,
e)
improved the
performance of time-to-market,
f)
no need to do
the investment on buying new machines for making new products,
g)
reduce total
cost,
h)
better product
quality,
i)
flexible
manufacturing services,
j)
less risk on
releasing the new product to the market,
k)
improve the
services to the customer (Quick respond for sampling and mass production),
l)
better product
quality and reliability, and
m)
less
investment but faster lead time.
Disadvantages
of Outsourcing
a)
not easy to
build up the trust with the supplier (EMS),
b)
cannot own the
manufacturing know-how,
a)
relationship
driven, need to spend more time on communication,
b)
effective
information flow is requested so as to ensure the information can flow
properly,
c)
need to spend
more time on relationship development, (b) Not easy to have better
communication,
d)
complex
information flow,
e)
high cost on
building up a comprehensive information network between OEM and EMS,
f)
relationship-based,
g)
need to share
the product and process know-how to EMS provider,
h)
effective data
sharing process is needed,
i)
high data
integration cost,
j)
product
knowledge will be disclosed to the suppliers (EMS) ,
k)
engineer needs
to spend more time on communicate with the external suppliers, otherwise, the
whole project maybe delay,
l)
need to spend
more time on long term relationship development,
m)
need to spend
more money on information sharing,
n)
efficient
information system is always requested to link with the supplier,
o)
need to manage
the relationship carefully,
p)
high risk on
sharing the product design knowledge with the suppliers, and
q)
IT capability
and reliability are requested.
Synthesis
A lot of factors have influenced
the ever-increasing pressures that resulted to intense competition in the global
electronic manufacturing industry. New trends in the business operations
strategies, more interactive business relations among different market players
as well as the customers’ increased involvement in maintaining the quality of
products and services continue to demand efficient and productive measures among
contract manufacturers and service providers. Manufacturing companies were able
to answer and meet the specifications of their customer base by utilising the
current technological advancements in the past decades. Innovations in computer
features, networking strategies, and telecommunication products facilitated
business organisations to invest on market researches, company development, and
effective re-engineering measures to create quality products and provide
efficient services.
As a result, lean manufacturing
and outsourcing strategies have been widely accepted in order to reduce
expenses, improve productivity, operations management, and delivery, and
concentrate on upgrading the company’s technological expertise. As a result, the
discussion how big business organisations which depend highly on efficient
delivery and distribution procedures gain their success in the competitive
market environment was carried out by examining the strategic implications of
lean manufacturing and outsourcing and its benefits and costs as a more flexible
and decentralised organisational business strategy. As a popular business
strategy in the current global business environment, outsourcing and lean
manufacturing was discussed in a holistic manner to justify the inevitable
success it brings to business units.
With regards to the contribution
of lean manufacturing and outsourcing to the development of international
electronic industries, there are several measures used to determine the success
of the said industry. Since there have been different methods to measure
performance several companies question which method is the most effective to
use. Considering that financial and non-financial approaches are two very
different systems, applying one mechanism in place of the company’s existing
performance and evaluation means will entail greater changes and adjustments.
Moreover, some aspects in traditional systems are lacking in the non-financial
systems and vice versa.
Performance measurement has long
been used by the various firms to assess production practices of electronic
companies. In general, lean manufacturing and outsourcing are being used to
enhance business production. While these approaches have their own advantages
and drawbacks, the goal of their application remains one and the same. Through
the beneficial effects of performance, businesses are able to create successful
strategies towards success.
Conclusion
and Opportunities
This chapter intends to conclude
the results of the study; the study also intends to give the implications of the
said results. The study also intends to give recommendations based from the
results of the data analysis. The focus of this study
was to evaluate the effectiveness of lean manufacturing and outsourcing to
international businesses particularly to electronics industry. In general, lean
manufacturing and outsourcing are one of the factors to be considered in
business success. As illustrated in literature review chapter, there were eight
critical success factors to consider and they are procurement, product
and service management, total quality management, inventory management,
logistics and transportation management, facilities management, software
configuration management and distribution channels.
However, the limitation of study focuses its concentration to lean manufacturing
and outsourcing issues present in international business organisations. In
establishing a good business, one must be aware of the said factors and these
will serve as guide in the proper handling and creation of a business. The
general population for this study is composed of respondents from international
business organisations whose company are doing electronic products. From this
surveyed respondents, twelve (12) out of one hundred fifty (150) respondents
were also interviewed. To determine the assessment of the respondents of
international business sector in electronics industry, the researcher prepared a
questionnaire and a set of guide questions for the interview that is asked to
the intended respondents. The respondents graded each statement in the
survey-questionnaire using a Likert scale with a five-response scale wherein
respondents are given five response choices.
Concurrently, the study employed both qualitative and quantitative
research methods to ensure a flexible and iterative approach. During data
gathering the choice and design of methods are constantly modified, based on
ongoing analysis. This allows investigation of important new issues and
questions as they arise, and allows the investigators to drop unproductive areas
of research from the original research plan. The researcher also uses percentage
analysis to evaluate the collated data.
Summary
The study showed that the primary determinants of businesses commerce in
international business of electronic industry remain to be lean manufacturing
and outsourcing. On the other hand, overall quality in terms of operations is
definitely the most important factor to consider. Quality however is being
considered more than the price of the service/product in any business. In
assessing the overall quality of business, two factors are considered: the
reliability and durability of business.
Aside from the said factors to be
considered by international business, TQM, technology and customers was also
regarded by the respondents to be of utmost importance as evidenced by the
interviewed managers. The result implied that the respondents also consider the
marketing and advertisement in taking into consideration the operational
procedure of their respective companies.
Based on the gathered information,
the respondents asserted that the operation management stability in most
international business involved in electronic manufacturing is in good condition
however there is always a room for improvement. The qualitative interviews
indicated that it is important for them to learn from multiple customers in
order to enhance their performance. The interviews highlight the following two
related points: The buyer is as an important source of valuable knowledge in
terms of what they prefer, what they want in product or service, the price, the
quality and the type of negotiation they want to take place.
Finally, with international
businesses’ rapid economic growth in terms of business expansion, more
technology-based consumer products are becoming available. This also applies in
different businesses globally. The changing market structure of the transitional
economy in countries makes it very difficult for consumers to choose products.
This has also allowed them to be more critical on the quality and the price of
the product they are buying especially in international businesses of electronic
industry.
Part 1. Profile
of the Respondents
The respondents were composed of the respondents at the different international
business Industry of electronic companies. The apparent diversity of the
maturity of the respondents reflects several implications in the study’s
findings. Seventeen percent (17%) of the respondents were 25-31 years old,
showing that most of them were already considered as young adult. Another
seventeen percent (17%) of the respondents were between 32-38 years old. Twenty
percent (20%) of the respondents were between 39-45 years old. In addition,
another twenty percent (20%) of the respondents are in 46-52 years old status.
Based on the results of the study, the number of the Male respondents (57%) is
far to the female (43%). This result shows an unequal footing in terms of
representation of gender regarding the perception of men in the performance of
lean manufacturing and outsourcing among international business in electronic
industry. The male respondents outnumber the female respondents by approximately
14%; this data provides a glimpse of the aggregate size of men in the workforce
particularly of international business environment. In regards to the civil
status of the respondents, majority of the surveyed respondents are single.
Part 2.
Perception of the Respondents
According to the majority of surveyed individuals, there are several
but little problems arises when in comes to international business industry of
electronic organisations. One of the problems they encounter are in terms of
business security, quality performance of staff and other TQM issues. Issues
regarding lean manufacturing and outsourcing tens to be in good condition as
illustrated by their responses in survey and interview. From the description in
literature chapter, Total
Quality is a description of the culture, attitude and organisation of a company
that strives to provide customers with products and services that satisfy their
needs. This culture requires quality in all aspects of the operation of
international electronic organisations, with the process being done right the
first time and defects and wastes eliminated from operations. In general, Total
Quality Management or TQM is a combination of quality and management tools
according to the surveyed and interviewed participant aimed at increasing
business and reducing losses due to wasteful practices, and a method by which
management and employees can become involved in the continuous improvement of
the production of goods and services.
For
these respondents, Total Quality Management or TQM is a management philosophy
that may refer to any number of employee interventions and techniques used to
improve quality, and may also be a basic business strategy to provide goods and
services that completely satisfy the customers by utilising the employees’
talents while providing a positive financial return to the shareholders.
TQM
in international electronic companies should guide any organisational
interventions intended to improve quality. The first principle according to
these respondents is to focus on work processes, for the quality of products and
services depends most of all on the processes by which they are designed and
produced. It is not adequate to only provide clear direction about
hoped-for-outcomes, rather, the management must train and coach employees to
assess, analyse, and improve work processes. The second principle is analysis of
variability, for uncontrolled variance in processes or outcomes is the primary
cause of quality problems and must be analysed and controlled by those who
perform an organisation’s front-line work. Only when the root causes of
variability have been identified are employees in a position to take appropriate
steps to improve work processes. In addition, the central problem of management
is to understand better the meaning of variation, and to extract the information
contained in variation. The third principle is management by fact, for the
process of Total Quality Management calls for the use of systematically
collected data at every point in a problem-solving cycle, beginning from
determining high-priority problems, through analysing their causes, to selecting
and testing solutions. This quality-improvement program is based on collecting
data, using statistics, and testing solutions through experiment. Lastly, the
fourth principle is learning and continuous improvement, for the long-term
health of an enterprise depends on treating quality improvement as a lifetime
quest. Opportunities to develop better methods for carrying out work always
exist, and a commitment to continuous improvement measures that people will
never stop learning about the work they do.
With
the guidance of the discussed principles, companies or business organisations
that adopt and implement the concept of Total Quality Management will be in more
advantaged than other companies, for TQM has several benefits. According to one
of the interviewed respondents, through the application of total quality
management in their company, the senior management empowered all levels of
management, including self-management of the employees to manage quality system.
These benefits are grouped into five key areas, namely, continuous improvement,
multifunctional teams, reduction in variation, supplier integration, and
education and training.
Applications
and Implications
Every business is subject to
factors that affect the firm’s function as a whole. These factors are the ones
attributed for the success or even the failure of a business. It is said that
the management system and the strategy imposed by the organisation is attributed
as the factors which carries certain companies to success or even its failure.
In the light of this, there are certain ways or techniques that can be
considered in order to emerge and continue to be competitive within the market
place. It is important that every individual in the business field should know
how to manage or to handle situations in order for the business to achieve
success. From the previous results and discussions, this part of the study
illustrates the implication of quality management as part of lean manufacturing
and outsourcing principles of international businesses in electronic industry.
One
of the issues that have been pointed out to international businesses in
electronic industry is their inability to establish good management strategy
that would further enhance the business’ position to the business industry.
Good management strategy will ensure international businesses in electronic
industry growth if implemented properly. In this regard, the main target for
total transformation for the company to achieve growth and competitiveness is
its outsourcing procedure or human resource management. It is said that if the
effective outsourcing or human resource management of most international
businesses in electronic industry is efficient, then other members of the
organisation will be inspired and motivated to work harder which may result in
producing quality products and services. Hence, the problems that most
international businesses in electronic industry should be in focus are on its
TQM processes.
To be able to
implement Total Quality Management and attain success in operations management,
lean manufacturing and outsourcing, the international businesses in electronic
industry should follow the following outline.
I. Introduction
A.
Marketing Research.
First and foremost the
company must know the current situation of the business. Hence, it is important
that the company must be able to establish an internal marketing research to
determine the factors to be changed and how Total Quality Management would be
implemented.
B.
Information Dissemination
The management of the
company must be able to disseminate the information that the company will
imposed some changes regarding TQM so that the employees will be aware in the
situation.
C.
Identifying the Project Team Leader
and the Project Team Members
The project will not be able to meet its objective if the tasks are not
allocated to the respective people who will implement the project. Task
allocation is not simply a case of handing out the various tasks on final lists
to the people available; it is far more delicate (and powerful) than that. In
simple terms, consider what each member of your team is capable of and allocate
sufficient complexity of tasks to match that (and to slightly stretch). The
tasks allocated are not the ones on finals lists, they are adapted to better
suit the needs of team's development; tasks are moulded to fit people, which is
far more effective than the other way around.
Herein,
the leader who is chosen to implement the project must be committed to the
concept of Total Quality. This is to ensure that the plan will work out well for
the benefit of the organisation as a whole. In addition, the project team
leaders and members must also be aware of the possible problems that they may
encounter and that they must always have an alternative plan to anticipate such
problems.
II. Identifying Total Quality
Management Needs
A.
Effective outsourcing
Effective outsourcing is
considered as one of the main assets for every organisation. The proper
management of Human Resources is significant in determining the success of a
certain organisation. Making awareness of management value and the ability to
manage the human resources in an organisation-wide will have great impact on
progress results. Consequently, it is said that the philosophy of effective
outsourcing is based on the simple belief that human resources are the most
important asset in achieving and sustained business success. This realisation
became the driving force behind the creation of effective outsourcing resulting
in organisations taking a strategic technique to the management of their people.
The
true worth of effective outsourcing is becoming more widely understood as
effective outsourcing steadily interweaves all aspects of people management and
development within the company.
This effective outsourcing plan is
applicable to the implementation of the Total Quality Management among
international businesses of electronic industry since it provides a long-term
policy that would ensure equality among employees which in return would be able
to motivate the employees to provide competitive performance for their benefits
and the for sake of the whole company as well.
B.
Human Resource Staffing
Staffing today is taken a lot more
seriously and given a lot more
thought than it used to be. Gaining competent employees at all levels of the
organisation is more than a matter of training. It stems from changes in
recruitment and selection philosophy. Staffing the most competent employees for
each and every organisation is continuous challenge for the effective
outsourcing. Faced with the problem of conducting Staffing effort to fill
critical position in any level of organisation, the effective outsourcing must
create an Employee Staffing Policy to identify the critical activities in the
recruitment process and monitor its results.
In order to create Employee
Staffing Policy, planning is an important element of most aspects of effective
outsourcing. Depending on the personnel function considered. Effective
outsourcing often have very different ideas on how to go about the recruitment
process and when it should be done. Staffing new employees to fill existing
vacancies is an important function within effective outsourcing.
These routine dimensions of the
Staffing process are integrated into the daily routine of many HR departments
and once a system is established, there appears to be little need for additional
planning or analysis with regard to how the Staffing process should proceed.
From time to time, however, it is necessary to recruit a person to fill a high
level vacancy. This is to ensure that the management is giving the most
deserving employees the chance to hold higher positions. This must be done also
in order to ensure quality management within the organisation which may result
in creating quality products and quality service for the customer satisfaction.
III. Specific Processes to
Successfully Implement the Lean manufacturing Plan
After the planning phase is over
(and agreed), it is a signal of the doing phase begins. Once the project is in
motion, it acquires a direction and momentum which is totally independent of
anything that was predicted. The key elements to the control of a project are
the milestones and established means of communication. The milestones are a
mechanism to monitor progress; for the team, they are short-term goals which are
far more tangible than the distant completion of the entire project. This
maintains the momentum and encourages effort for the team; it allows the team to
judge their progress and to celebrate achievement throughout the project rather
than just at its end.
The simplest way to construct
milestones is to take the timing information from the work breakdown structure
and sequence diagram. When it has been guesstimated how long each sub-task will
take and have strung them together, it can be identified by when each of these
tasks will actually be completed. In order to apply the TQM to lean
manufacturing of international business especially to be used in the its
competition to the business industry, the management of the electronics industry
must be able to accept the whole concept of the improvement, which means that
all the people within the electronics industry must agree that there is a need
for a total transformation especially for the quality of the products and
services that electronics industry will be offered. Furthermore, the management
should be willing to participate to all the improvement, value each and every
ones opinion in order to achieve total quality management and provide a total
quality operations and services to satisfy their customers.
Managers and experts disagree
about how to effectively implement Total Quality Management to their
organisations. Eventually, customer satisfaction has always been regarded as the
driving force behind quality improvement; others suggest quality management is
achieved by internal productivity or cost improvement programs. In other
applications, Total Quality Management is regarded as a technique to introduce
the context of participative type of management. Thus, the management should be
more straightforward to provide the potential role of applying the Total Quality
Management as an overall strategy of the electronics industries.
In addition, since Total quality
management is based on internal or self-control, which is embedded in every
element of the work system (technology and people), the employees or the people
behind the production and other employees that are responsible for the effective
outsourcing purposes must be able to determine the problems beforehand, to
anticipate its occurrences. In applying total quality management and the
effective outsourcing plan, international business organisations must be able to
combine it with the core strategy of the industries; this does not mean that
international business organisations related to electronic industries must have
total changes. It is important that in application of the Total Quality
Management Plan to international business organisations must also consider that
an appropriate strategy should be used in order to produce total quality
products that would satisfy all clients and customers.
IV. Dangers in review
There are dangers avoiding this
project reviews, it is either too frequent or too drastic. The lack of
sustainability to the project can lead to plan revisions which shake the team's
confidence in any particular version destroying the stability of the project
designed. Decide objectively, and explain beforehand, when the review phases
will occur and make this a scheduled milestone in itself.
Even though the situation may have
changed since the last review, it is important to recognise the work which has
been accomplished during the provisional. First, the organisation do not want to
abandon the project since the team will be demotivated feeling that they have
achieved nothing. Secondly, this work itself is part of the new situation which
has been done, it should provide a foundation for the next step or at least the
basis of a lesson well learnt. Existing achievements of team should always be
building up.
V. Time
Time is sometimes one of the problems since there are companies that
are demanding for unrealistic time. For this project, realistic schedule viewed
by the team should be imposed. Outside world are not allowed to deflect team
form what knows to be practical. If the impose a deadline upon which is
impossible, the team will clearly state this and give reasons. For this
instance, the project teams must determine the most appropriate time to start
the implementation of the project; the sooner, the better.
VI. Planning for error
One of the most common errors in
planning is that assuming there will be no errors in the implementation which in
effect, the schedule is not based on the plan. On the other hand, recognising
that errors will occur is the reason for implementing a monitoring strategy on
the project. However, by cautiously considering errors in advance can make
changes to the original plan to enhance its tolerance.
The team that would implement
Total Quality Management Project must try to predict where the errors will occur
by examining the activities' list. The risky areas might then be given a less
strict time-scale - actually planning-in time for the mistakes. Another option
is to apply a different strategy, or more resources, to such activities to
minimise the disorder in the project.
Conclusion
As mentioned on the result of the
previous chapter, international business organisations in the electronics
industry are doing ways to assess the critical success factors of their business
operations. In addition to this, most of them are giving enough consideration to
TQM in lean manufacturing and outsourcing since these factors affects and
contributes to their operational success. Most international business
organisations in the electronics industry wanted to maintain the loyalty of the
customers; they are willing to do anything for the benefit of the customers and
for them to stay loyal to the company. International business organisations in
the electronics industry believe that the customer should be their first
priority; they also want the customers to remain loyal to the company. By
focusing on the customer’s needs and wants international business organisations
in the electronics industry is getting more loyalty from the consumers. As
mentioned on the result chapter, international business organisations in the
electronics industry are continuously changing their strategy for the success of
operations management of their business.
The international business
organisations in the electronics industry are doing these things to maintain its
consumers and have more loyal consumers. Basically, the international business
organisations in the electronics industry is offering the best service it can.
They also updating the standards of services they offer to customers.
Based on the findings of this study, the researcher
concludes the following:
1.
The
respondents who took part in this study are already mature in age, responsible
and reliable. They are also aware of what’s happening in
international business
organisations in the electronics industry and are
deeply concerned about the improvement of operations management in their
respective companies.
2.
The
respondents have given an overall rating of “Agree” to each of the criteria.
Most of the respondents believe that operational management has something to do
with his business strategies. This shows that they are satisfied with the
current state of things in the
international business
organisations and the electronics industry.
3.
There are
several factors affecting the rise and fall of some business establishments in
international business
organisations in the electronics industry. We also
have to consider the political and security issues in these countries since
these are one of the biggest factors to consider.
4.
Aside from
lean manufacturing and outsourcing, the other factors that affect the success of
international business
organisations in the electronics industry are
Procurement, Product and Service Management, Total Quality Management, Inventory
Management, Logistics and Transportation Management, Facilities Management,
Software Configuration Management, and Distribution Channels.
5.
From the
analysis of results of related literature and data from the respondents, it is
reliable to state that
international business organisations in the electronics industry
are in good condition considering the factors in operation (i.e. lean
manufacturing and outsourcing).
6.
The study
also reveals that all the variables in operation should be consider in attaining
the great results in business progress. It is also important to have trainings
of staff in international
business organisations in the electronics industry.
Recommendations
The general, long-term
development of these businesses is one characterised by a series of evolutionary
periods that at times can best be described as revolutionary in nature. In line
with this observation, international business organisations in the electronics
industry need to constantly be on the lookout for strategies which would help in
maintaining their market leadership. Problems in the industry today appear from
so many angles, at so many levels and in so many directions that their pursuit
without a regular path will soon become lost in details. Different business
model can help any organisation to determine the direction in which they are
going to take through. Using this tool, international business organisations in
the electronics industry, as well as other firms, is challenged to understand an
industry’s profit potential and the strategy necessary to establish a defensible
competitive position, given the industry’s structural characteristics. Overall,
international business organisations in the electronics industry are highly
attractive industry which contributes a large share of the total profits. With
the intensity of rivalry kept in check by the business giants, high threat of
industry entry, low supplier and buyer power, prospects for business holds much
promise.
All things considered, there is
still no substitute for good management in the strategic positioning and
implementation process of international business organisations in the
electronics industry. That means:
Ø
targeting markets that are
large and growing and increasingly concentrated, where the firms has a shot at
being one of the dominant players;
Ø
knitting together those
markets that extract the maximum value from scale and scope linkages that may
exist.
Ø
setting up change
management teams to handle the change management aspect of the potential
alliances.
Based on the
foregoing summary of findings and conclusion, the researcher recommends the
following:
1.
Update the
facilities, equipment, and training strategies to their respective
international business
organisations in the electronics industry. Moreover,
there should be a strict implementation of the training programs pertaining to
enhancement of operations management.
2.
Maintain open
communication lines between the management, administration and employee.
3.
Review the
program of the each of the company and update the content to increase the
standard of the company. Employee must also be given stricter training
requirements to ensure that they understand their job well.
4.
Industries
open communication lines between employees and administrators especially in
disseminating information and communication. This is to ensure that the
employees know what the administration is up to and vice-versa.