Manufacturing excellence and its critical factors : An interpretive structural methodology application

Purpose – The purpose of this paper is to identify and understand the relationship dynamics amongst the key factors impacting the tier-I auto manufacturing domain which is currently under severe strain. It is an approach for improving the pace of the manufacturing excellence journey. Design/methodology/approach – In total, 20 key factors impacting the manufacturing sector have been identified from the literature review coupled with the inputs from the experienced industry and academic experts. Interpretive structural modelling (ISM) approach has been adopted for the inter-relationship understanding and in stratifying the factors into drivers and independent clusters. The interpretation of the ISM results with respect to the current environment has also been carried out. Findings – Out of the 20 identified key factors, people- excellence related factors have been found to be the key drivers and global presence and visibility, operational cost reduction approach and customer responsiveness have a significant role to play in changing the pace of manufacturing excellence. Research limitations/implications – ISM framework does not incorporate the feedback concept and transition dynamics toward manufacturing excellence. These issues may be tested through System dynamics, which will help in identifying the cause and effect relationship between variables and model the transition toward manufacturing excellence. Practical implications – The manufacturing framework of 20 variables is a useful trigger to the strategic planners. The deep understanding of these variables in the current challenging environment is highly relevant and would facilitate the strategic industry leaders in their journey to excellence. Social implications – The manufacturing sector has been the growth engine for a nation's economy. If the manufacturing sector grows, the impact on the society will always be favorable as it results in greater degree of employment, better earning capacity and improved quality of life. Through this paper an attempt has been made to identify those key factors which could accelerate the manufacturing excellence pace and hence it is very relevant for the society at large. Originality/value – The paper provides some useful insight to manufacturing excellence framework and the application of ISM approach to it involving the experienced industry and academic experts.