Manufacturing Competency and Strategic Success in the Automobile Industry This page intentionally left blank Manufacturing Competency and Strategic Success in the Automobile Industry By Dr. Chandan Deep Singh and Dr. Jaimal Singh Khamba CRC Press Taylor & Francis Group 52 Vanderbilt Avenue, New York, NY 10017 © 2019 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U. Government works Printed on acid-free paper International Standard Book Number-13: 978-1-138-59851-5 (Hardback) This book contains information obtained from authentic and highly regarded sources.
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Title: Manufacturing competency and strategic success in the automobile industry / Chandan Deep Singh and Jaimal Singh Khamba. Description: Boca Raton : Taylor & Francis, a CRC title, part of the Taylor & Francis imprint, a member of the Taylor & Francis Group, the academic division of T&F Informa, plc, 2019. | Includes bibliographical references and index. Identifiers: LCCN 2018041667| ISBN 9781138598515 (hardback : acid-free paper) | ISBN 9780429486302 (ebook) Subjects: LCSH: Automobile industry and trade–Management.
| Success in business. | Automobile industry and trade–India–Personnel management–Case studies. | Automobiles–India–Design and construction–Case studies. Classification: LCC HD9710.4/76292220684–dc23 LC record available at https://lccn.gov/2018041667 Visit the Taylor & Francis Web site at http://www.com and the CRC Press Web site at http://www.com Contents Preface .vii About the Authors.
Competency and Its Components. Strategy and Its Aspects. Manufacturing Competency and Strategic Success. Reliability Analysis of Competency and Strategy.
Cronbach Alpha Reliability Analysis. Case Studies in Manufacturing Industries. Case Study at the Two-Wheeler Manufacturing Unit. Case Study at the Four-Wheeler Manufacturing Unit.
Case Study at the Heavy Vehicle Manufacturing Unit. Case Study at the Agricultural Manufacturing Unit. Multi-Criteria Decision-Making Techniques. Analytical Hierarchy Process (AHP).
Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). Fuzzy Logic Using MATLAB. Structural Equation Modeling. Validation of Qualitative Results through Structural Equation Modeling (SEM).
SEM of the Manufacturing Competency Model. Competency-Strategy Model. Conclusions and Recommendations. Summary of the Work.
Contribution of the Work. Major Findings of the Study. Limitations of the Work. Suggestions for Future Work.
227 Preface The strategic success of an industry depends upon manufacturing com- petencies, that is, their competitive advantage. If the industry has the parameters of better quality and reliability, this will lead to increased sales and the creation of a sound customer base for greater market share, thus returning with more profit, growth, and expansion. Compe- titive priorities are the operating advantages that a firm’s processes must possess to outperform its competitors. The operating advantage for the industry is assessed, evaluated, and measured with the para- meters of cost, quality, time, design, flexibility, etc.
This book is so designed to surpass the expectations of industrialists, policymakers, and competency designers; specifically, the manufacturing competencies upon which the whole strategic success of the industry depends. Qual- ity, cost, delivery, innovation, and responsiveness influence most manu- facturing strategic agendas today. Firms have traditionally pursued these goals through the adoption of advanced technologies and manu- facturing practices, such as concurrent engineering, JIT, and worker empowerment. Recent developments in the industry suggest the emer- gence of another route to manufacturing excellence, that is, there should be an increasing focus by industry regulators and professional bodies based on the need to stimulate innovation in a broad range of manu- facturing competencies.
By ‘competencies’ we mean the methods, equip- ment, and expertise that can be developed as a leading capability in one market sector or application, and have potential to be applied success- fully across other sectors or applications as well. Further, competencies are the ability to apply or use a set of related knowledge, skills, and abilities to perform ‘critical work functions’ or tasks in a defined work setting. Competencies often serve as the basis for skill standards that specify the level of knowledge, skills, and abilities required for success in the workplace, as well as potential measurement criteria for assessing competency attainment. Strategies are actions a business takes to com- pete more aggressively, to acquire additional customers, and to operate the company more profitably.
A successful strategic plan provides the information and guidance that the management team needs to run the company with greater efficiency and help the business reach its full potential. Strategic planning helps managers make decisions based on logical assumptions and a clearer view of the future. The strategic success of the industry is related to profitability, market share, growth and expansion, quality and reliability, labour intensiveness, etc. For vii viii Preface accomplishing a success set of parameters, the operations strategy links long- and short-term operations decisions to corporate strategy, which is composed of core competencies – these are the unique resources and strengths of the organization, which include workforce, facilities, market and financial know-how, and systems and technology.
About the Authors Chandan Deep Singh has been serving as an assistant professor in the Department of Mechanical Engineering at Punjabi University, Patiala, Punjab, India since 2011. He completed his PhD in November 2016 from the same institution. His masters of technology in manufacturing systems engineering is from the Sant Longowal Institute of Engineering and Tech- nology in Longowal, Sangrur, Punjab, India, completed in 2011. He com- pleted his bachelor of technology in mechanical engineering in 2009 from Giani Zail Singh College of Engineering and Technology in Bathinda, Punjab, India.
He has published around 52 books and guided 55 students for their master of technology thesis. He has published around 98 papers in various international journals and conferences. Presently, 7 students are working under him for their PhD and 1 for his masters of technology. His main research areas are CAD/CAM, production and industrial engineer- ing, and die-casting.
He has worked on software, namely CATIA, ProE, Solid Works, PSAW, MS-Excel (for AHP, TOPSIS, VIKOR), AMOS (in PSAW for SEM), and MATLAB. Jaimal Singh Khamba holds a bachelor in mechanical engineering, master in industrial engineering, and PhD in technology management from the Thapar Institute of Engineering and Technology, Patiala, Punjab, India. He is currently a professor of mechanical engineering at Punjabi University, Patiala, Punjab, India. He has more than 200 publications in refereed journals and conferences.
He has guided 11 Ph. students including Chandan Deep Singh and 5 students are working for their Ph. under his guidance. His main research areas are Non Traditional Machining (Ultra Sonic Machining), TPM, and manufacturing competency.
ix This page intentionally left blank 1 Competency and Its Components The Indian automobile industry has been witnessing the entry of global automobile giants like Volkswagen, Mercedes, and Audi since the beginning of twenty-first century, leading to fierce competition for already existing players, like Japanese automaker Suzuki, Korean automaker Hyundai, Italian automaker Fiat, and such others. This has led to a significant increase in competition for the survival of automobile manufacturers in India. For better survival in any market, companies need to be agile, that is, they have to produce innovative products quicker than their competi- tors. Innovation is directly related to designing and producing new products or making a few desirable changes in the existing ones to satisfy ever-demanding customers.
Competency Competency is the collective application of knowledge, skills, and behavior for enhancing organizational achievements, and helping the organization realize specific goals and objectives. Management competency encompasses emotional intelligence, systems thinking, and skills in negotiation and influ- ence. Competency attributes directly enhance the functional performance that has considerable impact on overall organizational staff and functions. Competencies are progressive in nature and offer direct benefits to organization and personnel, they enrich employee accomplishments and attributes, and help management create proactive transformation in organiza- tional culture for facing global competition and future challenges.
Competen- cies facilitate organizations in the framing of goals and objectives, especially within human resources (HR). They also provide a framework for objective proficiency and consistent standards by creating shared language about well-depicted organizational specifications and requirements. Technical competencies include proficiencies and skills related to processes, roles, and functions within the organization, which cater to the development and applications of related procedures, policies, and regulations relevant to the particular business or technical field. 1 2 Manufacturing Competency and Strategic Success Competency has also been characterized as catering to HR require- ments in organizations and communities.
Competency is defined as learning from prior context and situations that might be different the next time a person has to act. During crunch situations, competent managers will tackle a particular situation by adopting similar solutions from previous successful experience. Thus, competent managers must interpret situations in context and should develop an appropriate repo- sitory of possible solutions through training. Competency matures over a period of time through experience and knowledge irrespective of training.
Competencies yield enhanced performance levels by fostering and enriching appropriate skills, knowledge, and abilities by individuals or organizations, and provide a framework for distinguishing between poor and exceptional performance. Competencies may have organizational, team, or individual attributes that add significantly to manufacturing performance enhancement. These divergent perspectives suggest that an alternative approach might be useful to stay ahead of the competition (Hoskisson et al. Different aspects of competency are depicted in Figure 1.
Competency acquisition by an organization’s personnel induces enhanced skills and abilities that facilitate the accruing of improved organizational perfor- mance through the clarification of job requirements. Competencies allow for opportunities for improvement in existing job profiles. EXPERT KNOWLEDGE TALENTED CAPABLE ABLE INTELLIGENT SKILL FIGURE 1.1 Different Aspects of Competency. Competency and Its Components 3 Competencies can be evolved with individual and organizational con- tributions and endeavors.
Top management can identify and manage competencies that facilitate work procedures, effectiveness, and enhance- ment in human skills and competencies, which can be integrated with organizational learning involving on-the-job (OJT) experience, classroom learning, or other training opportunities. Why Competencies? Since the global business competition has demonstrated a transition to innovativeness, efficiency, and value addition from economies of scale, management should strategically focus on harnessing employee-centric competencies. Strategy is the direction and scope of the organization; ideally, it synchronizes with its assets to its changing competencies.2 shows different levels in competence study. Therefore, effective evolution and management of HR competencies assume significant importance for the organization’s pursuit of excellence and survival.
Thus, organizations need to foster HR management (HRM) competency systems that effectively apprehend wide variety of skills of personnel, encourage multiple job attributes, and permit flexibility in incentive decisions for catering to dynamic organizational attributes. The competency development domain is continuously gaining administrative management acceptance among business organizations globally.