Effectiveness of manufacturing planning and controlsystems on manufacturing competitiveness: evidence from global manufacturing data

Abstract

Previous studies have empirically verified the operational benefits of manufacturing planning and control systems (MPCS). The literature, however, offers rather sparse and incomplete discussions regarding the effects of MPCS on manufacturing competitiveness. There are no specific descriptions and/or prescriptions of 'how' and 'what' aspects of MPCS are related to various competitiveness goals. This study considers the multidimensionality of MPCS and manufacturing competitiveness. Using data collected from 768 manufacturing firms in the machine tool and non-fashion textile industries from 16 countries, the relative importance of various MPCS elements to manufacturing competitiveness is investigated. The statistical results indicate that MPCS is very effective in achieving delivery competitiveness. Moreover, not all MPCS elements are equally important for enhancing manufacturing competitiveness. The most crucial elements of MPCS for manufacturing competitiveness are material and capacity planning and production activities control. Overall, the findings suggest that MPCS are prerequisites for achieving manufacturing competitiveness. Future research should develop additional MPCS measures and confirm the findings with data from different industries.