Productivity growth and efficiency change in Malaysian manufacturing: recent evidence from disaggregated data

This paper estimates productivity growth in Malaysian manufacturing over the period 1983-1999. Malmquist productivity Indices (MPIs) have been computed using non parametric Data Envelopment Analysis (DEA) type linear programming, which show productivity growth sourced from efficiency change and growth in technology. Unlike previous studies, this study identifies the sources of productivity growth in Malaysian manufacturing industries at the five digit breakdown of Malaysian Standard Industrial Classification (MSIC) thereby revealing more industry specific efficiency and technical growth patterns. Results indicated that a high majority of the industries operated with low levels of technical efficiency with little or no improvement over time. Growth estimates revealed that two third of the industries (76 out of total 114 categories) experienced average annual productivity improvement ranging from 0.1% to 7.8%. Average annual technical progress was recorded by 95 industry categories while technical efficiency improvement was achieved by 53 industries. Overall yearly average indicated relatively low productivity growth from the mid 1990’s onwards caused by either efficiency decline or technical regress. Summary results for industries showed that some of the high rates of productivity growth have been recorded in glass and glass products (7.3%), Petroleum and coal (7.2%), industrial chemicals (4.9%) contributed from both efficiency improvement and technical progress ranging from 0.8% to 5.4% and from 1.7% to 4.1%, respectively. These results are expected to have some implications for ongoing and future strategic policy reform in Malaysian manufacturing generating a more sustainable growth for specific industry categories.

Productivity growth and efficiency change in Malaysian manufacturing : recent evidence from disaggregated data

This paper estimates productivity growth in Malaysian manufacturing over the period 1983-1999. Malmquist productivity Indices (MPIs) have been computed using non parametric Data Envelopment Analysis (DEA) type linear programming, which show productivity growth sourced from efficiency change and growth in technology. Unlike previous studies, this study identifies the Malaysian manufacturing industries at the five digit breakdown of Malaysian Standard Industrial Classification (MSIC) thereby revealing more industry specific efficiency and technical growth patterns. Results indicate that two third of the industries (76 out of total 114 categories) experienced average annual
productivity improvement ranging from 0.1% to 7.8% over the sampled period. Average annual technical progress was recorded by 95 industry categories while technical efficiency improvement was achieved by 53 industries. Overall yearly average indicated relatively low productivity growth from the mid 1990’s onwards caused by either efficiency decline or technical regress. Summary results for industries reveal that some of the high rates of productivity growth have been recorded in glass and glass products (7.3%), Petroleum and coal (7.2%), industrial chemicals (4.9%) contributed from both efficiency improvement and technical progress ranging from 0.8% to 5.4% and from 1.7% to 4.1%, respectively. These results are expected to have some implications for ongoing and future strategic policy reform in Malaysian manufacturing generating a more sustainable growth for specific industry categories.

The development of manufacturing in greater Geelong in the nineteenth century

Contrary to received opinion, Greater Geelong was among the most diversified manufacturing centres in Victoria, relative to Melbourne, Greater Ballarat and Greater Bendigo between 1854 to 1900. This was based on a manufacturing specialisation and export orientation established between 1841 and 1861.

Development of an evaluation approach for excellence in the Australian manufacturing industry

An approach to study best practice manufacturing with particular relevance to the Australian context. Sections include the development and analysis of results from a World Class Manufacturing survey, a literature review of best practice manufacturing from Japan/USA/UK, and case studies from its application at two major business units within a large Australian manufacturing company.

Examination of the relationship between advanced manufacturing technologies (AMTs) and workforce development activities : implications for organisational performance

This study examines the relationship among organisational performance, advanced manufacturing technologies and workforce development activities. A model of this relationship is proposed with the workplace needs acting as a mediator between technology and workforce development activities. This survey examined the technology and developmental practices of manufacturing companies in Hong Kong.

Haptics and virtual reality in modern manufacturing

Product assembly is one of the most studied processes in modern manufacturing. In recent years a number of computer-based virtual reality systems have been proposed, developed and adopted by the manufacturing industries. Such systems have major advantages over conventional training practices for product assembly. Significant cost savings can be realized due to shorter training-scenario development times and reuse of existing engineering math models. In addition, the time span from the product design to full production can be shortened due to non-reliance on actual components and subsystems for training. Such training systems are effective if the knowledge required to be transferred is just process sequence such as assembly sequence. However, knowledge transfer for procedural and cognitive learning as well as skills development is very limited, due to the lack of user interactivity and immersion.

This talk will focus on a research technology platform where haptics and virtual reality are integrated to create an effective environment for production assembly operators’ training. In this system virtual reality provides the grounds for realistic visualization, as well as immersion, whereas haptics enforces physical constraints within the virtual world generating the feelings of realistic interaction, making it accessible for formal learning and better understanding during task performance.

The developed research technology platform imitates real physical training scenarios by providing comprehensive user interaction, constrained within the physical limitations of the real world. Through the utilization of a haptics device, providing realistic force feedback, users are able to engage in product assembly training with a stronger sense of ‘reality’.

Manufacturing to Asia : who will win the emerging battle for talent between Dragons and Tigers?

Purpose – The purpose of this study is to examine the issues relating to recruiting highly skilled managerial and professional staff experienced by multinational companies (MNCs) manufacturing in six Asian countries, namely Indonesia, Malaysia, Philippines, Singapore, Taiwan and Thailand.

Design/methodology/approach – Data collected from 529 MNCs were used to examine critical human resource planning and recruitment concerns of companies operating in high growth “Dragon” and newly developed “Tiger” economies. The study examined the differences in recruitment practices between manufacturing and service companies and the issues relating to how manufacturers maintain an adequate skills basis.

Findings – There appears a considerable extent of battle for talent among Dragon and Tiger economies with the latter required to be more aggressive as they attempt to sustain growth. Manufacturing companies are experiencing a higher demand for more job-related managerial and technical capabilities whilst competing with service companies that are also in need for more talent. To succeed, manufacturing MNCs will need to adopt a strategic approach for recruitment and retention, and internal capability training to maintain their skilled employees in order to sustain competitive advantage.

Originality/value – The results shown in the paper provide manufacturing MNCs with insights into managerial and professional recruitment trend in Asia.

The productivity-wage and productivity-employment nexus : a panel data analysis of Indian manufacturing

This article investigates the long-run relationship between labour productivity and employment, and between labour productivity and real wages in the case of the Indian manufacturing sector. The panel data set consists of 17 two-digit manufacturing industries for the period 1973–1974 to 1999–2001. We find that productivity-wages and productivity-employment are panel cointegrated for all industries. We find that both employment and real wages exert a positive effect on labour productivity. We argue that flexible labour market has a significant influence on manufacturing productivity, employment and real wages in the case of Indian manufacturing.

Output and labor productivity in organized manufacturing: a panel cointegration analysis for India

One of the policy puzzles faced in India during the last two and half decades has been the weak association between output and labor markets, particularly in the manufacturing sector. In this research, we investigate the long-run relationship between output, labor productivity and real wages in the case of organized manufacturing. We adjust the measure of labor productivity incorporating bottlenecks, such as lack of infrastructure, access to external finance, and labor regulations, which all may influence labor market outcomes. Using panel data from seventeen manufacturing industries, we establish long-run dynamics for the output-labor productivity-real wages series over a period of nearly three decades. We employ recently developed panel unit root and cointegration tests for cross-sectional dependence to incorporate heterogeneity across industries. Long-run elasticities are generally found to be low for labor productivity compared to real wages due to the changes in manufacturing output. There are variations across industries within the manufacturing sector for the effects of the labor market on manufacturing output. In some industries, lower wages are associated with higher output, and the reason for the positive relationship in other industries could be due to workers' bargaining power.

Heavy tools manipulation by low powered direct-drive five-bar parallel robot

This paper presents a simple and available system for manipulation of heavy tools by low powered manipulator for industrial applications. In the heavy manufacturing industries, sometimes, heavy tools are employed for different types of work. But the application of robots with heavy tools is not possible due to the limited torque limits of actuators. Suspended tool systems (STS) have been proposed to manipulate heavy tools by low powered robot-arm for this purpose. A low powered five-bar direct-drive parallel manipulator is designed and constructed to manipulate heavy tools suspended from a spring balancer. The validity, usefulness, and effectiveness of the suspended tool system are shown by experimental results.

Haptically enabled interactive virtual reality prototype for general assembly

Desktop computers based virtual training systems are attracting paramount attention from manufacturing industries due to their potential advantages over the conventional training practices. Significant cost savings can be realized due to the shorter training-scenarios development times and reuse of existing engineering models. In addition, by using computer based virtual reality (VR) training systems, the time span from the product design to commercial production can be shortened due to non-reliance on hardware parts. Within the aforementioned conceptual framework, a haptically enabled interactive and immersive virtual reality (HIIVR) system is presented. Unlike existing VR systems, the presented idea tries to imitate real physical training scenarios by providing comprehensive user interaction, constrained within the physical limitations of the real world imposed by the haptics devices within the virtual environment. As a result, in contrast to the existing VR systems, capable of providing knowledge generally about assembly sequences only, the proposed system helps in procedural learning and procedural skill development as well, due to its high physically interactive nature.

An industrial organisation economic supply chain approach for the construction industry : a review

Understanding industries in terms of the concepts of chains, clusters and networks is becoming increasingly important in economies around the world. Supply chain management for an individual organization is an
emerging field of research in the construction management discipline, but less attention has been devoted to investigating the nature of the construction supply chains and their industrial organizational economic environment. This selected review of construction and mainstream management supply chain literature is organized around four themes; distribution, production, strategic procurement management and industrial
organization economics, and highlights the need to develop an industrial organization economic supply chain framework for construction. The merging of the supply chain concept with the industrial organization model
as a methodology for understanding firm conduct and industry structure and performance is an important contribution to both construction supply chain and construction economic theory. Much of the industrial organization supply chain literature has tended to focus upon manufacturing industries, where typically firms are permanent organizations. This raises issues as to the differences between industries founded upon temporary compared with permanent organizations. There is potential for the development of an industrial organization methodology applicable to the project based industry. Ultimately industrial organization research seeks to have direct implications for industry performance and government policies.

Design and degradation modelling through artificial neural networks

Automotive is one of the major manufacturing industries in Australia that requires extensive reliability test for the components used in vehicles. To achieve a shorter time-to-market and a highly reliable product while reducing the amount of physical prototyping, there is a growing need for better understanding on the effect that the design parameters have on the degradation of the product. This paper presents comprehensive descriptions of applying Artificial Neural Network (ANN) to capture the relationships between design and degradation. Consequently, two models of different practical significance are created as the result of the work. The vision of the models is to be used by the testers and designers as a guideline in design evaluation, so that time-consuming and expensive iterations of the product developmental cycle can be reduced substantially. The degradation of the folding force of a mechanical system is used to illustrate our approach.

Strategies for learning that empower workers and enable organisational achievement

This research found that : Learning that is part of an existing worker traineeship program empowers workers and enables organisational achievement. The organisation is not yet ready to utilise all the empowered workers who successfully complete the learning program. The prevailing management systems and work structures govern the degree to which the workers can transfer their newly-learned skills to the workplace.

Input and output analysis of complex conveyor networks

Material transfer networks are at the heart of critical infrastructure in many modern service and manufacturing industries. This research identified key performance measures, while deriving generalised analysis methodologies, for simulation models. The technology was validated for international airports, and used to determine operational capacity constraints under varied demand conditions.