Key Success Factor in Manufacturing


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A case study of KIMAR

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Key Success Factor in Manufacturing

  1. 1. Prepared By: Group 5
  3. 3. INTRODUCTION Innovation means changing the original to a new to new and better object for better purpose.New ideas implemented so that organizations can continue theirexistence, be competitive, grow and be able to change with the future changes and therefore it is essential for all theorganisations to be flexible with environmental changes and at the same time make use of innovation for sustainable growth, future profitability and long term competitive position. The Objectives of the Study:To identify critical success factors in innovation among Malaysian manufacturing companies followed by the problems that they face in implementing innovation.
  4. 4. WHAT IS KIMAR? - A complex Food Industry which located at Mukim Batu, federal territory, Kuala Lumpur. -Total area of KIMAR =116.750 square feet. -Modification was done to meet the requirement of halal certification, GMP and HACCP. (cost RM 15.4 million).12/20/2012
  5. 5. A review of literature on innovation resulted to severaldimensions and is defined as below: Innovation as something new;Innovation is “a process through new ideas, objects, and practices arecreated and which are new to the unit of adoption.” (Walker,2006). Innovation as a process;Innovation is involving a set of activities that start with recognition ofneed, generation of innovation, implementation and utilisation of asolution that caters to the identified need (Bessant & Tidd 2007, Kinght1967). Innovation as a value driveInnovation is regarded as a tool to produce economic value. It has beentermed as a source of competitive advantage (Damanpour & Schneider2006)  It has been revealed that innovation contribute to lead the organisations growth as well as seek to improve future profitability (Wood, 1988).  The implementation period for innovation starts when relevance execution are undertaken for an innovation (Angle and Van de Ven, 1989).
  6. 6. Various key success factors (KSFs) in Implementing innovation have been found based on the previous study. Critical Success Factors ResearchersClear project Mission, strategies, goals and (Bessant &1983) Dickson, 1982; Slevin & directions Pinto, 1986) Top management support & Commitment (Bessant & Dickson, 1982; Slevin & Pinto, 1986; Khan &Martin, 1989) Appropriate personnel/skills/expertise (Bessant & Dickson, 1982; Slevin & Pinto, 1986; Power & Dickson, 1973) Appropriate technology (Bessant & Dickson, 1982; Slevin & Pinto, 1986; Power & Dickson, 1973; Khan &Martin, 1989 )Monitoring and feedback (control system) (Bessant & Dickson, 1982; Power & Dickson, 1973; Kerzner,1987)
  7. 7. Problems of implementation of innovations are not just technical in nature. User resistance to change, have been recognized as Behaviour-related problems of implementation (Biggart, 1977; Markus).Even if a certain technology were to be successfully installed in a firm, it might not mean that its peoplewould actually use it. Even if they used it initially, theymight not necessarily continue to use it in the future.“In such situation the innovation is successful technically, but failed organizationally”. (Grayson, 1973)
  8. 8. Problems Encountered by the Entrepreneurs in KIMAR from Their Experience in Implementing Innovations The five most difficult problems faced by the interviewees from the five manufacturing in KIMAR while implementing innovations: Fatihah AJ Food Dasree Ezzy Malinja Major Frozen Sdn. Sdn. Bhd. Reality Sdn Classics Doner Problems Bhd. Bhd. Products Kebab Sdn. Sdn Bd. Bhd. Solving      Human ProblemsMaintaining     commitment towards innovation Difficulty in    - - solving technical ProblemsAdministrative - -   - problems
  9. 9. SUPPORT AND COMMITMENT OF TOP MANAGEMENTInnovation culture needs innovative leaderManagement’s commitment to innovation in theirorganization are their active involvement in newproduct/service planning and frequent attendance and/orinteraction with the innovation team. They are concerned about levels of staffing, appropriatebudget/spending authority, and formal recognition and rewardsof innovation success. Senior managers are willing to allocate the necessaryresources to innovate work as part of their follow-through totheir commitment to innovation.
  10. 10. Organizational Adaptability -*Organization’s adaptability is driven by demands or needs from outside the organization.-*Government organizations adapt their services to the new expectations from their communities. -*Demand and competition is increasing Management is considering to make organisational changes: Better and innovative production and lower priced products
  11. 11. Project Leadership StyleSuccessful project managers manage teams mosteffectively by motivating and inspiring their teams, buildinghigh performance teams, consistently delivering successfulprojects and continuously developing new leadership skillsto complement those that made them successful asmanagers.Responsibilities: Friendly Working Environment; Hireprofessional; Encourage Good Performance; CommissionGiven
  12. 12. Appropriate Technology Appropriate technology is the choice of technology and application of either intermediate (labor-intensive) technology or advanced (capital- intensive) technology ,developing on the carefully analyzed needs of each sector.
  13. 13. Key Success Factor in Innovation A Comparison Between the Techniques and Technologies. Two Key Success Factors for Innovation Implementations.
  14. 14. A Case Study of KIMARQualitative Research Seventeen food manufacturers operating in KIMAR but only five selectedNon- Probability manufacturing are involved in this study. -Fatihah Frozen Sdn. Bhd.Judgment Sampling -AJ food industries Sdn. Bhd.- -Dasree reality Sdn. Bhd. -Ezy classics products Sdn. Bhd. -MalinjaDoner kebab Sdn.Bhd.
  15. 15. CONCLUSION & RECOMMENDATIOSOur conclusion is based on the results from thecritical success factors for innovationimplementations indicates that many of theprocesses followed by factories in KIMAR inimplementing innovations, and many of the factorsperceived by them are favorable to the success ofinnovation implementations.In fact, the more innovation-active factories inKIMAR were more successful in theirimplementation efforts than the less innovationactive ones.
  16. 16. Thank You For your Attention __________ Default address Avenue, 4214, Postal code 80.250-210 / Curitiba PR BR +55 32 3836 55 55 ___________________________________________ +55 32 9685 55 55