Production pattern of machinery firms: Viewpoints of technology and management

CAD, CAM, FMS, robotics, etc. have been considered by many manufacturing firms as promising technologies for achieving competitive advantage. Accompanied with the development of the delicate factory system, the role of scientific management becomes increasingly important. To understand the position of a firm vis-à-vis its competitors, this paper evaluates the levels of technology and management of 15 machinery firms by constructing two composite indices. The technology index is constructed from the indicators of equipment, employee, control level, and technological capability, whereas the management index is constructed from 18 subjects of manufacturing management. Through a cluster analysis, three production patterns, namely, tradition, over-engineering, and management-leader, are distinguished based on the levels of technology and management. The productivities of the surveyed firms reveal that management-leader is the group with stronger competitiveness that the machinery firms should consider achieving.