Striving for better operations management practices in New Zealand and Australian manufacturing firms

Abstract

Competition in New Zealand and Australian markets for manufactured goods has increased in the last five years. Reduced government licensing and trade barriers have been major causes of the increased competition. This has caused changes in the management practices of many manufacturing firms. There has been an increased focus on quality, service and productivity by firms needing to compete successfully. Looks at a survey designed to check the state of manufacturing practices in Australia and New Zealand carried out in 1994, in which the responses from manufacturers were checked by benchmarking visits and case studies were developed. The survey identified the use of best practices in each firm and compared this with business performance. The top 20 per cent of firms, with regard to their extent of use of best manufacturing practices, correlated strongly with the top 20 per cent of business performers. The study confirmed that “leaders” in the adoption of best practices generally enjoy better sales growth, superior export growth and positive cash flows.