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Analysis of the relationship between manufacturing strategy, practices and operational performance

The objective of this work was to identify the best production practices for the furniture sector through the analysis of the relationship between implemented production practices, competitive priorities and improvement on operational performance indicators. The empirical research was an explanatory cross-sectional survey. Data were collected from interviews and direct observation on the shop-floor of 99 furniture companies. The technique used for data analysis was the Structural Equation Modeling (SEM) with the Weighted Least Square (WLS) estimation method. Results indicated that practices in the area of development of new products, human resources and production planning and control were aligned with manufacturing strategy and contributed to enhance operational performance indicators, therefore being regarded as best practices in the context under study. Discussion and suggestions for further research have been added.

Best practices; Manufacturing strategy; Operational performance; Structural equation modeling; Furniture sector


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