Management by Principle for the Make-To-Order SME’s

Shaladdin Muda, Mohd Shaari Abd Rahman, Fauziah Abu Hasan


This paper describes a new model developed for make-to-order (MTO) sectors namely SHEN Principles, which aims to fill a gap in the world class manufacturing (WCM) literature that concentrates on the characteristics of the larger traditional make-to-stock (MTS) sector. Using evidence from the literature, especially the MTO literature and the more comprehensive WCM models, a new principle was devised. This was then modified in the light of case study evidence collected from the four MTO companies ranging from small to medium size MTO companies. The model presented in this paper known as “SHEN Principles”, comprises of fourteen principles and categorized into four main sections for ease of reference such as generate enquiries/sales, operations and capacity, human resources and general continuous improvement. SHEN principle is a descriptive approach, with a five point progressive scale for each principle. Level one is the first step on the road to improvement and level five relates to current best practice performance. Its intended purpose is to aid MTO companies to determine their strengths and potential areas for improvement so that they can continue to be competitive in the future.

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