Effect of Preventive Maintenance Practices and Supply Chain Management in Improving Manufacturing Performance

Abstract

Preventive maintenance (PM) practices is well known strategy that still used by most manufacturing industry today. Basically (PM) has two type of practices namely Time-based maintenance (TBM) and condition-based maintenance (CBM) that help to minimize the equipment failure throughout planned and scheduled maintenance. On other hand the supply chain management (SCM)not only assist organizations production process such as (plan, control and execute a product's flow) but also ensure what are the growing need for companies in long-term. This study intent to examine how the (PM) practices and (SCM) increase the manufacturing performance in terms of: cost and delivery. Total One hundred and fifty-five Malaysian manufacturing companies participated in this study and the result indicates that the (PM) and (SCM) significantly improve the manufacturing performance but the impact is stronger for (SCM). Overall this study found that the (PM) practices are greater than (SCM) in traditional manufacturing in optimizing their end-to-end operations to achieve greater cost savings and product delivery.