Structural modelling approach: the strategy for productivity enhancement in manufacturing industries

The research work is carried to develop a structural equation model (SEM) for exploring key productivity factors to overcome some of the issues related with productivity enhancement and measurement in manufacturing industries. The methodology has been executed in four clearly defined steps, starting with exploratory factor analysis (EFA) which increases confidence in the conceptual model. Then, the basic productivity model is conceptualised by using Malcolm Baldrige National Quality Award (MBNQA) framework. Further, best fit measurement model showing acceptable goodness of fit (GOF) indices is constructed. Finally, improved productivity SEM having acceptable GOF is worked out. The paper relies on the data collected from 311 employees of manufacturing industries. SEM proposes causal relationship among key productivity factors in terms of driver and system elements. From results it is clear that five-key factors, incorporating 'organisational culture', 'human resource management', 'management strategy', 'production methodology', and 'performance' are leading to a conceptual model. The quantitative relationship will become a key guideline to develop managerial tool for productivity improvement as well as to build productivity models for its measurement at various levels in manufacturing industries.