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Effectiveness of planning and control systems: An empirical study of US and Japanese firms

Both researchers and practitioners have investigated the effectiveness of manufacturing planning and control systems (MPCS) in an attempt to justify the investment in MPCS. This study uses the Wight's (1981) detailed questionnaire to measure the degree of planning and control implementation in a manufacturing system, which is referred to as MPCS rating. The MPCS rating is then used to study the relationship between the self-assessed manufacturing competitiveness (cost, quality, delivery and flexibility) and the objective performance measures of manufacturing performance such as production cost, productivity change, customer reject percent, manufacturing lead time, etc. The results show that there is a strong relationship between MPCS ratings and objective performance measures as well as self-assessed competitiveness in both Japanese and US firms. The results are important since they indicate that fundamental manufacturing planning and control procedures improve a firm's performance on both its internal operations as well as external competitiveness goals.