Biju Augustine; Dr Bhasi, M; Dr Madhu, G(Cochin University of Science and Technology, May 6, 2013)
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Abstract:
Production Planning and Control (PPC) systems have grown and changed
because of the developments in planning tools and models as well as the use of
computers and information systems in this area. Though so much is available in
research journals, practice of PPC is lagging behind and does not use much from
published research. The practices of PPC in SMEs lag behind because of many reasons,
which need to be explored.
This research work deals with the effect of identified variables such as
forecasting, planning and control methods adopted, demographics of the key person,
standardization practices followed, effect of training, learning and IT usage on firm
performance. A model and framework has been developed based on literature.
Empirical testing of the model has been done after collecting data using a
questionnaire schedule administered among the selected respondents from Small and
Medium Enterprises (SMEs) in India. Final data included 382 responses. Hypotheses
linking SME performance with the use of forecasting, planning and controlling were
formed and tested. Exploratory factor analysis was used for data reduction and for
identifying the factor structure. High and low performing firms were classified using a
Logistic Regression model. A confirmatory factor analysis was used to study the
structural relationship between firm performance and dependent variables.