Measurement of Impact of Selected Industrial Engineering Practices on Companies’ Economic Performance

Industrial engineering represents a significant tool how to eliminate waste in both manufacturing and other areas of the enterprise. This helps reduce costs, increase production capacities and other characteristics, which can lead to better competitiveness and production performance. Focusing on the...

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Bibliographic Details
Published in:Inžinerinė ekonomika 2018-01, Vol.29 (2), p.176
Main Authors: Rajnoha, Rastislav, Gálová, Kateřina, Rózsa, Zoltán
Format: Article
Language:English
Subjects:
Business
Competitiveness
Credit policy
Economic performance
Engineering
Industrial engineering
Manufacturing
Measurement
Polls & surveys
Questionnaires
Taxation
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Summary:Industrial engineering represents a significant tool how to eliminate waste in both manufacturing and other areas of the enterprise. This helps reduce costs, increase production capacities and other characteristics, which can lead to better competitiveness and production performance. Focusing on the implementation of methods that have a significant impact on these indicators should be part of the choice of industrial engineering methods at all. Finding industrial engineering methods that have significant impact on overall business performance is the main purpose of this paper. Another objective was to determine whether the impact of industrial engineering methods applies to all industries in the Czech Republic or whether it applies only to selected industries. The data needed to achieve the objectives was obtained through an online questionnaire survey, the survey focused on a wide range of manufacturing companies (N=235) from different industries, different sizes and ages in the Czech Republic. For comparing the overall business performance among individual respondents, a basic ROE indicator was selected. To measure this indicator from the impact of the tax, investment and credit policy, a modified ROE indicator (calculated first with EBITDA and then with EBIT) was used. The results show that the use of industrial engineering methods in manufacturing plants in the Czech Republic is limited to a few selected methods. Similarly, only a few industrial engineering methods are typically used in high performance firms and can therefore be said to be involved in increasing performance. Presented research also shows that this influence of methods does not apply to individual industrial engineering methods globally in all the sectors studied, but only in some of them.
ISSN:1392-2785
2029-5839
DOI:10.5755/j01.ee.29.2.19871