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Investigate PLMIFAC Presence Case study PapersOnLine-51-30 (2018) 302–307 of Kosovo and Albania Investigate PLM Presence - Case study of Kosovo and Albania Investigate PLM Presence - Case study of Kosovo and Albania Naim Preniqi*. Peter Kopacek**. Muhamet Gërvalla*** Investigate PLM Presence - Case study of Kosovo and Albania Naim Preniqi*. Peter Kopacek**. Muhamet Gërvalla*** study Investigate PLM Presence Case of Kosovo and Albania Naim Preniqi*. Peter Kopacek**. Muhamet Gërvalla***
Naim Preniqi*. Peter Kopacek**. Muhamet Gërvalla*** *Technische Universität Karlsplatz 13, 1040Gërvalla*** Wien, Austria, Naim Preniqi*. PeterWien, Kopacek**. Muhamet Karlsplatz *Technische Universität Wien, 13, 1040 Wien, Austria, (Tel: +43 1 588010; e-mail:
[email protected]) Karlsplatz 13, 1040 Wien, Austria, *Technische Universität Wien, (Tel: +43 1 588010; e-mail:
[email protected]) ** Technische Universität Wien, Karlsplatz 13,1040 1040Wien, Wien,Austria, Austria, *Technische Universität Karlsplatz 13, (Tel: +43 1 588010;Wien, e-mail:
[email protected]) ** Technische Universität Wien, Karlsplatz 13,1040 1040Wien, Wien,Austria, Austria, (Tel: +43 1 588010; e-mail:
[email protected]) *Technische Universität Wien, Karlsplatz 13, (Tel: +43Universität 1 588010; Wien, e-mail:Karlsplatz
[email protected]) ** Technische 13, 1040 Wien, Austria, (Tel: +43 1 588010; e-mail:
[email protected]) *** UBT, Lagjja KALABRIA p.n., Prishtinë, 10000, Kosovë (Tel: +43 588010; e-mail:Karlsplatz
[email protected]) ** Technische Universität Wien, 13, 1040 Wien, Austria, (Tel: +43 11 588010; e-mail:
[email protected]) *** UBT, Lagjja KALABRIA p.n., Prishtinë, 10000, Kosovë +383 38 541400; e-mail:
[email protected]) **(Tel: Technische Universität Wien, Karlsplatz 13, 1040 Wien, Austria, (Tel: +43 1 588010; e-mail:
[email protected]) *** UBT, Lagjja KALABRIA p.n., Prishtinë, 10000, Kosovë (Tel: +383 381541400; e-mail:
[email protected]) (Tel: +43 588010; e-mail:
[email protected]) *** UBT, Lagjja KALABRIA p.n., Prishtinë, 10000, Kosovë (Tel: +383 38 541400; e-mail:
[email protected]) *** +383 UBT, 38 Lagjja KALABRIA Prishtinë, 10000, Kosovë (Tel: 541400; e-mail: p.n.,
[email protected]) Abstract: Recently there has been an approach adopt Product Lifecycle Management (PLM) in (Tel: +383 38 541400; e-mail:
[email protected]) Abstract: Recently there has been an approach to adopt Product Lifecycle Management (PLM) in different industries. companies production struggle Lifecycle to maintain their presence in the Abstract: Recently While there has been anin to sector adopt Product Management (PLM) in different industries. While companies inapproach production sector strugglecritical. to maintain theirPLM presence infrom the marketplace, the need for new methodologies and tools has become Adopting varies Abstract: Recently While there has been aninapproach to sector adopt Product Lifecycle Management (PLM) in different industries. companies production strugglecritical. to maintain theirPLM presence infrom the marketplace, the needand forthe new methodologies anddetermined tools has become Adopting varies business to business downside has been to be thecritical. cost and longevity. Many authors Abstract: Recently there has been anin approach to sector adopt Product Lifecycle Management (PLM) in different industries. While companies production struggle to maintain theirPLM presence infrom the marketplace, the need for new methodologies and tools has become Adopting varies business to business and thecompanies downside in has been determined to be faster the to cost and longevity. Many authors have stated that PLM helps companies regarding innovation and product delivery to the market, different industries. While production sector struggle maintain their presence in the marketplace, the needand forthe newdownside methodologies anddetermined tools has become Adopting PLM varies from business to business has been toand be faster thecritical. cost and longevity. Many authors have stated that PLM helps companies regarding innovation product delivery to the market, however, studies require more timehas andbeen effort to scientifically provide strong evidence. Themarket, overall marketplace, the needand for new methodologies anddetermined tools has become critical. Adopting PLM varies from business tosuch business the downside toand be faster the cost and longevity. Many authors have stated that PLM helps companies regarding innovation product delivery to the however, such studies require more time and effort to scientifically provide strong evidence. Therelies overall aim of the study is to investigate the PLM presence in Kosovo and Albania. The research base on business to business and the downside has been determined to be the cost and longevity. Many authors have stated thatstudies PLM require helps companies regarding and faster product delivery to the market, however, more time and effortinnovation to provide strong evidence. Therelies overall aim ofstated thesuch study isintoreference investigate the PLM presence in scientifically Kosovoto and Albania. The research base on literature review to PLM relevant importance the industry, definition, and questioner have that PLM helps companies regarding innovation and faster product delivery to the market, however, require more time and effort to provide strong evidence. Therelies overall aim of thesuch studystudies isintoreference investigate the PLM presence in scientifically Kosovotoand Albania. The research base on literature review to PLM relevant importance the industry, definition, and questioner interviews withstudies companies. study provides theto self-evaluation of theresearch currentand state ofoverall PLM however, requireThe more time and effort scientifically provide evidence. The aim of thesuch study isintoreference investigate PLM presence incurrent Kosovo The base relies on literature review to the PLM relevant importance toand theAlbania. industry,strong definition, questioner interviews with statistical companies. The study provides theincurrent self-evaluation of theresearch current base state of PLM drivers through means. aim of the study isintoreference investigate PLM presence Kosovo The relies on literature review to the PLM relevant importance toand theAlbania. industry,of definition, and questioner interviews with companies. The study provides the current self-evaluation the current state of PLM drivers through statistical means. literature review in reference to study PLM provides relevant importance to the industry,ofdefinition, and questioner interviews with companies. The the current self-evaluation the current state of PLM drivers through statistical means. © 2018, IFACProduct, (International Federation of Automatic Control) Hosting by Elsevier Ltd. All rights reserved. Keywords: lifecycle, approach, adoption, development, management, implementation, interviews with companies. The study provides the current self-evaluation of the current state of PLM drivers through statistical means. Keywords: Product, lifecycle, approach, adoption, development, management, implementation, innovation, methods Keywords: Product, lifecycle, drivers through statistical means. approach, adoption, development, management, implementation, innovation, methods Keywords: Product, lifecycle, approach, adoption, development, management, implementation, innovation, methods Keywords: Product, lifecycle, approach, adoption, development, management, implementation, innovation, methods processes has become more critical than ever before. The innovation, 1. methods INTRODUCTION processes has become critical than ever The need for speed for new more product development andbefore. fast return 1. INTRODUCTION processes has become more critical than ever before. The need for speed for new product development and fast return 1. INTRODUCTION to client feedback is almost present in all companies. Nowadays companies are focusing utilizing best available processes has become more critical than ever before. The need for speed for new product development and fast return st client has feedback is almost present all before. companies. Nowadays companies are and focusing 1.skills INTRODUCTION Companies afterbecome they design and develop particular product -century to proven managerial latestutilizing trend ofbest 21 stavailable processes more critical thanain ever The need for speed for new product development and fast return to client feedback is almost present in all companies. Nowadays companies are focusing utilizing best available 1. INTRODUCTION afterfor they design and develop a particular product proven managerial and latest trend of growth. 21 st-century they willspeed focus bynew having a maintenance plancompanies. for their technological meansskills toaremaintain continuous The Companies need for product development and fast return to client feedback is almost present ainparticular all Nowadays companies focusing utilizing best available Companies after they design and develop product -century proven managerial skills and latest trend of 21 willinfeedback focus byterm. having a integration maintenance plancompanies. for their technological toaremaintain continuous growth. stavailable products a long Theand idea, rapid inmeans supply-demand cycle companies needs toThe be they to client is almost present ainof all Nowadays companies focusing utilizing Companies after they design develop particular product -century provenchange managerial skills and latest trend ofbest 21 they willinfocus byterm. having a integration maintenance plan planning, for their technological means to maintain continuous growth. The st products a long The of idea, planning, rapid change in supply-demand cycle companies needs to be development, testing, launching the product, maintenance, up to change date with technology and cycle know-how. need for an Companies after they design and develop a of particular product -century proven managerial skills and latest trend The of growth. 21 they willinfocus byterm. having a integration maintenance plan for their technological means to maintain continuous The products a long The idea, planning, rapid in supply-demand companies needs to be testing, launching the organization product,plan maintenance, up to date product withmeans technology and know-how. Theare need forThe an development, modification a significant effort to innovative thattosolves costumer's needs becoming they willinfocus having maintenance for their technological maintain continuous growth. products a requires longbyterm. Thea integration of idea, planning, rapid change in supply-demand cycle companies needs to be development, testing, launching the product, maintenance, up to date with technology and know-how. The need for an modification requires a and significant organization effort toa innovative product that solves costumer's needs areneeds becoming involve all departments levels of management for critical as well as access to quickly modify existing products products in a long term. The integration of idea, planning, rapid change in supply-demand cycle companies to be development, testing, launching the product, maintenance, up to date product with technology and know-how. Theareneed for an modification requires a and significant organization effort toa innovative that solves costumer's needs becoming involve all departments levels of management for critical as well as access to quickly modify existing products successful outcome the levels client. Inmanagement today's dynamic to the new demands to costumer's maintain the client base testing, to launching the of product, maintenance, up meet to date with technology and know-how. The forand an development, modification requires a and significant organization effort toa innovative product that solves needs areneed becoming involve all departments for critical as well as access to quickly modify existing products successful outcome toa significant the client. In today's effort dynamic to meetnew theproduct new demands to costumer's maintain the client base and environments clients don't only expect functionality but also attract clients is growing due to local and global modification requires organization toa innovative that solves needs are becoming involve all departments and levels of management for critical as well as access to quickly modify existing products successful outcome to the client. In today's dynamic to meetnew the new demands to maintain thelocal clientand base and environments clients don't only expect functionality but also attract clients is growing due to global and stylish satisfy theirof needs (Stark, 2011). competition. Even though there are technological means involve all outcome departments levels management for a critical well as access to quickly modify existing products successful totoand the client. In today's dynamic to meetas the new demands to maintain thelocal clientand base and maintenance environments clients don't only expect functionality but also attract new clients is growing due to global and stylishtoto the satisfy their needs (Stark, 2011). competition. Even though there are technological means available it isnew notdemands an task todue manage and and adopt new successful outcome In today's dynamic to meetnew the to maintain thelocal client base and maintenance environments clients don't onlyclient. expect functionality but also attract clients iseasy growing to global maintenance and stylish to satisfy their needs (Stark, 2011). competition. Even though there are technological means available it isclients nottoanmany task such to manage andorganization adoptglobal new environments clients technologies facts asto costs, LITERATURE REVIEW don't only expect functionality but also attract new iseasy growing local and stylish to satisfy their needs (Stark, 2011). competition. Even though theretodue are technological available it isdue nottoan easy task manage andorganization adoptmeans new maintenance and2. technologies due many facts such as costs, 2. LITERATURE REVIEW culture, process change, standardization, training, clients, etc. maintenance and stylish to satisfy their needs (Stark, 2011). competition. Even though there are technological means available it isdue nottoanmany easy facts task such to manage andorganization adopt new The emergence of technologies astraining, costs, 2. LITERATURE PLM has manyREVIEW reasons however one of culture, process change, standardization, clients, etc. Today many businesses before new techniques for available it isdue not easy taskutilizing to manage and adopt new technologies toanmany facts such astraining, costs, organization 2. LITERATURE culture, process change, standardization, clients, etc. The emergence of PLM has manyREVIEW reasons one of them is an increase of globalization requireshowever global reaction Today many businesses before utilizing new techniques for their products orchange, services tend adoptasproven technologies The emergence of PLM has manyREVIEW reasons however one of technologies due to many factstoutilizing such costs,techniques organization 2. LITERATURE culture, process standardization, training, clients, etc. Today many businesses before new for them is an increase of globalization requires global reaction to different product requirements for reasons upgrades, modifications, their products orchange, services tend totheir adoptoperations proven technologies The emergence of PLM has many however one of and means that will connect with their them is an increase of globalization requires global reaction culture, process standardization, training, clients, etc. Today many businesses before utilizing new techniques for their productsthat or services tend totheir adoptoperations proven technologies to different product requirements for reasons upgrades, modifications, innovations, newofopportunities targeting various markets, and means willsoconnect with their The emergence PLM has many however oneetc. of them is an increase of globalization requires global reaction suppliers and clients can be stated that stakeholders play to different product requirements for upgrades, modifications, Today many businesses before utilizing new techniques for their products or services tend to adopt proven technologies and means that willsoconnect their operations with their innovations, newappeared opportunities targeting various markets, etc. therefore PLM in the 21st century as a solution to suppliers and clients can be stated that stakeholders play them is an increase of globalization requires global reaction to different product requirements for upgrades, modifications, an important role in choosing new systems. Being innovative newappeared opportunities various etc. their products or services tend to adoptoperations proven technologies and means willsoconnect their with their suppliers andthat clients can be stated that stakeholders play innovations, therefore PLM in thetargeting 21st century as amarkets, solution to product management across entire life cycle. In the an important role in choosing new systems. Being innovative to different product requirements for upgrades, modifications, innovations, new opportunities targeting various markets, etc. in today's marketplace means you must have a set of features therefore PLM appeared in the 21st century as a solution to and means will their operations with their suppliers andthat clients soconnect can be stated that stakeholders play product an important role in choosing new systems. Being innovative management across entire life cycle. In the manufacturing area in the last few decades different in today's marketplace means you must have a set of features innovations, newappeared opportunities targeting various markets, etc. therefore PLM in the 21st century as a solution to and to be very adaptive and fluid to the market change by product management across entire life cycle. In the suppliers and clients so can be stated that stakeholders play an important role in choosing new must systems. Being innovative in today's means you have a set of features area in inthethetechniques last few decades different technologies, andas have and to be marketplace very adaptive andcompany fluid systems. to reaction the market change by manufacturing therefore PLM management appeared 21st century astyles solution to product management across entire life cycle. In the identifying client needs and to meet those manufacturing area in the last few decades different an important role in choosing new Being innovative in today's means you have a set of features and to be marketplace very adaptive andcompany fluidmust to reaction the market change by technologies, management techniques and stylesIn have changed and re-shaped how products are created and identifying client needs and to meet those product management across entire life cycle. the area in the techniques last few decades different needs. technologies, and styles have in today's you have a set of features and to be marketplace very andcompany fluidmust to reaction the market change by manufacturing identifying clientadaptive needsmeans and to meet those changed and management re-shaped how products are have created and managed (Wiesner al., the 2015). Companies always needs. manufacturing areaet in last few decades different technologies, management techniques and styles have changed and re-shaped how products are created and and to be very adaptive and fluid to the market change by With the globalization of the markets, it is becoming identifying client needs and company reaction to meet those managed needs. (Wiesner et al., 2015). Companies have always maintained the management products somehow or to some but at technologies, techniques and stylesalways have With the globalization of company the markets, it client is meet becoming changed and re-shaped how products are extent created and managed (Wiesner et al., 2015). Companies have identifying client needstoand reaction to those increasingly important understand a broader base not needs. maintained the re-shaped products somehow or to some extent butand at With the globalization of the markets, it client is becoming the time products were developed were not viewed as changed and how products are created increasingly important to understand a broader base not managed (Wiesner et al.,somehow 2015). or Companies have always maintained the products to some extent but as at needs. only local or a regional world aspect. similar the time products were developed were not viewed With athe globalization of but the amarkets, it client is A becoming increasingly important to understand a broader base not strategic as(Wiesner they are et today. Businesses want tonot produce goods managed al.,somehow 2015). or Companies have always only athe local or a regional but amarkets, world aspect. A similar maintained the products to some extent but at the time products were developed were viewed as concept is applicable for foreign companies that may take With globalization of the it is becoming strategic as they are today. Businesses want to produce goods increasingly important to understand a broader clientAbase not and only a local or a regional but a companies world aspect. similar still control their assets, modifyorthem, keep the current maintained the products somehow to some extent but at concept is applicable for foreign that may take the time products were developed were not viewed as strategic as they are today. Businesses want to produce goods over customer the overwhelming increasingly important to understand atobroader client base not and still control their assets, modify them, keep the current only ayour local or a regional butdue a companies world aspect. A similar concept is applicable forbase foreign that may take clients and potentially add new customer base as the strategic the time products were developed were not viewed as over your customer base due to the overwhelming strategic as they are today. Businesses want to produce goods and still control their assets, modify them, keep the current competitive advantage companies maythe utilize forsimilar their only ayour local or a regional butdue a companies world aspect. A and potentially add new customer base as theand strategic concept is applicable forbase foreign that may take clients over customer to overwhelming approach was notare part of the companies planning, often strategic as they today. Businesses want to produce goods competitive advantage companies may utilize for their and stilland control their assets, modify them, keep thestrategic current clients potentially add new customer base as the benefit. The need to innovate new efficient and effective concept is applicable for foreign companies that may take approach was not part of the companies planning, and often over your customer base due to the overwhelming competitive advantage companies may utilize for their and still control their assets, modify them, keep the current benefit. The customer need to innovate new toefficient and effective clients andwas potentially newcompanies customer base as theand strategic not part add of the planning, often over base due theutilize overwhelming competitive companies their approach benefit.your The advantage need to innovate new may efficient and for effective clients andwas potentially add newcompanies customer base as theand strategic approach not part of the planning, often Copyright © 2018 IFAC 302 competitive companies utilize their benefit. The advantage need to innovate new may efficient and for effective approach notLtd. partAllofrights the companies planning, and often Copyright © 2018, 2018 IFAC 302Hosting 2405-8963 © IFAC (International Federation of Automatic Control) by was Elsevier reserved. benefit. The need to innovate new efficient and effective Copyright © 2018 IFAC 302 Peer review under responsibility of International Federation of Automatic Control. Copyright © 2018 IFAC 302 10.1016/j.ifacol.2018.11.306 Copyright © 2018 IFAC 302
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anyone could explain how the company had any plan for product management across lifecycle (Stark, 2011).
cycles of product creating and improving is becoming critical to maintain competitiveness (Zhu et al., 2016).
New systems such as PLM that respond collectively to the needs is the answer to the fast-growing competition to the complex products. Optimizing PLM processes has gained an important objective in manufacturing enterprises to overall improve the sustainability as well as creating competitive advantage (Zhang et al., 2017). Previous models such as ERP models have only addressed organisation needs partially such as administrative and financial matters. Also, Product Data Management (PDM) systems have mainly addressed the ICT portion focusing on CAD/CAE therefore didn’t offer complete product lifecycle management from “cradle to grave”.
According to Deuter and Rizzo, one of the main drivers of industrial smart products is Internet of Things and new smart products are on the rise thus increasing overall functionality of smart products by combination of various lifecycle models (Deuter and Rizzo, 2016). On the other hand, new and smart technologies are thought to increase on all aspects of life by 2020 therefore IoT and PLM are no exception (Sodhro, Pirbhulal and Sangaiah, 2018). Changes taking place in the global level are affecting companies regardless of their location therefore maintaining product information during entire lifecycles remains a challenge for SME’s competing in global contest (SotoAcosta, Placer-Maruri and Perez-Gonzalez, 2015)
Product Lifecycle Management approach associated with a new set of components that regarding strategy & vision, process, collaboration, organizational knowledge management, ICT based systems, data management and extended network with the aim of delivering innovation through an innovative approach that would deliver the product faster and with fewer less costs (Garetti et al., 2005).
3. METHODOLOGICAL APPROACH The study is based on a literature review and by collecting the data through questioner observation at companies. The target industry were sectors involved in manufacturing areas such as Industrial manufacturers of different products such as wood commodities, metal industry, plastics, IT software, drinks and food industry, telecommunications, etc. to analyse their current operations and if they are moving toward PLM implementation. As a general guidance, a questioner has been tailored to examine the existing situation with crucial PLM drivers’ implementations with questions that will answer the set questions based on current PLM frameworks for the following critical dimensions described in the figure below that includes five business domains explained by (Scheper, 2002). The table has been further modified based on (Batenburg, Helms and Versendaal, 2005) as well as other literature support on critical components of each PLM dimension.
PLM business models may apply to industries such as manufacturing, engineering, and other services sectors. PLM can be applied even in curriculum design (Walsh, 2015). According to Garetti et al. "PLM is being considered a major technological and organizational challenge of this decade to face the shortening of product lifecycles (Garetti et al., 2005). The trend toward collaboration in product design and product manufacturing and, in general, to deal with a large amount of product-related data amongst business actors in interenterprise contexts". The product stages are closely tied to the client needs where today manufacturing is being re-shaped by shift from a in massive paradigm into a new cycle based on demand (Ferreira et al., 2017). According to Camba et al. new approaches model-based enterprise involves by ripping the benefits of different existing systems such as CAD and by combining them with PLM where additional data can be centralized to further create a faster response to the product development activities (Camba et al., 2017). According to Wire, PLM market is estimated to be around $40.26 billion (Wire, 2015). The growing market trend was predicted to be growing annually around 8.1% from 2015 to 2022 (Wire, 2015). The research in PLM is still in its early phase and can be considered of high importance to provide a clear pathway for future businesses looking to implement PLM (Silventoinen, Papinniemi, and Lampela, 2009). According to Daniels et al. the expected changes in the area of PLM are to have a faster product and production taking place in efficient use or the reuse of knowledge management in the different product lifecycle activities that has previously lacked (Daniels et al., 2013). The manufacturing industry is changing from 2D to 3D therefore changes from traditional methods are evident thus a need for rapid information sharing and shortening of
Fig. 1. PLM Model based on five (5) key dimensions (Scheper, 2002). The overall aim of the study is to investigate the PLM presence in Kosovo and Albania. 3.1 Field Survey
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Selecting the proper method ensures unbiased results, and it is considered critical element in every study. The research was organized by first defining the research goals and objectives followed by most relevant literature review in the combination of creating questionnaire and previous frameworks and adopting most relevant information after a thorough review of pertaining literature. The research included 161 companies in Kosovo and Albania in the manufacturing industry. The data collected was examined through SPSS. In this case study, a five Likert type scale based on five opinions expression for the model utilized (Likert, 1932). The questions were designed that an average survey would take about 20 minutes. The study targeted various management levels at the companies (CEOs, Executive Level, Managerial, Engineers, Economists, etc.). The study was conducted during July 2017 through Oct 2017.
Information Technology) and the dependent variable Performance. Statistical Package for the Social Sciences (SPSS) has been utilized to generate the analyses results. Table 1 shows regression model summary in the multiple correlation coefficients that measures the strength of the linear relationship in response to variable and set of variables explanation. In a case of multivariable like in our case, this allows us to measure the correlation that involves the response variable and more than one explanatory variable. The typical values of R square are in the range between 0 to 1; the smaller the value shows that the model doesn't fit well. In our case table, 7 shows R square that it indicates that the adjusted R square is 0.74 meaning/ referring that the independent variables explain the 74% percent of the total effect on performance which is the dependent variable. Table 1. Regression model summary _________________________________________
Fig. 2. Number of workers for selected companies.
________________________________________________ Coeffcient Table 2 indicates that Business Strategy, Management & Control, Business Process, Organization Culture /People & Information Technology have acceptable significance levels at the 99 percent confidence level. So the regression function is: Performance = -.130 + 0.170 Business Strategy +.200 Management & Control +.230 Business Process +.170 Organisation Culture& People +.246 Information Technology & Automation.
Table 2. Coefficient
_________________________________________ Fig. 3. Type of company sector. The Companies structure overall in Kosovo and Albania are micro and small enterprises that make over 96%. The focus was to include different company sizes and measure their effectiveness in implementing PLM drivers. According to Stark size of the company, even small they can still apply technological tools that are part of the PLM even in some cases may take advantage of it (Stark, 2011). 4. RESULTS ANALYSIS In our case, it was necessary to perform a linear regression to come to a determination about the effects of independent variables (Business Strategy, Management & Control, Business Process, Organization Culture, and People &
The one-way analysis of variance ANOVA is mainly used to check whether there are any significant differences 304
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statistically between the means of three or more independent groups where in our case we have five different independent variables and one dependent variable. Table-3 from the Anova results it indicates that the significance of the model, in general, is .000 which is acceptable at the 99 percent confidence level.
Table 5. Residuals statistics Residuals Statistics Std. Minimum Maximum Mean Deviation N Predicted Value Residual
Table 3. ANOVA results ANOVA Sum of Square s
Model 1 Regression 39.679
Mean Square
F
5
7.936
92.275
.086
df
Residual
13.330
155
Total
53.009
160
305
Std. Predicted Value Std. Residual
Sig. .000b
2.4799
5.0355 4.2245
.49799 161
-.90416
.94225 .00000
.28864 161
-3.503
1.629
.000
1.000 161
-3.083
3.213
.000
.984 161
Cronbach’s Alpha is used to calculate the reliability coefficients surveys for the PLM implementation based on Likert scale sets. The values of the Cronbach’s alpha range from 0 to 1.0 and higher values denoting increased reliability. In this case, the criteria to be acceptable Cronbach's alpha coefficient is widely debated throughout the literature, but once the coefficient values are below .70 or above .95 there is a cause for concerns (Nunnally 1994, Bland 1997, DeVilis. 2003, Cohen R, Swerdlik. 2010). The data analysis shall use summated scales or subscales and not on an individual basis as Cronbach's alpha does not provide estimates for reliability for single items (Makhoul, 1975). According to (Darren and Mallery, 2011) provides the following techniques:
a. Dependent Variable: Performance b. Predictors: (Constant), IT, strategy, Process, OC, MC
Table 4 below shows the descriptive statistics. Table 4. Descriptive statistics Descriptive Statistics Performance
Mean 4.2245
Std. Deviation .57559
N 161
strategy
4.2573
.50528
161
MC
4.2697
.56582
161
Process
4.1597
.58758
161
OC
4.2298
.57746
161
IT
4.1819 .64740 a. Dependent Variable: Performance
Table 6. Cronbach's scale for data analysis Higher than > 0.90 0.80 And between 0.89 0.70 And between 0.79 0.60 And between 0.69 0.50 And between 0.59 Lower than < 0.50
= = = = = =
Excellent Good Acceptable Questionable Poor Unacceptable
Findings: The Cronbach’s Alfa for the PLM maturity indicates an excellent internal consistency of the items in the scale.
161
Table 7. Cronbach's Alfa PLM results
b. All requested variables entered. The table 5 shows residuals statistics summarises the predicted values and residuals. Considering the standardized residuals due to their ease of interpretation it is standard practice to start with therefore from the observations we don't see any outliers going beyond values of 3.3 or less than 3.3. From the observations, we can consider that we are within limits.
Item-Total Statistics Strategy
.908
Management and Control
.896
Process
.892
OC
.896
IT
.914
Performance
.883
Multicollinearity does not seem to be a problem because the VIF figures are 1,233 (less than 10).
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Fig. 6. Regression Standardized Residual Based on the assumptions, there seem no problems regarding the heteroscedasticity.
Fig. 4. Histogram chart Multicollinearity Based on the figure 5 below the residuals are normally distributed.
6. CONCLUSIONS Based on quantitative results obtained from the companies where multiple regression analysis was performed to test the independent variables and dependent variable in a grouped test there is a relationship between five (5) independent variables (Strategy, Management & Control, Business processes, Organization Culture, IT and Automation) and dependable variable Organization Performance. According to the self-evaluation responses by the companies, the research shows that crucial PLM drivers are present in the surveyed companies and play significant role in their operations as per the table 1 model summary where it stands at .74. Based on analysis of the questionnaires, companies are further aiming to automate their routine processes, and IT is shaping their businesses with current trends to cut operating costs and focus on innovative approaches to develop new products and increase profitability. The business strategy and management control of the companies remain in the close watch as they are controlled mainly by the owners or managers that play both roles as it enables them to minimize control costs and have fast decision making. It has to be understood that innovation of specific new products may not take in full place. However, application of IT automation in running companies in the more efficient process can attribute to more profits, therefore, improves the process of achieving targets faster in revenues or capital growth. There remains significant work to be done to reach EU and USA standards however these are reachable as access to new technologies have become available through outsourcing (purchasing it outside the respective countries). During the analysis of descriptive statistics, it was noted that document control, data sharing, and collaborative environment needs to be further improved therefore training of employees and organization management will need to also strengthen where at some point reflects that it lacks compared with other functions. Aligning their business processes by utilization of high-end computer software may give companies further efficiency and competitive edge.
Fig. 5. Plot of Regression Standardized Residual
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