Comparing Manufacturing Practices in North America and Western Europe: Are There Any Surprises?

his research tests the broad hypothesis (using data from the Global Manufacturing Re- search Group) that there are few significant differences in the manufacturing practices of Western Europe and North America . The hypothesis holds for the stringent test used in this paper to disclose the differences . In general, no surprises were uncovered, but know- ledge of the differences that were found could be of importance to some firms

American and European Manufacturing Practices

This paper presents a general analytical framework for making bilateral comparisons of manufacturing practices. The approach suggests a grouping of the data, defines a conservative test called a pure regional effect, and matches the data types to the appropriate statistical tests. The methodology is used to compare manufacturing practices in North America with those in Western Europe using data compiled by the Global Manufacturing Research Group. The broad hypothesis tested is that the two regions are more similar than different. For the two industries studied (small machine tools and non- fashion textiles), this hypothesis holds. Fewer than 10% of the 119 variables investigated have a significant pure regional effect. This suggests that the lack of success of joint ventures between North American and European firms must be attributed to factors other than differences in manufacturing practices. These variables for which significant effects were found reflect differences in external orientation, asset utilization and the management of details. Despite the overall similarities, differences in these factors could be important for American Managers contemplating partnerships with European companies