Paper Title
The Effect Of Strategic Maintenance On Productivity Performance In Modern Manufacturing Company

This study aims to identify factors for enhancing the operating excellence of manufacturing companies, by investigating the effect of integrated technical competencies (engineering division), involvement of the employees, and the operational aspects to improving the strategic maintenance management as a source of competitive advantage. Empirical research has been conducted on employees’ perception of strategic maintenance management in relation with manufacturing excellence (productivity performance), by testing four hypotheses in regard to the variables on quality of technical people, involvement of the employees in the manufacturing process, and the operational aspects provided by the firm of manufacturing companies. This research is theoretically based on manufacturing concepts and resource-based view, with the perspective of strategic management and organization theory. Data has been collected through survey directly to the respondents involving 250 employees of manufacturing company in Jakarta, Indonesia. The research method is field survey with convenient sampling, and the data analyzed by Structural Equation Modeling, Linear Structural Relations, program 9.2. The findings are all significant as follows: a) integrated technical maintenance has no significant effect on strategic maintenance management (H1); b) employees’ involvement in manufacturing process have significant effect on strategic maintenance management (H2); c) the operational aspects have significant effect on strategic maintenance management (H3); d) strategic maintenance management has significant effect on manufacturing excellence (performance) (H4). However, the limitations of this research are: a) it is characterized by cross sectional and perceptual analyzes; b) the location of company involved is in Jakarta, Indonesia. The managerial implications to companies in manufacturing industry in Indonesia is that superior productivity performance of the manufacturing companies can be achieved by applying strategic maintenance management through integrated technical capability, with involvement by the whole employees in creating the manufacturing excellent, as well as working awareness on the importance of operational aspects such as machine, methods, SOP (standard operating procedure), WI (work instruction). The overall goals needing to be implemented properly are to reducing the material losses effectively, accidents, machine breakdown, maximizing the machine capacity, optimizing the employees’ working hours, improving the quality of product. The theoretical implication of this study is that through effective integrated technical people and involvement of all employees, also applying the public regulation, standard operation procedures, working instruction are able to improve the implementation of strategic maintenance. Based on the hypotheses findings, such method shows very effective to reduce scrap, losses, accidents and trouble of machines. Finally, all of this method can improve the efficiency and effective of the strategic maintenance impacting on the performance of the company. Index Terms— integrated technical maintenance, people involvement, strategic maintenance management, manufacturing excellence.