Governing intelligent manufacturing: A simulation-based assessment of overall equipment effectiveness and business competitiveness in the Malaysian automotive industry

Authors

  • Li Yuan Tan Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Lebuh Persiaran Tun Khalil Yaakob, 26300 Kuantan, Pahang, Malaysia , Universiti Malaysia Pahang Al-Sultan Abdullah image/svg+xml
  • Yudi Fernando Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Lebuh Persiaran Tun Khalil Yaakob, 26300 Kuantan, Pahang, Malaysia , Graduate Engineering & Technological Business School (GET-BS), Universiti Malaysia Pahang Al-Sultan Abdullah, Lebuh Persiaran Tun Khalil Yaakob, 26300 Kuantan, Pahang, Malaysia , Universiti Malaysia Pahang Al-Sultan Abdullah image/svg+xml
  • Chia Kuang Lee Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Lebuh Persiaran Tun Khalil Yaakob, 26300 Kuantan, Pahang, Malaysia , Graduate Engineering & Technological Business School (GET-BS), Universiti Malaysia Pahang Al-Sultan Abdullah, Lebuh Persiaran Tun Khalil Yaakob, 26300 Kuantan, Pahang, Malaysia , Universiti Malaysia Pahang Al-Sultan Abdullah image/svg+xml
  • Jun Zhou Thong Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Lebuh Persiaran Tun Khalil Yaakob, 26300 Kuantan, Pahang, Malaysia , Universiti Malaysia Pahang Al-Sultan Abdullah image/svg+xml https://orcid.org/0000-0003-2107-8766

DOI:

https://doi.org/10.15282/jgi.9.1.2026.15420

Keywords:

Big data analytics, Gap, Ethics, Skills, Career

Abstract

Business competitiveness increasingly depends on factors beyond operational efficiency alone, relying heavily on governance structures and data integrity to render performance improvements credible and accountable. Intelligent Manufacturing Systems (IMS) extend beyond routine operational tools, supporting corporate governance through data-driven transparency and traceability while reinforcing operational integrity by ensuring consistent quality and minimising human error or misreporting. This study examines how IMS implementation affects manufacturing performance and, by extension, the governance and integrity of production reporting, utilising a simulation-based, before-and-after comparative design. We analysed data from 30 simulated production shifts using Overall Equipment Effectiveness (OEE) as the primary performance metric. We used descriptive statistics and paired t-tests to evaluate performance differences. The results demonstrate a significant improvement in manufacturing performance following IMS adoption, highlighted by a 27.13% increase in mean OEE. These findings confirm that IMS integration enhances operational efficiency, reduces downtime, and strengthens business competitiveness within the Malaysian automotive sector. Beyond operational gains, the study shows how automated IMS data capture reinforces accountability and reduces reliance on discretionary human reporting, with key implications for organisational integrity and competitive advantage in manufacturing environments.

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Published

2026-06-30

How to Cite

Tan, L. Y., Fernando, Y., Lee, C. K., & Thong, J. Z. (2026). Governing intelligent manufacturing: A simulation-based assessment of overall equipment effectiveness and business competitiveness in the Malaysian automotive industry. Journal of Governance and Integrity, 9(1), 1279-1289. https://doi.org/10.15282/jgi.9.1.2026.15420