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The purpose of this paper is to explore the relationship of strategic manufacturing effectiveness utilizing the four-stage model of Hayes and Wheelwright (H-W) with overall performance of manufacturing, market alignment and production competence (PC). In addition, it attempts to understand the relationship of strategic manufacturing effectiveness with manufacturing capability development modes, strategic groups of companies and the nature of improvement programs being employed.

Structured questionnaire was used to capture data from manufacturing organizations. Responses from managers of 47 Indian manufacturing companies were used to test the seven propositions that were developed to examine the paradigms of manufacturing competence.

The analysis revealed that the strategic manufacturing effectiveness of manufacturing companies based on H-W’s four-stage model has significant positive correlation with the overall performance of manufacturing and PC of the company. Further, the analysis substantiated the relationship of strategic manufacturing effectiveness with capability development process and the nature of improvement programs.

This exploratory study is based on a small sample of manufacturing companies with diversity and hence it may not be representative of all industry sectors. Second, it has used several scales for measuring the relevant constructs which themselves are not proven, hence, the findings should be taken with caution.

This is an initial research focussing on the relationships among different elements of manufacturing competence such as manufacturing capabilities, PC, manufacturing capability development mode and overall performance of manufacturing with strategic manufacturing effectiveness using H-W model. H-W model was primarily proposed as an audit tool for managers, was hitherto not adequately studied in relation to other paradigms of manufacturing competence.

The four stage model of Hayes and Wheelwright (H‐W) describing the strategic role of manufacturing function is widely accepted in the literature. However, there is little research that has examined the underlying factors of the H‐W model. This paper aims to fill this research gap by developing an instrument for measuring factors of strategic manufacturing effectiveness of a company based on the H‐W model.

The general principle of designing an instrument is followed in this paper. Attributes of strategic manufacturing effectiveness are identified from critical analysis of the original text of Wheelwright and Hayes, and Chase and Hayes. Then these attributes are grouped into four factors: catalysts of manufacturing initiatives; proactiveness of manufacturing function; attitude of top management towards manufacturing; and nature of manufacturing initiatives. Question for each attribute along continuum of four stages in the H‐W model is developed. The reliability and validity of the instrument are assessed through responses obtained from managers of 28 manufacturing units.

The empirical evidence supports that the proposed instrument has quite good reliability (Cronbach's α for different factors in the range of 0.575 to 0.705) and validity (multiple correlation coefficient between factors and manufacturing performance of 0.801).

This instrument can be used to position the companies along the continuum of four stages. Also, this can help managers assess the strengths and weaknesses in manufacturing for making the improvements.

This study is one of its kind which focuses on the development of an instrument to assess the strategic role of manufacturing based on the H‐W model.