“…Manufacturing costs include the three key inputs that affect productivity in any manufacturing process: material, labor, and capital (amortization of equipment) costs. Previous research has widely used this same structure (e.g., Boeing, Mueller, & Sandner, ; Hillebrand, Buttermann, Behringer, & Bleuel, ). This value allowed us to estimate the degree of achievement (or shrinkage) in the use of materials, equipment and workforce in the manufacturing plant (Zhang et al, ).…”