The impact of lean practices on operational performance – an empirical investigation of Indian process industries

PurposeAlthough lean thinking is deemed to be a gold standard of modern production management, a lot of scepticism still remains regarding its applicability in small- and medium-sized enterprises (SMEs). The purpose of this paper is to understand the perception of lean in SMEs and establish the relationship between lean adoption and operational performance.Design/methodology/approachWith the help of a survey, data were collected from 425 SMEs in India and analyzed using structural equation modeling.FindingsOperational performance of the firms was found to be positively related to lean implementation.Originality/valueThis study also furnishes practitioners with a better understanding of lean thinking in SMEs and its impact on performance.

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The moderating role of lean operations between supply chain integration and operational performance in Saudi manufacturing organizations

Uncertain Supply Chain Management ◽

10.5267/j.uscm.2020.10.004 ◽

2021 ◽

pp. 169-178

Author(s):

Jehad S. Bani Hani

Keyword(s):

Supply Chain ◽

Positive Impact ◽

Supply Chain Integration ◽

Operational Performance ◽

Essential Information ◽

Industrial Organizations ◽

Lean Practices ◽

Fundamental Reason ◽

Lean Operations ◽

The Impact

The fundamental reason for this study was to explore the impact of Supply Chain Integration on Operational Performance through the directing part of Lean Operations. The study essential information gathered from the example that contains 288 supervisors working in Saudi Industrial Organizations lied in the western locale, utilizing an all-around planned survey. This study coordinated to study how the supply chain integration, lean operations, and operational performance can impact each other in manufacturing associations. SEM model created and deliberately surveyed and tried. The key discoveries demonstrate that rehearsing supply chain integration cycles could bring about expanding the open door for manufacturing associations to accomplish operational performance through applying lean practices. Therefore, the connection between supply chain integration and operational performance, just as the connection between lean operations and operational performance, was positive, given these connections, it very well may be presumed that the lean operations (as a directing variable) can have a positive impact the connection between supply chain integration and operational performance. Particularly, the connection between supply chain integration and quality performance measures.

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Understanding the linkages between lean practices and performance improvements in Indian process industries

Industrial Management & Data Systems ◽

10.1108/imds-01-2016-0035 ◽

2017 ◽

Vol 117 (2) ◽

pp. 346-364 ◽

Cited By ~ 12

Author(s):

Avinash Panwar ◽

Bimal Nepal ◽

Rakesh Jain ◽

Ajay P.S. Rathore ◽

Andrew Lyons

Keyword(s):

Case Studies ◽

Performance Metrics ◽

Statistical Tests ◽

Process Industry ◽

Process Industries ◽

Primary Metal ◽

Content Type ◽

Lean Practices ◽

Specific Performance ◽

The Impact

Purpose The purpose of this paper is to investigate the impact of lean practices on performance improvement of process industries in India. Design/methodology/approach Based on a survey of Indian process industries, this paper proposes two sets of hypothesis to examine if there is any statistically significant impact of lean practices on certain specific performance metrics. First, the sample is classified into two classes of process industries: the adopters of lean and those who have not yet adopted the lean practices in their manufacturing operations. Then statistical tests are conducted to measure the differences in the level of performance between the two classes of Indian process industries with respect to nine performance measures. The survey results are augmented by two in-depth case studies. Case studies include one from lean adopter firms (a refinery) and another from the firms that have not yet adopted the lean practices (a primary metal manufacturing unit). Findings A survey result of 121 Indian process industries shows that adoption of lean practices results in a positive impact on inventory control, waste elimination, cost reduction, productivity, and quality improvement in process industries. On the other hand, based on the sample data on Indian process industries, no statistically significant improvement could be found on the lot size or space utilization between lean adopters and their counterparts. Practical implications This research provides guidance to the managers on how adoption of lean practices results in better performance in process industries in several operational areas. Originality/value To the knowledge, this study is the first attempt to analyze the impact of lean practices on a set of specific performance metrics in Indian process industry. Although this study focuses on the Indian process industry, the authors believe that findings of the research can inform other practitioners and researchers who are considering implementing lean in process industry sector in other developing countries like India.

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Is lean service promising? A socio-technical perspective

International Journal of Operations & Production Management ◽

10.1108/ijopm-01-2015-0008 ◽

2016 ◽

Vol 36 (6) ◽

pp. 618-642 ◽

Cited By ~ 40

Author(s):

Wael Hadid ◽

S. Afshin Mansouri ◽

David Gallear

Keyword(s):

Financial Performance ◽

Structural Equation ◽

Positive Impact ◽

Operational Performance ◽

Service Firms ◽

Content Type ◽

Lean Practices ◽

The Social ◽

The Impact ◽

Service Managers

Purpose – The purpose of this paper is to contribute to the ongoing debate about the effectiveness of lean practices in the service sector. Design/methodology/approach – This paper examines the impact of lean service on firm operational and financial performance. Exploratory factor analysis is used to reduce the data and identify the underlying dimensions of lean service, and partial least squares structural equation modelling is used to test the developed model. Findings – The results indicate that the social bundles of lean service had an independent positive impact on firm operational and financial performance. Furthermore, while the technical bundles had an independent positive effect on only the operational performance, they interacted with the social bundles to improve both the operational and financial performance. The findings suggest that service managers must follow a systematic approach when implementing lean service practices without focusing on one side of the system at the expense of the other. Practical implications – The paper highlights the importance of implementing lean service as a socio-technical system (STS) if service firms are to achieve the best possible benefits from their implementation. The motivation factor (social side) and the customer value factor (technical side) are capable of improving all operational performance dimensions and profit margin even if implemented alone. Therefore, service managers with limited resources are encouraged to start lean service implementation with practices within these factors. However, they can also expect improved operational and financial performance from implementing other factors as they positively interact to further improve performance. Originality/value – Viewing lean service as a STS, this paper incorporates a larger set of lean practices than previous studies and demonstrates empirically their capability of improving service firms’ operational and financial performance. It contributes significantly to the emerging literature on lean service by empirically testing the mechanism through which lean service affects firm performance.

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Impact of Lean Utilization on Operational Performance: A Study of Sri Lankan Textile and Apparel Industry

Vidyodaya Journal of Management ◽

10.31357/vjm.v3i1.3638 ◽

2017 ◽

Vol 3 (1) ◽

Author(s):

G.C.I. Gunarathne ◽

W.D.C.K.T. Kumarasiri

Keyword(s):

Performance Indicators ◽

Lean Manufacturing ◽

Large Scale ◽

Positive Impact ◽

Apparel Industry ◽

Operational Performance ◽

Lean Practices ◽

Textile And Apparel ◽

The Impact ◽

Textile And Apparel Industry

The increasingly competitive local and international market for the Textile and Apparel industry has forced the manufacturers to adopt practices that lead to cost reductions and improve Operational Performance (OP). According to Gamage et al. (2010) lean had been initiated to fulfill this requirement. Yet it was crucial to be aware whether Lean Practices would essentially have a positive impact on OP. This research was therefore conducted to identify the relationship between Lean and OP and the impact Lean utilization creates on the OP levels. The objectives also covered the identification of issues that hinder the ability to derive the expected benefits and suggesting how Lean could be used effectively to attain the expected OP levels. A survey questionnaire was used to gather data from Textile and Apparel factories that met the criteria of possessing Lean manufacturing as the standard of operation for more than a period of one year, to ensure adequate time to gain results on an impact on the OP measurement criteria identified in the model. This was studied in a sample of thirty medium to large scale factories registered in the Board of Investments. Data were specifically gathered on Lean utilization under three constructs, Just in Time (JIT), Waste Elimination (WE) and Flow Management (FM) extracted from literature. OP was measured through 12 Key Performance Indicators identified from industry. Descriptive Statistics, Multiple Regression Analysis and Correlation Analysis were employed to analyze the data. Results indicated that there is a positive relationship between Lean Utilization and OP in the Textile and Apparel industry. WE techniques utilized in the industry had a highly significant relationship with OP compared to JIT and FM. Also it was evident that lack of awareness of the human factor, lesser number of studies and consultancy expenses has hindered their ability to gain expected outcomes. The study encourages WE techniques such as elimination of bottlenecks and would support the management in long term decision making. KeywordsKey Performance Indicators, Lean Practices, Operational Performance,Textile and Apparel Industry

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THE IMPACT ON LEAN PRACTICES BY OPERATIONAL FACTORS: EVIDENCE FROM THE MANUFACTURING FIRMS OF PAKISTAN

CenRaPS Journal of Social Sciences ◽

10.46291/cenraps.v2i1.18 ◽

2020 ◽

Vol 2 (1) ◽

pp. 178-196

Author(s):

HASNAIN MUSTAQEEM KHAN ◽

DR. MUHAMMAD ASIM ◽

SALMAN MANZOOR

Keyword(s):

Supply Chain ◽

Large Scale ◽

Sampling Technique ◽

Industrial Sector ◽

Manufacturing Firms ◽

Visual Signals ◽

Operational Performance ◽

Lean Practices ◽

The Right ◽

The Impact

Purpose: The study has aimed to identify the effect of lean practices on the operational performance of manufacturing firms in Pakistan. Design/Methodology: Using a positivistic deductive approach, the study has collected 211 responses from the supply chain professionals of manufacturing firms of Karachi, Pakistan using a purposive sampling technique. PLS-SEM has been employed for data analysis using SmartPLS version 3.2.8. Findings: The study has manifested that lean practices can enable manufacturing firms of Pakistan to improve their operational performance. Implications: Kanban is one of the most effective and tested methods to do this. Kanban is a mechanism that controls the flow of products within a supply chain by using visual signals (cards). There is a Kanban card attached to each object, container, crate, or pallet. The Kanban card details the products and amounts to purchase, so the factory floor may request the right parts. Workers take the card and give it to the department of sales. Originality: The study has not been employed in the Pakistan context while due to lack of lean application in the industrial sector of Pakistan; the implications may encourage organizations towards lean practices. Moreover, lean practices can enable large-scale manufacturing firms to improve their performance in the current downturn.

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THE IMPACT OF INVENTORY CONTROL PRACTICES ON COST REDUCTION: THE CASE OF LEBANESE RETAIL COMPANIES

The EUrASEANs: journal on global socio-economic dynamics ◽

10.35678/2539-5645.5(30).2021.16-25 ◽

2021 ◽

pp. 16-25

Author(s):

Denis Ushakov ◽

Khodor Shatila

Keyword(s):

Inventory Control ◽

Inventory Management ◽

Cost Reduction ◽

Descriptive Analysis ◽

Operational Performance ◽

Study Approach ◽

Lean Practices ◽

Vendor Management Inventory ◽

Vendor Management ◽

The Impact

Inventory is a significant aspect in administration of items and services or other commodities that are kept in storage by companies and organizations. The research deals with four research variables which are vendor management inventory, lean practices, inventory management and strategic supplier management in their relation to the performance of retail companies. The research is based on the use of the mixed study approach, which aims at defining the effects of inventory control on cost reduction and operational performance of retail firms in Lebanon. The research addressed 123 respondents from the two companies. Also, the researcher has carried out six interviews with three managers from each of these two companies. The data was collected using Google forms, and then analyzed using SPSS. Descriptive analysis, inferential statistics and normality distributions were used to analyze the collected data, and the research has found a direct relationship between vendor inventory management, inventory stock taking, lean practices and strategic supplier relationships and the operational performance of the companies in question. The research recommended three new models to be implemented in further studies, and these models include the independent variables as a dependent variable.

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