Evaluating impact of 5S implementation on business performance

Author(s):  
Jugraj Singh Randhawa ◽  
Inderpreet Singh Ahuja

Purpose The purpose of this research paper is to evaluate the contributions of 5S implementation in the Indian manufacturing industries and its impact on the enhancement of their business performance. Design/methodology/approach The research study has been accomplished in the large number of manufacturing organizations that have successfully imbibed the 5S technique or are in the process of implementing 5S initiatives alone or along with other lean manufacturing practices. An elaborated “5S Questionnaire” has been designed to determine the contextual factors and their impact on the enhancement of business performance. Findings The results reveal that the majority of organizations have shown total commitment toward the implementation and objective realization of 5S quality policy at all levels in the organizations. The implementation of 5S has facilitated manufacturing organizations to accrue significant benefits such as improvement in overall organizational, productivity, quality, safety, employee morale values, effective workspace utilization, and cost optimizations. The results also show the elimination of serious chronic manufacturing system problems such as delays, breakdown, demoralized employees, declining profits, and dissatisfied customers through holistic 5S implementation. Research limitations/implications The limitation of the study is that it encompasses only the manufacturing organizations, while a similar study can also be conducted in services sector also. Originality/value The study highlights the detailed contributions of 5S principles in the development of manufacturing organizations and its impact on the enhancement of business performance for remaining competitive in global market world.

2019 ◽  
Vol 37 (2) ◽  
pp. 243-278
Author(s):  
Mandeep Kaur ◽  
Kanwarpreet Singh ◽  
Doordarshi Singh

Purpose The purpose of this paper is to develop an insight into the prevalent quality and supply chain practices adopted in the contemporary Indian manufacturing industry, and compare business performance measurements between transfusion of total quality management (TQM)–supply chain management (SCM) companies and only SCM implementing companies. Design/methodology/approach To meet the goals of this work, i.e., to ascertain contributions made by TQM–SCM practices, a reasonably large number of Indian manufacturing organizations have been extensively surveyed, through a specially designed TQM–SCM questionnaire. And the design of TQM–SCM questionnaire has been finalized through extensive literature review. Finalized TQM–SCM questionnaire was sent to around 720 industries that are implementing TQM and SCM with other related lean manufacturing practices. Findings The leading Indian manufacturing organizations have taken proactive initiatives to effectively improve the manufacturing by transfusing various lean manufacturing philosophies like TQM, SCM, TPM, 5S, Six Sigma, etc., for realizing enhanced manufacturing performance. The study reveals that Indian entrepreneurs have been reasonably successful in improving the business performances in the organizations by implementing combination of TQM and SCM, as TQM support to SCM is much effective and this improvement initiative has significantly contributed toward enhancing the overall manufacturing performance. Practical implications Synergy of TQM and SCM in the context of Indian manufacturing industry has been proved beneficial in terms of competitive image as well as business performance. Therefore, the whole Indian manufacturing entrepreneurs must continue to make an earnest effort in their endeavour to realize enhanced competitiveness through synergizing different business improvement initiatives. A major implication is that only SCM implementing companies should develop their supply chain through synergy of TQM–SCM after analyzing the business environment and their future plans. Originality/value Much of the attention has been given to TQM practices and SCM practices, and very few studies have been undertaken to integrate TQM and SCM practices. But as far as the authors know till now there is no study undertaken to analyze synergy status of TQM and SCM and then comparing with only SCM implementing companies in India for medium- and large-scale manufacturing class. Therefore, this study compares the transfusion of TQM–SCM with only SCM companies and can be, thus, treated as filling a gap in the extant literature. Therefore, the findings of this research paper will contribute to future research.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catherine Maware ◽  
Modestus Okechukwu Okwu ◽  
Olufemi Adetunji

Purpose This study aims to comparatively discuss the effect of lean manufacturing (LM) implementation in the manufacturing sectors of developing and developed countries. Design/methodology/approach An in-depth literature review focused on previous research published between 2015 and March 2020. The papers published by the databases such as Google Scholar, Scopus, ProQuest and Web of Science were used in the study. A total of 63 studies that focused on LM application in manufacturing industries in developing and developed countries were used in the research. Findings It was observed that LM improves operational performance for manufacturing organizations in developing and developed countries. Small and medium-sized enterprises in both developed and developing countries have difficulties transforming their organizations into lean organizations compared to large enterprises. Furthermore, the review also found that there seems to have been no paper had reported the negative impact of implementing LM in manufacturing industries in developing and developed countries from 2015 to March 2020. Research limitations/implications The study used research papers written between January 2015 and March 2020 and only considered manufacturing organizations from developed and developing nations. Practical implications The study provides more insight into LM implementation in developing and developed countries. It gives the LM practices and the implications of applying these practices in manufacturing organizations for developing and developed countries. Originality/value A preliminary review of papers indicated that this seems to be the first paper that comparatively studies how LM implementation has affected manufacturing organizations in developed and developing countries. The study also assessed the LM practices commonly used by the manufacturing industries in developing and developed countries.


Author(s):  
Ibrahim Salih Mohammad ◽  
Chike F. Oduoza

Purpose The purpose of this paper is to develop an effective framework for implementing Lean strategies in small- and medium-sized enterprises (SMEs) in the Kurdistan Region of Iraq (KRI). Design/methodology/approach Based on the integration of LM tools and techniques with the Malcolm Baldrige National Quality Award (MBNQA) criteria a systematic Lean implementation framework for manufacturing SMEs has been proposed. The core values, drivers and tools of the proposed framework were further developed based on case studies in three SMEs in the KRI. Findings Proposed framework is able to provide a simple pathway for SMEs to systematically implement Lean techniques in seven functional areas in order to create Lean culture in the organisation. Business performance measurement in terms of profitability, customer satisfaction, employee’s satisfaction, competitiveness growth and ergonomic improvement is presented in favour of evaluating Lean outcomes appropriately. It also presents the experience of small firms in implementing Lean programmes to show that Lean is valid in SMEs. Research limitations/implications The framework concentrates only on the internal issues of the organisation, while external variables such as national culture and external support are excluded. Practical implications The framework assists improvements in SMEs that either initially attempt to start Lean journey or those that are at more advanced levels towards excellent-Lean manufacturing. The framework can also be used as a self-assessment model to determine the degree of Lean readiness. Originality/value To the best knowledge of the author, it is the first framework that integrates Lean techniques with MBNQA criteria to support Lean implementation in SMEs. It is also the first study regarding Lean-excellence in the KRI.


2019 ◽  
Vol 37 (5) ◽  
pp. 732-754 ◽  
Author(s):  
Saumyaranjan Sahoo

Purpose Modern manufacturing systems require tools and techniques that take cognizance of the social (concerning people and relations) as well as the technical environment. The purpose of this paper is to explore the relationship between the social and technical aspects of lean manufacturing practices and their effects on business performance outcomes. Design/methodology/approach The hypothesized relationships for this study are tested with data collected from 148 Indian manufacturing firms by using SPSS and AMOS statistical software. Findings The analysis of the study was conducted using structural equation modeling (SEM) technique, which indicated that both “soft” and “hard” lean practices are positively related to business performance parameters. The findings also demonstrated that “hard” lean practices fully mediate the relationship between “soft” lean practices and business performance parameters. Research limitations/implications There are some limitations of this study. Although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of Indian experts about lean manufacturing systems; hence, the sample size could be increased and the nationality of the respondent could be expanded for future research. Practical implications The paper would be of interest to Lean practitioners, and the results of this study can be used in organizations to put a focus on social-cultural changes while applying lean technical tools when it comes to practices as well as importance. Originality/value This paper extends theoretical contribution in production and operations management literature, highlighting how social and technical practices have to interact to enable a successful lean manufacturing implementation.


2014 ◽  
Vol 4 (3) ◽  
pp. 447-462 ◽  
Author(s):  
Om Ji Shukla ◽  
Gunjan Soni ◽  
G. Anand

Purpose – In the current customer-driven market, the manufacturers have to be highly responsive and flexible to deliver a variety of products. Hence, to meet this dynamic and uncertain market changes, the production system, which enables the manufacturing of such variety of products should be able to meet such diverse, dynamic changes. Hence, selecting a suitable manufacturing system is a key strategic decision for today's manufacturing organization, which needs to survive in these uncertain market conditions. Hence, the purpose of this paper is to present a decision-making model for selecting the best manufacturing system and also discuss the criteria on the basis of which the management can select the same. Design/methodology/approach – A case of small- and medium-sized company is presented, in which the management is deciding to establish a most suitable manufacturing system. To supplement this, a suitable multi-criteria decision-making model (MCDM), the grey approach is used to analyze manufacturing system alternatives based on various decision criteria to arrive a comparative ranking. Findings – An extensive analysis of grey-based decision-making model described grey decision matrix, grey normalized decision matrix, grey weighted normalized decision matrix and grey possibility degrees for three alternatives revealed that lean manufacturing systems was found to be the most suitable manufacturing system among three alternatives for a given case. Research limitations/implications – The same study can be extended by including sub-criteria with main criteria for selection of manufacturing system by utilizing two MCDM techniques such as AHP or ANP with Grey approach. Practical implications – The Grey approach has been discussed in a detailed way and it will be useful for the managers to use this approach as a tool for solving similar type of decision-making problems in their organizations in the future. Originality/value – Although, the problem of selecting a suitable manufacturing system is often addressed both in practice and research, very few reports are available in the literature of Grey-based decision models that demonstrated its application for selecting a suitable manufacturing systems.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bambang Tjahjadi ◽  
Noorlailie Soewarno ◽  
Viviani Nadyaningrum ◽  
Aisyah Aminy

PurposeThis study aims to investigate whether human capital readiness affects business performance, and if so, whether the effect is mediated by global market orientation.Design/methodology/approachThis is a quantitative study employing partial least square structural equation modeling (PLS-SEM) to test the hypotheses. Using a survey method, the data were collected using both online and offline questionnaires. As many as 433 owners/managers of micro-, small- and-medium-sized enterprises (MSMEs) in the East Java Province of Indonesia participated in this study. A mediating research framework was developed to investigate the mediating role of global marketing orientation on the human capital readiness–business performance relationship.FindingsThe results show that human capital readiness has a direct and positive effect on business performance. Further analysis reveals that global market orientation partially mediates the effect of human capital readiness on business performance.Research limitations/implicationsFirst, this study focuses on the MSMEs in the East Java Province of Indonesia. Caution needs to be taken if the results are generalized to other regions. Second, it employed a survey method that is commonly criticized as having the potential to be biased.Practical implicationsThe findings provide a more comprehensive understanding of owners/managers of human capital readiness and how it should be improved to better execute global market orientation strategies to achieve the desired business performance.Social implicationsBecause MSMEs play a crucial role in society, this study provides a general model to improve the welfare of society by enhancing the MSMEs' business performance. By understanding its antecedents, namely, human capital readiness and the global market orientation, improvements can be made.Originality/valueHuman capital readiness has been rarely examined in previous studies. This is the only study applying the constructs of human capital readiness, global market orientation and business performance to the Indonesian MSME research setting.


2019 ◽  
Vol 31 (5) ◽  
pp. 696-721 ◽  
Author(s):  
Mandeep Kaur Sidhu ◽  
Kanwarpreet Singh ◽  
Doordarshi Singh

Purpose The purpose of this paper is to evaluate the capabilities of total quality management (TQM) and supply chain management (SCM) and extract various significant factors which influence the implementation of SCM alone and synergy of both TQM–SCM in terms of business performance of Indian medium and large scale manufacturing industry. Design/methodology/approach In the present study, 116 Indian manufacturing organizations have been extensively surveyed to ascertain the inter-relationships between various success factors and competitive dimensions of SCM alone and for combined approach (TQM–SCM), through different statistical techniques. Further, to evaluate the significance of time period on competitive dimensions, two-tailed t-test has been deployed. Finally the discriminant validity test has been applied to extract highly successful and moderately successful organizations for both approaches. Findings The study compares the contributions played by only SCM initiatives and combined approach (TQM–SCM) initiatives toward realization of significant improvements of various competitive dimensions of Indian manufacturing organizations. Finally, this study reveals that synergistic relationship of TQM and SCM paradigms can be more helpful as compared to only SCM initiatives for Indian manufacturing industries to enhance overall business performance. Originality/value TQM and SCM are considered as performance improvement techniques by the manufacturing organizations. The present research work establishes that combined (TQM–SCM) initiatives have effectively contributed for realization of significant competitive dimensions, progressively from introduction to maturity phases. So, the study stresses upon the need for improving coordination between various manufacturing parameters as well as competitive dimensions of TQM and SCM paradigms to enjoy higher potential of business performance.


2019 ◽  
Vol 32 (2) ◽  
pp. 519-547 ◽  
Author(s):  
Muhammad Irfan ◽  
Mingzheng Wang ◽  
Naeem Akhtar

Purpose The purpose of this paper is to emphasize the underlying mechanism through which firms can achieve supply chain agility and augment business performance from the vendor’s perspective. Design/methodology/approach Drawing on dynamic capability view and contingency theory, the study conceptualizes a moderated mediation model to investigate the underlying influence of process integration (PI), supply flexibility and product-related complexity on supply chain agility and the subsequent effect of supply chain agility on firm’s business performance. Survey data from a sample of 148 firms, in the garment manufacturing industry, in Pakistan were analyzed using partial least square methods. Findings The results revealed that supply flexibility (i.e. volume and mix) mediates the effect of PI on supply chain agility. Supply chain agility, in turn, influences a firm’s business performance. Furthermore, the competence‒capability framework is not consistent across the varying degrees of product complexity such as product complexity hinders the effect of supply flexibility on supply chain agility, whereas it amplifies the impact of PI on supply chain agility. The conditional indirect effects suggest that the indirect effect of PI on supply chain agility through supply flexibility becomes stronger when product complexity is high. Originality/value The study is novel in the context of an emerging economy to educate fashion vendors to tune their competencies and capabilities to regain the market share in the global market place.


2014 ◽  
Vol 20 (4) ◽  
pp. 415-435 ◽  
Author(s):  
Kanwarpreet Singh ◽  
Inderpreet Singh Ahuja

Purpose – The purpose of this paper is to evaluate and extract various significant factors influencing the implementation of total quality management (TQM) and total productive maintenance (TPM) on business performance for the following approaches: TPM alone; both TQM-TPM combined for improving manufacturing performance in the Indian manufacturing industry. Design/methodology/approach – In the present study, 94 manufacturing organizations have been extensively surveyed, to ascertain the contributions made by TQM and TPM initiatives in the Indian manufacturing industries toward realizing manufacturing performance improvements. The correlations between various TQM and TPM implementation issues and manufacturing performance improvements have been evaluated and validated by employing various statistical tools. Findings – This paper illustrates how the synergistic relationship of TQM and TPM paradigms can be helpful for Indian manufacturing industries to enhance overall business performance. The major objectives of this research is to examine, the effectiveness of performance parameters (dependent variables) and factors of implementation (independent variables) of companies implementing TPM alone and TQM-TPM combined approach to improve their business performance and how the support of TQM provides a synergetic effect on TPM's contribution in improving better business performance. Originality/value – TQM and TPM, are such popular initiatives employed by the manufacturing organizations as performance improvement techniques. These programs are employed world over for attaining customer satisfaction, reliability, productivity, market share, profitability and even survival. The study stresses upon the need for improving coordination between manufacturing parameters and other organizational quality improvement initiatives through transfusion of TQM and TPM and to examine the impact of experience in terms of time period on effectiveness of performance parameters when TQM is supported by TPM for Indian manufacturing companies.


2019 ◽  
Vol 10 (1) ◽  
pp. 411-434 ◽  
Author(s):  
Wouter Beelaerts van Blokland ◽  
Sebastiaan van de Koppel ◽  
Gabriel Lodewijks ◽  
Wouter Breen

Purpose Today, most of the car manufacturers world-wide have embraced the principles of lean manufacturing on strategic and operational level. On strategic level car companies like Toyota (Womack et al., 1990) shifted 63 per cent of the value of the car towards the first, second and third tier suppliers for the co-production and co-development of cars as an effect of lean implementation. However, lean implementation was also followed by for instance Ford and GM in the USA, the latter company faced a sudden disruption in 2009 due to the break-out of the financial crisis in 2008, while Ford survived. Could this be foreseen? The exclusive use of (classic) financial performance indicators may give a false image of a company’s current and future performance. There is a need for a model to identify “the stars and the laggards’ regarding car companies by taking into account non-financial and intangible dimensions as advocated by Neely et al. (2003) regarding the third generation of business performance measurement systems. The purpose of this paper is therefor to propose a method to measure and benchmark car company performance which includes the non-financial R&D dimension as well as supply chain, value creating and employee dimensions. These dimensions are present in the value leverage model (van Blokland et al., 2012a, 2012b) which can serve as a basis for this method. The aim is to contribute to the third generation business performance measurement systems by further development of the value leverage model towards a maturity model for benchmarking car company performance. The proposed method can provide a big picture and give insight regarding company performance and direction of the performance. Design/methodology/approach Value leverage can be measured by a correlation analysis regarding three dimensions, namely, supply chain, R&D and value creation, all relative to the employee or capita which results in the average value leverage (AVL) factor. This AVL factor can be used to compose a combined relative and absolute ranking. The score regarding the AVL results in a relative ranking expressing the level of stability regarding the car companies value chain and system. For the absolute ranking the car companies receive per variable parameter a score according to their absolute performance relative to the other car companies. The relative and absolute ranking are presented on the vertical and horizontal axes forming a matrix. The matrix is the basis for the stability-value leverage maturity model for measuring and benchmarking company performance. With the proposed method, the following main research question can be answered: “How can company performance be measured and benchmarked from a stability-value leverage perspective?”. Findings With the proposed method, stability-value leverage performance can be measured. The relative ranking on the vertical axis and the absolute ranking form together a matrix which is presented by a scatterplot. A matrix with four maturity levels emerged from the analysis by introducing the average score of all the car companies together in the data set crossing the matrix vertical and horizontal. The four levels are as follows: Level I, low stability – low value leverage; Level II, low stability – high value leverage; Level III, high stability – low value leverage; and Level IV, high stability – high value leverage. Stability-value leverage performance of car companies can be measured over time which makes it possible to observe to which direction the car company migrates for instance from Level I to Level III, before and after the financial crises in 2008. The car companies BMW, Daimler, Audi, Ford and Honda are the best performing companies in stability-value leverage over the period 2000-2014, as they are situated at Level IV. With the findings, the main research question can be answered. The value leverage indicators can be used for measuring and benchmarking company performance regarding four maturity levels of stability and value leverage. The direction of performance can be observed as well. Research/limitations/implications This research is limited to the car industry. Further research is devised to test the indicators for instance on the truck manufacturing industry. Further research towards new variables is part of the ongoing research. Practical/implications With the value leverage maturity model, it is possible to inform stakeholders about stability, value leverage and value creation capability of car companies. Weak performing companies can be identified in an early stage with this method to anticipate for instance on possible discontinuation of a car company effecting in merger an acquisition processes. Social/implications With the method stakeholders such as employees, users of cars and investors can be informed about how and why car companies perform in an unstable or stable manner. Originality/value This research towards ranking and classification of car companies aligns with theories regarding lean manufacturing and maturity models, as these models are used to compare companies on their level of perfection or excellence.


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