scholarly journals Literature Study of Lean Implementation Framework for Small and Medium Enterprises (SMEs) in Indonesia

Author(s):  
Fatma Nadia Amin ◽  
Putu Dana Karningsih

Many companies in developed countries are implementing lean manufacturing and offering significant results. However, experts argue that the concept can not only be used in large companies but also in SMEs. Some SMEs in the world have also implemented the lean concept, but there have been many failures during implementation. This is because of the lean implementation framework. Several researchers have developed specific frameworks for lean implementation in SMEs. Therefore the final objective of this study is a lean implementation framework that is suitable for SMEs in Indonesia. In this research, the first step of the literature study is to search for previous studies on google scholar, emerald, elsevier, etc. related to the lean framework. Furthermore, comparing and comparing the framework in previous research. This comparison can be a lean implementation in Indonesia, with the strengths and weaknesses of each of these frameworks

Author(s):  
P Venkat Kamesh

The COVID-19 pandemic has caused serious and long-term disturbances in people's lives all over the world, in both developing and developed countries. This has led to financial crisis and great depression in the GDPs of many countries. It has not only impacted the Multi-National Businesses (MNCs) but also disturbed the Small and Medium Enterprises (SMEs) and life’s of man vulnerable people. As the crisis continues, the pandemic's pervasive impacts, which have affected every part of our communities, continue to unfold, leaving profound marks on people's livelihoods and countries' economies that are likely to persist for several years after the pandemic has ended. As part of the global response to COVID-19, the digital technology industry especially Fintech (Financial Technology) has been instrumental in creating and delivering services and technologies that have mitigated, at least in part, the pandemic's effect on multiple aspects of people's lives in every part of the world. The Fintech companies and Start-ups have played a tremendous role in mitigating the inconvenience for the common people by implementing the next generation solutions for everyone and the people were quick to adopt to such a change. The interest and surge of usage of Fintech applications (Digital applications related to Finance/Payments/Banking/Ecommerce) carries in preserving people’s livelihoods and businesses that have been, and continue to be, threatened by the pandemic COVID-19. This working paper will discuss about the impact of digital payments in the developing country like India during COVID-19, Pre-COVID-19, evolution of digital transformation in India from the past few years, People adoption to digital technologies, digital literacy intensification in emerging markets and also discusses the future trends of Fintech and its impact on consumers and businesses even after the pandemic ends.


Author(s):  
T. Ramadas ◽  
K.P. Satish

Purpose The purpose of this paper is to present the factors associated with the employee barriers while implementing lean manufacturing within the small- and medium-scale enterprises (SMEs). Design/methodology/approach The structural equation modelling approach is employed to develop the initial model drawing a sample survey of 133 small and medium enterprises. The result of the study shows that the lack of well-trained and experienced staff, lack of knowledge about existing specialist, cultural resistance to change are acting as the employee barriers while implementing lean manufacturing in SMEs. Then, a further study has been conducted to develop the employee barrier model with these three factors and its contributing variables using specification search representing the sample of 117 small and medium enterprises using the following fit function criteria: Chi-square (C), Chi-square-df (C-df), Akaike information criteria, Browne-Cudeck criterion, Bayes information criterion, Chi-square divided by the degrees of freedom (C/df) and significance level (p). Findings The lack of well-trained and experienced staff, lack of knowledge about existing specialist, and cultural resistance to change with 19 associated elements were considered in the questionnaire. Specification search was carried out to build up the model on the collected data from 117 SMEs. The results of the specification search identified that these three factors with 15 key variables are significant to employee barrier while implementing lean manufacturing in SMEs. Research limitations/implications The limitation of the study was that the sample size of the study was relatively small for further research, large sample size more than 117 are to be expected. Practical implications The present study has explored an unfocused area of lean implementation in small and medium enterprises. The results obtained from the study are expected to help researchers, academics, and professionals for the further studies in the domain of lean manufacturing. Social implications To implement and understand the lean manufacturing system, government of the many countries around the world are helping and encouraging by providing financial assistance for training professionals and establishing professional associations. However, many industries are not successful in lean implementation. This research work provides to develop a strategy to tackle employee barriers for successful lean implementation. Originality/value Very little research has been carried out exploring employee barriers while implementing lean manufacturing in SMEs. This paper will provide value to academics, researchers and practitioners of lean by way of providing insight into significant employee barriers for lean implementation, especially in Indian industries.


Author(s):  
Salma ARABI ◽  
Anas CHAFI ◽  
Mohamed Saad BAJJOU ◽  
Mohammed EL HAMMOUMI

Although lean manufacturing emerged in the 1990s, and since then, it has become known and recognised worldwide, companies still struggle to implement it successfully, especially in less developed countries. The purpose of this paper is to assess the level of maturity of lean production within small and medium-sized companies, identify what the benefits of lean implementation are, and present an exploration and analysis of the barriers that influence the implementation of lean production in these companies.To achieve this objective, items from previous studies were extracted through a systematic literature review and then validated by interviews with Moroccan experts in the manufacturing and non-manufacturing industry; on the other hand, a questionnaire survey was conducted with 78 small and medium enterprises in Morocco. Subsequently, all collected responses were statistically analysed using Statistical Package for Social Sciences (SPSS V21.0). The results show that the lean approach is unfortunately not yet adopted and applied by all Moroccan SMEs (24% of our respondents have not yet tried to apply lean). In addition, the most significant benefits announced by Moroccan small and medium enterprises are ‘the elimination of waste (82.1%)’, ‘the reduction of costs (78.2%)’, and ‘the improvement of efficiency and performance of production units (70.5%)’. Finally, the principal component analysis indicated that the two main difficulties that need to be maintained are poor management (with 63.6 % of the total variance) and lack of financial resources, monitoring, and skilled labours (with 7.7 % of the total variance).


2014 ◽  
Vol 21 (6) ◽  
pp. 987-1002 ◽  
Author(s):  
Anna Dorota Rymaszewska

Purpose – The purpose of this paper is to identify the lean manufacturing implementation challenges in small and medium enterprises (SMEs). The study is based on experiences of the Finnish furniture and boating sectors. The paper outlines the overall characteristics of the studied organizations and contrasts them with one of the most famous example of lean implementation – the Toyota Company. By comparing the different manufacturing environments as well as organizational characteristics, the potential challenges of lean adoption are outlined. Design/methodology/approach – The findings presented in this paper were achieved through the case study method. The research utilizes the deductive approach. Findings – The results present an assessment of the companies’ current situations. The results uncover their readiness for lean implementation and identify the challenges that might hinder lean implementation. Early identification of weaknesses will make companies more aware of their own capabilities. Moreover, it has potential for making them better prepared for lean implementation and more consistent in their process. Practical implications – The importance of addressing certain aspect of lean implementation in the specific context of SMEs characteristics might contribute to the successful implementation of lean. Originality/value – The author presents an original look at supporting companies in the process of adopting lean manufacturing.


2018 ◽  
Vol 7 (2) ◽  
pp. 1-13 ◽  
Author(s):  
Herrison Matsongoni ◽  
Emmanuel Mutambara

Informal Small and Medium Enterprises (SMEs) play a key role in their respective economies over the world particularly in the African continent. This paper reviews various theories on SMEs towards understanding the potential of the informal sector in the context of African countries. The paper uses a theoretical approach for the purpose of assessing the challenges that have affected the development of the informal SMEs sector over the years in both the developing and developed world. Economically developing countries in Africa pose unique challenges to informal SMEs development compared to the developed countries. The paper reviews the theories that define the rise to informality in Africa by identifying the key determinants for the emergence of informal SMEs. A conceptual framework for assessing informal SME’s potential for Africa is developed. The conceptual framework is based on the Fishbone diagram developed by Kaoru Ishikawa (1986). This paper discusses the intricacies of the applicability of the proposed conceptual framework to assess the potential of the informal SMEs in Africa and the way forward for the formalization debate.


Management ◽  
2021 ◽  
Vol 25 (1) ◽  
pp. 259-277
Author(s):  
Nguyen Dat Minh ◽  
Duong Trung Kien

Abstract Although Lean has been known and applied in both theoretical and practical on around the world for many years,a deeper understanding of Lean tools, principles implementation, anda roadmap to successfully apply is needed. In the context of Small and medium enterprises (SME), it is very difficult for local enterprises to apply synchronization Lean tools, techniques, and principles because of limited resources in manpower, technology, and management capability. Through the case-based study, this paper proposed the four-phase roadmap for Lean application in SMEs. An analysis of methods froma literature review of Lean implementation was conducted in order to identify the phases of the roadmap. Then, six SMEs in Vietnam that applied Lean were chosen to collect data and analyze the applicability and how Lean tools are successful implemented in the cases to confirm the findings.


2021 ◽  
Vol 13 (4) ◽  
pp. 1978
Author(s):  
Falah Abu ◽  
Hamed Gholami ◽  
Muhamad Zameri Mat Saman ◽  
Norhayati Zakuan ◽  
Dalia Streimikiene ◽  
...  

This paper investigates the barriers that hinder the implementation of lean manufacturing in wood and furniture industries as the adoption of this philosophy in such industries is not promising especially in emerging economies. To this end, a comprehensive review of the literature was performed to identify the barriers and develop a conceptual model. Next, structural equation modeling is employed to examine the model using the collected data from 131 wood and furniture companies. The findings revealed a synergetic effect between three key factors—culture and human attitude, knowledge, and resources—which play a crucial role in implementing lean. The analyses indicated the reasons of companies refused or not ready to implement lean on knowledge and culture and human attitudinal issues, particularly in companies that have limited resources. It is believed that resource issues are an obstacle to lean implementation, but not as important as knowledge and culture and human attitudinal issues. Sufficient knowledge is needed to deploy lean practices as well as changes in culture and human attitude. Investigating the relationships between these three key barriers is a contribution that this study intends to become a forward step for promoting lean manufacturing among under-studied industries. This paper also proposes that through adopting the activities for lean implementation, small and medium enterprises can experience and quantify the positive impacts of lean practices. Government agencies, universities, and professional bodies can support such enterprises in this transition through targeted interventions that address the barriers presented.


Author(s):  
E.R. Mamleeva ◽  
◽  
M.Yu. Sazykina ◽  
N.V. Trofimova ◽  
G.F. Shaykhutdinova ◽  
...  

The article presents the results of an analysis of the state of small and medium-sized businesses in Russia and measures of their state support in Russia and other countries of the world in the context of the spread of coronavirus infection. The development trends of the sector of small and medium-sized enterprises in 2014-2018 were analyzed in various countries of the world. It was revealed that compared to other countries of the world in the Russian economy in 2014-2018 big business prevailed, with an average share of 80 %, while in other countries it ranged from 32 to 52 %. It was also revealed that the number of medium-sized enterprises by 2018 decreased by 3 % compared with 2008, while the number of small enterprises, on the contrary, increased significantly. It is noted that the contribution of small enterprises to the total turnover of small and medium enterprises of the Russian Federation significantly exceeds the share of medium enterprises. Thus, the share of small and micro enterprises in the total turnover of SMEs was 85 % in 2008, of mediumsized enterprises – 15 %, and in 2018 the proportion changed by 89 % and 11 %, respectively. The analysis of the dynamics of indicators of registration and liquidation of small and microenterprises in Russia, the results of which revealed that in the analyzed period, the number of created enterprises gradually decreased, while the number of liquidated enterprises steadily increased, which affected the ratio of registered / liquidated enterprises. In 2008, this ratio was 1.1. In 2018, it reached 0.39, i.e. one registered enterprise accounted for more than 3 liquidated small and micro enterprises. In 2019, this trend continued. In 2020, the negative situation in the sphere of small and medium-sized businesses was further aggravated due to the spread of coronavirus infection in the world. Also during the study, measures of state support for small and medium-sized enterprises in various countries of the world were studied and systematized. It is noted that government support measures in developed countries ranged from 10 to 20% of GDP. The authors determine the need for further analysis of international and regional experience in order to identify and use the most effective measures of state support for SMEs


Author(s):  
Davinder Singh ◽  
Jaimal Singh Khamba ◽  
Tarun Nanda

Micro, Small and Medium Enterprises (MSMEs) have been noted to play a significant role in promoting economic growth in less developed countries, developing and also in developed countries. Worldwide, the micro and small enterprises have been accepted as the engine of economic growth of any nation. Small and Medium Enterprises are the backbone of the economies, because it trigger employment, output, export, poverty alleviation, economic empowerment, economic development etc. in developed as well as in developing countries. It is more important to developing countries as the poverty and unemployment are burning problems. MSMEs have been playing a momentous role in overall economic development of a country like India where millions of people are unemployed or underemployed. Therefore, the growth of small sectors is essential for the growth in the GDP, employment generation, total manufacturing production and export. India, being one of the fastest growing economies of the world, needs to pay an honest attention for the utmost growth of MSMEs for its increased contribution in above areas.


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