scholarly journals Lean and agile in small- and medium-sized enterprises: Complementary or incompatible?

Author(s):  
Neeshal Gurahoo ◽  
Roger H. Salisbury

Background: This study explores the relationship between the implementation of lean supply chain management and the agility of manufacturing small- and medium-sized enterprises (SMEs). Although some studies have suggested that these two approaches are mutually exclusive, other research finds that they may be applied to different parts of the supply chain or may be compatible through the common elements of process integration and supply chain-wide collaboration. Objectives: Through an investigation of two companies at different stages of lean implementation, this study sought to establish which of these paradigms might be applicable in the context of South African SMEs. Method: Semi-structured interviews were conducted with managers at both companies, and the progress towards lean manufacturing was probed. Results: Company B was found to have made considerably more progress towards a lean system than Company A. Neither company had achieved just-in-time purchasing, and this was identified as a challenging aspect for SMEs. Both companies experienced stockouts and long lead times. The volatile nature of their markets indicated a need for greater agility. Company B was found to have a greater potential for speed, flexibility and response. It is proposed that this may be a direct consequence of greater progress in lean implementation. Conclusion: It was concluded that strategies to implement lean are a necessary prelude to achieving an agile enterprise. This article presents a model incorporating the lean principles that SMEs should adopt in order to achieve agility.

Author(s):  
Wesley Niemann ◽  
Theuns Kotzé ◽  
Karabo Mannya

Background: Global sourcing has increased as buyers searched for new markets that offered better pricing, quality, variety and delivery lead times than their local markets. However, the increase in global sourcing has also exposed businesses to many supply risks.Purpose: The purpose of this descriptive qualitative study was to explore the global sourcing supply risks encountered by small clothing and textile retailers in Gauteng and to determine what supply risk identification and management approaches they utilise.Method: This study utilised semi-structured interviews conducted with 12 small clothing and textile retail owners.Results: The study found that the three major supply risks encountered by these retailers were fluctuating exchange rates, communication barriers and costly and complicated logistics, which included high customs costs. Furthermore, although aware of the supply risks, none of the small clothing and textile retailers had formal identification and management approaches in place. Instead, risks are dealt with at the sole discretion of the owner as and when they occur. The study also found that informal identification and management approaches were being applied by some of the retailers. These included factoring exchange rate fluctuations into the profit margins and using translators to combat communication barriers.Contribution: The study is one of the first empirical studies conducted on global supply risks and the associated identification and management approaches in the South African small business context, specifically focused on clothing and textile retailers.Conclusion: Small clothing and textile retailers need to proactively identify and manage global sourcing risk using the identified approaches in order to reduce and mitigate potential supply disruptions.


2017 ◽  
Vol 6 (11) ◽  
Author(s):  
G Mayagoitia ◽  
J. Cruz

Key words: Competitiveness, inventory, just in time, kan ban, lean manufacturing, supply chain management, word class manufacturingAbstract. The domestic, national, or international markets join with the customers demand to the companies, products or services, with excellent design, maximum quality, delivered on time and quantity, to the lowest cost; plus the feasibility to change the production plan and react to newrequirements almost immediately. The paper desire is to present an action plan to those that want to use productivity methods focus in the most important element of a global economy, the Inventory. The paper is composing for 2 primary elements: 1) review of the current literature of productivitymethods and 2) provide an analysis of those tools about their focus.Palabras claves: Manufactura de Clase Mundial, Manufactura Esbelta, Administración de la Cadena de Suministros, Justo a Tiempo, Kan Ban, Inventarios, CompetitividadResumen. En la actualidad los mercados nacionales o internacionales y los clientes exigen de las empresas, productos y/o servicios con excelente diseño, de la más alta calidad, entregados en tiempo y forma, a los más bajos costos, con la factibilidad de cualquier cambio en el plan de producción y agilidad para reaccionar de manera casi inmediata a las tendencias del mercado.El artículo pretende presentar una guía de acción a empresarios que deseen utilizar las diferentes herramientas de productividad, hacia el elemento que permitirá alcanzar las exigencias de una economía global cada vez más demandante, el Inventario. El artículo está compuesto de dos elementos principales: 1) Una revisión de la literatura existente de las herramientas de productividad enfocadas a los diferentes inventarios existentes en las organizaciones, y 2) Un análisis de las herramientas de productividad que nos permita vislumbra las áreas de afectación (diferencias) y los beneficios obtenidos (similitudes)


2018 ◽  
Vol 11 (2) ◽  
pp. 207 ◽  
Author(s):  
Mehrsa Taherimashhadi ◽  
Imma Ribas

Purpose: Since the emergence of Lean Manufacturing many organizations strived to implement it. Nonetheless, sustainable Lean transformation is not as easy as to be simply achieved. Several aspects need to be taken into account before Lean implementation which national and organizational culture are important. By considering influences of national culture on the organizational culture, this paper aims at proposing an evaluation model to determine the cultural weaknesses of an organization and give some recommendations to manage people before implementing Lean.Design/methodology/approach: This research has been conducted based on literature review survey and semi-structured interviews. Research papers, conference proceedings, books, and official websites regarding Lean philosophy were reviewed to find the influence of national culture in Lean implementation. Different databases were scrutinized, from 2015 to 2017, containing Scopus and Web of Science with the time period of 1996-2016. A set of key terms and their combinations were used including: Toyota Production system, Lean production, Lean manufacturing, Lean management, Transformation, Implementation, Barriers/ Impediments/Challenges/Difficulties, Human resources, Success factors, Organizational culture, and National culture.Findings: The proposed evaluation model is a guide for organizations to determine cultural misalignments between the corporate culture and the Lean culture before its implementation and gives some managerial recommendations to correct them.Originality/value: This study is the first attempt to integrate the national models   with Lean culture to provide an evaluation model and some recommendations to help the organization to align its culture to Lean culture before its implementation.  


Author(s):  
Francois Schutte ◽  
Wesley Niemann ◽  
Theuns Kotzé

Background: Global sourcing has impacted inventory levels, lead times and the availability of working capital, affecting the standard financial flow of a supply chain. Poorly managing the link between the financial and physical supply chains could therefore lead to unnecessarily high inventory investments or to a short supply of inventory, affecting cash flow, working capital, sales and, subsequently, a firm’s profitability.Objectives: The aim of this generic qualitative study was to explore how firms manage their financial supply chain alongside their physical supply chain.Method: Data were collected from 12 semi-structured interviews with senior managers across six small- to medium-sized enterprise (SME) importing firms in various industries.Results: The research finds that the buyer is the driver of both upstream and downstream financial supply chain management (FSCM) as SME importers in Gauteng are proactively managing their financial alongside their physical supply chains. Through the continuous evaluation of sourcing strategies, exchange rate risk management strategies and inventory investment management strategies, firms can align their physical and financial supply chains.Conclusion: This study highlights the lead time and disruption risks and costs of global sourcing and identifies FSCM tools that can be used to alleviate the financial burden associated with long lead times.


2016 ◽  
Vol 116 (8) ◽  
pp. 1585-1616 ◽  
Author(s):  
Muhammad Zeeshan Rafique ◽  
Mohd Nizam Ab Rahman ◽  
Nizaroyani Saibani ◽  
Norhana Arsad ◽  
Waqar Saadat

Purpose Lean manufacturing is one of the leading paradigms for fast and proficient manufacturing but its proper implementation is a foremost task due to certain barriers affecting lean and can be handled when utilized with RFID technology. With this aspect in view, the purpose of this paper is to enlighten and present a thorough literature study that can show how RFID-based lean manufacturing is helpful for handling barriers affecting lean manufacturing in light of previous literature available. Design/methodology/approach In order to achieve this purpose a systematic literature review is conducted to justify the impacts of RFID technology for handling barriers. The aim of this systematic literature review is to initially find the barriers affecting lean implementation and then to explain the properties of RFID-based lean manufacturing which are highly feasible to handle detected barriers. Findings An interrelation is generated in this study which provides a clear indication that the properties of RFID carry significant effects to handle detected barriers in the operational, managerial and financial regime of manufacturing companies. The detected barriers that affect lean implementation are company’s cultures, top management commitment, poor employee administration, lack of finances, unbalanced inventory control, unstable customer handling and longer lead times. The properties of RFID-based lean manufacturing like operational visibility, inventory control, production control, minimized lead times and the real-time data information (to facilitate top management and employees on shop floor) are extremely helpful to control these barriers. Originality/value The originality of this study is the provision of clarity provided to both academicians and practitioners by citing and utilizing previous research studies which undoubtedly indicates positive impacts of RFID on lean implementation.


Author(s):  
Wagner Cezar Lucato ◽  
Felipe Araujo Calarge ◽  
Mauro Loureiro Junior ◽  
Robisom Damasceno Calado

Purpose – Manufacturing companies worldwide have been replacing traditional mass-production practices by lean initiatives. This translation process is progressive and may vary depending on several factors. Hence, it could be expected that the degree of adoption of the lean practices could vary significantly among industries, regions and even countries. The purpose of this paper is to explore the implementation performance of lean principles in Brazil, the paper developed a survey in the Sao Paulo Metropolitan Area, which considered 51 industries of different sizes, from several industrial segments, nationals and multinationals. Design/methodology/approach – The proposed survey was developed using as a normative framework the SAE J4000 standard – identification and measurement of the best practice in implementation of lean operation and the SAE J4001 – implementation of lean operation user manual. To measure the implementation degree of the lean practices in the researched industries, the paper proposed the utilization of two concepts: the degree of leanness (DOL) of an element of J4000 and DOL of a company. Also three hypotheses were tested, trying to establish the relationship among the DOL and firm ownership, their size and respective industrial sector. Findings – The results obtained in the survey demonstrated that the performance of lean initiative implementation is not uniform among the companies located in the researched area. Outcomes also showed that the degree of implementation of the lean practices by multinational companies was higher than that for the national firms. However, it was not possible to establish a relationship between the DOL and the size of the firms. Neither a clear and definite association between DOL and industrial sector was possible to be identified. Practical implications – For the practitioners and managers dealing with the lean implementation, this paper gives a relevant contribution because it shows how they can effectively use an existing tool to measure the implementation of the lean practices in their respective firms. Furthermore, the DOL calculation for each individual element of the J4000 standard could also be used by practitioners and managers to identify specific problems and opportunity areas where practical actions could be identified to improve the lean implementation. Originality/value – This paper contributes to the lean manufacturing theory because it proposes a theoretical way to measure the degree of implementation of the lean initiatives in the manufacturing companies. Also the survey results generate additional research material that could be used by other researchers to further explore the subject in the area.


Author(s):  
Boitumelo Pooe ◽  
◽  
Virimai Mugobo ◽  

The purpose of this paper was to investigate the challenges South African fashion designers experienced when managing their supply chain network in the retail clothing industry. In today’s complex markets, the susceptibility of the supply chain is viewed as an ongoing issue for several industries and it is no different for fashion designers. As a result, in the past, the visibility of South African fashion designers in the retail environment appeared to be minimal, due to a number of challenges. This paper is based on qualitative research that made use of in-depth semi-structured interviews with a total of twenty-four participants, with the sample divided into five groups representing different industry professionals. Semi-structured interviews allowed the participants to answer the questions unreservedly based on their own personal and professional experiences. The findings revealed that South African fashion designers in the retail industry experienced a number of supply chain challenges such as cash flow and funding, fabric, challenges associated with cutting, making and trimming (CMT) companies, skills and knowledge, fashion designer’s business acumen, market access and location, human skilled resources, garment and production quality, fragmentation, costing, marketing, competition, and other isolated challenges that were mentioned by a few participants. The practical implications of this paper include the need for responsible stakeholders to put in place mechanisms to reduce the supply-chain-management challenges South African fashion designers are facing in the retail clothing industry. As a result, close proximity supply chain networks that could support effective communication amongst members of the supply chain are recommended.


2003 ◽  
Vol 19 (02) ◽  
pp. 116-120 ◽  
Author(s):  
Michael Boyer ◽  
Lisa Sovilla

This article discusses the issues with moving forward with lean manufacturing or learn repair. Once there is executive awareness and an understanding of the basic principles with significant momentum, there is knowledge and experience that may ensure your path of success. What are the barriers or obstacles to implementation, and what are the realities? Companies are differentiated by their various personalities, characteristics, and pools of knowledge, skills, and abilities. The barriers to change and reasons for failure among them, however, are very similar. The typical obstacles are underestimating the cultural and managerial impacts, the illusion of progress, conflicting measures, believing the excuse list, not remaining principle based, and using lean as a set of tools rather than a way of doing business. The countermeasures include embedding the lean principles in strategy, recognizing the realities of change, focusing efforts and getting immediate results, and assessing, acknowledging, and resolving cultural and managerial constraints.


Author(s):  
Eni Ahmeti ◽  
Alba Demneri Kruja

Supply chain management (SCM) as a concept first originated in the manufacturing industry from logistics and just-in-time production. Used to successfully utilize SCM elements and diminish lingering issues in construction, its importance lies in the focus that it gives to plan different features of the supply chain by also involving other parties of the chain in the process. SCM in construction supports firms by aiding in the improvement of competitiveness between firms and the increase of the company's profits and control over projects. Although generic supply chains should be simple and linear, the construction sector is much more complex. These problems are present in different parts of SCM due to interdependence in the organization and supply chain. Through a case study analysis and semi-structured interviews, this chapter aims to identify and better understand the role of SCM, challenges and complications in different levels of the supply chain, and how firms utilize it to create greater value in construction operations, and specifically in Albania.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hasitha Dinithi Rupasinghe ◽  
Chaminda Wijethilake

Purpose An alignment between financial and operational measures is an essential element to capture the lean productivity improvements enabling supply chain sustainability. With the aim of supporting small and medium-sized enterprises (SMEs) in addressing corporate sustainability challenges, this study aims to examine the impact of leanness on supply chain sustainability, and the moderating role of sustainability control systems (SCS) on the relationship between leanness and supply chain sustainability. Design/methodology/approach Drawing on lean manufacturing and the levers of control framework, survey data was collected from 106 manufacturing SMEs in Sri Lanka. Moderated multiple regression analysis was used to test the proposed hypotheses. Findings The study finds that lean manufacturing practices, such as just-in-time deliveries, quality management, environmental management and employee involvement show a significant positive impact on supply chain sustainability. As proposed, the interactive use of SCS shows a significant, positive moderating impact on the relationship between employee involvement and social supply chain sustainability. The diagnostic use of SCS negatively moderates the relationships between just-in-time deliveries and economic supply chain sustainability, and environmental management and economic supply chain sustainability. However, both interactive and diagnostic uses of SCS do not show any significant moderating impact between lean manufacturing and environmental supply chain sustainability. Research limitations/implications The following limitations should be taken into account in interpreting the results and implications of this study. Firstly, the study refers to supply chain sustainability as environmental, social and economic sustainability. As these concepts represent broader perspectives of sustainability, and no consensus on how to measure has yet been agreed, future studies may focus on other variables that might capture different perspectives of supply chain sustainability. Secondy, future researchers may further extend the role of SCS (including all four control systems – belief, boundary, interactive and diagnostic) in examining the impact of leanness on supply chain sustainability. Thirdly, this study has considered a sample of manufacturing SMEs in the Western province in Sri Lanka. The results should be carefully generalised to other manufacturing organisations in Sri Lanka and beyond. Finally, future studies may also investigate the impact of leanness on supply chain sustainability by using alternative methodologies, such as multiple case studies. Originality/value SMEs are more likely to focus on diagnostic control systems with the aim of promoting economic supply chain sustainability. However, the findings reveal that manufacturing SMEs in the developing country context lack strong SCS to enable supply chain sustainability.


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