scholarly journals The effect of lean on the operational performance of medium-sized Thai manufacturing companies

2021 ◽  
Vol 9 (3) ◽  
pp. 647-658 ◽  
Author(s):  
Kanitsorn Terdpaopong ◽  
Amporn Puapradit ◽  
Ussanee Malisuwan
Keyword(s):  
Latent Variables ◽  
Structural Equation ◽  
Equation Model ◽  
Operational Performance ◽  
Primary Data ◽  
Value Stream Mapping ◽  
Medium Size ◽  
Manufacturing Companies ◽  
Lean Practices ◽  
Material Requirement

Lean practices appear to have aided organisations in improving their operations, especially manufacturing companies. This paper reports on an in-depth study comparing Thai medium-size manufacturing companies who use Lean with those which have not yet adopted Lean. In this paper the word “Lean” is used to refer to “lean practices” as well as “lean strategies”. Lean methods include just-in-time (JIT), total productive maintenance (TPM), automation, value-stream mapping (VSM), Kaizen, material requirement planning (MRP), Kanban, 5S and waste elimination. Primary data were obtained through questionnaires which were analysed using a number of statistical processes including factor analysis (CFA) and structural equation modelling (SEM). Some 230 medium-sized manufacturing companies were the focal target of this study. Three latent variables, Lean (exogenous variable), product customisation (endogenous) and operational performance (endogenous) are formed in this study. There were 24 parameters and the findings provide further evidence regarding the effects which Lean practices have on product customisation and operational performance of the companies, for example. The methods for analyzing the data favour the proposed structural equation model. The results show that Lean strategies are linked to improved operational performance in the firms which practice them. Management teams in Thai medium-size manufacturing companies which have resisted Lean are encouraged to adopt Lean in order to improve operational performance, particularly in the present economic climate.

Role of Human Resources, Production Process, and Flexibility on Commercial Benefits From AMT Investments

2022 ◽  
pp. 760-790
Author(s):  
Jorge Luis García-Alcaráz ◽  
Emilio Jiménez-Macías ◽  
Arturo Realyvásquez-Vargas ◽  
Liliana Avelar Sosa ◽  
Aide Aracely Maldonado-Macías
Keyword(s):  
Human Resources ◽  
Production Process ◽  
Direct Effect ◽  
Latent Variables ◽  
Structural Equation ◽  
Equation Model ◽  
Manufacturing Companies ◽  
Advanced Manufacturing Technologies ◽  
Manufacturing Technologies

Advanced manufacturing technologies (AMT) acquisition by maquiladoras (foreign-owned manufacturing companies) is a tendency that allows these companies to maximize their commercial benefits. However, it remains unclear how the AMT implementation impacts on their performance. In addition, this research studies 383 responses to a questionnaire about the AMT implementation in the Mexican maquiladora industry and reports an analysis with four latent variables associating obtained benefits after the AMT implementation—human resources, flexibility, production process, and commercial benefits—where their relationships are evaluated through six hypotheses using a structural equation model (SEM). Finally, the outcomes demonstrated that AMT benefits for human resources have a direct effect on flexibility, production process, and commercial benefits. However, the direct effect from human resources benefits, knowledge, and experience on commercial benefits are acquired through indirect effects, using flexibility and production process as mediator variables.

scholarly journals Effect of Lean Practices on Organizational Performance

2021 ◽  
Author(s):  
Lokpriya Mohanrao Gaikwad ◽  
Vivek K. Sunnapwar
Keyword(s):  
Developing Countries ◽  
Organizational Performance ◽  
Structural Equation Model ◽  
Lean Manufacturing ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Equation Model ◽  
Operational Performance ◽  
Survey Questionnaire ◽  
Lean Practices

The study focuses on the analysis of the direct effect of Lean Manufacturing (LM) practices on operational performance in manufacturing industry. A model for evaluating the effect of LM is developed taking into consideration as a fundamental variable that affects the causal relationship between LM practices and operational performance. A structural equation model was proposed and investigated across the manufacturing industry in India. A structured survey questionnaire was used to collect empirical data from 400 Indian companies. A total of 203 usable responses were obtained giving a response rate of 53%. The data was analyzed using SPSS- AMOS software. The results revealed that LM practices directly and positively affected operational performance. The results indicated that the structural equation model remained invariant across the Industry. The study provides further evidence to managers and practitioner on the effect of LM practices on operational performance in developing countries like India.

Role of Human Resources, Production Process, and Flexibility on Commercial Benefits From AMT Investments

2019 ◽  
pp. 51-81 ◽  
Author(s):  
Jorge Luis García-Alcaráz ◽  
Emilio Jiménez-Macías ◽  
Arturo Realyvásquez-Vargas ◽  
Liliana Avelar Sosa ◽  
Aide Aracely Maldonado-Macías
Keyword(s):  
Human Resources ◽  
Production Process ◽  
Direct Effect ◽  
Latent Variables ◽  
Structural Equation ◽  
Equation Model ◽  
Manufacturing Companies ◽  
Advanced Manufacturing Technologies ◽  
Manufacturing Technologies

Advanced manufacturing technologies (AMT) acquisition by maquiladoras (foreign-owned manufacturing companies) is a tendency that allows these companies to maximize their commercial benefits. However, it remains unclear how the AMT implementation impacts on their performance. In addition, this research studies 383 responses to a questionnaire about the AMT implementation in the Mexican maquiladora industry and reports an analysis with four latent variables associating obtained benefits after the AMT implementation—human resources, flexibility, production process, and commercial benefits—where their relationships are evaluated through six hypotheses using a structural equation model (SEM). Finally, the outcomes demonstrated that AMT benefits for human resources have a direct effect on flexibility, production process, and commercial benefits. However, the direct effect from human resources benefits, knowledge, and experience on commercial benefits are acquired through indirect effects, using flexibility and production process as mediator variables.

Halal standard implementation in food manufacturing SMEs: its drivers and impact on performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ida Giyanti ◽  
Anita Indrasari ◽  
Wahyudi Sutopo ◽  
Eko Liquiddanu
Keyword(s):  
Structural Equation ◽  
Equation Model ◽  
Partial Least Square ◽  
Least Square ◽  
Operational Performance ◽  
Primary Data ◽  
Internal Motivation ◽  
Food Manufacturing ◽  
Content Type ◽  
External Pressures

Purpose The purpose of this paper is to investigate the drivers of the depth of halal standard implementation in the halal-certified food manufacturing small- and medium-sized enterprises (SMEs). The second aim of this paper is to empirically examine the effect of halal standard practices on the SME’s performance. Design/methodology/approach Of the 143 halal-certified SMEs in Solo Raya, Province of Central Java, Indonesia, 83 were willing to take part in the present research. The survey was carried out by an on-site visit to the targeted respondents. A structured questionnaire was used to gather primary data. Partial least square structural equation model was then used to analyze the collected data. Findings The results proved that internal motivation and organization commitment positively affect halal standard implementation, while external pressures do not. The external pressures influence the depth of halal standard implementation through internal motivation as a mediating variable. Furthermore, the depth of halal standard implementation leads to the improvement of operational performance. The improvement of operational performance can further encourage the increase of market performance and financial performance. Research limitations/implications The first limitation of this research is about the samples in which they are small-sized and restricted to food manufacturing SMEs. Another limitation is the subjectivity of SME’s managers when evaluating performance, which may provide imprecise measures of performance. Practical implications The findings suggest the notion that success of halal standard implementation depends on the capabilities of SMEs to convert the external pressures into internal motivation. Moreover, food-manufacturing SMEs should consider halal standard as an innovative tool to be applied in their daily operation and production as the halal standard has a significant role in influencing SME’s performance. Originality/value To the best of the authors’ knowledge, this research is the first attempt in integrating drivers, halal standard implementation and performance in the specific context of food manufacturing SMEs in Indonesia.

scholarly journals Modeling the Effective Factors on Bank Loans Default Rate UsingDelphi, SEM and Tobit Techniques (Evidence from Iran)

2017 ◽  
Vol 11 (4) ◽  
pp. 13
Author(s):  
Hamid Safaynikou ◽  
Mohammad Taher Ahmadi Shadmehri ◽  
Ahmad Sabahi ◽  
Mohammad Javad Razmi
Keyword(s):  
Latent Variables ◽  
Latent Variable ◽  
Structural Equation ◽  
Credit Scoring ◽  
Equation Model ◽  
Bank Loans ◽  
Medium Size ◽  
Effective Factors ◽  
Default Rate

Banks entering a developing market face a lot of uncertainty about the risks involved in lending. This paper models the effective factors on default rate (DR) loans to small and medium size enterprises (SMEs) in Iran based on the case study of branches of Melli Bank in Khorasan Razavi province. For this purpose a set of data about loans made to 300 SMEs between years 2004 to 2015 and Delphi, SEM and Tobit models were applied. Results of Delphi technique indicated that 48 factors affect the DR. The structural equation model (SEM) estimations showed that between 10 latent variables which describe the DR, the “loans properties” latent variable have the most effect. Also, findings of Tobit econometric model stated that between 48 variables which affect the DR, “loan volume” variable has the most effect. These and other factors emphasize the need for SMEs credit scoring in developing countries.

scholarly journals How Organizational Culture Moderate the Effect of Total Productive Maintenance Practice on Organization’s Operational Performance? Evidences from Indonesian Mining Industry

2021 ◽  
Vol 20 (2) ◽  
pp. 93
Author(s):  
Nasar Buntu Laulita ◽  
Agustinus Setyawan
Keyword(s):  
Organizational Culture ◽  
Structural Equation ◽  
Mining Industry ◽  
Equation Model ◽  
Organization Culture ◽  
Moderating Effect ◽  
Operational Performance ◽  
Primary Data ◽  
Total Productive Maintenance ◽  
Managerial Implication

The industry needed a system to support its operation when most of the processes were done by equipment or machines. Total Productive Maintenance (TPM) was a system to ensure all equipment or machines run in optimal performance for long period by fully supported by top management until the bottom level. Implementation of this system in the mining industry was still seldom due to some factors and organizational culture was one of the reasons. The purpose of this research was to analyze the influence of TPM implementation on operational performance by moderating the effect of organizational culture in the mining industry by using a two-step approach of structural equation model (SEM). The research type was under explanative research with hypothesis testing from primary data that was obtained from distributing questionnaires and direct interviews in the field which was analyzed by using Lisrel 8.7. This research showed that the construct of TPM has a significant impact to influence operation performance directly in the mining industry with a t-value of 3.54 and organization culture also increases the significance by moderating effect with t-value of interaction 5.28 was higher than 1.96 while organizational culture was not significant to influence operational performance directly that was showed by t-value 1.22. This research had a novelty for studying TPM practice in Indonesian mining by using SEM to analyze the moderating effect of organizational culture. The managerial implication of this research was a guideline for decision-makers to implement TPM by considering developing, group, hierarchical, and rationale culture to improve operational performance in the Indonesian mining industry.

scholarly journals The Role of Managerial Commitment and TPM Implementation Strategies in Productivity Benefits

2018 ◽  
Vol 8 (7) ◽  
pp. 1153 ◽  
Author(s):  
José Díaz-Reza ◽  
Jorge García-Alcaraz ◽  
Liliana Avelar-Sosa ◽  
José Mendoza-Fong ◽  
Juan Sáenz Diez-Muro ◽  
...  
Keyword(s):  
Least Squares ◽  
Structural Equation Model ◽  
Preventive Maintenance ◽  
Latent Variables ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Implementation Strategies ◽  
Equation Model ◽  
Total Productive Maintenance

The present research proposes a structural equation model to integrate four latent variables: managerial commitment, preventive maintenance, total productive maintenance, and productivity benefits. In addition, these variables are related through six research hypotheses that are validated using collected data from 368 surveys administered in the Mexican manufacturing industry. Consequently, the model is evaluated using partial least squares. The results show that managerial commitment is critical to achieve productivity benefits, while preventive maintenance is indispensable to total preventive maintenance. These results may encourage company managers to focus on managerial commitment and implement preventive maintenance programs to guarantee the success of total productive maintenance.

Big Data Analytics in the Agribusiness Supply Chain Management

2021 ◽  
Vol 9 (3) ◽  
pp. 32-42
Author(s):  
Marisol Valencia-Cárdenas ◽  
Jorge Anibal Restrepo-Morales ◽  
Francisco Javier Día-Serna
Keyword(s):  
Big Data ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Structural Equation Model ◽  
Inventory Management ◽  
Latent Variables ◽  
Structural Equation ◽  
Big Data Analytics ◽  
Equation Model ◽  
Chain Management

Importance and impact of the systems related to Agribusiness and Agri-food, are increasing around the world and demand a paramount attention. Collaboration in the inventory management is an integral part of the supply chain management, related to proactive integration among the chain actors facilitating production and supply, in especial in the agroindustrial sector of the Departamento de Antioquia, Colombia. This research establishes the main relationships between latent variables as collaboration, technology, models, optimization and inventory management, based on a literature review and applying a Structural Equation Model to a survey data of a sample of agribusiness companies. The results show that Available Technologies associated with Big Data, generates improvement of Collaboration Strategies, improving also Forecasting and Optimization; besides, Inventory Planning and Collaboration are related to Available Technologies associated with Big Data. A Poisson regression model and a Structural Equation Model estimations detect that the increasing strategies of technologies and Big Data are favorable to apply collaboration in the supply chain management, increasing possibilities to the enterprise competitiveness.

scholarly journals ANALYSIS OF THE IMPACT OF LEADERSHIP STYLE AND JOB SATISFACTION ON TURNOVER INTENTION THROUGH JOB STRESS AT CUSTOMER SERVICE (FRONTLINE) PT TIKI JALUR NUGRAHA EKAKURIR (JNE)

2019 ◽  
Vol 17 (1) ◽  
pp. 33
Author(s):  
Sri Mulyani ◽  
Hendra Gunawan
Keyword(s):  
Job Satisfaction ◽  
Job Stress ◽  
Customer Service ◽  
Leadership Style ◽  
Turnover Intention ◽  
Structural Equation ◽  
Equation Model ◽  
Primary Data ◽  
Negative Effect ◽  
The Impact

<p>The problem of this research was Turnover intention is a factor of discomfort experienced agent in a company. Turnover intention needs to get serious attention to the organization especially to leadership or manager so can applying force leadership proper and improve job satisfaction to reduce job stress in the company.<br />The purpose of this research was the effect of leadership style and job satisfaction toward Turnover intention throught job stress at customer service (frontline) PT Tiki Jalur Nugraha Ekakurir (JNE), Tomang Jakarta.<br />The methodology of this research was testing hypothesis. The data used were primary data collected from questionaire. The samples consisted of 164customer service (frontline)PT Tiki Jalur Nugraha Ekakurir (JNE), which were determined through purposive sampling method. The data were analyzed through Structural Equation Model (SEM) of AMOS version 23.0for Windows.<br />The results of the study showed that there have been negative effect and significant between leadership style and job satisfaction toward Turnover intention throught job stress. The role of job stress very dominant as a mediator the influence of leadership style and job satisfaction toward Turnover intention.<br />Implication of this research is expected to managers can increase the determinants job stress itself for example by raising job satisfaction (salary, reward, job promotion) and applying force leadership proper and able to adjust with all the work situation.</p>

scholarly journals TOTAL QUALITY MANAGEMENT IN AFFECTING COMPANY OPERATIONAL PERFORMANCE IN CONVECTION SMEs WITH ORGANIZATIONAL COMMITMENT AS A MEDIATOR

2021 ◽  
Vol 19 (3) ◽  
pp. 662-677
Author(s):  
Teuku Roli Ilhamsyah Putra ◽  
◽  
Mukhlis Yunus ◽  
Teuku Hafiz Fakhreza ◽  
◽  
...  
Keyword(s):  
Organizational Commitment ◽  
Quality Management ◽  
Total Quality Management ◽  
Structural Equation ◽  
Sampling Technique ◽  
Equation Model ◽  
Operational Performance ◽  
Total Quality ◽  
Study Population ◽  
And Performance

This study aims to prove the role of Total Quality Management (TQM) and organizational commitment in supporting the achievement of company operational performance. The population was all Convection SMEs in the city of Banda Aceh, consisted of 294 Convection SMEs. The sample was selected using a proportional sampling technique where sampling considers elements or categories in the study population. The sample taken was 15% of the population. One respondent represented one unit of SMEs, so the sample has amounted to 169 respondents. Data was collected using questionnaires. The model was analyzed with the Structural Equation Model Analysis. The result showed an influence between TQM on Organizational Commitment, TQM on Company Operational Performance, and Organizational Commitment on Company Operational Performance. This study also found that organizational commitment can act as a partial mediator to strengthen the effect of TQM on Company operational performance. The interesting issue in this study lies in the discussion of the organizational commitment to solving the inconsistency problems in the quality of convection production in SMEs. Furthermore, the other researchers can provide more concepts and variables to enrich this research model, like other mediators for TQM to achieve performance or even the commitment that can strengthen the TQM and performance. The model also can be a reference for practitioners to set their strategy in further, to go more productive.

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