Abstract

The purpose of this investigation is to evaluate the penetration of lean manufacturing practices and their effect on firm performance on the SMEs located in Northern India. Evaluation of the status of LMPs on the performance of SMEs has been done by the percent point score method which is a quantitative approach. Eight lean practices have been selected after an extensive literature review and validated through experts from the field. This study depicts the actual status of the implementation of lean practices in the 183 SMEs of Northern India related to manufacturing sector. Out of the selected, implementation of 5s, PM, supplier management has been discovered to have found favour with the manufacturers to a high extent. But other operational practices like JIT, kanban, SPC have are less in favour. The analysis reveals that some attempts have been made to enhance firm performance through the application of lean practices. And, this study has been successful in presenting the initiatives of the SMEs regarding lean manufacturing practices for enhancement purposes. It will help the stakeholders in enhancing their firm performance, reaping higher profits and contributing to the growth of the national economy.

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