Analysis of Relationship Between Manufacturing Flexibility and Lean Manufacturing Using Structural Equation Modelling

Abstract

In today’s world of fierce competition, lean manufacturing practices enable companies to meet challenges and be competitive. Uncertainties and dynamic changing situations in the market condition pose problems towards achieving aim of becoming lean. Manufacturing flexibility empowers companies to efficiently tackle these uncertainties and ever changing market conditions. In the present work, the effect of manufacturing flexibilities such as labour flexibility, machine flexibility, volume flexibility, routing flexibility, product flexibility and material handling flexibility on lean manufacturing has been studied and analysed by using structural equation modelling. Structural model depicting relationship between lean manufacturing and various elements of manufacturing flexibility was tested using AMOS and modified to attain the best fit. The study brings out the importance of managing machine flexibility and its significant impact on lean manufacturing. The study focuses on automobile component industry in Pune region in India.