Investing in lean manufacturing practices: an environmental and operational perspective

Abstract

Lean manufacturing practices (LMPs) and corporate environmental sustainability are becoming inextricably linked. Throughout the lean and green debate, many organisations have recognised that LMPs have implications for their sustainable development and competitive positioning. Not only LMPs are complex on their own, but when perceived from an environmental sustainability perspective, the decision to implement an LMP can become even more intricate. Although general tools exist, the lack of effective decision-making tools to help in the implementation of LMPs with an environmental sustainability dimension is palpable. Thus, this study tackles the aforementioned decision problem by incorporating environmental and operational performance outcome expectations as these expectations are viewed in light of the ease of implementation of various LMPs. A novel multi-criteria decision-making (MCDM) model for evaluation of LMPs is developed in this respect. The model integrates a three-parameter interval grey number with rough set theory and the TODIM method. The model is run using empirical data from six manufacturing organisations. The findings facilitate the identification of a ‘locus of investments’ for a better selection of LMPs. The robustness of the decision support model developed is assessed through sensitivity analysis.