Lean manufacturing practices and performance: the role of social and technical factors

Abstract

PurposeModern manufacturing systems require tools and techniques that take cognizance of the social (concerning people and relations) as well as the technical environment. The purpose of this paper is to explore the relationship between the social and technical aspects of lean manufacturing practices and their effects on business performance outcomes.Design/methodology/approachThe hypothesized relationships for this study are tested with data collected from 148 Indian manufacturing firms by using SPSS and AMOS statistical software.FindingsThe analysis of the study was conducted using structural equation modeling (SEM) technique, which indicated that both “soft” and “hard” lean practices are positively related to business performance parameters. The findings also demonstrated that “hard” lean practices fully mediate the relationship between “soft” lean practices and business performance parameters.Research limitations/implicationsThere are some limitations of this study. Although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of Indian experts about lean manufacturing systems; hence, the sample size could be increased and the nationality of the respondent could be expanded for future research.Practical implicationsThe paper would be of interest to Lean practitioners, and the results of this study can be used in organizations to put a focus on social-cultural changes while applying lean technical tools when it comes to practices as well as importance.Originality/valueThis paper extends theoretical contribution in production and operations management literature, highlighting how social and technical practices have to interact to enable a successful lean manufacturing implementation.