Lean product development and lean manufacturing: Testing moderation effects

Abstract

Many companies allocate significant resources to implementing lean on the manufacturing shop floor, but fewer resources to implementing lean in the product development processes. Despite a rich literature on Lean Manufacturing (LM) and a growing literature on lean product development (LPD), there is limited research on the relation between these two streams and their interaction effects on operational performance. This paper draws on configurational theory to investigate the moderating role of LPD on the effects of LM on quality and inventory performance. We used a survey instrument to collect responses from firms implementing lean across their enterprises. We tested our hypotheses using ordinary least squares regression models with moderation tests. We find that LPD practices positively moderate the effects of LM on quality performance. Although our research concerning the same moderating effect on inventory turnover is inconclusive, we find that the implementation of LPD has a direct and positive association with improvements in inventory turnover. Overall, our research suggests that companies can get more out of their lean implementations if they pursue a systematic implementation of both LPD and LM, rather than following the more common isolated approach.