Measuring the impact of lean practices on manufacturing performance – case study from the process industry

Abstract

Purpose This study aims to investigate how measuring the lean practices–performance relationship could add value to businesses. Design/methodology/approach Case-study methodology was used for the quantitative analysis of self-assessed lean capability scores and key manufacturing performance indicators from a global consumer goods company. Up to 80 sites over 3 years were analysed. Partial least squares structural equation modelling (PLS-SEM) is used to analyse the lean implementation–performance relationship. Findings Results show that different performance areas may be affected differently and suggest that the measured relationship may depend on the reliability of the self-assessment. Research limitations/implications The research is based on the manufacturing sites of a single company, implementing the same lean methodology, producing similar products and using similar process technologies. This helps to control confounding variables but may limit the generalisability of the findings. Practical implications Practitioners can use the measurement method to improve lean-based performance-improvement projects. The study suggests that the PLS-SEM technique could improve the calibration of lean-practice self-assessment and could identify further areas for improvement. Originality/value Very few papers developed measurement methods for the effectiveness of lean-practice implementation using objective manufacturing performance data within a single multinational company.