Resource flexibility for lean manufacturing: SAP-LAP analysis of a case study

Abstract

Purpose – Manufacturing industry is under pressure to improve productivity and reducing costs through minimization of wastage of resources. This paper aims to present case study of an automobile component manufacturing company to implement lean manufacturing through resource flexibility and also demonstrate the various areas of future scope for improving lean manufacturing. Design/methodology/approach – The case study has been conducted using the flexible system methodology framework. For measuring resource (labor and machine) flexibility and lean manufacturing, various parameters contributing towards labor flexibility, machine flexibility and lean manufacturing are identified. To determine their relative weights, analytical hierarchy process has been employed. A specially designed questionnaire is used to collect the information during case study on different aspects of resource flexibility and lean manufacturing. SAP-LAP analysis has also been carried out, to look into the ways the company is building up resource flexibility and lean manufacturing. Findings – Although all parameters of labor flexibility contribute towards overall labor flexibility but ability of workers to work on different machines has the maximum impact of 35.16 percent. Ability of machines to perform diverse set of operations has maximum contribution of 40.38 percent towards machine flexibility. Similarly elimination of waste is 35.15 percent responsible for lean manufacturing implementation. There is also a huge scope to achieve higher degree of lean manufacturing by implementing zero defects, changing attitude towards change and installing flexible machines. It is inferred that 76.2 percent of lean manufacturing is endorsed by resource flexibility. Research limitations/implications – The present study includes only labor and machines as the elements of resource flexibility. Other resources may also be included to compute overall resource flexibility. Practical implications – The present study provides guidelines to assess the status of resource flexibility and lean manufacturing. According to conclusions, feeble areas in the manufacturing system can be identified and a suitable course of action might be planned for the improvement. Hopefully this study will help the firm's management to identify the problems to manage resource flexibility and implement an effective lean manufacturing. Originality/value – In this work, the theoretical perspective has been used not only to update the original instrument, but also to study the subject from a perspective beyond that usually associated with resource flexibility and lean manufacturing.