Structural Equation Modelling based Empirical Analysis of Operational and Technological Factors for Lean Implementation

Abstract

This study attempts to explore the impact of operational and technological factors (OTFs) towards successful implementation of lean manufacturing (LM). Based on extensive literature survey, the authors endeavoured to develop an exhaustive list of all the input manifests related to the OTFs necessary for LM implementation, coupled with a similar exhaustive list of the benefits likely to be accrued from the successful implementation of LM. The critical analysis of collected data identified seven key input constructs and three output constructs which should act in unison to maximize the benefits of implementing lean. Through the structural model presented in this paper, nine hypotheses were proposed and tested for validation by the data collected from Indian manufacturing companies. Seven hypotheses were validated while two hypotheses were not supported. Reasons behind the non-acceptance of the two hypotheses have been explored and mentioned. This structural model can be considered as a guide to integrate the OTFs to successfully implement lean. The novelty of this work lies in the fact that this is one of the very rare studies that attempted to have a survey-based empirical analysis for evaluating the impact of such factors towards an effective lean implementation in the Indian manufacturing sector.