Sustaining lean in SMEs: key findings from a 10-year study involving New Zealand manufacturers

Abstract

Productivity growth is an on-going challenge facing New Zealand’s (NZ) manufacturing sector. To help boost productivity, the Government attempted to implement lean through a targeted investment programme. We evaluate the effectiveness and success of this strategy, with reference to a sample of small to medium-sized manufacturers. Using the Sustainable Lean Iceberg Model [Hines, P. (2010). How to create and sustain a lean culture. Development and Learning in Organizations: An International Journal, 24(6), doi:10.1108/dlo.2010.08124fad.0072010] as a theoretical basis, we developed a case study protocol based around key constructs for sustainability of lean, and tested this using a sample of 20 manufacturers that had been part of the Government lean programme. Data were collected at two points in time; at least two, and at least eight years after the initial lean implementation. In the second round, we found that lean was being sustained in only one of the organisations as per our prediction following the first round. Two were attempting to sustain, and two were attempting to ‘re-implement’ lean. Four had abandoned lean altogether, and several had gone out of business entirely. Our study reinforces the vital importance of ‘strategy and alignment’, ‘leadership’ and ‘behaviour and engagement’. The tendency to focus on ‘quick win’ implementations of tools and techniques does not create the necessary cultural shift to permit sustainable lean.