Lean Capability Research Articles

Context‐driven implementation strategies: Exploring three approaches to implement a lean capability framework within a global production company

AbstractThis paper explores global implementation of capability building projects as part of an corporate lean programme. The aim is to identify the core parameters in global implementation of complex knowledge in various contexts within the corporation. The empirical research investigates the global implementation of a lean capability project in three regional clusters within a large pharmaceutical multinational production company. The findings indicate that contextual situations in regional clusters, for example, maturity levels, national culture, and previous experiences, influence the design of the implementation approaches embedding knowledge management principles in various ways. Three types of implementation approaches (horizontal, parallel, and delegated) are identified, which highlights the strategically different pathways to realise new frameworks for knowledge management. This study shows how adjustments to contextual situations influence the implementation process and identifies various hallenges with various approaches that may hinder the execution of lean strategy. This paper puts forward five identified implementation parameters that could guide future research and knowledge management practitioners in opex, HR, and learning and development functions.

Front-line lean leader capacities, practices and effects on implementing tools: a survey of leaders in industrial companies

PurposeFront-line lean leadership is critical for implementing and sustaining lean production systems (LPS). The purpose of this paper is to analyze the relationships between front-line lean leader (FLL) capacities (cognitive, social, motivational, knowledge and experience), lean leader practices (developing people and supporting daily kaizen) and the degree of implementation of lean tools (pull system, involvement of employees and process control) in manufacturing companies.Design/methodology/approachA survey was conducted with FLLs from large Brazilian manufacturing companies. The survey collected 103 responses, 99 of which were validated. Data were analyzed using partial least squares structural equation modeling.FindingsThere was a positive, significant and direct relationship between FLL capacities, leadership practices and a degree of implementation of LPS tools on the shop floor. The validated model is a reference base for planning FLL capacities and practices that result in more effectively implementing LPS on the shop floor.Practical implicationsThe findings provide managers with a new perspective on the importance of the development and training of FLLs focusing on leadership capacities. As decisions about developing lean capabilities impact the application of Lean leadership practices and the use of lean tools, they are also related to day-to-day lean activities and improved operational results. Additionally, the proposed model can be used by managers as a basis to diagnose, develop and select lean leaders.Originality/valueThis study seeks to fill a theoretical gap of knowledge on front-line lean leadership as it jointly addresses and empirically analyzes the existing relationships between lean leadership capacities, encompassing the perspective of psychology, lean practices and tools on the shop floor.

Symbiotic association of resources and market-facing capabilities in supply chains as determinants of performance: a resource orchestration perspective

PurposeThe purpose of this study is to advance the understanding of resource orchestration in inter-firm partnerships that appropriately configure and align strategic cross-firm supply chain resources and capabilities generating synergies to deliver superior performance.Design/methodology/approachApplying the resource orchestration logic, supported by the relational view of competitive advantage, the study draws from an empirical analysis of survey data from 152 top-level executives of US manufacturing firms to investigate the effect of leveraging and coherently combining cross-firm supply chain resources with capabilities on operational performance.FindingsThe study underscores the view that appropriately orchestrated combinations of key partnership resources and capabilities as mechanisms for marketing strategy implementation, enhance performance. Specifically, research results suggest that complementary inter-firm resources and lean align, and similarly idiosyncratic resources and agility align synergistically to deliver superior operational performance outcomes. The results also accent partnership responses to intense competition, enabling enhanced operational performance. The findings thus enrich the understanding of the resource orchestration logic and strategy, making important theoretical contributions.Research limitations/implicationsAs is typical in marketing and strategy research, the study research design has a cross-sectional framework, thus limiting insights on the resource orchestration dynamics that can otherwise be generated using a longitudinal design. Also, the resource orchestration stream is still nascent. Further research is needed to delineate the orchestration mechanisms that deliver on performance outcomes, especially in supply chains.Practical implicationsA key insight for supply chain and marketing managers is that close-knit inter-firm partnerships are critical for accessing idiosyncratic and complementary resources that can be configured and symbiotically aligned with market-facing agility and lean capabilities, respectively, to deliver market value. Proactive partnerships, especially in highly competitive and disruptive environments, enable mobilizing cross-firm resources and building appropriate matching combinations with capabilities to deliver on operational performance.Originality/valueThe study, guided by theory, advances the understanding of how key cross-firm resources and capabilities deliver performance gains. The key to competitive advantage and enhanced performance outcomes may lie in acquiring, leveraging and deploying appropriately matched resource-capability combinations. The present study investigates this proposition within the context of supply chain partnerships, focusing on cross-firm resources and capabilities.

How can a buying company develop a Toyota-style supplier network while its lean capabilities are still evolving?

PurposeToyota had mature lean capabilities when developing its supplier network. This paper aims to explore how companies can develop a Toyota-style supplier network (TSN) while their lean capabilities are still evolving.Design/methodology/approachTheoretically, this paper relies on the literature on lean maturity levels and lean supplier network development. Empirically, the paper portrays a Toyota-style initiative, detailing the buyer’s efforts to develop internal lean capabilities concurrently with developing lean in its supplier network. It compares the Network for supplier innovation (NSI) initiative with TSN development regarding activities, organizations and knowledge-sharing routines.FindingsUnlike the sequential development in the case of Toyota, NSI improved performance and capabilities in the buyer’s supplier network by implementing lean in the firm and its supplier network concurrently. Third-party involvement was the key to the initiative’s success.Research limitations/implicationsThe findings are based on an in-depth single-case study which allows theoretical generalization but not statistical generalization. Furthermore, the case study concerns an initiative with Norwegian firms during a financial recession. Future studies should consider these limitations on how firms with evolving lean capabilities can develop a TSN-style supplier network and the importance of involving third parties operating in the role of lean master.Practical implicationsThis study suggests what buying firms should consider when designing a TSN initiative, enrolling suppliers and engaging third parties that can take on the role of lean master.Originality/valuePrevious research has focused on how mature lean firms develop lean suppliers and networks. This paper extends this to firms whose lean capabilities are still evolving.

Interfirm partnership resource–lean capability association: exploring the moderating role of learning orientation and performance implications

ABSTRACT Applying the dynamic capabilities theory and the relational perspective, we examine key cross-firm supply chain resources as determinants of lean capability, the latter’s impact on operational and financial performance, and additionally, the interactive influence of learning orientation. Analyses of 152 manufacturing firms headquartered in the U.S.A. relate lean capability to operational and financial performance outcomes. Resource complementarity and resource specificity significantly associate with supply chain lean capability. A negative interaction effect of learning orientation context is indicated for the resource complementarity–lean association. However, a universality of interactive impact of learning orientation is suggested for the resource specificity-lean capability relationship. Contributions extend dynamic capability theory to supply chain contexts: key supply chain partnership resources configured into lean capability deliver superior performance, with learning orientation present in a boundary condition role. Managerial implications relate to the importance of supply chains in providing key cross-firm resources that configure into lean capabilities in a learning environment for superior performance outcomes.

Developing a probabilistic decision-making model for reinforced sustainable supplier selection

The competitive environment and recent regulations require corporations to implement sustainable and reinforced solutions in their business operations and, thereby, sustainable supplier selection (SSS) has become a critical concern of companies. This study introduces a neoteric approach by extending the SSS framework containing the three widespread indicators, i.e., economic, social, and environmental sustainability dimensions (S), with additional three genuine aspects such as innovation (I), lean principles (L), and knowledge management (K), namely the S-ILK framework. To deal with probabilistic uncertainty, a novel Monte Carlo (MC) aided hybrid multi-criteria decision analysis model was constructed. MC simulation with Beta-PERT distribution was integrated with the Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) to identify criteria weights and perform supplier evaluations, respectively. Hence, criteria weights and supplier evaluation scores were illustrated as probability density plots instead of crisp values with MC aided decision-making model. The findings emphasized the role of economic sustainability and knowledge management capabilities of suppliers, which require a diligent investigation of life cycle cost of production and quality of knowledge management systems of suppliers. This study contributes to theory by highlighting interpersonal uncertainty through MC simulation and to practice by informing industry professionals about urgent needs for focusing on the innovation, knowledge management, and lean capabilities of suppliers. The proposed S-ILK framework can be regarded as a roadmap for companies to enhance their sustainability performance with innovative solutions, increased data quality, and continuous improvement with lean principles.

Ambidexterity: realising organisational innovation in healthcare organisations

This study suggests ambidexterity as a guiding innovative perspective for healthcare organisations. Based on case illustrations from medical practitioners, a definition of healthcare ambidexterity and a desirable direction for operational capabilities are provided. As a theoretical implication, experiential capability should be chosen in the case of a low degree of control and a high degree of collaboration, while a high degree of control and a low degree of collaboration should indicate a focus on lean capability. This research makes a contribution to provide a clear understanding of 'healthcare ambidexterity' and an articulation of the practical development of operational capabilities.

The key success factors to adopting lean practices: the case of South American manufacturing firms

PurposeThe purpose of this paper is to identify the factors that promote the successful adoption of lean practices in manufacturing firms operating in developing economies in South America.Design/methodology/approachBased on the results obtained from using structural equation modeling to analyze the collected data, the authors argue that manufacturing organizations need to identify the factors that assist in successfully adopting lean practices in manufacturing firms operating in developing economies in South America. A dataset of 1,809 responses, gathered from manufacturing firms as part of the World Management Survey, was used to find support for the proposed hypotheses.FindingsSeveral hypotheses were tested finding that lean practice success factors such as organizational targets proved to have a significant and positive relationship with the mediating factor, performance management. Likewise, performance management was also found to have a significant and positive relationship with lean practices adoption. Human capital management (HCM) has a significant but negative predictive relationship with lean practices.Research limitations/implicationsThe empirical results of this study provide valuable managerial insights. The results are therefore limited to the economies analyzed and to the variables surveyed as part of the World Manufacturing Survey research.Practical implicationsThe results of this research provide a starting point for researchers to continue studying the key lean practice factors and relationships in the achievement of improved performance management, thereby helping managers in developing strategies to improve the lean capabilities of their practices. This, in turn, will increase the organization's competitive advantage sustainably.Originality/valueThis paper identifies and tests the impact of key factors on successful lean practices adoption in South American organizations in the manufacturing sector.

Paternal acrylamide exposure induces transgenerational effects on sperm parameters and learning capability in mice

Acrylamide (AA) has been shown to have neurological and reproductive toxicities, but little is known about transgenerational effects of AA. In this study, male C57BL/6 mice were exposed to AA (0.01, 1, 10 μg/mL) and its metabolite glycidamide (GA, 10 μg/mL) in drinking water, which were then mated with unexposed female mice to produce F1 and F2 generations. We found that both AA and GA at high concentrations decreased sperm motility in F0 mice and increased sperm malformation rates in mice from all the three generations. In addition, AA and GA increased sperm reactive oxygen species as well as decreased serum testosterone levels, and increased the escape latency time in exposed mice and their offspring. We further found that AA-induced mRNA expression changes in the hippocampus of F0 mice persist to the F2 generation. In the sperm of F0 mice, AA induced significant DNA methylation changes in genes involved in neural and reproduction; the mRNA expression levels of Dnmt3b, a DNA methyltransferase, were dramatically decreased in the testes of F0 and F1 mice. In conclusion, our study indicates that paternal AA exposure leads to DNA methylation-mediated transgenerational adverse effects on sperm parameters and leaning capability in mice.

Linking supply chain management and lean capability to firm performance

The rise of supply chain management and lean in industrial application has led to increased attention in research. While various theoretical frameworks have been proposed for supply chain management and lean separately, little has been done on the interaction of these two areas and their respective impact on firm performance. This paper extends the literature by examining supply chain management practice, lean capability, and firm performance, and also the particular role of supply chain management on lean capability. Through a structural equation model, we are able to show that lean capability has a substantial effect on firm performance and that a higher level of supply chain management practice leads to higher lean capability. This implies that firms should emphasise on the development of their lean capability and seek more engagement in supply chain management.

Linking Supply Chain Management and Lean Capability to Firm Performance

The rise of supply chain management and lean in industrial application has led to increased attention in research. While various theoretical frameworks have been proposed for supply chain management and lean separately, little has been done on the interaction of these two areas and their respective impact on firm performance. This paper extends the literature by examining supply chain management practice, lean capability, and firm performance, and also the particular role of supply chain management on lean capability. Through a structural equation model, we are able to show that lean capability has a substantial effect on firm performance and that a higher level of supply chain management practice leads to higher lean capability. This implies that firms should emphasise on the development of their lean capability and seek more engagement in supply chain management.

A Review on Neural Network and Deep Learning

The idea of Neural Network (NN) derived from brain activities which consists of neurons connected with thousands of their neighbors forming a very complex local network. As a discipline of artificial intelligence, neural network attempts to bring the computers closer to brain capability by simulating certain aspects of brain information system so that the NN has the ability to learn and generalize with higher processing speed. As an extension to NN, Deep Learning (DL) can handle high dimensional data with between leaning capability as feature extraction process became automatic. The aim of this paper is to present a review about NN and DL showing a detailed explanation of different architectures and algorithms.

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

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.

Leanness evaluation in health-care organizations using fuzzy logic approach

PurposeLean practices are one of the fundamental practices adopted by health-care organizations to improve service quality and to reduce cost. In this context, the measurement of leanness in health-care organizations has become imperative. The purpose of this study is to measure the leanness of a hospital using fuzzy logic.Design/methodology/approachThe design of the research includes two major steps. First, the identification of enablers, criteria and attributes of leanness constitutes the measures of assessment. Second, the above measures in the case hospital are assessed by using fuzzy logic approach.FindingsThis study suggests that leanness assessment is essential to identify the current lean capability of a health-care organization. This would help the health-care organizations to improve their lean performance further. The findings of the study suggest that the leanness of the case hospital is “Lean” (fuzzy range: 5.61, 7.24 and 8.91).Practical implicationsThis study brings in three important implications from managerial point of view. First, it helps the management to assess the current level of leanness of the hospital. Second, it identifies the attributes that prevent the organization from being more lean. Third, it provides suggestive measures to address the weaker attributes and enables the enhancement of lean performance further.Originality/valueThe leanness assessment framework developed in the hospital operations is found to be original, and it adds value to the leanness assessment in health-care operations.

Performance implications of lean in supply chains: Exploring the role of learning orientation and relational resources

The study enhances understanding of the contribution of learning orientation and supply chain partnership resources in building lean capability, and its impact on operational performance. Using the resource-based view, the relational view and organizational learning, the study develops a conceptual model of relationships to empirically understand how a learning culture enables firms to leverage critical cross-firm resources to engender lean. Additionally, the study investigates the mediating influences of partnership resources. Findings from the empirical analysis of survey data from top managers in manufacturing firms support the conventional wisdom relating supply chain collaboration to lean, and its contribution to enhance operational performance. The importance of learning orientation for mobilizing relational resources - essential ingredients for lean capabilities – is a highlight of the study. The results provide a framework for managers to understand the criticality of a learning culture in supply chains to exploit partnership resources to build market-responsive capabilities that give them the competitive edge. Along with the discussion of the implications, the study suggests future research directions.

Effectiveness of using Learning Factories to impart Lean principles in mining employees

An urgent need exists to drive operational excellence in mining operations. Lean philosophy can improve productivity and efficiency when implemented holistically. There is therefore an incentive to build embedded, Lean capability in mining to consistently drive meaningful business results. Learning Factories have been used in other industries to effectively develop this competency at all hierarchical levels. Anglo American has recently developed a training facility in South Africa, using the Learning Factory concept to teach Lean skills to mining employees. This paper presents the results of a study that investigated the effectiveness of using the Learning Factory in this context. The Kirkpatrick model, for evaluating training effectiveness was used as the analytical framework. Results show that the Learning Factory is effective in imparting Lean skills within a short space of time and that all employees can achieve a similar or higher understanding of Lean regardless of their starting point.

Investigating the Impact of Lean Management on Innovation in Vietnamese SMEs

Internationalization in society and economy has fostered promptly the production volumes and product diversification due to the complexity in customers’ design. Lean management has been known as effective and efficient tools in the management of customer value by reducing cost of the resources necessary to achieve the needs of customers. Today innovation has been considered as driving force of business success in every industry in the context of high competition. The link between lean management and innovation capability has been recently proposed in some literatures, which show that some aspects of lean management may negatively affect and some may positively affect a company’s capability to be successful with certain types of innovations. This paper develops a framework to analyze the impact of lean management on innovation capability in Vietnamese small and medium enterprises. Five propositions has been presented and tested in the sample of 122 SMEs engaged in lean management. The findings suggest that due to implementation of lean management the changes of organizational structure and inter-departmental coordination have positive effect and the changes of human resources management and organizational culture have negative effect on the innovation capability.

The classification of supplier selection criteria with respect to lean or agile manufacturing strategies

PurposeThe purpose of this paper is to investigate how manufacturing strategies could affect the supplier selection criteria used by business firms.Design/methodology/approachSurvey strategy was used to empirically understand the research argument. First, principal component factor analysis was employed to validate the underlying structure of the supplier selection criteria. Then, simple regression analysis was employed to test the research hypotheses.FindingsOrganizations pursuing lean strategies will emphasize factors that improve their efficiency when selecting their suppliers, while organizations pursuing agile strategies will assert factors that improve their ability to respond to customer unique requirements when selecting their suppliers.Research limitations/implicationsThis study provides new insight for researchers to understand the effect of manufacturing strategies on the classification of supplier selection criteria. However, the small sample size might limit the ability to generalize research findings. Further research is required to confirm the findings using a wider sample.Practical implicationsThis research provides practitioners with useful insights into how to select their suppliers based on their manufacturing strategies.Originality/valueThis paper classifies supplier selection criteria into three distinct groups: lean, agile, and common capabilities. Lean capability refers to the list of criteria that are highly relevant in selecting suppliers for lean implementers. Agile capability refers to the list of criteria that are highly relevant in selecting suppliers for agile implementers. Finally, common capability refers to the list of criteria that have comparable relevance in selecting suppliers for both lean and agile implementers.

Examining how firm and institutional factors affect lean capability development of emerging market firms

Drawing on the dynamic capabilities view (DCV) and institutional theory, we examine the impact of firm-level and country-level factors on emerging market firms' (EMFs) lean capability development. Based on a sample of 1,702 firms from Brazil, China, and India, we found that EMFs' human resource management (HRM) and process management practices have a positive effect on their lean capability development. Further, EMFs' internationalisation enhances the positive relationship of the firms' HRM practices and lean capability development. At the institutional level, our results suggest that regulatory institutions reinforce the positive effect of process management on EMFs' lean capability development; however, normative institutions (power distance) negatively influence the effect of firms' HRM practices on lean capability development. Our cross-country analysis suggests that, unlike India and Brazil, China's regulatory and normative environments (which have a higher level of power distance) hamper the positive effect of firm-level factors on their firms' lean capability development.

Examining how firm and institutional factors affect lean capability development of emerging market firms

Drawing on the dynamic capabilities view (DCV) and institutional theory, we examine the impact of firm-level and country-level factors on emerging market firms' (EMFs) lean capability development. Based on a sample of 1,702 firms from Brazil, China, and India, we found that EMFs' human resource management (HRM) and process management practices have a positive effect on their lean capability development. Further, EMFs' internationalisation enhances the positive relationship of the firms' HRM practices and lean capability development. At the institutional level, our results suggest that regulatory institutions reinforce the positive effect of process management on EMFs' lean capability development; however, normative institutions (power distance) negatively influence the effect of firms' HRM practices on lean capability development. Our cross-country analysis suggests that, unlike India and Brazil, China's regulatory and normative environments (which have a higher level of power distance) hamper the positive effect of firm-level factors on their firms' lean capability development.