Lean Companies Research Articles

The influence of supply chain integration on firm performance through lean manufacturing, green supply chain management and risk management

The rapid development of technology has enabled companies to integrate internal and external partners working together in the supply chain network. Supply chain integration allows fast information to facilitate real-time and reliable decision-making. This study investigates the role of supply chain integration on firm performance through adopting lean manufacturing, green supply chain management, and risk management. The study surveyed manufacturing companies implementing ISO 14000 to represent green supply chain management and integrated information technology as a form of integration. The questionnaires were distributed using a Google form, and 93 valid responses were obtained. Data analysis employed a partial least square approach with SmartPLS software 4.1 version. The data processing results found that supply chain integration increased lean manufacturing by 0.684, green supply chain management by 0.451, and supply chain risk management by 0.333. Lean manufacturing companies using a continuous process control system and process improvements significantly improve green supply chain management by a path coefficient of 0.477, supply chain risk management by 0.206, and firm performance by 0.370. Green supply chain management significantly impacts supply chain risk management by a coefficient of 0.416 and firm performance by 0.189. Supply chain risk management with a system for detecting operational process risks and emergency procedures in overcoming changes in customer orders affects the increase in firm performance by 0.354. The practical contribution of research provides insight for practitioners to invest in information technology and adopt ISO 14000 implementation. Theoretical contributions in developing resources-based view theory in adopting green supply chain management and lean manufacturing.

A conceptual model for pull implementation based on the dimensions leadership, organization, operation and people

PurposeThis paper aims to present a conceptual model, called LOOP, an acronym for Leadership, Organization, Operation and People, regarding the pull system implementation in Lean companies. Lean should be holistically implemented to achieve the performance for what it is known. Pull is one of the Lean thinking principles, and it is the production control system underneath the Lean philosophy. However, to implement pull, an organizational transformation in companies’ different areas is needed.Design/methodology/approachThis model was developed following up a case study of a representative example of a multinational company which has been implementing Lean for a long time but without achieving a well-succeeded pull implementation.FindingsBased on that, the authors developed the LOOP model that is an integrated framework with the goal to promote a Lean culture, which includes four dimensions: leadership, organization, operation and people.Originality/valueBased on the LOOP conceptual model, a different, and hopefully more effective, perspective is presented, establishing some proposals for the four dimensions and for the production and control system selection criteria to implement Lean.

Lean manufacturing application in the frozen goods industry

The long-standing producer's market, in which the selling price was the sum of costs and desired profit, has been transformed by globalization into a buyer's market, where profit is the difference between the realized selling price and the production costs. Therefore, every company must approach the reduction of operating costs and the optimal use of the resources at its disposal. Lean thinking can help companies in reducing business costs and increasing productivity. Lean companies can improve their processes and increase their competitiveness in the market. The paper aims to present lean thinking implementation in manufacturing companies to improve procedures and increase competitiveness. Based on proposed improvements to business processes, Frozen Ltd. saved time and costs, making it more competitive in the market and confirming the hypothesis that the lean methodology can help a company perform its business processes better. The company needs to continue with its efforts to use lean since this is not a single event but a journey.

An Analysis of Environmental, Social, and Corporate Governance (ESG) Ratings of Lean Versus Non-Lean Companies

Lean manufacturing is a business philosophy concerned with continually eliminating waste from business processes while producing quality products with greater efficiency. In addition to profits, organizations worldwide are beginning to focus on environmental, social, and corporate-governance (ESG) factors because of the changing global environment. The Environmental Protection Agency has specifically stated that many organizations have found that implementing lean manufacturing concepts and tools results in improvements in environmental performance. This study uses a matched-pairs design, matching lean companies with non-lean companies, and assesses whether lean companies experienced better Sustainalytics ESG risk ratings than non-lean companies. Results show that lean companies achieved more favorable ratings in environmental, social, and corporate-governance factors than did non-lean companies.

Assessing to what extent smart manufacturing builds on lean principles

This study explores to what extent the adoption and performance of smart manufacturing technologies builds on the adoption of lean principles. Primary explorative survey data on the level of adoption of smart manufacturing technologies and lean principles and various operational performance outcomes were collected from a set of Dutch manufacturers and analysed using Cluster Analysis, ANOVA, and Necessary Condition Analysis (NCA). The Cluster Analysis shows that while lean is also applied without smart (“lean-only” companies), smart technologies are mostly applied in conjunction with lean (“lean and smart” companies), suggesting that the presence of lean principles is necessary for smart implementation. A third group of companies shows a low use of lean and smart (“non-adopters”). The NCAs further specify the extent of this necessity by showing that all individual smart manufacturing technologies used in our construct require presence of lean principles, with MES systems having the strongest dependency. Performance wise, lean-only and lean and smart companies have comparable superior performance compared to non-adopters when considering an aggregate operational performance measure using the dimensions of quality, delivery, flexibility and cost. When analysed separately, the aggregate level results remain true for quality and delivery performance. However, for flexibility, the superiority of lean-only companies is more apparent, while for cost, lean and smart companies are superior. This shows that implementing smart requires lean, but lean may suffice depending on the specific performance objectives strived for.

Complementarity of Management Control Mechanisms in a Lean Organization: The Effect of Consensus

This study aims to examine the complementarity effect of lean management control mechanisms (lean performance measurement, employee empowerment, visual control, standard operating procedures, and peer pressures) on company performance (operations and financial performance). Besides, this study also tests whether the consensus on lean thinking has affected the relationship between the lean management control mechanisms and the company’s performance. The data is collected by survey with 159 managers from manufacturing companies. The data is then analyzed using the AMOS-SEM and shows that lean management control mechanisms work complementary to increase operation and financial performance in lean manufacturing companies. Furthermore, consensus on lean thinking strategies acts as a moderating variable and positively affects the relationship between lean management control mechanisms and financial performance. This study recommends that lean companies should implement control mechanisms that align with lean thinking. These control mechanisms should be used together to complement each other to maximize the performance benefits that can be derived from lean thinking implementation. In addition, to strengthen the benefits derived from the use of lean control mechanisms, companies need to pay attention to the consensus in implementing lean thinking strategies.

Globalization from Below: Labor Inequality in the German Shipbuilding Industry, 1960–2000

This article examines how globalization shaped work and employment in the German shipbuilding industry in the second half of the twentieth century. Official documents show that, as a response to global competition, originally large and labor-intensive shipyards in the northwest of Germany evolved into lean and nimble high-technology companies across four decades. Oral history interviews with former migrant and nonmigrant staff of two leading shipyards reveal that this large-scale industry transformation is a hitherto hidden history of labor mobility, migration, and evolving dimensions of diversity in the workplace. Migration is a lens through which to understand how corporate responses to global developments led to persistent patterns of social exclusion and inequality between and within groups of workers with and without migrant backgrounds that have not been documented before, namely: social divisions, unequal access to vocational training and retraining programs, unequal career opportunities, unfair redundancies, and unequal impact of precarious work.

The impact of lean manufacturing practices on firms' sustainable performance of the manufacturing industry sector

The long-term production of high value in the industrial sector is crucial to sustainability. Therefore, it is important to better understand how businesses will enhance the production of sustainable wealth. Recently, lean methods have been implemented in production systems in order to improve better efficiency. However, we must regularly assess the effect of these lean activities on the stable quality of the manufacturing sector. In order to achieve this, we undertook an extensive review to chart work on the partnership between lean and sustainable production sector results. Researchers examined this partnership from different perspectives and have taken a clear look at whether lean development methods are beneficial or detrimental to the competitive sustainable output of businesses. Most authors often claim that the interactions were contingent-based. This study suggests a new viewpoint on how to assess sustainable quality in a competitive manner across lean manufacturing practices and companies. It is appropriate that this partnership relies on the handling of lean paradoxical conflicts among manufacturing companies.

Lean accounting: a structured literature review

PurposeThe purpose of the paper is to perform a review and analyze the literature on lean accounting (LA) to develop insights into how LA research is developing, offering a critique of the research to date and underlining future research opportunities.Design/methodology/approachThe research uses a structured literature review (SLR) to categorize and analyze 39 research articles from relevant journals with a publication date from 1996 to 2020 (September) and to answer three research questions.FindingsFindings demonstrated that although LA seems to be the most suitable method for lean companies, it still lacks research in terms of the role of accountants in lean organizations as well as how its concepts are integrated with the generally accepted accounting principles (GAAP).Practical implicationsThe paper provides both academics and practitioners with valuable insights regarding the role of management accounting and accountants in the pursuit of lean transformation, presenting meaningful themes and a complete analysis of the literature along with research gaps for future research.Originality/valueThe paper contributes to lean manufacturing literature by providing a comprehensive SLR of articles regarding LA. Also, the paper serves as a basis for developing future research agendas in management accounting practices for lean organizations.

Do repetitive and non-repetitive companies equally benefit from Lean 4.0?

PurposeThe integration between the traditional lean management and Industry 4.0, namely called Lean 4.0, is under the spotlight of both academia and practitioners. While we agree on the benefits Lean 4.0 may bring to companies performance, we still lack a deep understanding of the characteristics of this paradigm, such as its effective application space. Recalling traditional lean better suits repetitive companies, we are keen to understand whether the anew Lean 4.0 will enlarge its application space.Design/methodology/approachWe performed an exploratory study, using a quantitative analysis based on Bayesian network approach to investigate whether Lean 4.0 results to be as effective in repetitive companies as in non-repetitive ones, in terms of operational performance.FindingsWhile our findings confirm that Lean 4.0 will enhance companies' performance regardless their production strategies, companies adopting a repetitive strategy do benefit from a much higher improvement. Our findings provide an insight on the true applicability space of Lean 4.0, which seems to be the same as the traditional lean.Originality/valueWe contribute to the ongoing debate of Lean 4.0 providing initial empirical evidence on how to improve the operational performance in non-repetitive companies, seeing that Lean 4.0 might not be the best choice in its current format.

Globalization from Below: Labor Inequality in the German Shipbuilding Industry, 1960-2000

This study examines how globalization affected employment changes in the German shipbuilding industry in the second half of the 20th century. Over four decades, as a response to global competition originally large and labor-intensive shipyards in the northwest of Germany evolved into lean and nimble high-technology companies. Our findings based on 28 oral history interviews with former staff of two leading shipyards show that this large-scale industry transformation is a hitherto hidden history of labor mobility, migration and evolving dimensions of diversity in the workplace. Allowing for a look at globalization from below, the narrations reveal structural and subjective implications on workforce hierarchies and on different workers’ roles and positions. We identify five patterns of social exclusion and inequality between and within groups of workers with and without migrant backgrounds that have not been documented before.

Lean Companies Employed Assembly Workers Train with New Approches

LM has proven itself the production system that enhances shop floor efficiency. Furthermore, the current environment for production firms is accelerating the pace at which LM is implemented. The manufacture of lean is not easy to introduce. It is constant and complex activity. Assembly workers in production processes are the core of lean manufacturing activity. Training is known as vehicle to aid the implementation process. While the importance of training is known so far, there are only a few options for organizing effective training. The results of the survey of questions conducted inside UK manufacturing companies are examined. This article illustrates the definition of lean production and worker requirements in lean environment.

A systematic literature review regarding the influence of lean manufacturing on firms' financial performance

PurposeThe lean philosophy has demonstrated its effectiveness to improve firms' operational performance. However, the impact of lean practices on financial performance is still unclear due to the poor understanding of the link between operational and financial measures and the conflictive results obtained by previous research. The purpose of this paper is to conduct a systematic literature review to understand whether lean companies have improved their financial performance. Moreover, this article aims to uncover research gaps in the literature and examine which time spans of research have been considered to analyse both the degree of lean implementation and the measurement of financial outcomes.Design/methodology/approachA systematic literature review has been conducted to identify peer-reviewed articles that analyse the effect of the lean production paradigm on the financial performance measures of manufacturing companies. Then, the identified articles were processed using a combination of descriptive and content analyses methods to draw new conclusions, uncover gaps and find novel paths for research.FindingsVarious authors indicate that lean initiatives lead to an enhancement of financial performance measures. JIT and TQM lean practice bundles are suggested as the best enablers of financial performance in terms of sales and profit. In contrast, according to some scholars, lean does not necessarily improve companies' financial results if it is not properly implemented.Originality/valueSeveral studies have focused on analysing the effects of lean on performance. However, only a small part of the literature has addressed the study of the effects of lean practices on financial performance metrics. The originality of this study lies in the investigation of the connections between lean practices and financial performance measures found in the literature. The outcome is the identification of various possible positive impacts of some lean practices on financial metrics.

Business Intelligence + Lean Manufacturing: uma revisão sistemática da literatura (2008-2018)

Lean Manufacturing (LM) é uma filosofia de gestão apoiada por um grupo de técnicas que, quando combinadas e amadurecidas, reduzem o tempo e o custo de produção, maximizam o valor ao cliente e minimiza desperdícios. Para isto a tomada de decisão desempenha um papel fundamental e se torna um ponto crítico para esta filosofia de gestão. A ferramenta Business Intelligence (BI) fornece uma abordagem baseada em dados para vincular as metas estratégicas das empresas às políticas gerenciais e ações operacionais, podendo ser de ajuda para as empresas enxutas. Assim, o presente estudo pretende analisar as principais aplicações das ferramentas de BI para dar suporte à tomada de decisão às empresas que aplicam LM. Com apoio do software de revisão sistemática StArt, foi feita uma análise da literatura atual relacionada ao tema de pesquisa. A análise permitiu definir oportunidades de aplicação de BI nas empresas que, de alguma forma, utilizam o LM.

Balancing Workload and Workforce Capacity in Lean Management: Application to Multi-Model Assembly Lines

While multi-model assembly lines are used by advanced lean companies because of their flexibility (different models of a product are produced in small lots and reach the customers in a short lead time), most of the extant literature on how to staff assembly lines focuses either on single-model lines or on mixed-model lines. The literature on multi-model lines is scarce and results given by current methods may be of limited applicability. In consequence, we develop a procedure to staff multi-model assembly lines while taking into account the principles of lean manufacturing. As a first approach, we replace the concepts of operation time and desired cycle time by their reciprocal magnitudes workload and capacity, and we define the dimensionless term of unit workload (load/capacity ratio) in order to avoid magnitudes related to time such as cycle time because, in practice, they might not be known. Next, we develop the necessary equations to apply this framework to a multi-model line. Finally, a piece of software in Python is developed, taking advantage of Google’s OR-Tools solver, to achieve an optimal multi-model line with a constant workforce and with each workstation performing the same tasks across all models. Several instances are tested to ensure the performance of this method.

Performance Measurement and Reporting in Lean Manufacturing Environment: Integration of Balanced Scorecard and Lean Accounting Box Score

Purpose – The study aims to develop a framework model to measure performance and report improvements and deficiencies as multidimensional with timely information in lean manufacturing environment accordance with philosophy of lean thinking. Design/methodology/approach – The paper examines research conducted in the area of lean thinking, lean manufacturing, lean accounting, lean accounting box score, balanced scorecard and proposes a performance measurement and reporting model. Findings – It was developed a multidimensional performance measurement and reporting framework model that, takes into account requirements of lean manufacturing and supports lean manufacturing. Discussion – In lean companies, performance measurement methods and reports should reveal gains and deficiencies of lean applications. Proposed model provides to measure performance and reports results based on value streams similtanously with manufacturing processes. Therefore, the study one of the few studies that contribute to expanding the limited existent body of knowledge of performance measurement and reporting in lean manufacturing environment. Also, model can be used by companies from different industries and as well as non-lean companies or organizations by modifying according to aims and strategies or requirements.

Requirements in performance measurement systems of construction projects from the lean production perspective

Performance measurement (PM) generates useful data for process control, facilitates communication between different sectors, and helps to align efforts on the most important aspects of the business. Thus, PM plays a key role in the management of projects and organizations. PM is also important in the implementation of lean production principles and methods, such as reducing the share of nonvalue-adding activities, increasing process transparency, building continuous improvement into the process, and benchmarking. Moreover, the adoption of the lean production philosophy requires changes in PM. Despite its importance, limited studies have been conducted on the use of PM systems for assessing the impact of lean production programs in construction projects. In addition, studies on how lean companies (or projects) use performance measurement and to what extent the indicators adopted reflect the result of actions that have been undertaken are limited. This study proposes a set of requirements in PM systems of construction projects from the perspective of lean production and a taxonomy of performance metrics for lean production systems. Five empirical studies have been carried out on construction companies from South America involved in the implementation of lean production systems. The scope of this investigation is limited to the construction projects as production systems rather than PM at the level of construction organizations.

Conceptual Model for Introducing Lean Management Instruments

It’s a challenge for a company to adapt Lean Management philosophy and start introducing the concept in its activity, because each economical entity has a quiddity. After studying 11 Lean companies, a conceptual model was developed with the aim to facilitate Lean implementation in other companies which are interested in starting a Lean journey.The developed model was tested in a yet unexplored for Romania area: in the public healthcare sector, and in just 4 months showed improved results, significantly streamlining and organizing main aspects of the organizational activities. This work presents the essential steps of the developed conceptual model.

The implementation of lean manufacturing in the furniture industry: A review and analysis on the motives, barriers, challenges, and the applications

Although research on the adoption of lean manufacturing in the furniture industry in emerging economies is slowly progressing, its implementation has been emphasized by researchers and practitioners. Research on this scope is therefore limited, particularly when compared to the vast amount of scholarly studies contributed to successful implementation of lean in the developed countries. To support the narrow body of knowledge on this under-researched scope, this paper presents the current shortfalls of implementing the lean manufacturing in terms of motives, barriers, challenges, and applications. To address these issues, a methodological approach was implemented in two tiers. Firstly, a comprehensive review of state-of-the-art literature on the issues was performed followed by an analytic approach using a survey on 148 companies in Malaysia to finalize the research. Upon validation of the analyses, the results revealed that most of the lean companies agreed that the reasons for lean implementation are to increase efficiency, to clean up and organize the workplace, and to increase utilization of space. Non-lean companies believe that issues related to knowledge are the reasons for not undertaking lean implementation. However, lean companies believe that the obstacles are more about employee-related issues including lack of labor resources, lack of implementation know-how, and employee resistance to change. Lean companies also face challenges in the form of technical knowledge, training, and financial resources during the early phase of lean implementation. In addition, only three applications – 5S, employee training, and quality control – were found to be useable in the Malaysian wood and furniture industry. These findings present a critical view of the current shortfalls of lean implementation in the wood and furniture industry throughout Malaysia and other emerging economies.

Real time implementation and validation of lean implementation model for sustainability (LIMS) in medium scale industry

Lean manufacturing is a strategic tool, which is used to cut down waste and to improve the efficiency of an organization and helps the organization to sustain in the competitive environment. Implementation of lean systems in organization results in reduce energy consumption, waste generation, and hazardous materials used while also building the companies’ images as socially responsible organizations. Several research efforts discussed in the literature indicate that lean companies show significant environmental improvements by being more resource and energy efficient. Lean systems are associated with waste reduction techniques. In foreign, many industries have started implementing these concepts and they are getting good results. In India, companies are facing problems in implementing lean concept. Critical success factors for lean system implementation in Indian medium scale manufacturing industries has been identified to overcome it. The factors are grouped into different levels by Interpretive Structural Modelling (ISM). A lean implementation model has been developed for medium scale industry and named as 'LIMS'. This paper investigates the implementation and validation of the LIMS through the real time implementation in a medium scale industry.