Assessing the moderating role of the extent of implementation of lean methods in predicting productivity improvement
DOI:
https://doi.org/10.1108/RAUSP-08-2022-0196Keywords:
Lean methods, Kanban, Single Minute of Exchange Die, Systematic Layout Planning, Standardized work, Productivity, AssessmentAbstract
Purpose: The argument of implementing the lean method to part or whole of an operation is explored by examining the moderating impact of varying levels of the extent of implementation of four different lean methods, along with their functionalities, in predicting productivity improvement.
Design: As the focus of understanding the efficacy of lean principles is shifting from process to industry level, this study tried to generalize the approach by gathering data from 132 large Indian auto component manufacturers. This involves an assessing/monitoring approach rather than measurement.
Findings: Results highlighted the interdependence or individuality of the extent of implementation of lean methods and their functionalities. Findings revealed a significant moderating effect in improving productivity to a greater extent of 50%.
Research implications: Adopting an assessment approach to a measurement study provides a noteworthy contribution to bridging theory and practical consequences. The findings can be appropriately extrapolated to medium and small enterprises forming a critical connection in the entire automobile manufacturing ecosystem.
Practical implications: The study showed that even if a lean method is applied to a certain extent of operations the chances of PI are significant. This is important for decision-makers as they confront problems of optimum resource allocation.
Social implications: Productivity improvement, reduced cost and generalization of results would enable the auto-component industry to become more competitive.
Originality: The examination of the moderation effect of a lean principle implementation extent, along with that of its functionalities to predict the improvement in productivity from its existing level, is a major outcome of this study.
Downloads
References
Ahlstrom, P., Danese, P., Hines, P., Netland, T.H., Powell, D., Shah, R., Thürer, M. & van Dun, D.H. (2021). Is lean a theory? Viewpoints and outlook. International Journal of Operations & Production Management, 41 (12), 1852-1878
Alptekinoglu, A., & Ramachandran, K. (2019). Flexible products for dynamic preferences. Production and Operations Management, 28 (6), 1558-1576.
Bernegger, P. M., & Webster, S. (2014). Fixed-cycle smoothed production improves lean performance for make-to-stock manufacturing. Interfaces, 44 (4), 411-427.
Bhamu, J., & Sangwan, K. S. (2014). Lean manufacturing: literature review and research issues. International Journal of Operations and Production Management, 34 (7), 876-940.
Brown, K. A., Schmitt, T. G., & Schonberger, R. J. (2015). ASP, the Art and science of practice: three challenges for a lean enterprise in turbulent times. Interfaces, 45(3), 260-270.
Dave, Y., & Sohani, N. (2012). Single Minute Exchange of Dies: Literature review. International Journal of Lean Thinking, 3(2), 27-37.
Demeter, K. & Matyusz, Z. (2011). The impact of lean practices on inventory turnover. International Journal of Production Economics, 133 (1), 154-163.
Derhami, S., Smith, J. S., & Gue, K. R. (2020). A simulation-based optimization approach to design optimal layouts for block stacking warehouses. International Journal of Production Economics, 223 (May), 107525.
Dillon, A. P. & Shingo, S (1985). A revolution in manufacturing: the SMED system. Boca Raton, Florida, CRC Press.
Dresch, A., Veit, D. R., de Lima, P. N., Lacerda, D. P., & Collatto, D. C. (2019). Inducing Brazilian manufacturing SMEs productivity with Lean tools. International Journal of Productivity and Performance Management, 68 (1), 69-87.
Field, A. (2013). Discovering statistics using IBM SPSS statistics. Sage Publications Ltd., London.
Garza-Reyes, J. A., Kumar, V., Chaikittisilp, S. & Tan, K. H. (2018). The effect of lean methods and tools on the environmental performance of manufacturing organisations. International Journal of Production Economics, 200 (June), 170-180.
Gel, E. S., Fowler, J. W., & Khowala, K. (2020). Queuing approximations for capacity planning under common setup rules. IISE Transactions (August), 1-19.
Hosseini, S. S., Wong, K. Y., Mirzapour, S. A., & Ahmadi, R. (2014). Multi-floor facility layout improvement using systematic layout planning. Advanced Materials Research, 845, 532-537.
Hu, B., & Kostamis, D. (2015). Managing supply disruptions when sourcing from reliable and unreliable suppliers. Production and Operations Management, 24 (5), 808-820.
Johansson, P. E., Lezama, T., Malmsköld, L., Sjögren, B., & Ahlström, L. M. (2013). Current state of standardized work in automotive industry in Sweden. Procedia CIRP, 7, 151-156.
Ledon, A. R., García, L. D. E., Vega, G. P. & Bernabe, E.P. (2018). A meta-analytic study of the impact of Lean Production on business performance. International Journal of Production Economics, 200 (June), 83-102.
Leonardo, D. G., Sereno, B., Silva, D. S. A. D., Sampaio, M., Massote, A. A., & Simões, J. C. (2017). Implementation of hybrid Kanban-CONWIP system: a case study. Journal of Manufacturing Technology Management, 28(6), 714-736.
Mor, R.S., Bhardwaj, A., Singh, S. & Sachdeva A. (2018). Productivity gains through standardization-of-work in a manufacturing company. Journal of Manufacturing Technology Management, 30 (6), 899-919.
Muller, E., Tolujew, J., & Kienzle, F. (2014). Push-Kanban – A Kanban-based production control concept for job shops. Production Planning and Control, 25 (5), 401-413.
Muther, R., & Wheeler, J. D. (1994). Simplified systematic layout planning. Kansas City, Management and Industrial Research Publications.
Narayanamurthy, G., & Gurumurthy, A. (2016). Leanness assessment: a literature review. International Journal of Operations and Production Management, 36 (10), 1115-1160.
Netland, T. H., & Ferdows, K. (2016). The S‐curve effect of lean implementation. Production and Operations Management, 25 (6), 1106-1120.
Olaitan, O., Yu, Q. & Alfnes, E. (2017). Work in process control for a high product mix manufacturing system. Procedia CIRP, 63, 277-282.
Panwar, A., Jain, R., Rathore, A. P. S., Nepal, B., & Lyons, A. C. (2018). The impact of lean practices on operational performance–an empirical investigation of Indian process industries. Production Planning and Control, 29 (2), 158-169.
Psomas, E. (2021). Future research methodologies of lean manufacturing: a systematic literature review. International Journal of Lean Six Sigma, 12 (6), 1146-1183.
Potadar, O. V., & Kadam, G. S. (2019). Development of Facility Layout for Medium-Scale Industry Using Systematic Layout Planning. in Proceedings of International Conference on Intelligent Manufacturing and Automation, (Singapore), Springer, 473-483.
Rajagopalan, J. (2020). An empirical longitudinal study of adoption of lean management in India. The TQM Journal, 32 (6), 1285-1306.
Sakthi Nagaraj, T., Jeyapaul, R., Vimal, K. E. K., & Mathiyazhagan, K. (2019). Integration of human factors and ergonomics into lean implementation), ergonomic-value stream map approach in the textile industry. Production Planning and Control, 30 (15), 1265-1282.
Simic, D., Svircevic, V., Corchado, E., Calvo‐Rolle, J. L., Simic, S. D., & Simic, S. (2021). Modelling material flow using the Milk run and Kanban systems in the automotive industry. Expert Systems, 38 (1), 12546.
Singh, J., Singh, H., & Singh, I. (2018). SMED for quick changeover in manufacturing industry–a case study. Benchmarking: An International Journal, 25 (7), 2065-2088
Souza, I.G., Lacerda, D. P., Riehs Camargo, L. F., Dresch, A., & Piran, F. S. (2018). Do the improvement programs really matter? An analysis using data envelopment analysis. BRQ Business Research Quarterly, 21 (4), 225-237.
Thurer, M., Stevenson, M., Silva, C., Land, M. J., & Fredendall, L. D. (2012). Workload control and order release:, A lean solution for make‐to‐order companies. Production and Operations Management, 21 (5), 939-953.
Vitayasak, S., Pongcharoen, P., & Hicks, C. (2017). A tool for solving stochastic dynamic facility layout problems with stochastic demand using either a Genetic Algorithm or Modified Backtracking Search Algorithm. International Journal of Production Economics, 190 (August), 146-157.
Whitmore, T. (2008). Standardized work. Manufacturing Engineering, 140 (5), 171-185.
Yang, K. K. (2000). Managing a flow line with single‐kanban, dual‐kanban or CONWIP. Production and Operations Management, 9 (4), 349-366
Yin, Y., Stecke, K. E., & Li, D. (2018). The evolution of production systems from Industry 2.0 through Industry 4.0. International Journal of Production Research, 56 (1–2), 848–861.
Zare, M., Croq, M., Hossein‐Arabi, F., Brunet, R., & Roquelaure, Y. (2016). Does ergonomics improve product quality and reduce costs? A review article. Human Factors and Ergonomics in Manufacturing and Service Industries, 26 (2), 205-223.
Zhou, B. (2016). Lean principles, practices, and impacts: a study on small and medium-sized enterprises SMEs. Annals of Operations Research, 241 (1), 457-474.
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Management Department of the School of Economics, Management and Accounting of the University of São Paulo.
The publication of article segments is allowed, subject to prior authorization and source identification.
Copyright is regulated under Licença Creative Commons Attribution
