Lean Impact Analysis Assessment Models: Development of a Lean Measurement Structural Model
The paper is aimed at developing a model to measure the impact of Lean manufacturing deployment on organizational performance. The model will help industry practitioners to assess the impact of implementing Lean constructs on organizational performance. It will also harmonize the measurement models of Lean performance with the house of Lean that seems to have become the industry standard. The sheer number of measurement models for impact assessment of Lean implementation makes it difficult for new adopters to select an appropriate assessment model or deployment methodology. A literature review is conducted to classify the Lean performance model. Pareto analysis is used to select the Lean constructs for the development of the model. The model is further formalized through the use of Structural Equation Modeling (SEM) in defining the underlying latent structure of a Lean system. An impact assessment measurement model developed can be used to measure Lean performance and can be adopted by different industries.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1316774Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 451
 U. Dombrowski, D. Ebentreich and P. Krenkel, Impact Analyses of Lean Production Systems. Procedia CIRP, 57, 2016, pp. 607-612.
 A. Susilawati, J. Tan, D Bell and M. Sarwar, Fuzzy logic based method to measure degree of lean activity in manufacturing industry. Journal of Manufacturing Systems, 34, 2015, pp. 1-11.
 H. D. Wan, Measuring leanness of manufacturing systems and identifying leanness target by considering agility. Virginia Tech, 2006.
 M. D. Al-Tahat and I. S. Jalham, A structural equation model and a statistical investigation of lean-based quality and productivity improvement. Journal of Intelligent Manufacturing, 26, 2013, pp. 571-583.
 Belekoukias, J. A. Garza-Reyes, and V. Kumar, The impact of lean methods and tools on the operational performance of manufacturing organisations. International Journal of Production Research, 52, 2014, pp. 5346-5366.
 M. Bevilacqua, F. E. M., Ciarapica, and I. De Sanctis, Relationships between Italian companies’ operational characteristics and business growth in high and low lean performers. Journal of Manufacturing Technology Management, 28, 2017, pp. 250-274.
 G. Dal Pont, A. Furlan and A. Vinelli, Interrelationships among lean bundles and their effects on operational performance. Operations Management Research, 1, 2008, pp. 150-158.
 K. Demeter, and Z. Matyusz. The impact of lean practices on inventory turnover. International Journal of Production Economics, 133, 2011, pp. 154-163.
 G. Kumar, Cycle time reduction for T-shirt manufacturing in a Textile industry using lean tools. Innovations in Information, Embedded and Communication Systems (ICIIECS), International Conference on, 2015. IEEE, 2015, pp. 1-6.
 A. P. Lacerda, A. R. Xambre and H. M. Alvelos, Applying Value Stream Mapping to eliminate waste: a case study of an original equipment manufacturer for the automotive industry. International Journal of Production Research, 54,2016, pp. 1708-1720.
 R. Miller, and N. Chalapati, Utilizing lean tools to improve value and reduce outpatient wait times in an Indian hospital. Leadership in Health Services, 28, 2015, pp. 57-69.
 H. Perera, Productivity improvement through lean tools in a Sri Lankan small and medium enterprise: A case study. Manufacturing & Industrial Engineering Symposium (MIES), 2016. IEEE, pp. 1-6.
 A. Prashar, Redesigning an assembly line through Lean-Kaizen: an Indian case. The TQM Journal, 26, 2014, pp. 475-498.
 I. Rivera, and F. F Chen, Measuring the impact of Lean tools on the cost–time investment of a product using cost–time profiles. Robotics and Computer-Integrated Manufacturing, 23, 2007, pp. 684-689.
 J. Gamage, P. Vilasini, H. Perera, and L. Wijenatha, Impact of lean manufacturing on performance and organisational culture: a case study of an apparel manufacturer in Sri Lanka. 3rd International Conference on Engineering, Project and Production Management (EPPM), Brighton, United Kingdom. Retrieved from http://www.ppml.url.tw/EPPM/conferences/2012/downioad/SESSON3_B/40, 2012.
 A. Abdallah, C. Phan, The relationship between just-in-time production and human resource management, and their impact on competitive performance. Yokohama Business Review, 28, 2007, pp. 27-57.
 T. Deaconescu, S. Tang, T. Ng, W. Chong, K. Chen and A. Deaconescu, Case Study on Lean Manufacturing System Implementation in Batch Printing Industry Malaysia. MATEC Web of Conferences, 70, 2016, pp. 05002.
 T. Yang, Y. Kuo, C. T. Su and C. L. Hou, Lean production system design for fishing net manufacturing using lean principles and simulation optimization. Journal of Manufacturing Systems, 34, 2015. pp. 66-73.
 A. A. Mcleod, M.P. Stephens, and D. L. Mcwilliams, Empirical Modeling of Lean Adoption in Small to Medium Size Manufacturers. Journal of Advanced Manufacturing Systems, 15,2016, pp. 173-188.
 P. Dennis, Lean Production Simplified, New York, 2007, CRC Press.
 A. Agus, J. Antony and M Shukrihajinoor, Lean production supply chain management as driver towards enhancing product quality and business performance. International Journal of Quality & Reliability Management, 29, 2012, pp. 92-121.
 R. R. Fullerton and W. F. Wempe, Lean manufacturing, non‐financial performance measures, and financial performance. International Journal of Operations & Production Management, 29, 2009, pp. 214-240.
 R. Shah and P. T. WARDLean manufacturing: context, practice bundles, and performance. Journal of operations management, 21, 2003. Pp. 129-149.
 S. Vinodh and D. JoyStructural equation modelling of lean manufacturing practices. International Journal of Production Research, 50, 2012, pp. 1598-1607.
 J. Jayaram, S. Vickery, and C, DROGE, Relationship building, lean strategy and firm performance: an exploratory study in the automotive supplier industry. International Journal of Production Research, 46, 2008, pp. 5633-5649.
 P. Hong, M. Ga Yang, and D. Dobrzykowski, Strategic customer service orientation, lean manufacturing practices and performance outcomes: An empirical study. Journal of Service Management, 25, 2014, pp. 699-723.
 R. Chavez, C. Gimenez, F. Wiengarten and W. Yu, Internal lean practices and operational performance. International Journal of Operations & Production Management, 33, 2013, pp. 562-588.
 G. A. Marodin, A. G. Frank, G. L. Tortorella, and D. C. Fetterman, Lean production and operational performance in the Brazilian automotive supply chain. Total Quality Management & Business Excellence, 2017, pp. 1-16.
 B. Zhou, Lean principles, practices, and impacts: a study on small and medium-sized enterprises (SMEs). Annals of Operations Research, 241, 2012. pp. 457-474.
 T. J. Kull, T. Yan, Z. Liu and J. G. Wacker, The moderation of lean manufacturing effectiveness by dimensions of national culture: Testing practice-culture congruence hypotheses. International Journal of Production Economics, 153, 2014, pp. 1-12.
 F. A. Abdulmalek and J. Rajgopal, Analyzing the benefits of lean manufacturing and value stream mapping via simulation: A process sector case study. International Journal of Production Economics, 107,2007, pp. 223-236.
 M. J. Maas, M. and C. R. Standridge, Reducing Lead Times in a Two-process Cell Using Lean and Simulation. Research Journal of Applied Sciences, Engineering and Technolog, 10, 2015, pp. 15-21.
 R. R, Fullerton, F. A. Kennedy, and S. K. Widener, Lean manufacturing and firm performance: The incremental contribution of lean management accounting practices. Journal of Operations Management, 32, 2014, pp. 414-428.
 G. A. Marodin, and T. A. Saurin, Implementing lean production systems: research areas and opportunities for future studies. International Journal of Production Research, 51, 2013. pp. 6663-6680.
 W. Hadid, S. A. Mansouri, and D. Gallear, Is lean service promising? A socio-technical perspective. International Journal of Operations & Production Management, 36, 2016, pp. 618-642.
 G. Nawanir, L. Kong Teong, and S. Norezam Othman, Impact of lean practices on operations performance and business performance. Journal of Manufacturing Technology Management, 24, 2013, pp. 1019-1050.
 G. Nawanir, K. T. LIM and S. N. Othman, Lean manufacturing practices in Indonesian manufacturing firms. International Journal of Lean Six Sigma, 7, 2016, pp. 149-170.
 W. W. Chin and P. R. Newsted, Structural equation modeling analysis with small samples using partial least squares. Statistical strategies for small sample research, 1, 1999, pp. 307-341.
 J. HOX and T. Bechger, An introduction to structural equation modeling. Family Science Rewiew, 11, 1998, pp 354-373.
 R. C Maccallum, and J. T. Austin, Applications of structural equation modeling in psychological research. Annual review of psychology, 51, 2000, pp. 201-226.
 J. Pearson, R. White and J. Wilson, JIT manufacturing: a survey of implementations in small and large US manufactures. Management Science, 45,1999, pp. 1-15.
 J. K. Obamiro, Exploring the Relationships Between Just-In-Time Technique and Manufacturing Performance: Empirical Evidence From Selected Nigerian Firms. Manager (University of Bucharest, Faculty of Business & Administration, 2009).
 G. N. Chandler and G. M. Mcevoy, Human resource management, TQM, and firm performance in small and medium-size enterprises. Entrepreneurship Theory and Practice, 25, 2000, pp. 43-58.
 A. Yang, The impact of human resource management practices on the implementation of total quality management: An empirical study on high-tech firms. The TQM Magazine, 18, 2006, pp. 162-173.
 Daoud Abu-doleh, Human resource management and total quality management linkage–rhetoric and reality: Evidence from an empirical study. International Journal of Commerce and Management, 22, 2012, pp. 219-234.
 S. P. Deshpande, D. Y. Golharand C. L. Stamm, Human resource management in the just-in-time environment. Production planning & Control, 5, 1994, pp. 372-380.
 A. B. Flynn, S.Sakakibara and R. G. Schroeder, Relationship between JIT and TQM: practices and performance. Academy of management Journal, 38,1995, pp. 1325-1360.
 V. Kannan, Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance. Omega, 33, 2005, pp. 153-162.
 E. Sadikoglu and H. Olcay, The Effects of Total Quality Management Practices on Performance and the Reasons of and the Barriers to TQM Practices in Turkey. Advances in Decision Sciences, 2014, pp. 1-17.
 R. H. Chenhall, Reliance on manufacturing performance measures, total quality management and organizational performance. Management Accounting Research, 8, 1997. pp 187-206.
 R. Mann, and D. Kehoe, An evaluation of the effects of quality improvement activities on business performance. International Journal of Quality & Reliability Management, 11, 1994, pp. 29-44.
 R. R. Fullerton, C. S. Mcwatters, and C. Fawson, An examination of the relationships between JIT and financial performance. Journal of Operations Management, 21, 2003, pp. 383-404.
 S. Rahman, T. Laosirihongthong, and A. S. Sohal, Impact of lean strategy on operational performance: a study of Thai manufacturing companies. Journal of Manufacturing Technology Management, 21, 2010, pp. 839-852.