The impact of environmental characteristics on TQM principles and organizational performance

One recurrent theme within the literature on total quality management (TQM) is the study of its effect on organizational performance. Nonetheless, most research has focused on analyzing the relationships between the implementation of different elements and several types of performance. This paper incorporates the effect of organizational environment as a variable for explaining the impact of TQM on business results. The model is tested using structural equations, employing a survey of quality managers in 273 Spanish firms. The causal analysis results show that dynamism, munificence and complexity influence the degree of implementation of the main TQM principles. The most relevant effects emerge as a result of the environmental dynamism, and the least effects are due to munificence. Similarly, the dimensions of TQM have an impact on different types of performance. The model can be used by organizations to assess their level of TQM success depending on specific environmental characteristics.     

The impact of lean practices on operational performance – an empirical investigation of Indian process industries

In deciding to adopt lean manufacturing, it is imperative to investigate where and how lean practices are most needed to influence manufacturing and business performance. Such an investigation becomes indispensable when lean thinking is to be considered in a production arrangement different to the conventional, repetitive, high-volume, stable-demand and discrete-manufacturing environment. This study provides explanations of how performance is improved through the adoption of lean practices in process industries. This is a relatively under-researched area compared to the performance effects associated with the introduction and implementation of lean principles in traditional, discrete manufacturing. Based on a survey of Indian process industries, this study attempts to develop an empirical relationship between lean practices and performance improvement through the use of multivariate statistical analysis. The findings have led to the conclusion that lean practices are positively associated with timely deliveries, productivity, first-pass yield, elimination of waste, reduction in inventory, reduction in costs, reduction in defects and improved demand management. However, within a process-industry context, lean practices related to pull production were found to have a marginal impact on performance improvement. A detailed discussion of the findings along with their theoretical and managerial implications is provided in the paper.     

Evaluating the impact of lean practices on environmental performance: evidences from five manufacturing companies

Abstract

Previous evidence suggests that lean practices help organizations to enhance environmental performance. However, the impact of lean practices on the environment is still unclear. This study, therefore, aims to analyse the relationship between lean and environmental performance in two main stages: first, a review of the relevant literature was developed, followed by a multiple case study analysis conducted in five manufacturing companies. Onsite data were collected from the firms during a 5 years’ time span of research and developing semi-structured interviews. Findings indicate that the environmental performance of the companies analysed is generally enhanced in the long-term after the implementation of lean. Moreover, the results suggest that the environmental performance of the firms investigated is mainly improved by using JIT and TQM practices in a lean transformation context. The research findings provide further results remarking the possible negative impact of Kanban deliveries, 5S and TPM on various environmental performance indicators.     

Lean practices and their effect on performance: a literature review

This paper introduces a literature review of 83 studies dealing with the degree of adoption of lean manufacturing practices around the world, and the links between those practices and organisation performance. The results of this study revealed that lean practices application still occurs in a fragmented way, disregarding the systemic linkage that is essential to lean manufacturing. Forty-one articles have suggested a positive effect of lean practices in at least one operational, financial and/or environmental performance metric. Nevertheless, five studies indicated that some lean practices had a negative effect on operational or financial performance. High demand variability, a perceived result of long-term lean manufacturing implementation, a country/company’s organisational culture and the difficulty of traditional costing production systems to measure and compare investments and economic gains from adopting lean manufacturing over time are some of the reasons to explain that negative effect of lean practice on performance.     

The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms

Manufacturing firms aim at improving both internal and external processes to improve the competitive advantage. Such initiatives include lean practices as well as supplier rationalization and integration. In this paper, we analyze these improvement initiatives and their impact on business performance. In particular, we explore potential differences between make-to-order (MTO) and make-to-stock (MTS) firms. We use data from 216 Australian manufacturing firms. We find a clear difference of improvement focus between MTO and MTS firms. MTO firms exhibit a significant impact of supplier integration on business performance, but not for lean practices and supplier rationalization. The situation is completely reversed for MTS firms, since they have significant effects for internal lean practices and supplier rationalization, but not for logistics integration with supplier. The results show that the distinction between MTO and MTS firms is important when analyzing manufacturing and supply chain improvement initiatives.     

Benefits of adopting lean production on green performance of SMEs: a case study

Abstract

Small- and medium-sized enterprises (SMEs) are widely recommended to strive, not only for their performance in operational side, but they need to integrate the environmental dimension. To do that, the literature widely indicates a positive impact of lean practices on green performance. However, very few studies have been carried out in SMEs context. In this view, this paper aims at providing through a practical case study of lean implementation in a real-life small manufacturing company, the information to confirm this synergy between lean and green performance. To achieve this aim, a proposed framework of lean and green integration has been implemented in a SME producing different types of pumps. The results achieved shows that there is a strong correlation between operational metrics improvement and green metrics improvement. Moreover, the benefits of lean practices such as 5S, Kanban, SMED, AM, cellular manufacturing and quality control on green performance are widely demonstrated. Future work could study other processes and explore other case-specific supporting tools and techniques.     

Implementing lean sigma in an Indian rotary switches manufacturing organisation

The manufacturing organisations have been witnessing a transformation in the manufacturing paradigm. Lean sigma and six sigma are the two business process improvement strategies widely employed by organisations to enhance their manufacturing performance. To achieve dramatic result in cost, quality and time, best strategies need to be applied to enhance the process performance. Lean sigma and six sigma are two powerful and effective strategies, enabling the organisation to overcome their weakness and for retaining their improvement. Lean sigma combines the variability reduction tools and techniques drawn from six sigma with the waste and non-value added elimination tools and techniques from lean manufacturing to achieve savings in the organisations. This study uses an integrated lean sigma framework to reduce the defects occurring in the final product, thereby contributing savings to the organisation. The proposed framework integrates lean tools within six sigma methodology to enhance the bottom-line results and to win customer loyalty. The implementation of the proposed framework shows dramatic improvement in key metrics and substantial financial savings to be generated by the organisation.     

Developing an understanding of lean thinking in process industries

The research described in this article has set out to determine the extent to which lean thinking is being adopted as a manufacturing philosophy by process industries. It concerns the application and examination of key lean manufacturing principles, namely, the alignment of production with demand, the elimination of waste, the integration of suppliers (IS) and the creative involvement of the workforce in improvement activities, to a range of process industry types based on Dennis and Meredith's taxonomy of process industry transformation systems [Dennis, D. and Meredith, J., 2000a. An empirical analysis of process industry transformation systems. Management Science, 46 (8), 1085–1099]. Seventy-nine process industry product streams across 62 sites were studied. In addition, a five-site investigative field study was also undertaken. The findings demonstrate that lean practices associated with the elimination of waste are consistently used for improving manufacturing performance throughout the taxonomy of process industries but practices associated with other lean principles are inconsistently applied. In addition, explanations are provided on the appropriateness of lean thinking as a manufacturing philosophy and a strategy for improving manufacturing performance in different process industry types, and on the extent to which lean principles and practices are dependent on the characteristics of process industry transformation systems.     

LEAN,GREEN, AND THE QUEST FOR SUPERIOR ENVIRONMENTAL PERFORMANCE

We examine the relationship between lean manufacturing practices and environmental performance as measured in terms of air emissions and resource use. We draw on two unique surveys of 31 automobile assembly plants in North America and Japan, which contain information on manufacturing practice and environmental performance, as well as in‐depth interviews with 156 plant level employees at 17 assembly plants. Our survey results and interviews suggest that lean management and reduction of air emissions of volatile organic compounds (vocs) are associated negatively. Lean manufacturing practices contribute to more efficient use of paints and cleaning solvents, but these in‐process changes are not sufficient to meet the most stringent air regulations. We found some evidence to support the link between lean practices and resource efficiency. While our survey results were in hypothesized direction, they were not statistically significant. In‐depth semi‐structured interviews, however, suggest a more robust relationship, and we use them to describe some mechanisms by which all three aspects of lean management (buffer minimization, work systems, and human resource management) may be related to environmental management practices and performance.     

Dynamic capabilities and firm performance

This paper juxtaposes conflicting claims about the relationship between codified dynamic capabilities and firm performance at different levels of environmental dynamism. Furthermore, it argues that the contradictory propositions and findings in prior research are due to said relationship being contingent on key, yet thus far overlooked and unaccounted for, factors internal to the firm such as dynamism exposure and asset base complexity. Empirical tests in the context of the mutual funds industry provide evidence that the performance contribution of codified dynamic capabilities does decline as environmental dynamism increases, yet for any given level of environmental dynamism the magnitude and even the sign of the performance contribution of codified dynamic capabilities are significantly influenced by firms’ dynamism exposure and asset base complexity. Going beyond received wisdom, this study advances a more nuanced contingency approach to dynamic capabilities which contributes to a better understanding of how the value of dynamic capabilities is shaped by a complex interplay of environmental and internal factors.     

Managing structural and dynamic complexity in supply chains: insights from four case studies

Complexity is regarded a major impediment to Supply Chain (SC) performance. However, very few studies aid SC managers adopt adequate practices in response to structural and dynamic complexity. This study offers a comprehensive review of the practices that four manufacturing companies employ in their SC function to manage the structural and dynamic complexity of their product portfolio, internal SC, and supplier and customer bases. Moreover, leveraging the results of the inductive in-depth case studies, a classification of complexity management practices consisting of four clusters is advanced: variety reducing, confinement and decoupling, coordination and collaboration and decision support and knowledge generation. Each cluster’s distinctive logic and limitations are discussed and propositions on their managerial scope are introduced, therefore providing managers with relevant insights to design effective complexity management approaches in their organisations.     

Determinants and barriers to lean implementation in food-processing SMEs – a multiple case analysis

This study explored contextual or determining factors and their impacts on lean manufacturing in small- and medium-sized enterprises (SMEs) operating in food-processing industries. In order to get an in-depth insight into the real situation at the work floor, this study adopted a multiple-case-study research approach. The inherent characteristics of food industries, such as mandatory quality assurance requirements, low shelf life of food products, and the extremely volatile demand and supply presented barriers to lean manufacturing adoption. In addition, the challenges of ‘change’ in an SME environment are distinct from those faced by large organizations. The small size of the plant, the traditional setup, and inflexible layout make it difficult to implement lean manufacturing in food-processing SMEs. The knowledge of contextual factors influencing lean manufacturing adoption in food processing SMEs will be a contribution to current knowledge. Many studies have explored lean constructs and tools, while far fewer have explored the crucial element of actually implementing these. The study will also help practitioners to anticipate potential obstacles and take proper measures to deal with them during lean implementation.     

Lean Product Development: Nothing New Under the Sun?

The concept of lean product development has attracted the attention of many scholars since its inception in the 1990s derived from practices at Toyota Motor Company. Key to this approach to new product development (NPD) are a few methods derived from lean production as well as longer established practices such as concurrent engineering. This makes one wonder whether lean product development is a new practice, a new method or an encapsulation of already existing methods at the time; this quest for the roots and tenets of lean product development, also in comparison with other methods for NPD, is the focus of this paper. This journey takes this propositional paper not only to the roots of lean product development and the context of its era of conception, but also to what this concept adds to other extant methods for NPD. In particular, this comparison draws out that other methods are trying to achieve the same objectives: the creation of products and services with value to the customer, the reduction of time‐to‐market and the efficient use of resources. This inference implies that managers of new product (and service) development can choose from a wider pallet of methods and approaches to enhance the performance of R&D and to connect better to manufacturing (including supply chains). Inevitably, this has implications for research on (lean) product and service development; hence, this paper sets out a research agenda based on the deliberations and gaps that have been uncovered in the discourse.     

An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India

This paper presents findings of a survey on manufacturing strategy practices adopted by the Indian machinery manufacturing companies (IMMC). Based on the survey, three companies have been selected for detailed case studies. Their experiences in the manufacturing strategy process are analyzed. Although the companies represented diversity in terms of product type, sales volume, and geographic location, they share several commonalties including use of advanced manufacturing technologies and use of several improvement techniques. The process of strategy formulation varied among the companies in terms of participants, complexity and degree of formalization. Competitive priorities, order winners and critical success factors are also identified for these companies. Based on strategic manufacturing issues, manufacturing competence index and business performance index for the companies has been worked out.     

Fuzzy integrated QFD,FMEA framework for the selection of lean tools in a manufacturing organisation

Lean Manufacturing (LM) is a well-established system to improve performance of any manufacturing industry by eliminating wastes through globally accepted tools and techniques. Industries are trying to adapt lean principles in order to optimise the resources like people, equipment, material and schedule for being efficient in the competitive market. This paper proposes an integrated approach for selecting appropriate lean tools in reliable lean perspective to enhance these critical resources. The approach exercise a hybrid model which uses fuzzy QFD to prioritise the critical resources in relation with identified wastes and fuzzy FMEA to assess the risk associated with each sub elements to address lean implementation. For waste identification, plant layout and Value Stream Mapping are considered. The model is demonstrated based on the data collected from a manufacturing industry to illustrate the application. Significant improvements are quantified with the help of future state map and plant layout.     

Impact of Information Technology Integration and Lean/Just‐In‐Time Practices on Lead‐Time Performance*

Managers seeking to improve lead‐time performance are challenged by how to balance resources and investments between process improvement achieved through lean/just‐in‐time (JIT) practices and information technology (IT) deployment. However, extant literature provides little guidance on this question. Motivated by both practical importance and lack of academic research, this article examines empirically the relationships among interfirm IT integration, intrafirm IT integration, lean/JIT practices, and lead‐time performance using data from IndustryWeek's Census of Manufacturers ( IndustryWeek, 2006 ). The results provide several new insights on the relationship between IT integration and lean/JIT practices. First, the study confirms that implementing lean/JIT practices significantly reduces lead time. Second, lean/JIT practices mediate the influence of IT integration on lead‐time performance. This suggests that process improvements that result from lean/JIT practices are important contributors to the success of IT integration. Even companies that have experienced success in reducing lead time through lean/JIT practices may benefit from IT integration practices such as those embodied in enterprise resource planning systems. The findings provide managers with empirical evidence and a theoretical framework on the balance between lean/JIT and IT for effecting improvement in lead‐time performance, thus offering practical guidance on this important question. Future research is needed to extend the lean/JIT practices in this study to supply chain practices and explore the relationship between supply chain practices and IT integration.     

The moderating effects of corporate and national factors on lean projects barriers: a cross‐national study

Abstract

Despite companies’ efforts to develop lean thinking in their industrial context, the implementation of many lean projects has not been consistently successful, often resulting in delay, failure, abandonment or rejection. Whereas some authors emphasised that company characteristics, like the product demand profile, are significant factors in lean projects, other studies analysed the impact of national culture. This paper aims to study the combined effect of various factors related to national culture and company characteristics of lean implementation barriers in order to determine whether the environmental context in which the company operation can affect the outcome of lean project implementation. A survey has been conducted to collect information about companies of various sizes (small–medium–large) in all industry fields. Data from companies, including manufacturing firms, in 23 different countries, were analysed in depth by a combination of Association Rules and Network Analysis. The results show that some national culture dimensions, such as Performance Orientation and Gender Egalitarianism, influence lean management success and help to maintain a lean culture. Maintaining a lean culture is even more critical than developing it. Furthermore, if the implementation of lean practices is an arduous task for large organisations, it becomes even greater for SMEs. Other cultural factors of individuals such as Uncertainty Avoidance, Future Orientation and Institutional Collectivism also help to support a lean culture and overcome human and cultural barriers.     

Application of value stream mapping (VSM) for lean and cycle time reduction in complex production environments: a case study

The application of VSM is a proven approach for lean-based improvements. Typically, this becomes challenging, when applied for complex production environments. The purpose of this research is to demonstrate, how with some approximations and simplifications in VSM application, lean can be successfully achieved in these environments. The research follows case study method and systematically guides about the segregation and treatment of non-value-adding(NVA) and value-adding (VA) activities of heavy-duty industrial power transformer making process. The focal company operates in engineer to order (ETO) and high-mix low-volume (HMLV) environments. With a research team using gemba walks and systematic questioning technique, relevant data were collected for mapping. Taguchi method was also applied for one of the critical steps, which was influencing cycle time and energy requirements. The generalisable findings endorse the strengths of approach for lean by addressing wastes and cycle time reduction. The study establishes that VSM application-based lean messages remain same for both simple and complex environments. It also exposes that non-compliance of ‘VSM assumptions’ and ‘micro-concepts’ are the root causes for application complexities. The study also offers useful insights and practical guidelines to facilitate lean in ETO, construction and HMLV production environments.     

The Impact of Lean Management Practices and Sustainably‐Oriented Innovation on Sustainability Performance of Small and Medium‐Sized Enterprises: Empirical Evidence from the UK

While lean management practices (LMP) help small and medium‐sized enterprises (SMEs) to be efficient, sustainability‐oriented innovation (SOI) facilitates adopting environmental and social practices. Although prior research looks into the effect of LMP on the economic performance (EP) of SMEs, less is known about the effect of LMP on sustainability (economic, environmental and social) performance. Studies on the effect of SOI on sustainability and economic performance are also scant. Additionally, examining the mediating effect of corporate social responsibility (CSR) practices (environmental and social practices) on both LMP and SOI achieving sustainability performance (SP) is rare. This research bridges these knowledge gaps by answering the question of how LMP, SOI, CSR practices, sustainability and economic performance are correlated. Through hypothesis testing using structural equation modelling, this study reveals the impact of LMP, SOI, CSR (environmental and social) practices on sustainability and economic performance. The study uses data from 119 SMEs within manufacturing industries in the Midlands, UK. The analysis reveals that LMP and SOI facilitate achieving both sustainability and economic performance, and SOI mediates LMP to achieve sustainability performance. Additionally, although CSR practices mediate LMP to achieve sustainability performance, they only borderline mediate SOI to achieve sustainability performance.     

The Impact of Competitive Strategy and Supply Chain Strategy on Business Performance: The Role of Environmental Uncertainty*

This article investigates the relationships among competitive strategy, supply chain strategy, and business performance while examining the moderating effect of environmental uncertainty. A total of 604 questionnaires were collected from three cities in China, and the statistical results show significant moderating effects of external environment on the relationships among competitive strategy, supply chain strategy, and business performance. Firms that primarily focus on a differentiation strategy emphasize an agile supply chain strategy. Cost leaders are inclined to implement both lean and agile supply chain strategies, but their emphasis on agile strategy is significantly greater in a volatile environment than in a stable environment. The choice of supply chain strategy does not appear to be an “either‐or” decision and firms could adopt either a lean or an agile strategy, or both, depending on the environment. This article provides significant managerial implications for supply chain practitioners to co‐align supply chain strategy and competitive strategy with the environment to improve performance.