Toward increased business productivity: interlinks between lean thinking, process quality, inventory management, and productivity

Abstract

Purpose

This study aims to explore the interrelationships among human-related lean practices, lean production shop floors, process quality, inventory management, operational productivity and business productivity.

Design/methodology/approach

This study used a cross-sectional survey approach, and quantitative data were collected from 324 Indian auto-component manufacturing firms. Confirmatory factor analysis was used, followed by structural equation modelling techniques for the conceptual model, which incorporated a complete set of 11 hypotheses.

Findings

The results confirmed that human-related lean practices trigger lean production shop floors and improve process quality. Furthermore, the study revealed the positive impact of a lean production shop floor on process quality and inventory management and the positive impact of process quality on both operational and business productivity. Finally, inventory management is of the utmost importance in achieving better operational and business productivity, and operational productivity positively leads to business productivity.

Originality/value

The findings of this study can benefit auto-component manufacturing firms by elucidating the complex relationships between human-related lean practices, lean production shop floors, process quality, inventory management, operational productivity and business productivity. Better knowledge of these relationships will enable firms to enhance efficiency levels, reduce costs and resource wastage and improve their overall performance. This study provides a good understanding of the interplay between lean and quality factors and their influence on inventory management and business performance.

Citation

Bubber, D., Babber, G.,  , S. and Jain, R.K. (2023), "Toward increased business productivity: interlinks between lean thinking, process quality, inventory management, and productivity", Global Knowledge, Memory and Communication, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/GKMC-03-2023-0079