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Article
Publication date: 11 March 2019

The impact of lean practices on the operational performance of SMEs in India

Vinod Yadav, Rakesh Jain, Murari Lal Mittal, Avinash Panwar and Andrew Lyons

Although lean thinking is deemed to be a gold standard of modern production management, a lot of scepticism still remains regarding its applicability in small- and…

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Abstract

Purpose

Although lean thinking is deemed to be a gold standard of modern production management, a lot of scepticism still remains regarding its applicability in small- and medium-sized enterprises (SMEs). The purpose of this paper is to understand the perception of lean in SMEs and establish the relationship between lean adoption and operational performance.

Design/methodology/approach

With the help of a survey, data were collected from 425 SMEs in India and analyzed using structural equation modeling.

Findings

Operational performance of the firms was found to be positively related to lean implementation.

Originality/value

This study also furnishes practitioners with a better understanding of lean thinking in SMEs and its impact on performance.

Details

Industrial Management & Data Systems, vol. 119 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/IMDS-02-2018-0088
ISSN: 0263-5577

Keywords

  • Lean manufacturing
  • Lean thinking
  • Small- and medium-sized enterprises
  • Operational performance

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Article
Publication date: 21 January 2019

An appraisal on barriers to implement lean in SMEs

Vinod Yadav, Rakesh Jain, Murari Lal Mittal, Avinash Panwar and Milind Kumar Sharma

Global competition has intensified pressure on small- and medium-sized enterprises (SMEs) to implement lean. Recently, the debate has converged to the role of lean…

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Abstract

Purpose

Global competition has intensified pressure on small- and medium-sized enterprises (SMEs) to implement lean. Recently, the debate has converged to the role of lean implementation barriers (LIBs). The purpose of this paper is to contribute to this debate by exploring the LIBs in SMEs through three case studies.

Design/methodology/approach

A case study approach was employed followed by interpretive structural modelling (ISM) to model the interrelationship among the LIBs.

Findings

This study reveals that lack of management commitment, leadership and resources are the key barriers to lean implementation in SMEs in India. Furthermore, poor communication between different levels of the organisation and inadequate dissemination of the knowledge of lean benefits also creates hindrance in lean implementation. Managerial implications of the identified barriers for lean implementation in SMEs have been discussed.

Originality/value

The research regarding lean implementation in SMEs is scarce. This study is the first attempt of its kind to identify the lean barriers in a small industry setup through mathematical analysis.

Details

Journal of Manufacturing Technology Management, vol. 30 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JMTM-12-2017-0262
ISSN: 1741-038X

Keywords

  • Lean manufacturing
  • Case studies
  • Small- and medium-sized enterprises

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Article
Publication date: 13 March 2017

Understanding the linkages between lean practices and performance improvements in Indian process industries

Avinash Panwar, Bimal Nepal, Rakesh Jain, Ajay P.S. Rathore and Andrew Lyons

The purpose of this paper is to investigate the impact of lean practices on performance improvement of process industries in India.

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Abstract

Purpose

The purpose of this paper is to investigate the impact of lean practices on performance improvement of process industries in India.

Design/methodology/approach

Based on a survey of Indian process industries, this paper proposes two sets of hypothesis to examine if there is any statistically significant impact of lean practices on certain specific performance metrics. First, the sample is classified into two classes of process industries: the adopters of lean and those who have not yet adopted the lean practices in their manufacturing operations. Then statistical tests are conducted to measure the differences in the level of performance between the two classes of Indian process industries with respect to nine performance measures. The survey results are augmented by two in-depth case studies. Case studies include one from lean adopter firms (a refinery) and another from the firms that have not yet adopted the lean practices (a primary metal manufacturing unit).

Findings

A survey result of 121 Indian process industries shows that adoption of lean practices results in a positive impact on inventory control, waste elimination, cost reduction, productivity, and quality improvement in process industries. On the other hand, based on the sample data on Indian process industries, no statistically significant improvement could be found on the lot size or space utilization between lean adopters and their counterparts.

Practical implications

This research provides guidance to the managers on how adoption of lean practices results in better performance in process industries in several operational areas.

Originality/value

To the knowledge, this study is the first attempt to analyze the impact of lean practices on a set of specific performance metrics in Indian process industry. Although this study focuses on the Indian process industry, the authors believe that findings of the research can inform other practitioners and researchers who are considering implementing lean in process industry sector in other developing countries like India.

Details

Industrial Management & Data Systems, vol. 117 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/IMDS-01-2016-0035
ISSN: 0263-5577

Keywords

  • Process industry
  • Indian process industry
  • Lean manufacturing principles

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Article
Publication date: 2 February 2015

Lean implementation in Indian process industries – some empirical evidence

Avinash Panwar, Rakesh Jain and A.P.S. Rathore

In the present era of intense competition, industries are adopting lean manufacturing for successful survival. The concept of lean manufacturing is new for Indian process…

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Abstract

Purpose

In the present era of intense competition, industries are adopting lean manufacturing for successful survival. The concept of lean manufacturing is new for Indian process industries. The purpose of this paper is to investigate the status of lean manufacturing in Indian process industries in terms of lean practices, reasons and challenges of implementing lean manufacturing.

Design/methodology/approach

A survey was carried out to assess the level of lean implementation in Indian process industries. Statistical tests were conducted to assess the significant lean practices, reasons and challenges of implementing lean in Indian process industries.

Findings

It is observed that the level of implementation of lean manufacturing in Indian process industries is still low. Results indicate that Indian process industries those who have implemented lean found lean to be very useful to reduce wastes and to increase quality. Major lean practices being implemented by Indian process industries are primarily those which are related to waste elimination or improvement in quality. Indian process industries found that important challenges to implement lean are to produce in small batches, to arrange for lean experts and to impart training to employees.

Research limitations/implications

In the present study, the sample size is small and hence, the findings should be generalized cautiously. Although the study indicates that lean can be very useful if implemented in Indian process industries but further empirical studies are required to quantify performance improvements through adoption of lean.

Originality/value

The paper explores status of lean adoption in Indian process industries. Considering the unique characteristics of process industries, the present research would be helpful for making strategies to implement lean in process industry setups.

Details

Journal of Manufacturing Technology Management, vol. 26 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JMTM-05-2013-0049
ISSN: 1741-038X

Keywords

  • India
  • Lean manufacturing
  • Performance improvement
  • Process industry

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Article
Publication date: 21 October 2013

Implementation of benchmarking concepts in Indian automobile industry – an empirical study

Avinash Panwar, Bimal Nepal, Rakesh Jain and Om Prakash Yadav

– This paper aims to present existence comprehensive analysis of state of implementation of benchmarking concepts in Indian automotive companies.

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Abstract

Purpose

This paper aims to present existence comprehensive analysis of state of implementation of benchmarking concepts in Indian automotive companies.

Design/methodology/approach

The research is carried out through a mixed method of research approach comprising of a survey of 300 auto companies in India. Out of 300, 48 valid responses together with three additional case studies were used in the data analysis. Inclusion of case studies was aspired to get deeper insight into the issues pertaining to adoption of best practices, and subsequently the implementation of benchmarking activities.

Findings

Benchmarking has been unanimously accepted as an effective performance and productivity improvement tool by Indian auto companies. However, Indian automobile manufacturers still see benchmarking as a tool to compare product attributes, quality attributes, operations, and processes. Moreover, it has been perceived as being less applicable at strategic level. Results also show that benchmarking is in its primary stage in the Indian automotive industry, and it still needs much more commitment from top management for its proliferation. Lesser significance is given to competitor benchmarking due to the fear of losing competitive advantage, and the problem of confidentiality. Reasons identified in this study for not using benchmarking include “lack of human resources” as most important, followed by “financial constraints”, and “lack of internal expertise”.

Research limitations/implications

Research results should be generalized and reproduced with a larger sample size. Owing to the scarce application of benchmarking in small and medium enterprises (SMEs), separate study should be carried out to find ways to encourage benchmarking implementation in Indian auto component manufacturing SMEs.

Originality/value

The paper provides insight into the extent of implementation of benchmarking concepts in Indian automobile industry. This study is the first attempt to understand propagation of benchmarking concepts, exclusively among Indian auto companies.

Details

Benchmarking: An International Journal, vol. 20 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/BIJ-03-2012-0015
ISSN: 1463-5771

Keywords

  • Process improvement
  • Benchmarking
  • Indian auto companies

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