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Open Access
Article
Publication date: 7 April 2021

Marcos Dieste, Roberto Panizzolo and Jose Arturo Garza-Reyes

The lean philosophy has demonstrated its effectiveness to improve firms' operational performance. However, the impact of lean practices on financial performance is still unclear…

8858

Abstract

Purpose

The lean philosophy has demonstrated its effectiveness to improve firms' operational performance. However, the impact of lean practices on financial performance is still unclear due to the poor understanding of the link between operational and financial measures and the conflictive results obtained by previous research. The purpose of this paper is to conduct a systematic literature review to understand whether lean companies have improved their financial performance. Moreover, this article aims to uncover research gaps in the literature and examine which time spans of research have been considered to analyse both the degree of lean implementation and the measurement of financial outcomes.

Design/methodology/approach

A systematic literature review has been conducted to identify peer-reviewed articles that analyse the effect of the lean production paradigm on the financial performance measures of manufacturing companies. Then, the identified articles were processed using a combination of descriptive and content analyses methods to draw new conclusions, uncover gaps and find novel paths for research.

Findings

Various authors indicate that lean initiatives lead to an enhancement of financial performance measures. JIT and TQM lean practice bundles are suggested as the best enablers of financial performance in terms of sales and profit. In contrast, according to some scholars, lean does not necessarily improve companies' financial results if it is not properly implemented.

Originality/value

Several studies have focused on analysing the effects of lean on performance. However, only a small part of the literature has addressed the study of the effects of lean practices on financial performance metrics. The originality of this study lies in the investigation of the connections between lean practices and financial performance measures found in the literature. The outcome is the identification of various possible positive impacts of some lean practices on financial metrics.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 9
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 22 March 2024

Ambra Galeazzo, Andrea Furlan, Diletta Tosetto and Andrea Vinelli

We studied the relationship between job engagement and systematic problem solving (SPS) among shop-floor employees and how lean production (LP) and Internet of Things (IoT…

Abstract

Purpose

We studied the relationship between job engagement and systematic problem solving (SPS) among shop-floor employees and how lean production (LP) and Internet of Things (IoT) systems moderate this relationship.

Design/methodology/approach

We collected data from a sample of 440 shop floor workers in 101 manufacturing work units across 33 plants. Because our data is nested, we employed a series of multilevel regression models to test the hypotheses. The application of IoT systems within work units was evaluated by our research team through direct observations from on-site visits.

Findings

Our findings indicate a positive association between job engagement and SPS. Additionally, we found that the adoption of lean bundles positively moderates this relationship, while, surprisingly, the adoption of IoT systems negatively moderates this relationship. Interestingly, we found that, when the adoption of IoT systems is complemented by a lean management system, workers tend to experience a higher effect on the SPS of their engagement.

Research limitations/implications

One limitation of this research is the reliance on the self-reported data collected from both workers (job engagement, SPS and control variables) and supervisors (lean bundles). Furthermore, our study was conducted in a specific country, Italy, which might have limitations on the generalizability of the results since cross-cultural differences in job engagement and SPS have been documented.

Practical implications

Our findings highlight that employees’ strong engagement in SPS behaviors is shaped by the managerial and technological systems implemented on the shop floor. Specifically, we point out that implementing IoT systems without the appropriate managerial practices can pose challenges to fostering employee engagement and SPS.

Originality/value

This paper provides new insights on how lean and new technologies contribute to the development of learning-to-learn capabilities at the individual level by empirically analyzing the moderating effects of IoT systems and LP on the relationship between job engagement and SPS.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 7 November 2022

Diessica de Oliveira-Dias, Juan Manuel Maqueira Marín and José Moyano-Fuentes

The significant changes that supply chains (SCs) are undergoing and the emergence of disruptive technologies have led to a growing effort to integrate novel and mature…

3526

Abstract

Purpose

The significant changes that supply chains (SCs) are undergoing and the emergence of disruptive technologies have led to a growing effort to integrate novel and mature technologies into existing SC strategies. Thus, this study investigates the relationships between mature information technologies (ITs), emerging IT and the lean supply chain (LSC) and agile supply chain (ASC) strategies.

Design/methodology/approach

An empirical study based on structural equation modeling of survey data from 256 Spanish focal companies has been conducted to test six hypotheses.

Findings

Drawing on resource orchestration, our results point to mature IT use being an enabler of both LSC and ASC strategy implementation. The results also show an LSC mediating effect on the relationship between mature IT and ASC when SCs follow both strategies. Also, the implementation of emerging IT requires a process of consolidation over time to be genuinely useful as a facilitating mechanism for developing both the lean and agile strategies along the SC. In this sense, a suitable mix needs to be orchestrated between emerging and mature IT.

Originality/value

This study sheds light on the relevance of the mature IT and emerging IT in the context of two SC strategies (lean/agile) and provides practical and theoretical implications.

Details

The International Journal of Logistics Management, vol. 33 no. 5
Type: Research Article
ISSN: 0957-4093

Keywords

Open Access
Article
Publication date: 12 November 2021

Relinde De Koeijer, Jaap Paauwe, Robbert Huijsman and Mathilde Strating

This study aims to examine the effect of human resource management (HRM) in mitigating negative effects of Lean management and Six Sigma (LM&SS) on employee well-being in health…

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Abstract

Purpose

This study aims to examine the effect of human resource management (HRM) in mitigating negative effects of Lean management and Six Sigma (LM&SS) on employee well-being in health care. The authors subdivide well-being into three components: happiness, trust and health.

Design/methodology/approach

This is a cross-sectional, multisite survey study in internal service units of hospitals. Data analyzed using multivariate regression come from a sample of 1,886 survey respondents (42 units, N = 218 supervisors, N = 1,668 employees) in eight Dutch academic hospitals that have implemented LM&SS.

Findings

The present study findings show no or weak effects of LM&SS on the happiness and health component of employee well-being. In addition, the authors found a significant but weak direct positive effect (ß = 0.07) of the LM&SS bundle on the trusting relationships component of well-being. Therefore, moderating effects of HRM practices on the relationship between LM&SS and employee well-being seem less relevant because an existing relationship between LM&SS and employee well-being is a prerequisite for moderation (Hayes, 2009). There were unexpected side effects. Inspired by research that discusses direct effects of HRM on employee well-being, the authors tested this relationship and found that HRM has a direct positive effect on trust and happiness of employees in health care. For the health component of well-being, the present results show a weak negative effect of HRM.

Practical implications

This study results in a cautiously optimistic view about LM&SS in health care, provided that it is applied in a targeted manner (to improve the performance of their processes) and that HRM is strategically aligned with the goals of LM&SS to improve employees’ happiness and trusting relationships.

Originality/value

Unique features of the study are the focus on the consequences for employees’ well-being related to LM&SS in health care, the role of HRM in regard to this relationship and the participation of all eight Dutch academic hospitals in this research.

Details

International Journal of Lean Six Sigma, vol. 13 no. 1
Type: Research Article
ISSN: 2040-4166

Keywords

Open Access
Article
Publication date: 9 August 2022

Wilfred H. Knol, Kristina Lauche, Roel L.J. Schouteten and Jannes Slomp

Building on the routine dynamics literature, this paper aims to expand our philosophical, practical and infrastructural understanding of implementing lean production. The authors…

1865

Abstract

Purpose

Building on the routine dynamics literature, this paper aims to expand our philosophical, practical and infrastructural understanding of implementing lean production. The authors provide a process view on the interplay between lean operating routines and continuous improvement (CI) routines and the roles of different actors in initiating and establishing these routines.

Design/methodology/approach

Using data from interviews, observations and document analysis, retrospective comparative analyses of three embedded case studies on lean implementations provide a process understanding of enacting and patterning lean operating and CI routines in manufacturing SMEs.

Findings

Incorporating the “who” and “how” next to the “what” of practices and routines helps explain that rather than being implemented in isolation or even in conjunction with each other, sustainable lean practices and routines come about through team leader and employee enactment of the CI practices and routines. Neglecting these patterns aligned with unsustainable implementations.

Research limitations/implications

The proposed process model provides a valuable way to integrate variance and process streams of literature to better understand lean production implementations.

Practical implications

The process model helps manufacturing managers, policy makers, consultants and educators to reconsider their approach to implementing lean production or teaching how to do so.

Originality/value

Nuancing the existing lean implementation literature, the proposed process model shows that CI routines do not stem from implementing lean operating routines. Rather, the model highlights the importance of active engagement of actors at multiple organizational levels and strong connections between and across levels to change routines and work practices for implementing lean production.

Details

International Journal of Operations & Production Management, vol. 42 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 23 June 2023

Tinotenda Machingura, Olufemi Adetunji and Catherine Maware

This research aims to examine the complementary impact of Lean Manufacturing (LM) and Green Manufacturing (GM) on operational and environmental performance.

1158

Abstract

Purpose

This research aims to examine the complementary impact of Lean Manufacturing (LM) and Green Manufacturing (GM) on operational and environmental performance.

Design/methodology/approach

A survey was conducted in the Zimbabwean manufacturing industry. A total of 302 valid responses were obtained and analysed using partial least square structural equation modelling (PLS-SEM).

Findings

Both LM and GM impact environmental and operational performance; however, GM's effect on operational performance is indirect through environmental performance.

Research limitations/implications

This study only focusses on the Zimbabwean manufacturing industry, and the results may not readily apply to other developing countries.

Practical implications

The companies that have successfully implemented LM are able to implement GM more easily because of their complementary nature.

Social implications

The integration of LM and GM reduces most forms of waste, causing an improved environmental and operational performance. In addition, this will improve community relations and customer satisfaction.

Originality/value

This research investigates the complementary nature of LM and GM on how LM and GM impact organisational performance and whether a combined Lean-Green implementation leads to better organisational performance than when LM and GM are implemented individually. The research also examines whether being environmentally compliant leads to improved organisational performance, particularly in a developing country.

Details

International Journal of Quality & Reliability Management, vol. 41 no. 2
Type: Research Article
ISSN: 0265-671X

Keywords

Open Access
Article
Publication date: 16 January 2023

Ottó Csiki, Krisztina Demeter and Dávid Losonci

In the multilayered capability framework the authors integrate two layers, namely functional level production capabilities and shop floor-level production routines (PRs). The…

4197

Abstract

Purpose

In the multilayered capability framework the authors integrate two layers, namely functional level production capabilities and shop floor-level production routines (PRs). The authors examine how these two layers are interlinked, and additionally, they explore how these layers contribute to firm performance.

Design/methodology/approach

The authors tested the hypotheses using structural equation modeling (SEM) on a sample of manufacturing firms.

Findings

Regarding the capability layers, the authors found that at the functional level, production dynamic capabilities (PDCs) drive the renewal of production ordinary capabilities (POCs), and that at the shop floor level, deployment of Industry 4.0 (I4.0) is influenced by lean production. Regarding the direct links between capability layers, the authors showed that PDCs and POCs have different roles in shaping shop floor PRs: PDCs is linked to I4.0, and lean methods is impacted by POCs. Concerning performance implications, only PDC and POC have significant impact on firm performance (the latter is negative), while PRs do not.

Research limitations/implications

Although, contextual factors (e.g. technology intensity, size) do not influence our findings, the potential country-effect and the dominance of medium-sized firms offer future research directions.

Practical implications

If production managers want to contribute to business performance, they should be more susceptible to resource renewal (PDCs) than to their general (POCs) or specific (PRs) exploitation efforts. As they exploit current resource stocks, they face a trade-off: they must consider that beyond their positive impacts on operational performance, their implications on business performance will be controversial.

Originality/value

Scholars usually examine one layer of capabilities, either capabilities or routines, and associate that with one dimension of performance, either financial and market measures or operational indicators. The authors propose a multilayered capability framework with a complex view on performance implications.

Details

International Journal of Operations & Production Management, vol. 43 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 22 November 2022

Leopoldo Gutierrez, Bart Alex Lameijer, Gopesh Anand, Jiju Antony and Vijaya Sunder M

The purpose of this study is to theorize and test the relationships among lean operations and lean supply chain practices, learning- and innovation-oriented lean cultures and…

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Abstract

Purpose

The purpose of this study is to theorize and test the relationships among lean operations and lean supply chain practices, learning- and innovation-oriented lean cultures and dynamic capabilities (DCs) microfoundations. Further, this study aims to assess the association of DCs microfoundations with process innovation.

Design/methodology/approach

The researchers combine primary data collected from 153 manufacturing firms located in five continents using a survey designed for the purpose of this study with archival data downloaded from the Bureau Van Dijk Orbis database and test the hypothesized relationships using structural equation modelling.

Findings

Results support the contribution of lean operations and lean supply chain practices to the development of DCs microfoundations, which further lead to greater process innovation. Additionally, while a learning-oriented lean culture positively moderates the relationships between both lean operations and lean supply chain practices and DCs microfoundations, an innovation-oriented lean culture only moderates the relationship between lean operations practices and DCs microfoundations.

Practical implications

This study identifies DCs microfoundations as the key mechanisms for firms implementing lean practices to achieve greater levels of process innovation and the important role played by lean cultures. This study provides direction for managers to put in place DCs through lean implementations, enabling their firms to be ready to respond to challenges and opportunities generated by environmental changes.

Originality/value

While previous research has confirmed the positive effects of lean practices on efficiency, the role of lean practices and cultures in developing capabilities for reacting to environmental dynamism has received little attention. This study offers an empirically supported framework that highlights the potential of lean to adapt processes in response to environmental dynamics, thereby extending the lean paradigm beyond the traditional focus on operational efficiency.

Details

International Journal of Operations & Production Management, vol. 42 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 2 October 2018

Wilfred H. Knol, Jannes Slomp, Roel L.J. Schouteten and Kristina Lauche

This paper examines whether and when improvement routines are critical for implementing lean practices in small- and medium-sized manufacturing enterprises (SMEs). Improvement…

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Abstract

Purpose

This paper examines whether and when improvement routines are critical for implementing lean practices in small- and medium-sized manufacturing enterprises (SMEs). Improvement routines such as “employees initiate and carry through improvement activities” are generally seen as an important means to achieve the full benefit of structural lean interventions. Womack and Jones (2003) suggest that these improvement routines should be developed as the company becomes more experienced in lean. The purpose of this paper is to explore the relative importance of individual improvement routines at various degrees of lean practice implementation.

Design/methodology/approach

A Between-Case Comparison Analysis (Dul and Hak, 2012) and a Necessary Condition Analysis (Dul, 2016) were performed on self-assessment data from 241 respondents at 38 Dutch manufacturing SMEs.

Findings

The importance of improvement routines depended on the degree of lean practice implementation. Lean practices could be implemented to some extend without developing specific improvement routines, yet certain routines were necessary for more advanced implementations of lean. These routines relate to employees conducting shared improvement activities and in the most advanced cases to aligning different improvement activities.

Originality/value

These findings question existing lean implementation models that neglect improvement routines and indicate the need to integrate improvement routines into every lean transformation for it to be sustainable.

Details

International Journal of Operations & Production Management, vol. 39 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 19 October 2022

Thomas Borup Kristensen, Henrik Saabye and Amy Edmondson

The purpose of this study is to empirically test how problem-solving lean practices, along with leaders as learning facilitators in an action learning approach, can be transferred…

6252

Abstract

Purpose

The purpose of this study is to empirically test how problem-solving lean practices, along with leaders as learning facilitators in an action learning approach, can be transferred from a production context to a knowledge work context for the purpose of becoming a learning organization while enhancing performance. This is important to study because many organizations struggle to enhance efficiency in the short term while still trying to be long-term learning oriented (i.e. learning organization development).

Design/methodology/approach

The authors draw on theory on learning interventions to show how lean practices for problem-solving can foster learning and help an organization to become adaptive. This study’s subject is a non-production department of 100 employees at the LEGO corporation. The authors applied survey results from a natural experiment lasting 18 months between a pre-measurement survey and a post-measurement survey. The results were compared to a control department of 50 employees who were not exposed to the lean practices intervention. The authors’ focus was on the individual level as individuals have different perceptions of lean practices, performance, and learning.

Findings

Using repeated-measures tests, difference-in-difference regressions analyses, and structural equation models, the authors find that a package of contemporary lean practices for problem-solving, along with leaders who function as learning facilitators, significantly improved learning organization dimensions while also enhancing efficiency and quality and that learning organizations positively mediate the relationship between the lean intervention and quality-related performance, while efficiency is directly affected by the lean interventions. Data from LEGO's key performance indicators (KPIs), benefit trackers, on-site observations and more than 40 interviews with managers provided results that were consistent with the survey data. A detailed description of the lean practices implemented is provided to inspire future implementations in non-operations environments and to assist educators.

Research limitations/implications

The authors contribute to the learning literature by showing that a learning-to-learn approach to lean management can serve as an active and deliberate intervention in helping an organization becoming a learning organization as perceived by the individual organizational members. The authors also add to the lean literature by showing how a learning approach to lean, as used by LEGO, can positively affect short-term efficiency and quality and create a foundation for a longer-term competitive advantage (i.e. a learning organization) in a non-production context. By contrast, most of the lean literature streams treat efficiency separately from a learning organization and mainly examine lean in a production context.

Originality/value

The extant literature shows three research streams on lean, learning, and performance. The authors built on these streams by trying to emphasize both learning and efficiency. Prior research has not empirically tested whether and how the application of problem-solving lean practices combined with leaders as learning facilitators helps to create a comprehensive learning organization while enhancing performance in a non-production context.

Details

International Journal of Operations & Production Management, vol. 42 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

1 – 10 of 119