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Article
Publication date: 20 July 2023

Arnaldo Camuffo and Alberto Poletto

The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management…

Abstract

Purpose

The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management systems and “S-curve” effects in lean implementation are used to ground the paper's hypotheses and interpret its findings.

Design/methodology/approach

Using the emerging view of lean as enterprise-wide management systems, this quasi-experimental study uses a difference-in-differences approach to estimate the abnormal profitability (ROIC) attributable to lean management system adoption. The paper leverages a unique data set of lean adopters nested in a panel data set (19 years) of 2,088 industrial firms matched by industry and firm size. It applies a variety of regression methods (two-way fixed effect panel estimator, propensity score matching, instrumental variable two-stage-least squares) to estimate the size of the abnormal profitability attributable to lean management systems, addressing endogeneity issues related to non-random sampling, omitted variable bias and reverse causation. It also analyzes the cross-firm variability of such abnormal profitability and how it accrues over time.

Findings

For the average non-adopter in the sample (44.3 million euro revenues), lean adoption generates abnormal ROIC ranging from 1.4% to 3.9%. These results come into effect approximately three years after starting lean adoption and peak after eight years. While the average abnormal profitability attributable to lean adoption is sizable, it varies significantly across firms and over time. This significant variation is compatible with firms' diverse ability to understand the complex inner workings of lean systems, and to design and implement them so that they improve profitability.

Research limitations/implications

The conceptualization of lean as enterprise-wide management system can be further refined to more effectively categorize the components of lean systems and investigate the nature of their relationships. Lean system adoption measurement can be fine-tuned to better capture cross-firm and longitudinal heterogeneity. Future work can explore other dependent variables of interest to different stakeholders including shareholders' value, employment and environmental and social sustainability.

Practical implications

The financial benefits of adopting lean can be reaped to the extent to which managers embrace lean as a philosophy and implement it pervasively in the organization. A firm can use the study's estimates as a basis for making calculations about the returns of investment in lean adoption. The paper also shows that “getting the lean system right” makes a significant difference in terms of abnormal profitability, which is twice as large for the best lean adopters..

Social implications

Compared with the promises of many lean proponents and supporters, the paper provides a more realistic view of what to expect from lean adoption in terms of profitability. Adopting lean as a comprehensive, enterprise-wide management system is not a universal panacea, but a complex endeavor, characterized by multiple complex decisions that require considerable capabilities, coordinated efforts and consistency of action.

Originality/value

Differently from extant research, this study does not study the correlation between the adoption of lean operation practices and financial performance but focuses on the abnormal profitability generated by the adoption of lean as a pervasive, enterprise-wide management system. Its research design allows to identify the differential profitability attributable to lean adoption and documents that it accrues non-linearly.

Details

International Journal of Operations & Production Management, vol. 44 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 3 July 2020

Christer Osterman and Anders Fundin

Many organizations report difficulties in integrating lean. A possible cause could be that methods and tools do not support each other. The purpose of this research is, therefore…

Abstract

Purpose

Many organizations report difficulties in integrating lean. A possible cause could be that methods and tools do not support each other. The purpose of this research is, therefore, to explore the nature of the connections within the system. Understanding these provides practitioners with a better way of defining their system and offers researchers a conceptual model with a new way of understanding a company-specific production system (XPS).

Design/methodology/approach

The study is designed as a multiple case study with three organizations and, in total, 25 lean experts serving as respondents.

Findings

The connections between the elements of an XPS act as a duality based on a problem–solution (P–S) relation. These are categorized according to complexity and can be mapped into a conceptual model, where the connections can be either symmetrical or asymmetrical.

Research limitations/implications

The results provide a method to analyze causes and effects in an XPS and a conceptual model. Given the limitations of a multiple case study, future research should explore connections depending on a broader variety of contextual conditions.

Practical implications

The results present a way to avoid a cherry-picking problem through understanding connections between elements in an XPS. This provides a new way to understand the weaknesses of an XPS.

Originality/value

The research provides a new approach with insights on how to conduct research in lean production by facilitating how to understand and interpret connections between elements in a system.

Details

The TQM Journal, vol. 32 no. 6
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 14 August 2009

Farman A. Moayed and Richard L. Shell

Previous studies have found general differences between non‐lean and lean production systems, but none of them have identified the major factors in supporting operations such as…

4261

Abstract

Purpose

Previous studies have found general differences between non‐lean and lean production systems, but none of them have identified the major factors in supporting operations such as maintenance which are important in shifting the production from a non‐lean to a lean system. The purpose of this paper is to determine the major factors and parameters of maintenance operations that are most effective in enhancing production to a lean system.

Design/methodology/approach

A questionnaire is constructed and a direct mail survey is conducted in the greater Cincinnati/tri‐state region. The data collected are analyzed with SAS software using contingency tables with Fisher's exact test and a logistic regression analysis method.

Findings

The results show strong correlations between a lean production system and some of the major maintenance variables and parameters such as annual costs of maintenance personnel, parts/materials, and training.

Originality/value

The results of this study can be used as a guideline for engineers, experts and managers in order to monitor the maintenance operation during the transition process from a non‐lean to a lean production system.

Details

Journal of Quality in Maintenance Engineering, vol. 15 no. 3
Type: Research Article
ISSN: 1355-2511

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) systems

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. 44 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 11 April 2023

Henrik Saabye, Daryl John Powell and Paul Coughlan

Being acquainted with both lean and action learning in theory and in practice, this study finds that the theoretical complementarity of these two research streams has…

2456

Abstract

Purpose

Being acquainted with both lean and action learning in theory and in practice, this study finds that the theoretical complementarity of these two research streams has traditionally been underexploited. In this conceptual paper, this study aims to advance the theoretical understanding of lean by exploring the complementarity of lean thinking and action learning leading to a proposed integrated theory of these two research streams. Target audience is the operations management research community.

Design/methodology/approach

By deliberately adopting a process of theorising, this paper explores, reflects upon and combines individual experiences of researching, teaching and engaging in lean and action learning as operations management scholars.

Findings

Having taken a gemba walk through the literature and practices of lean and action learning, this study views and notices a systematic and complementary relationship between the two domains. The overlapping theoretical and practical complementarities of lean and action learning suggest that these two research streams are ripe for synthesis into an integrated theory. This finding provides an opportunity to (1) progress towards an integrative design of interventions leading to more sustainable lean system adoptions and (2) add new depth to our theoretical explanation of the success and failures of lean system adoptions.

Originality/value

This paper contributes an original integrated theory perspective on lean and action learning.

Details

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

Keywords

Article
Publication date: 19 July 2018

Ashish Thomas

Most successful companies have adopted some type of improvement methodology to achieve optimum performance, high quality, lower costs and productivity. Some of the structured…

2178

Abstract

Purpose

Most successful companies have adopted some type of improvement methodology to achieve optimum performance, high quality, lower costs and productivity. Some of the structured methodologies employed indiscriminately are total quality management, quality control, agile, lean and Six Sigma which yield varied results. The purpose of this paper is to explore how to harness the power of an integrated system of quality tools and techniques to create operational excellence. An integrated framework involves matching quality tools and techniques to the multi-phases (input, transformation and output) of lean manufacturing or service ecosystem.

Design/methodology/approach

Current research of lean quality systems provides a conceptual understanding of core tools employed by manufacturing and service organizations. Interviewing domain experts from a series of manufacturing and service organizations highlighted a common challenge. The challenge was lean tools and methodologies were selected and employed arbitrarily for the different operational phases, which resulted in selective synergies of tools between operational phases. This limitation resulted in rework and duplication of quality efforts through the diverse phases of the transformation system. This study is based on the hypothesis that all phases of an operational system must be linked by common tools and methodologies which enables harnessing quality benefits and synergies throughout the entire operational system. The study methodology trailed through cooperative inquiry using a case study approach to design an integrated framework of tools that facilitates a common platform for manufacturing or service ecosystems.

Findings

This study suggests that quality systems in a complex competitive environment must consider an integrated iterative approach. An iterative development of lean quality tools for multiple phases produces an integrated quality system. Such systems employ blending and extending of lean quality tools to multiple phases of the transformation system to synthesize agile and versatile quality system.

Research limitations/implications

A limitation of this study is that the research of integrated framework is based on repertory grid technique only; it should be supplemented by other methods. Second, the proposed framework does not consider the complexity added by the internal and external stakeholders as they interface with the integrated system at different points with reference to phases of the system.

Practical implications

One of the advantages of this method is its generality, instead of delivering a monolithic system at the culmination of long transformation process we rely on smaller quality sprints which are implemented sequentially at each stage or phase of the transformation system. The phenomena of incremental clustering of time-series of quality sprints for different phases results in true integration from end to end for a transformation system.

Social implications

This study helps investigate the personal constructs that users and managers employ to interpret and select quality tools or methodologies for the different phases of lean transformational system.

Originality/value

This study aims to understand the impact of blending quality and business process improvement tools and methodologies to enhance outcomes. The basis of this study is “the power of multiplicity” through which a diverse collection of improvement paths is pooled into an integrated framework of quality tools for lean and efficient operations.

Article
Publication date: 11 November 2013

Daryl Powell

Faced with increasing global competition and growing customer expectations, manufacturers looking for significant performance improvements often look to one of the two choices…

6739

Abstract

Purpose

Faced with increasing global competition and growing customer expectations, manufacturers looking for significant performance improvements often look to one of the two choices: implementing an enterprise resource planning (ERP) system, or applying the tools and techniques associated with lean production. In fact, many companies are today applying both approaches in an attempt to realise competitive advantage in the global marketplace. However, there seems to be an ongoing debate within the academic literature as to whether lean and ERP are complimentary or contradictory technologies. This paper aims to present a thorough and critical review of literature with the objective of bringing out pertinent factors and useful insights into the role and implications of ERP systems in lean production and to develop a research framework that can be used by researchers and practitioners for studying the value of integrating ERP with lean.

Design/methodology/approach

The research methodology employed is literature survey. Literature has been collected primarily through journals within the area of operations management. For rigorousness, textbooks, conference papers, white papers and dissertations have been excluded from the subsequent analysis. Though older literature has been considered to define the scope of this investigation, only literature published after the year 2000 has been considered in the analysis in order to be current in the research field.

Findings

The paper proposes a classification scheme for the current research on ERP and lean production, which identifies six major areas in the extant literature. The literature survey is used to find existing research gaps and provides a research framework for future research directions regarding applications and implications of ERP systems in lean production.

Originality/value

This paper fulfils an identified need to study the interactions between ERP systems and lean production.

Details

International Journal of Operations & Production Management, vol. 33 no. 11/12
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 3 August 2010

Rapinder Sawhney, Karthik Subburaman, Christian Sonntag, Prasanna Rao Venkateswara Rao and Clayton Capizzi

The purpose of this paper is to encourage the integration of Lean principles with reliability models to sustain Lean efforts on a long‐term basis. It seeks to present a modified…

4074

Abstract

Purpose

The purpose of this paper is to encourage the integration of Lean principles with reliability models to sustain Lean efforts on a long‐term basis. It seeks to present a modified FMEA that will allow Lean practitioners to understand and improve the reliability of Lean systems. The modified FMEA approach is developed based on the four critical resources required to sustain Lean systems: personnel, equipment, materials, and schedules.

Design/methodology/approach

A three‐phased methodology approach is presented to enhance the reliability of Lean systems. The first phase compares actual business and operational conditions with conditions assumed in Lean implementation. The second phase maps potential deviations of business and operational conditions to their root cause. The third phase utilizes a modified Failure Mode and Effects Analysis (FMEA) to prioritize issues that the organization must address.

Findings

A literature search shows that practical methodologies to improve the reliability of Lean systems are non‐existent.

Research limitations/implications

The knowledge database involves many tedious calculations and hence needs to be automated.

Originality/value

The paper has defined Lean system reliability, developed a conceptual model to enhance the Lean system reliability, developed a knowledge base in the form of detailed hierarchical root trees for the four critical resources that support our Lean system reliability, developed a Risk Assessment Value (RAV) based on the concept of effectiveness of detection using Lean controls when Lean designer implements Lean change, developed modified FMEA for the four critical resources.

Details

International Journal of Quality & Reliability Management, vol. 27 no. 7
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 1 November 1995

Christer Karlsson and Pär Åhlström

Explores the role of the remuneration system in the implementationprocess when introducing a complex manufacturing strategy, leanproduction. Exploratory clinical research in a…

5059

Abstract

Explores the role of the remuneration system in the implementation process when introducing a complex manufacturing strategy, lean production. Exploratory clinical research in a mechanical manufacturing company was used and three areas of findings emerged. First, there is a need for congruence in time between organization and remuneration, since the remuneration system serves both as an obstructing and a facilitating force in the process. There is also a need for congruence between the principles of the organization and remuneration. Converting the complex goals of the manufacturing strategy into a correspondingly elaborate remuneration system is essential. Finally, proposes a two‐part remuneration system for lean manufacturing. The first part of the system is a response to the founding principles of lean manufacturing: focusing on the competence of the individual. The second part is formed to remunerate the outcomes of a lean manufacturing system based on the performance of the team.

Details

International Journal of Operations & Production Management, vol. 15 no. 11
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 27 November 2018

Diego Augusto de Jesus Pacheco, Isaac Pergher, José Antônio Valle Antunes Junior and Guilherme Luís Roehe Vaccaro

The purpose of this study is to compare different models integrating the TOC and Lean approaches.

3027

Abstract

Purpose

The purpose of this study is to compare different models integrating the TOC and Lean approaches.

Design/methodology/approach

The models of reference were identified through a comprehensive literature review. A qualitative and comparative analysis was carried out by pointing out the strengths, weaknesses and gaps of models integrating the TOC and Lean based on the production system requirements.

Findings

The findings indicate that these models can be improved by introducing aspects related to the system structure such as main key performance indicators, type of shop layout and performance metrics to evaluate the improvements implemented in the production system. The results provided evidence that the TOC and Lean are complementary approaches, and the individual gaps of each approach seem to be, in the most part, offset by the virtues of the other.

Practical implications

This study enables decision makers and industrial managers to evaluate the practices adopted in the production environment, as well as the use of the different set of continuous improvement practices. This article also minimizes the literature gap regarding whether and how integrated Lean and TOC approach can be used in the firms.

Originality/value

This study contributes to the body of literature on Lean by comparing three different models integrating Lean and the TOC. Furthermore, a research agenda is suggested for future research aimed at developing new models integrating both approaches, aiming to increase the competitiveness of the production systems.

Details

International Journal of Lean Six Sigma, vol. 10 no. 3
Type: Research Article
ISSN: 2040-4166

Keywords

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