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The advent of Industry 4.0 (I4.0) and the requirements imposed on companies still need to be clarified. Companies still strive to understand I4.0 requirements and technological, organizational, operational and management challenges. Current literature on I4.0 underlies the importance of a roadmap with structured steps to achieve the benefits of I4.0, mainly focused on augmenting operational performance. Therefore, this paper proposes a roadmap to implement I4.0 focused on operational management concepts, mainly aiming to augment operational performance and bridge the gap between theory and practice regarding roadmaps focused on the operational management dimension.

This paper follows a research approach divided into the following stages: a literature review to analyze the I4.0 roadmaps and identify the main components of I4.0; development of the proposed I4.0 roadmap presented; field research to test the roadmap by collecting data from a manufacturing company in the automotive industry; validation of the roadmap through modeling and simulation.

The authors presented a production line design with real-time control, fast response, shop floor coordination and predictive capacity. The results prove that the proposed I4.0 roadmap augments operation performance in the investigated automotive company. The main results were work in process reduction, lead time reduction, output increase, real-time control, shop floor coordination and fast response.

The main novelty of the proposed roadmap is to move toward I4.0 implementation with a focus on the operational management dimension. The roadmap has an innovative combination of the two approaches – lean manufacturing and factory physics – a straightforward roadmap with only three steps: (1) requirements, (2) real-time control and (3) predictive capacity, a structured definition of the approaches and operational management concepts fundamental in each step.

The purpose of this paper is to explore the moderating role of Lean Six Sigma (LSS) practices in explaining the relationship between quality management practices (QMPs) and quality performance.

Partial least square-based structural equation modeling (PLS-SEM) was used to empirically examine the moderating effect of LSS practices on QMPs and quality performance in Malaysian medical device manufacturing companies.

Findings revealed that both QMPs and LSS practices have a significant and positive effect on quality performance. Furthermore, LSS practices served as a substitute for moderating the positive relationship between QMPs and quality performance in such a way that the relationship becomes weaker as LSS practices increase.

LSS is acknowledged as the most well-known hybrid methodology; however, due to its relative newness, it has not been studied in great detail. Unlike previous studies, this paper argued that Lean and Six Sigma practices are distinct from its predecessor TQM practices; moreover, both Lean and Six Sigma practices do not need to substitute QM/TQM practices instead of complimenting the QMPs. In addition, this study adds to the growing body of QM literature by empirically examine the effect of LSS practices in moderating the relationship between QMPs and quality performance.

The integration of Lean Six Sigma (LSS) and Industry 4.0 (I4.0) is in the nascent stage and promises to achieve new optimums in operational excellence. This study aims to empirically examine the enablers, barriers, benefits and application of I4.0 technologies in LSS and I4.0 integration.

A pilot survey was chosen as an appropriate methodology, as LSS and I4.0 integration is still budding. The survey targeted senior quality management professionals, quality managers, team leaders, LSS Black Belts and operations managers to collect the relevant research data. The questionnaire was sent to 200 respondents and received 53 valid responses.

This study reveals that “top management support” is an essential enabler for LSS and I4.0 integration. The most significant barrier was “poor understanding of data analysis” and “lack of top management support”. The findings further illustrated that LSS and I4.0 integration resulted in greater efficiency, lower operational costs, improved productivity, improved customer satisfaction and improved quality. Regarding I4.0 technology integration at different phases of LSS, the authors noticed that big data analytics and artificial intelligence (AI) are the most prominent technologies used in all phases of LSS implementation.

One of the limitations of this study is the sample size. LSS and I4.0 are emerging concepts; hence, obtaining a larger sample size is difficult. In addition, the study used non-parametric tests to analyse the data. Therefore, future studies should be conducted with large sample sizes across different continents and countries to understand differences in the key findings.

The outcomes of this study can be useful for organisational managers to understand the enablers and barriers before integrating LSS and I4.0 for adoption in their organisations. Secondly, it helps to convince top management and human resource personnel by providing a list of benefits of LSS and I4.0 integration. Finally, it can help decision-makers understand which I4.0 technologies can be used in different stages of LSS methodology.

LSS and I4.0 integration was studied at a conceptual level. This is the first empirical study targeted toward understanding the LSS and I4.0 integration. In addition, this study investigates the application of widely used I4.0 technologies in different phases of LSS.

During crises, notably the recent COVID-19 pandemic, a heightened sense of urgency has manifested as a catalyst for improvement within organizations. The present study aims to explore the influence of a sense of urgency on individual kaizen performance. Additionally, the study delves into the potential moderating roles of organizational culture in this relationship.

Data samples include 481 employees who are working at Japanese manufacturing companies. SPSS software is used for data analysis, comprising measurement test, correlation and regression analysis.

A sense of urgency was found to predict a higher number of accepted suggestions. Moreover, there is a significant and positive interaction effect of adhocracy culture and a sense of urgency on writing and submitting ideas.

As an initial study that empirically tests the relationship between a sense of urgency and individual kaizen performance, this paper contributes to the literature on kaizen, change management and innovation. It also corroborates previous research on the Person-Organization fit framework.

While firms in developing countries are increasingly adopting lean practices of inventory management, there is limited evidence showing the impact of lean practices on firm performance in countries such as India. Lean practices improve the financial performance of the firms through superior cost-reduction measures and operational efficiencies. This paper examines the impact of inventory leanness in Indian manufacturing firms on their financial performance.

The authors measure inventory leanness based on stochastic frontier analysis (SLA), apart from using conventional measures available in the literature. The authors analyze the impact of inventory leanness on the financial performance of firms by examining data for 12,334 unique Indian manufacturing firms for the period 2009–2018. The authors present a comparative analysis using different methods of inventory leanness and study the effects on firm performance.

First, the authors find that only 68 industries out of 411 industries follow lean practices, i.e. most industries do not follow lean practices. Second, the estimation results show that there exists a positive relationship between inventory leanness and firm performance. The results suggest that an inverted U-shaped relationship exists between inventory leanness and firm performance for the entire sample. In particular, 17% of the industries in the sample exhibit such a relationship, and it is sufficiently strong to show up in the average regression results for the entire sample.

The authors introduce a novel measure of inventory leanness named stochastic frontier leanness based on the SFA method used in production economics. It measures leanness by benchmarking the inventory levels against the industry “frontier”. Furthermore, the authors conduct an empirical study of the lean-financial performance relationship with a large panel dataset of Indian firms instead of the survey-based methods that were previously used in the literature.

This study aims to improve the market competitiveness of iron and steel manufacturers in developing countries by reducing their production costs.

The research methodology relies on a case study-based approach. The study relies on six steps. The first is the preparation, then the five steps of the six-sigma – define, measure, analyze, improve, control. The qualitative and quantitative data were considered. The qualitative analysis relies on the experts’ judgment of internal status. The quantitative analysis uses the job floor data from three iron and steel manufacturers. After collecting, screening and analyzing the data, the root causes of the different wastes were identified that increase production costs. Consequently, lean manufacturing principles and tools are identified and prioritized using the decision-making trial and evaluation laboratory method, and then implemented to reduce the different types of waste.

The main wastes are related to inventory, time, quality and workforce. The lean tools were proposed with the implementation plan for the discovered root causes. The performance was monitored during and after the implementation of the lean initiatives in one of the three companies. The obtained results showed an increase in some performance indicators such as throughput (70.6%), revenue from by-products (459%), inventory turnover (54%), operation availability (45%), and plant availability (41%). On the other hand, results showed a decrease of time delay (78%), man-hour/ton (52.4%) and downgraded products (63.3%).

The current case study findings can be utilized by Iron and Steel factories at the developing countries. In addition, the proposed lean implementation methodology can be adopted for any other industries.

The current work introduces an original and practical road map to implement the lean six-sigma body of knowledge in the iron and steel manufacturers.

This work introduces an effective and practical case study-based approach to implementing the lean six-sigma body of knowledge in the iron and steel manufacturers in one of the underdevelopment countries. The consideration of the opinion of the different engineers from different sectors shows significant identification of the major problems in the manufacturing and utility sectors that lead to significant performance improvement after solving them.

The objective of this study is to explore the structural attributes of the pharmaceutical industry before the onset of the COVID-19 pandemic by examining the relationship between inventory and firm performance and developing a taxonomy of pharmaceutical firms based on the earns-turns matrix.

This study examines the inventory–firm performance linkage, considering both total inventory and its discrete inventory components in pharmaceutical firms. In addition, this research develops a new taxonomy of pharmaceutical firms based on the earns-turns matrix. A large panel dataset of firms in the US pharmaceutical industry was collected for the period 2000–2019.

The results reveal that strategic groups identified based on this taxonomy show different levels of profitability and inventory turns in the earns-turns matrix. Most pharmaceutical firms moved from the low-right to the top-left section in the earns-turns matrix, indicating that these firms have generally pursued profitability rather than effective inventory management.

This study explores the structural attributes of the pharmaceutical industry using the earns-turns matrix. This two-dimensional analysis may not, however, capture the full complexity of inventory–firm performance dynamics.

The mapping of strategic groups on the earns-turns matrix provides a useful tool for visual representations of the dynamics of strategic groups in terms of financial performance and inventory management performance. Practitioners can use the earns-turns matrix to benchmark their firm's position against their competitors.

This study broadens the scope of operations management research by introducing the earns-turns matrix as an empirical validation tool for operational and strategic management theories. This study emphasizes the effectiveness of the earns-turns matrix in analyzing strategic groups of pharmaceutical firms.

Lean Six Sigma 4.0 has brought about a paradigm shift in customization, automation, value creation and digitalization to achieve excellence in human factors, operations and sustainable development. Despite its potential, LSS 4.0 is still in its nascent stage, with researchers striving to identify the key and relevant components of LSS in relation to Industry 4.0. The present study aims to address this knowledge gap through a literature review and subsequently provide a conceptual framework for LSS within the context of digital transformation.

In this study, the authors have conducted a thorough review of reputable articles published between 2011 and 2022, focusing on the integration of Lean Six Sigma (LSS) and Industry 4.0 (I4.0). By using appropriate keywords, the authors identified around 85 relevant articles. The main objective of this integrative literature review was to analyze and extract valuable knowledge from the existing literature on LSS and I4.0. Based on the authors’ findings, a conceptual framework was developed.

The review revealed the motivators, building blocks, tools and challenges of LSS 4.0. The conceptual framework delves into the key aspects of LSS 4.0, focusing on the dimensions of people, process and technology, as well as their subdimensions. These subdimensions serve as the building blocks for developing LSS 4.0 capabilities. The proposed framework visually represents the conceptualization and the relationships among its components.

Only a few conceptual approaches to LSS are developed that include the concepts, new roles and elements of I4.0. As a result, this research investigates the gap in current LSS models preceding I4.0 and develops a conceptual framework to provide a novel and comprehensive summary of the new concepts and components driving nascent and current LSS practices in the digital era.

This study offers practical guidance for implementing LSS in the context of I4.0, emphasizing digital transformation. The findings highlight motivators, building blocks, tools, challenges and spread of LSS 4.0 practices, and present a conceptual framework of LSS 4.0. These insights can help organizations enhance their LSS capabilities and achieve excellence in human factors, operations and sustainable development.

This study aims to make a significant contribution to the model-building efforts of researchers focusing on LSS 4.0. By offering practical guidance, the points discussed in this study help enhance the implementation efforts of practitioners and organizations in the context of I4.0, with a specific focus on digital transformation. The guidance provided takes into account the perspectives of people, processes and technology, providing valuable insights for successful integration.

This study investigates the supply chain efficiency of selected companies in the Indian food processing sector. Additionally, it explores the relationship between supply chain efficiency and firm performance.

To determine the supply chain efficiency, the study uses supply chain efficiency measures, such as supply chain length, inefficiency ratio and working capital productivity. Secondary data were collected from the Center for Monitoring Indian Economy (CMIE) Prowess database for the years 2011–2017. Various return measures, such as Return on Net Worth (RONW), Return on Total Assets (ROTA) and Return on Capital Employed (ROCE), were used to measure firm performance. Collected data were analyzed to investigate the relationship between supply chain efficiency and firm performance.

Findings of the study reveal the prevalence of inefficient supply chains in the context of the selected companies. There is a significant negative correlation between supply chain efficiency and firm performance. RONW has a significant negative correlation with the length of supply chain as well as supply chain inefficiency.

This study expands the limited existing research perspective; the study helps to understand the supply chain efficiency and firm performance.

This is an original piece of work and provides valuable insight into the relationship between supply chain efficiency and firm performance.

Using a qualitative grounded theory approach, this study explores the methods experienced external auditors use to detect fraudulent financial reporting (FFR) during standard audits.

Semi-structured interviews were conducted with 24 experienced external auditors to explore the methods they used to detect FFR successfully during standard external audits.

The authors find 58 methods used for FFR detection, out of which the following methods are frequently used and help in detecting more than one type of FFR: (1) specific analytical procedures, (2) positive confirmation, (3) understanding of the client's business and industry, (4) the inspection of specific documents, (5) a detailed analysis of the audit client's anti-fraud controls and (6) investigating tip-offs from suppliers, employees and customers.

Based on the grounded theory approach, the authors theorise that auditors must return to the basics and focus on specific audit procedures highlighted in this study for effective fraud detection.

The study provides practical guidance, including 58 methods used in audit practice to detect FFR. This knowledge can improve auditors' skills in detecting material misstatements due to fraud. Besides, analytical procedures and positive confirmation helped external auditors in this study detect all forms of FFR, yet they are overlooked in the external audit practice. Therefore, audit firms should emphasise the significance of these audit procedures in their professional audit training programmes. Audit regulators should advise auditors to consider positive confirmation instead of negative confirmation in financial audits to increase the likelihood of FFR detection. Moreover, audit standards (ISA 240 and SAS 99) should explicitly require auditors to conduct a detailed analysis of the client's anti-fraud controls.

This is the first study to identify actual, effective methods used by external auditors in detecting FFR during the ordinary course of an audit.