Assessing the impact of Lean manufacturing on the Social Sustainability through Structural Equation Modeling and System Dynamics

Abstract

This study presents a comprehensive approach to evaluate the impact of various Lean Management tools, such as Kaizen, Total Productive Maintenance (TPM), Just-in-Time (JIT), and philosophies like Total Quality Management (TQM)on the social sustainability of manufacturing companies. Using a system dynamics model supported by structural equation analysis, we seek to measure these effects and determine the time required for companies to reach the desired level of implementation of these tools and the point at which they will achieve social sustainability. This innovative approach seeks to fill a gap in the research, as so far, no studies have been conducted that precisely measure the impact of Kaizen, TPM, JIT, and philosophies like TQM on social sustainability using structural equation modeling and system dynamics. This gap in the literature highlights the relevance of this study, which provides detailed results on the impact of Lean Management tools on social sustainability and addresses a significant gap in existing research. Data were collected from 411 surveys, primarily from companies in the automotive sector with more than 1,000 employees. The analysis used tools such as WarpPls 8.0® for structural equation analysis and STELLA ARCHITECT V3.0.1® for system dynamics. The results suggest that continuous improvement is fundamental to achieving social sustainability, serving as an enabler for tools such as TPM and JIT, which are integral to Lean Management, as well as philosophies like TQM. The projection indicates that achieving 100% implementation of these Lean Management tools will take approximately seven years while attaining 100% social sustainability is expected within 10.25 years. It's important to note that while Lean Management tools like TPM and JIT play a crucial role, TQM, as a separate philosophy, also contributes significantly to social sustainability. Although these timelines are ambitious and theoretical, they underscore the critical importance of Lean Management tools for social sustainability. Caution is advised, acknowledging the potential challenges of achieving such ambitious goals, which should be approached with realism.

Integrating Supply Chain Partners through Implementing Industry 4.0 Technologies to Enhance Competitiveness

“…It examined various aspects such as waste reduction, process optimization, and workforce involvement. Díaz-Reza et al [41] identified specific pathways through which Lean practices contribute to social sustainability, such as improved employee wellbeing, enhanced community relations, and increased stakeholder engagement. Lean critical success factors (CSFs) are recognized by Qureshi et al [42] as having advantageous effects on adopting Industry 4.0 and encouraging increment of efficiency, a decrease of waste, competitive lead, and ecological manufacturing systems.…”