Lean manufacturing practices in Indonesian manufacturing firms

Abstract

Purpose Contradictory findings regarding the implication of Lean manufacturing (LM) implementation to business performance (BP) have been observed in prior studies. Hence, more studies are required to be capable of finding the status of LM implementation and its impacts on BP. Accordingly, this study examines and scrutinizes the effects of LM practices on the enhancement of BP from a developing country standpoint. Design/methodology/approach This empirical study uses a survey-based quantitative data collection approach through a cross-sectional research design. A total of 139 large manufacturing companies in Indonesia participated, selected through stratified random sampling technique. Three hypotheses regarding the effect of LM on BP were examined. Findings The results empirically reveal that comprehensive implementation of LM practices is necessary. Also, this study unravels that high BP (in terms of profitability, sales and customer satisfaction) is dependent upon the comprehensive implementation of LM practices. In other words, LM practices are not recommended to be implemented as a subset. Research limitations/implications Although this study is free from the common method bias as an implication of self-reporting by single respondent from one company, future researchers should consider of collecting data from multiple individuals in one company. Additionally, due to the study conducted in limited industries and large manufacturing firms, the results may not be applicable in other industries as well as in small and medium enterprises. Practical implications This study has further confirmed and established the LM–BP relationship. In line with the complementarity theory, it provides an insight that all the LM practices should be implemented simultaneously in a holistic manner because they are mutually supportive. In such a situation, piecemeal adoption is highly not recommended. Originality/value This study emphasizes on how LM contributes to the superior BP. Meanwhile, little attention has been paid to investigate the LM and its implication on BP from a developing country standpoint. Thus, this study is initiated to fill the gap.

Inventory Management Practices and Operational Performance of Manufacturing Firms in Ghana

“…Thus, the different inventory management practices have significant relationships with operational performance of the manufacturing firms in Ghana. This finding is in line with previous studies by [69,98,120,121] who found positive relationships between inventory management practices (IMP) and performance of manufacturing firms in developing economies including Kenya, Nigeria and Ethiopia. The established regression model for the study using the standardized coefficients was:…”

“…It works efficiently when there are clear agreements with suppliers for short cycle deliveries [66]. It has largely been found to improve operational performance in areas of operational flexibility, dependability, speed while minimising inventoryrelated costs [65,67,68,69]. Other studies similarly found JIT to positively influence operational performance in terms of timely deliveries, waste elimination, increased productivity while improving demand management [70,71,72].…”

Lean-green manufacturing: the enabling role of information technology resource

“…More recently, Fullerton and Wempe (2009) and demonstrated that the mixed results of prior studies regarding the LM and business performance relationship may be due in part to a failure to account for non-financial manufacturing performance measurement. Although variations exist in performance effects of LM, industrial reports have provided enough evidence that LM can potentially increase financial performance through improving organizational processes and cost efficiencies, both in developed and developing countries, and even among smaller firms (Fullerton et al, 2003;Fullerton and Wempe, 2009;Ghobakhloo and Azar, 2018b;Godinho Filho et al, 2016;Nawanir et al, 2016). LM practices can also enhance manufacturing productivity by reducing setup time and work in process inventory, improving throughput times (Tu et al, 2006;Yang et al, 2011).…”

تأثیر ممارسة سلسة الإمداد الرشیق على أداء سلسة الإمداد فی قطاع التصنیع بمصر

“…performance measures were selected to evaluate SC performance based on the fact that these measures are the most common measures used in the majority of researches and recent in dates e.g. (Chavez et al, 2013;Taj & Morosan, 2011;Nawanir et al, 2016;Arif-Uz-Zaman & Ahsan, 2014;Ruiz-Benítez et al, 2018;Filho et al, 2016;Sharma et al, 2015;Shah & Ganji, 2017;Prajogo et al, 2016;Khanchanapong et al, 2014;Azfar et al, 2014;Dora et al, 2016;Kumar et al, 2015;Afonso & Cabrita, 2015;Droge et al, 2004, Jacobs et al, 2007Machuca et al, 2011;Rosenzweig et al, 2003;Folinas et al, 2014 ;Sangwa & Sangwan, 2018;Arif-Uz-Zaman & Ahsan, 2014;Behrouzi &Wong, 2011;Chavez et al, 2015). From which, the measures were classified into four different performance attributes (cost, time, quality, flexibility), those attributes are highly common in these researches that have discussed lean practice and performance topics.…”

“…Therefore, this study included all SC performance measures to encompass the whole SCOR model processes that constitute SC processes based on the performance attributes that are commonly used to assess lean practice on performance. This can be indicated as the following table 3-3: Return on investment ratio (Chavez et al, 2015;Afonso & Cabritab, 2015;Nawanir et al, 2016) Value added productivity (Ruiz-Benítez et al, 2018;Chavez et al, 2015) Production efficiency…”