Operational performance improvement through continuous improvement initiatives in micro-enterprises of Turkey

Abstract

PurposeMicro-enterprises have a vital role in the development of a nation by creating employment, encouraging entrepreneurship, balancing social income and educating the workforce. Yet, micro-enterprises face significant operational challenges such as low productivity, high production costs and long changeover times. These challenges are often overlooked by researchers and practitioners but have a drastic impact on micro-enterprises' operational performance. With over 95% of the economy consisting of micro-enterprises, it is vital to improve operational performance and competitiveness of the micro-enterprises.Design/methodology/approachConsidering the data availability and practical challenges of gathering data from micro-enterprises, an action research methodology was selected as a suitable research method. Following the initial diagnostic visits, planned interventions were prepared and results were observed to gather data and draw conclusions.FindingsFindings suggest that commonly adapted performance improvement initiatives by large enterprises cannot be directly applied in micro-enterprises to enhance operational performance. Micro-enterprises lack the critical resources and company culture to easily adapt these initiatives. On the other hand, when these performance improvement initiatives are filtered according to specific needs of micro-enterprises, continuous improvement initiatives were often found to be effective in improving operational performance. Specifically, 5S, single-minute exchange of dies (SMED), suggestion schemes, layout improvements, management coaching, visual management, empowerment were found to be useful and suitable to address command and control culture, low productivity, unorganised workspace, undelegated authority, low skilled employees and unwillingness to take responsibility problems.Research limitations/implicationsFurther research is required to investigate the specific factors that affect the adaptation of continuous improvement initiatives such as culture and industry type.Originality/valueThis research extends and contributes the current literature on continuous improvement initiatives by revealing how performance improvement initiatives need to be filtered according to the specific needs of micro-enterprises, and how these initiatives can be used to address specific problems to improve operational efficiency. It provides a conceptual framework to guide the decision-making process on operational performance improvement in micro-enterprises.

Six Sigma for improving tensile strength: a case study in the impregnating resin manufacturing company

“…This project indeed delivers knowledge, expertise and quality values to employees via detailed steps of implementation and lays a solid foundation to embed different managerial approaches during continuous improvement (Galeazzo et al , 2021). Meanwhile, our team noticed that Company M, which is a medium-size company, also lacks the critical resources and company culture to directly adapt continuous improvement initiatives, like other small medium enterprises (SMEs) (Inan et al , 2021). According to their specific needs, SMEs can choose various improvement initiatives to fulfil the effectiveness in improving operational performance.…”

Agility and Operational Performance with Mediating Link of Sustainability: Case of Pakistani Oil and Gas Sector

“…It is a process that can be measured through many indicators such as inventory turnover, service excellence, financial targets, customer satisfaction, market share, reduced cost, sales volume, strategic realistic vision, and mission. Inan, Gungor, Bititci, and Halim-Lim (2021)refer that operational performance good or bad indicates that an organization is pursuing the strategies correctly or not to achieve its overall goal and objectives. Good operational performance helps in sustaining the economic, social, and environmental conditions of an organization that lead to maintain the competitive position of an economy.…”

The impact of lean production on operational performance: a case study

“…Besides operational performance improvement, layout improvement optimises the workflow and reduces cost and lead time. These lateral advantages help small enterprises to prevent excessive investment in productivity improvement activities (Inan et al. , 2021).…”

“…cellular manufacturing, just-in-time (JIT), production smoothing and total preventive maintenance) have been broadly employed since the birth of the Toyota Production System (TPS). The main idea behind TPS is a systematic strategy to determine and remove waste activities through continuous improvement (Taj and Morosan, 2011;Costa et al, 2019;Inan et al, 2021).…”

“…The main idea behind TPS is a systematic strategy to determine and remove waste activities through continuous improvement (Taj and Morosan, 2011; Costa et al. , 2019; Inan et al. , 2021).…”