The impact of lean manufacturing practices on operational and financial performance: the mediating role of agile manufacturing

Abstract

PurposeThis empirical study aims to explore the link between lean manufacturing practices (total quality management, just-in-time production, just-in-time purchasing, total productive/preventive maintenance), agile manufacturing, and operational and financial performance.Design/methodology/approachData were collected from 205 Tunisian manufacturing firms, and the results were analyzed using structural equation modeling.FindingsThe results indicate that (1) lean manufacturing practices have a direct positive relationship with agile manufacturing except for just-in-time production, (2) agile manufacturing has a positive impact on operational performance and (3) lean manufacturing practices did not seem to contribute directly to operational performance. However, this relationship is significant when it is mediated through agile manufacturing.Research limitations/implicationsThis paper shows practitioners the importance of lean manufacturing practices to support agile manufacturing and the key role of agile manufacturing to ensure operational performance.Originality/valueThis paper presents an innovative approach since it studies simultaneously the three dimensions of lean manufacturing and their relationship with agile manufacturing and organizational performance.

Impact of lean service, workplace environment, and social practices on the operational performance of India post service industry

“…A road map was developed by Talib et al ( 2020 ) to help DM to facilitate the successful implementation of the integrated JIT-LPs to improve the performance of the Indian manufacturing industries using BWM. Khalfallah and Lakhal ( 2020 ) empirically explored the link between LMPs, AM, and operational and financial performance in 205 Tunisian manufacturing firms. The results showed that, except for JIT production, LMP had a direct positive relationship with AM, (2) AM had a positive impact on OP, and (3) LMP did not seem to contribute directly to OP.…”

“…According to Holweg ( 2007 ), LMP is an operational practice that creates value for the customers and eliminates waste with the spending resources. Khalfallah and Lakhal ( 2020 ) in an empirical study on Tunisian 205 manufacturing firms’ LMP on operational performance showed that LMP contributed to operational performance through the mediation of agile manufacturing. The Lean assessment conducted by Ibrahim et al ( 2020 ) on the Malaysian construction industry revealed a relationship between LMP and OP.…”

“…Marodin et al (2018) & Panwar et al (2018). Vlachos & Siachou (2018) & Sakthi Nagaraj & Jeyapaul (2020) Yadav et al (2020); Alhuraish, Robledo, & Kobi (2017); Jasti & Kodali (2019); Talib et al (2020); Jasti & Kurra (2017);Khalfallah & Lakhal (2020)…”

A K-Chart based implementation framework to attain lean & agile manufacturing

“…The authors suggest that the five major agile competencies include transparent customization supply chains of agile nature, automation, employee empowerment and technology integration. Khalfallah and Lakhal (2020)…”

“…In order to achieve the aforesaid, the driving force behind the concept of agile manufacturing pivots on the following points, as described by Yusuf et al (1999): It is a well-known fact that holistic lean manufacturing implementation requires 3-5 years, and requires top management commitment, employee training and embracing the lean thinking approach. Similarly, the literature review suggested that in case of agile manufacturing, the successful implementation is incumbent upon the top management commitment to achieve higher operational performance (Khalfallah & Lakhal, 2020). Therefore, a conscious effort should be made towards integrated implementation of both approaches for optimized manufacturing and operational performances.…”