Performance management practices in lean manufacturing organizations: a systematic review of research evidence

This paper provides the first systematic look into the existing research on performance management (PM) practices employed in lean manufacturing organisations (LMOs). It adopts a systematic review method to examine the evidence generated in the period 2004 – 2015 and uses a comprehensive PM framework to synthesise the findings. The results suggest that PM practices that have the most prominent role in LMOs are those that, firstly, are located closest to front-line actions and, secondly, explicitly address operational realities. This calls into question the primacy of accounting-driven controls in LMOs, suggesting that operational controls may be more effective than top-down accounting-based PM practices. The results also confirm the bias towards operational-level issues but suggest that LMOs may integrate the operational and the strategic levels by using PM practices that drive organisational learning through employee involvement and engagement.     

Developing an understanding of lean thinking in process industries

The research described in this article has set out to determine the extent to which lean thinking is being adopted as a manufacturing philosophy by process industries. It concerns the application and examination of key lean manufacturing principles, namely, the alignment of production with demand, the elimination of waste, the integration of suppliers (IS) and the creative involvement of the workforce in improvement activities, to a range of process industry types based on Dennis and Meredith's taxonomy of process industry transformation systems [Dennis, D. and Meredith, J., 2000a. An empirical analysis of process industry transformation systems. Management Science, 46 (8), 1085–1099]. Seventy-nine process industry product streams across 62 sites were studied. In addition, a five-site investigative field study was also undertaken. The findings demonstrate that lean practices associated with the elimination of waste are consistently used for improving manufacturing performance throughout the taxonomy of process industries but practices associated with other lean principles are inconsistently applied. In addition, explanations are provided on the appropriateness of lean thinking as a manufacturing philosophy and a strategy for improving manufacturing performance in different process industry types, and on the extent to which lean principles and practices are dependent on the characteristics of process industry transformation systems.     

Lampshade Game for lean manufacturing

The purpose of this article is to introduce a new simulation game named the ‘Lampshade Game’ that can be helpful in educating students and industry professionals on lean manufacturing principles. The Lampshade Game is an active learning tool that is capable of demonstrating the advantages and disadvantages of some of the key principles of lean manufacturing (such as quality focus, pull system, flexible manufacturing and visual organisation) in comparison to craft and mass manufacturing by manually simulating the production of lampshades for each of the process types. The game enables the comparison of these three manufacturing methods using different operational and financial metrics such as inventory levels, manufacturing cycle time, customer fill rate, production yield and cost and profit. This article describes the game, its objectives, and shares experiences from several classroom implementations including an analysis of pre- and post-surveys.     

Implementing lean sigma in an Indian rotary switches manufacturing organisation

The manufacturing organisations have been witnessing a transformation in the manufacturing paradigm. Lean sigma and six sigma are the two business process improvement strategies widely employed by organisations to enhance their manufacturing performance. To achieve dramatic result in cost, quality and time, best strategies need to be applied to enhance the process performance. Lean sigma and six sigma are two powerful and effective strategies, enabling the organisation to overcome their weakness and for retaining their improvement. Lean sigma combines the variability reduction tools and techniques drawn from six sigma with the waste and non-value added elimination tools and techniques from lean manufacturing to achieve savings in the organisations. This study uses an integrated lean sigma framework to reduce the defects occurring in the final product, thereby contributing savings to the organisation. The proposed framework integrates lean tools within six sigma methodology to enhance the bottom-line results and to win customer loyalty. The implementation of the proposed framework shows dramatic improvement in key metrics and substantial financial savings to be generated by the organisation.     

Implementing lean sigma framework in an Indian automotive valves manufacturing organisation: a case study

The manufacturing organisations have been witnessing a key transition to lean manufacturing paradigm so as to eliminate waste. Concurrently, six sigma methodology has been widely used for reducing the defects. In order to attain the combined benefits of these two approaches, the amalgamated lean sigma framework has originated. Lean sigma framework proves drawbacks, such as lack of systematic and scientific management and feeble lean anchorage. In order to overcome these deficiencies, this article contributes a refined lean sigma framework, and its effectiveness has been test implemented in an Indian automotive valves manufacturing organisation. The implementation benefits are described in this article.     

Lean healthcare: review,classification and analysis of literature

This study presents a literature review of 107 papers on lean healthcare to evaluate its evolution by updating previous literature reviews and to propose a classification and analysis of the papers reviewed. The literature classification was performed based on six parameters: research method, country, healthcare area, implementation, lean tools and methods and results. From the analysis performed, this paper presents a quantitative analysis of the state of the art concerning lean healthcare and indicates current research trends, based on the stage of evolution of the area, that may guide further studies on the subject. An example is lean healthcare expansion to other countries, such as Brazil and the Netherlands. Another aspect is the application of lean healthcare in hospital as a whole, not limited to a specific setting. Finally, a few studies detail the lean implementation process and use infrequently applied tools, present the barriers and main critical factors found in the lean implementation.     

Managing lean capabilities through flexible workforce development: a process and framework

Many firms today are employing temporary contractual workers in order to help them to stay lean and flexible. The benefit of this approach is that the process of layoff is much easier. Thus, an emerging issue arises here, on how can firms manage and train temporary workers effectively? The core of lean adoption is through people, to have workers buy into the ideas and be part of the overall initiative. There is very little guidance available on how to deal with contractual workers who have less motivation and commitment to the firm given that they are only employed on a temporary basis. This article proposes a framework and process to assist firms in managing and training temporary workers to improve the efficiency and effectiveness of the implementation of lean improvement initiatives.     

A critical review of lean supply chain management frameworks: proposed framework

Lean supply chain management (LSCM) is one of the emergent fields of research. The present study objective is to perform review on existing LSCM frameworks and proposes a new LSCM framework. The study collected 30 LSCM frameworks with the help of extensive literature survey. The sample of LSCM frameworks have been classified based on novelty of the framework, contribution of various researchers to develop LSCM framework, verification status and modes of verification methodology used by the researchers, and also the degree of standardisation of LSCM elements. The study found that many researchers have proposed novel frameworks, lack of participation of practitioners and to some extent consultants in the field of LSCM framework development. It was also found that a huge number of incoherent elements were used to propose the LSCM frameworks. The study findings will give direction to the future researchers to propose a unified LSCM framework that will help to find out the coherent set of elements in the field of LSCM frameworks. Finally, the study proposes a comprehensive LSCM framework with the help of standard elements in the field of LSCM.     

Targeting lean process improvement projects for maximum financial impact

This empirical paper details a 12-month applied research project at a UK low-volume manufacturer of large vehicles. The industry problem from which this study originates was a concern over the subjective nature with which the firm’s existing lean intervention projects were being targeted (prioritised and selected). A structured literature review on this topic was unable to identify any objective decision support mechanism for doing so; one that encompassed financial as well as operational criteria. The resultant study was organised around an established seven-step action research framework. The main body of evidence was derived from extensive analysis of financial and operational data extracted from the firm’s enterprise resource planning system, along with two structured workshops that each involved multiple informants drawn from the firm’s production centres and its accountancy department. Supplementary primary research was provided in the guise of numerous unstructured interviews to validate data and from observation of shop floor practices. The main contribution of this article is identifying and addressing the gap highlighted above, by developing and testing a financially driven method for objectively targeting process improvement interventions within this large and geographically dispersed operation. This innovative method includes five new constituent techniques.     

The emergence of sustainable manufacturing practices

Sustainable manufacturing appears to be a rapidly developing field and it would be expected that there is a growing body of knowledge in this area. Initial examination of the literature shows evidence of sustainable work in the areas of product design, supply chain, production technology and waste avoidance activities. Manufacturers publish metrics showing significant improvements in environmental performance at high level but information on how these improvements are achieved is sparse. Examining peer-reviewed publications focused on production operations there are few cases reporting details and there has been little prior analysis of published sustainable manufacturing activity. Moreover, the mismatch between academic and practitioner language leads to challenges in interpretation. This article captures and analyses the types of sustainable manufacturing activities through literature review. In turn, this can help manufacturers to access examples of good practice and help academics identify areas for future research.     

An integrated lean and green approach for improving sustainability performance: a case study of a packaging manufacturing SME in the U.K.

Abstract

Competitive landscape, informed consumers and stringent regulations have forced many manufacturing small- and medium-sized enterprises (SMEs) to focus on operational efficiency along with sustainability issues in recent years. While many manufacturing organisations have been taking lean initiatives for the past few years for operational excellence, an impulsive rush to adopt lean without a strategic deployment vision has led to scattered implementation of lean tools and projects without desired success. Many researchers and practitioners prescribe value stream mapping as a foundation for lean transformation initiatives; however, little empirical work is available on the symbiosis of lean and green paradigms to reap maximum benefits. This research, through a systematic methodology and a novel tool called Green Integrated Value Stream Mapping (GIVSM), integrates both paradigms in a case study on a U.K. packaging-manufacturing SME. Applying the GIVSM demonstrates that simultaneous deployment of lean and green paradigms have synergistic effect for improving both operational efficiency and environmental performance. In addition, continuous improvement framework with sustainable procurement is proposed to overcome the lean-green misalignments. This study also provides a guiding reference for practitioners to undertake similar improvement projects and identifies opportunities to expand this academic research on integrated lean-green approach into other industry sectors.     

Implementing lean information management: the case study of an automotive company

Worldwide modern organisation is continuously crossed by a great number of information but frequently information is not accurate, the needed information is not generated or it cannot be easily identified and, more, the information cannot flow through the whole organisation. This paper proposes the application of lean thinking in the field of information management. In the areas of manufacturing and production, the lean thinking is well known but usually the importance of a holistic approach is neglected and the improvement involves only the production and logistic areas and there is not a specific focus on the lean information management. We applied lean thinking to information management in order to improve the performance of an automotive company. We analysed the as-is company condition, we identified the present muda and we introduced the necessary changes. Then, we verified the modification efficiency through the calculation of a performance index. The paper proposes an interesting and exhaustive case of lean information management application and it highlights the possible improvement of such approach. The results of this study are not sector specific: they are not only applicable by other automotive industries, but they can also be extended to many other sectors.     

Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations

The main purpose of this research is to develop and deploy an analytical framework for measuring the environmental performance of manufacturing supply chains. This work's theoretical bases combine and reconcile three major areas: supply chain management, environmental management and performance measurement. Researchers have suggested many empirical criteria for green supply chain (GSC) performance measurement and proposed both qualitative and quantitative frameworks. However, these are mainly operational in nature and specific to the focal company. This research develops an innovative GSC performance measurement framework by integrating supply chain processes (supplier relationship management, internal supply chain management and customer relationship management) with organisational decision levels (both strategic and operational). Environmental planning, environmental auditing, management commitment, environmental performance, economic performance and operational performance are the key level constructs. The proposed framework is then applied to three selected manufacturing organisations in the UK. Their GSC performance is measured and benchmarked by using the analytic hierarchy process (AHP), a multiple-attribute decision-making technique. The AHP-based framework offers an effective way to measure and benchmark organisations’ GSC performance. This study has both theoretical and practical implications. Theoretically it contributes holistic constructs for designing a GSC and managing it for sustainability; and practically it helps industry practitioners to measure and improve the environmental performance of their supply chain.     

Quality and flexibility performance trade-offs between lean and agile manufacturing firms in the automotive industry

Abstract

Firms operating in the automotive industry have traditionally been ascribed with efficiency and high levels of quality, as lean production has been extensively applied within this context, but given the recent dynamics in the automotive sector, there is also a need for high levels of flexibility, widening our attention to agile production. However, when lean and agile production have been explored simultaneously, the quality and flexibility trade-offs have been mixed and unclear. In order to dispel the lean-agile ambiguity, and given that both high levels of flexibility and quality are required within the automotive industry, the purpose of this study was to: (a) Identify the relationship between flexibility and quality; and (b) Explore the quality and flexibility differences between lean and agile production. Primary quantitative data was obtained via a survey and a total of 140 automotive manufacturing firms within the UK returned the survey. Logistic regressions were utilised as the main mode of analysis. Not only was an inverse relationship found between quality and flexibility, but our findings depict two distinctive Business Models (BMs) existing in the automotive industry, one lean and one agile. We advance the lean-agile debate by asserting that lean and agile firms acquire quality (efficiency) and flexibility strengths respectively, and not vice-versa. Given this, we theoretically side with the notion of performance ‘trade-offs’ and contend the idea that capabilities are cumulatively gained. By incorporating an argument built on the strategy literature on BMs and Dynamic Capabilities, we assert that lean and agile firms have evolved to underpin different kinds of competitive advantage within the same industry, but these advantages are placed at different tiers in the automotive supply chain.     

Flexible manufacturing systems performance in U.S. automotive manufacturing plants: a case study

Flexible manufacturing systems (FMS) philosophy is a key weapon in achieving global manufacturing competitiveness. It encompasses a wide range of dimensions to improve all aspects of operational performance metrics. The aim of the study is to examine the current state of flexibility adoption in U.S. automotive manufacturing facilities and its impact on operational performance metrics. It utilizes survey questionnaire developed based on previous work in U.S. manufacturing industry. The survey was originally distributed to 420 facility managers in the U.S. domestic automotive industry. It was revealed that 70% of the respondents had implemented all 15 flexibility dimensions listed in the questionnaire. The data analysis conducted shows that implementation of certain flexibility dimensions will lead to significant improvement in specific operational performance metrics. This considerable finding can be used as a guide for manufacturing managers to achieve certain objectives in operational performance improvement in a rapidly changing environment.     

Integration of process planning and production planning and control in cellular manufacturing

Organisations willing to succeed in global competition have to integrate their internal and external processes. This especially includes planning and production control (PPC) processes. Optimised allocation of the production resources and quick response to demand changes result in lower cost and improvement of production performance. Practitioners and researchers have been trying to achieve these goals using production planning techniques. Although the results are significant, it seems necessary to integrate production operations in order to improve the production performance. The goals, information and decisions taken in production planning and control and process planning are often very different and difficult to integrate in Cellular Manufacturing (CM) environments. Designing an efficient PPC system and integrating it with process planning in a cellular environment is of the same importance. The following paper proposes first a comprehensive framework of integrated process planning and production planning and control in CM. Then, with respect to this framework and utilising the domain knowledge in the area of CM systems, an integrated model based on Integrated Definition Modeling Language is developed. The application of the models has been considered as a case study for a production system in electronics and telecommunication sector in a plant in Iran. The validity and completeness of the proposed model is tested by a panel of experts in the areas of production planning and control in CM environments.     

Development and validation of a lean supply chain management measurement instrument

It is widely argued that to be competitive, a company not only needs to focus on internal aspects but on the entire supply chain. Lean supply chain management has become a means of enhancing competitiveness by improving efficiency and increasing flexibility at all stages of the supply chain. This research develops and validates a lean supply chain management measurement instrument. A two-phase approach is used for scale development and refinement. In the first phase, a literature review is conducted to identify definitions of lean supply chain management and agile supply chain management and their corresponding measurement items. In the second phase, the lean supply chain management measurement instrument is validated using survey data based on scales developed in the first phase by 59 scholars with experience in lean management and/or supply chain management. The results provide a structured and comprehensive measure of lean supply chain management indicating that there are two differentiated dimensions in the measurement instrument: one related to the operational aspects of lean supply chain strategy implementation and the second related to lean supply chain planning.     

The use of survey techniques in the review and evaluation of manufacturing projects

Leyland DAF arc commercial vehicle manufacturers based in Leyland, Lancashire. The commercial vehicle industry is characterized by a requirement for regular model changes to support both marketing and legislative developments. The industry is continually striving for improvements in the processes com rolling these changes. This paper explains how a project review procedure, utilizing surveying techniques, was established to evaluate the effectiveness of existing product introduction/modification procedures and hence highlight areas for improvement. The system is now in regular use on new vehicle projects of all types, including both the introduction of new models and product transfers between assembly plants. Potential areas for improvement, identified by surveys that have been completed to date, have been included as objectives for the next generation of new model introductions. These process improvement initiatives can now be investigated pro-actively and the potential risks removed before the errors recur.     

Managing demand variability and operational effectiveness: case of lean improvement programmes and MRP planning integration

Although a lean focus is widely popular in general manufacturing environments, there are limited studies that empirically investigate how lean improvement programmes can be integrated with a material requirement planning (MRP) system. The aim of this research is to examine if the integration of lean improvement programmes with a MRP system has a positive effect on operational effectiveness when manufacturers are experiencing high levels of customer demand variability. Based on the contingency theory perspective and using data collected from the international manufacturing strategy survey (IMSS-V), a sample of 382 international manufacturing companies are first divided into two groups based on the degree of their customer demand fluctuation. Moderated hierarchical regression is then applied to each group to empirically test the research hypotheses. Statistical results suggest that operational effectiveness significantly improves when lean improvement programmes support MRP systems as manufacturers are experiencing high levels of fluctuations in demand.     

Simultaneous determination of the optimal process mean and cutting speed for a manufacturing process

The relationship between machining speed and the process mean for a manufacturing process has received little attention. This paper presents an analytical model and its solution procedure to simultaneously determine the optimal machining speed and process mean when the objective is to minimize the total cost per part. The total cost of the model includes replacement (resetting), production and quality costs. A global optimization algorithm is used to solve the proposed unconstrained model. Numerical examples to demonstrate the effectiveness of the proposed model are given and an extensive sensitivity analysis of the proposed model parameters is also provided. It has been concluded that machining speed and process mean are highly related. Therefore, the machining conditions should be taken into account when solving process mean targeting problems.