Existing competitiveness between companies in the global market requires a high degree of proactivity, with an aim of reducing costs, increasing quality, and providing the market with innovative ...products that are in line with the natural evolution of customer demands. The concepts of the Toyota Production System, which have led to the adoption of lean manufacturing, have helped industrial managers to implement tools and practices that eliminate or substantially reduce wastes that normally exist in conventional production lines. However, the need for successive increase in flexibility necessitates a more favorable evolution with technological advancements in the programming of equipment and devices, along with the use of robotics and the integration of information throughout the product manufacturing cycle using the IoT or powerful networks. This concept, usually referred to as Industry 4.0, is in line with the principles of lean manufacturing, although it can only be supported by a true technological revolution involving remote programming of machines, integration of manufacturing processes, and real-time control of the work performed through an entire production cycle. This Special Issue showcases important contributions in the area of lean manufacturing and Industry 4.0, with innovative concepts that will certainly enthuse and strengthen readers’ knowledge.
PurposeThe paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management systems and ...“S-curve” effects in lean implementation are used to ground the paper's hypotheses and interpret its findings.Design/methodology/approachUsing the emerging view of lean as enterprise-wide management systems, this quasi-experimental study uses a difference-in-differences approach to estimate the abnormal profitability (ROIC) attributable to lean management system adoption. The paper leverages a unique data set of lean adopters nested in a panel data set (19 years) of 2,088 industrial firms matched by industry and firm size. It applies a variety of regression methods (two-way fixed effect panel estimator, propensity score matching, instrumental variable two-stage-least squares) to estimate the size of the abnormal profitability attributable to lean management systems, addressing endogeneity issues related to non-random sampling, omitted variable bias and reverse causation. It also analyzes the cross-firm variability of such abnormal profitability and how it accrues over time.FindingsFor the average non-adopter in the sample (44.3 million euro revenues), lean adoption generates abnormal ROIC ranging from 1.4% to 3.9%. These results come into effect approximately three years after starting lean adoption and peak after eight years. While the average abnormal profitability attributable to lean adoption is sizable, it varies significantly across firms and over time. This significant variation is compatible with firms' diverse ability to understand the complex inner workings of lean systems, and to design and implement them so that they improve profitability.Research limitations/implicationsThe conceptualization of lean as enterprise-wide management system can be further refined to more effectively categorize the components of lean systems and investigate the nature of their relationships. Lean system adoption measurement can be fine-tuned to better capture cross-firm and longitudinal heterogeneity. Future work can explore other dependent variables of interest to different stakeholders including shareholders' value, employment and environmental and social sustainability.Practical implicationsThe financial benefits of adopting lean can be reaped to the extent to which managers embrace lean as a philosophy and implement it pervasively in the organization. A firm can use the study's estimates as a basis for making calculations about the returns of investment in lean adoption. The paper also shows that “getting the lean system right” makes a significant difference in terms of abnormal profitability, which is twice as large for the best lean adopters..Social implicationsCompared with the promises of many lean proponents and supporters, the paper provides a more realistic view of what to expect from lean adoption in terms of profitability. Adopting lean as a comprehensive, enterprise-wide management system is not a universal panacea, but a complex endeavor, characterized by multiple complex decisions that require considerable capabilities, coordinated efforts and consistency of action.Originality/valueDifferently from extant research, this study does not study the correlation between the adoption of lean operation practices and financial performance but focuses on the abnormal profitability generated by the adoption of lean as a pervasive, enterprise-wide management system. Its research design allows to identify the differential profitability attributable to lean adoption and documents that it accrues non-linearly.
Beyond the lean manager Holmemo, Marte D.-Q.; Ingvaldsen, Jonas A.; Powell, Daryl
Total quality management & business excellence,
01/2023, Volume:
34, Issue:
1-2
Journal Article
Peer reviewed
Open access
Although leadership is consistently found to be the main success factor for lean transformations, our knowledge about how to develop the necessary leadership competences at the level of the ...individual and the organisation remains limited. Based on an action-research study of lean leadership development in a Norwegian high-tech manufacturer, this article proposes an integrated model for how to develop corporate lean leadership. The model combines earlier research on 'hard' versus 'soft' leadership competencies and individual versus collective competency development in a two-dimensional framework, which highlights four areas of intervention. We argue that conventional lean leadership training should be supplemented by insights and practices from human resource management and organisational development. Hence, lean professionals (coaches and trainers) should reach out to HR-professionals often organised in different functional departments. The model might guide future practical interventions. We encourage further research to investigate the model with respect to its wider applicability.
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PurposeThis paper aims to characterize a sample of Lean Six Sigma (LSS) projects in healthcare settings and discuss some specificities of operational excellence (OPEX) initiatives in hospitals and ...healthcare organizations in the USA.Design/methodology/approachA content analysis involving a sample of 23 documents shared by US hospitals was performed in order to achieve the research objectives. Such analysis was based on a conceptual framework developed from the literature review. It was also applied to a quantitative approach, including descriptive statistics, hypothesis testing and correspondence analysis that supported the research.FindingsMost LSSH projects were focused on business transformation and strategic improvements. Simple techniques and tools were predominant such as descriptive statistics, process mapping, 5S and spaghetti charts, usually implemented by Green Belts and Black Belts through the define, measure, analyze, improve and control (DMAIC) method. In addition to the expressive findings reported, these projects' results have been aligned with lead time and operational cost reduction, quality improvement and capacity increase.Research limitations/implicationsThe study adds knowledge to the OPEX literature by analyzing the Lean Six Sigma healthcare (LSSH) in hospitals and healthcare institutions in the USA. It also demonstrates that different approaches, such as the kaizen event and DMAIC project show different results according to some techniques and tools applied in the hospital environment.Originality/valueThe empirical evidence presented in this study provides scenery of the LSS practices in the healthcare settings, highlighting the implementation areas, outcomes, tools and techniques mostly used in the North American healthcare institutions.
Purpose The academic literature and research lines exploring the effect of quality improvement methods on environmental performance still remain in early stages. The purpose of this paper is ...therefore to investigate, through a systematic review of the existing academic literature, the environmental (green) impact of using quality and operations improvement methods such as Lean, Six Sigma and Lean Six Sigma. This includes the impact on energy saving and the usage of natural resources. Design/methodology/approach This study follows a systematic literature review approach through which it analyses research papers published in top 16 operations and quality management journals. No specific time frame was established, but a set of keywords were used to short-list the articles. A sample of 70 articles was finally short-listed and analysed to provide a discussion on environmental concerns related to Lean, Six Sigma and Lean Six Sigma. Findings The comprehensive review of short-listed articles indicates that both Lean and Six Sigma can be considered effective methods to support the conservation of resources, combat global warming and saving energy. Various scholars provide evidence of this, and as such, organisations should not only consider these methods to manage quality and improve operational performance but also meet environmental regulations. A set of research questions that demands further investigation has also been proposed based on the findings of this research. Research limitations/implications This study is limited to a sample of 70 articles collected from top 16 operations and quality management journals. The search of journals is also limited to a set of key words (“Lean”, “Green”, “Six Sigma”, “environment”, “sustainable” and “sustainability”) used to short-list the sample size. Practical implications The study shows that organisations can consider the adoption of Lean, Six Sigma and Lean Six Sigma to meet environmental regulations, save costs and also meet quality management standards. This will contribute in helping organisations to formulate more effective and inclusive strategies which do not only consider the quality and operational dimensions but also the environmental dimension. Originality/value Literature exploring the environmental/green impact of quality management methods commonly used in industry is limited. There is also a lack of studies aiming to investigate the green impact of Lean and Six Sigma in top operations and quality management journals. The study focusing on investigating the green impact of Lean, Six Sigma and Lean Six Sigma methods altogether is also a research first of its kind.
The increasing use of lean production (LP) by companies from several sectors has substantially increased the amount of publications and different emphases on the subject, which amplifies the need for ...organisation of that knowledge. This article aims to identify the research areas on LP implementation and to propose research opportunities. The literature review was based on 102 studies published in the years between 1996 and 2012. The studies were divided into six research areas, named: (a) structure and scope of LP systems; (b) factors that influence in the LP implementation; (c) methods for implementing LP systems; (d) LP assessment methods; (e) results of implementing LP systems; and (f) adaptation of LP to particular sectors. The findings suggested that the substantial increase on the amount of publications on LP implementation has created fragmented and dissociated areas that would benefit from integration.
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Lean principles have long been recognised as a competitive advantage. Although there are several measures for various aspects of lean production in the literature, there is no comprehensive measure ...for overall lean implementation in business firms. An appropriate measurement tool is needed to assess the effectiveness and efficiency of the lean implementation throughout the entire organisation. Based on lean research, a comprehensive tool called the leanness assessment tool (LAT) is developed, using both quantitative (directly measurable and objective) and qualitative (perceptions of individuals) approaches to assess lean implementation. The LAT measures leanness using eight quantitative performance dimensions: time effectiveness, quality, process, cost, human resources, delivery, customer and inventory. The LAT also uses five qualitative performance dimensions: quality, process, customer, human resources and delivery, with 51 evaluation items. The fuzzy method allows managers to identify improvement needs in lean implementation, and the use of radar charts allows an immediate, comprehensive view of strong areas and those needing improvement. Practical uses of the LAT are discussed in the conclusion, along with possible limitations.
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Purpose Front-line lean leadership is critical for implementing and sustaining lean production systems (LPS). The purpose of this paper is to analyze the relationships between front-line lean leader ...(FLL) capacities (cognitive, social, motivational, knowledge and experience), lean leader practices (developing people and supporting daily kaizen) and the degree of implementation of lean tools (pull system, involvement of employees and process control) in manufacturing companies. Design/methodology/approach A survey was conducted with FLLs from large Brazilian manufacturing companies. The survey collected 103 responses, 99 of which were validated. Data were analyzed using partial least squares structural equation modeling. Findings There was a positive, significant and direct relationship between FLL capacities, leadership practices and a degree of implementation of LPS tools on the shop floor. The validated model is a reference base for planning FLL capacities and practices that result in more effectively implementing LPS on the shop floor. Practical implications The findings provide managers with a new perspective on the importance of the development and training of FLLs focusing on leadership capacities. As decisions about developing lean capabilities impact the application of Lean leadership practices and the use of lean tools, they are also related to day-to-day lean activities and improved operational results. Additionally, the proposed model can be used by managers as a basis to diagnose, develop and select lean leaders. Originality/value This study seeks to fill a theoretical gap of knowledge on front-line lean leadership as it jointly addresses and empirically analyzes the existing relationships between lean leadership capacities, encompassing the perspective of psychology, lean practices and tools on the shop floor.
Lean management (LM) is a managerial approach for improving processes based on a complex system of interrelated socio-technical practices. Recently, debate has centered on the role of organizational ...culture (OC) in LM. This paper aims to contribute to this debate by examining whether plants that successfully implement LM are characterized by a specific OC profile and extensively adopt soft LM practices. Data were analyzed from the High Performance Manufacturing (HPM) project dataset using a multi-group approach. The results revealed that a specific OC profile characterizes successful lean plants; in particular, when compared to unsuccessful lean plants, they show a higher institutional collectivism, future orientation, a humane orientation, and a lower level of assertiveness. While a high level of institutional collectivism, future orientation, and humane orientation are common features of high performers in general, a low level of assertiveness is typical only of successful lean plants. In addition, successful lean plants use soft LM practices more extensively than unsuccessful lean plants (i.e., lean practices concerning people and relations, such as small group problem solving, employees’ training to perform multiple tasks, supplier partnerships, customer involvement, and continuous improvement), while they do not differ significantly in terms of hard LM practices (i.e., lean technical and analytical tools). For managers, the results indicate that, in order to implement LM successfully, it is fundamental to go beyond LM technicalities by adopting soft practices and nurturing the development of an appropriate OC profile.
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•Successful lean plants are characterized by a specific organizational culture.•Hard lean practices are order-qualifier activities for lean plants.•Soft lean practices should be considered as strategic order-winner factors.•Greater use of soft (rather than hard) LM practices differentiates successful lean plants.
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There have been many literature reviews carried out on Lean implementation (LI) in larger organisations with specific focus on the automobile industry. Lean implementation among Small and Medium ...Enterprises (SMEs) has not been so extensively researched. This paper attempts to bridge this gap by reviewing the literature that discussed Lean implementation in SMEs with a perspective of identifying the main challenges faced. We applied the Systematic Review Methodology proposed by Tranfield et al. (2003). This methodology allows for more comprehensive and profounder analysis along three stages: planning, conducting, and reporting. For this study, 403 papers were utilized, with their titles, abstracts and keywords separately studied at early stages of the review. These were collated from specific databases that included: ABI/INFORM Global, Taylor & Francis, Emerald, Sage, Inderscince, BSCO Business Source Premier, ScienceDirect and Scopus. The collected information was classified into four categories for more synthesis. The aim of this study is to establish the current position of global understanding of Lean implementation in SME's, including examining the main categories of Lean implementation in the context of SMEs. Next, an inclusive discussion of associated Critical Success Factors (CSFs) for Lean implementation within SME's is established that can be used as guide for SME's owners and managers. Suggestions for future research orientations are thus provided.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
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