THE IMPACT ON LEAN PRACTICES BY OPERATIONAL FACTORS: EVIDENCE FROM THE MANUFACTURING FIRMS OF PAKISTAN
Keywords:Lean Practices, Operational Performance, Lean Formation Higher-Order, PLS-SEM, Pakistan.
Purpose: The study has aimed to identify the effect of lean practices on the operational performance of manufacturing firms of Pakistan.
Design/Methodology: Using positivistic deductive approach, the study has collected 211 responses from the supply chain professionals of manufacturing firms of Karachi, Pakistan using purposive sampling technique. PLS-SEM has been employed for data analysis using SmartPLS version 3.2.8.
Findings: The study has manifested that lean practices can enable manufacturing firms of Pakistan to improve their operational performance.
Implications: Kanban is one of the most effective and tested methods to do this. Kanban is a mechanism that controls the flow of products within a supply chain by using visual signals (cards). There is a Kanban card attached to each object, container, crate, or pallet. The Kanban card details the products and amounts to purchase, so the factory floor may request the right parts. Workers take the card and give it to the department of sales.
Originality: The study has not been employed in the Pakistan context while due to lack of lean application in the industrial sector of Pakistan; the implications may encourage organizations towards lean practices. Moreover, lean practices can enable large-scale manufacturing firms to improve their performance in the current downturn.
Afthanorhan, W. (2013). A comparison of partial least square structural equation modeling (pls-sem) and covariance based structural equation modeling (cb-sem) for confirmatory factor analysis. International Journal of Engineering Science and Innovative Technology, 2(5), 198–205.
Astrachan, C.B., Patel, V.K., & Wanzenried, G. (2014). A comparative study of cb-sem and pls-sem for theory development in family firm research. Journal of Family Business Strategy, 5(1), 116–128.
Bai, C., Satir, A., & Sarkis, J. (2019). Investing in lean manufacturing practices: An environmental and operational perspective. International Journal of Production Research, 57(4), 1037-1051.
Belekoukias, I., Garza-Reyes, J.A., & Kumar, V. (2014). The impact of lean methods and tools on the operational performance of manufacturing organisations. International Journal of Production Research, 52(18), 5346-5366.
Bevilacqua, M., Ciarapica, F.E., & De Sanctis, I. (2017). Lean practices implementation and their relationships with operational responsiveness and company performance: An italian study. International Journal of Production Research, 55(3), 769-794.
Bhutta, K., Egilmez, G., Chatha, K., & Huq, F. (2017). Survey of lean management practices in pakistani industrial sectors.
Blessing, L.T., & Chakrabarti, A. (2009). Drm, a design research methodology: Springer Science & Business Media.
Bonavia, T., & Marin-Garcia, J.A. (2011). Integrating human resource management into lean production and their impact on organizational performance. International Journal of Manpower, 32(8), 923-938.
Bortolotti, T., Boscari, S., & Danese, P. (2015). Successful lean implementation: Organizational culture and soft lean practices. International Journal of Production Economics, 160, 182-201.
Chavez, R., Yu, W., Jacobs, M., Fynes, B., Wiengarten, F., & Lecuna, A. (2015). Internal lean practices and performance: The role of technological turbulence. International Journal of Production Economics, 160, 157-171.
Dey, P.K., Malesios, C., De, D., Chowdhury, S., & Abdelaziz, F.B. (2019). Could lean practices and process innovation enhance supply chain sustainability of small and medium‐sized enterprises? Business Strategy and the Environment, 28(4), 582-598.
Dora, M., Kumar, M., & Gellynck, X. (2016). Determinants and barriers to lean implementation in food-processing smes–a multiple case analysis. Production Planning & Control, 27(1), 1-23.
Godinho Filho, M., Ganga, G.M.D., & Gunasekaran, A. (2016). Lean manufacturing in brazilian small and medium enterprises: Implementation and effect on performance. International Journal of Production Research, 54(24), 7523-7545.
Gomm, R. (2008). Social research methodology: A critical introduction: Macmillan International Higher Education.
Gupta, S., & Jain, S.K. (2013). A literature review of lean manufacturing. International Journal of Management Science and Engineering Management, 8(4), 241-249.
Hair, J.F., Hult, G.T.M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (pls-sem): Sage Publications.
Hair, J.F., Ringle, C.M., & Sarstedt, M. (2011). Pls-sem: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139–152.
Hair, J.F., Ringle, C.M., & Sarstedt, M. (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long range planning, 46(1-2), 1-12.
Hair, J.F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V.G. (2014). Partial least squares structural equation modeling (pls-sem) an emerging tool in business research. European Business Review, 26(2), 106–121.
Henseler, J., Hubona, G., & Ray, P.A. (2016). Using pls path modeling in new technology research: Updated guidelines. Industrial management & data systems, 116(1), 2-20.
Henseler, J., Ringle, C.M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.
Herrera, R.F., Mourgues, C., & Alarcón, L.F. (2018). Assessment of lean practices, performance and social networks in chilean airport projects. Paper presented at the 256h Annual Conference of the International Group for Lean Construction 2018, IGLC 2018.
Jasti, N.V.K., & Kodali, R. (2015). Lean production: Literature review and trends. International Journal of Production Research, 53(3), 867-885.
Krafcik, J.F. (1988). Triumph of the lean production system. MIT Sloan Management Review, 30(1), 41.
Kumar, M., Antony, J., Singh, R.K., Tiwari, M.K., & Perry, D. (2006). Implementing the lean sigma framework in an indian sme: A case study. Production Planning and Control, 17(4), 407-423.
Kumar, S., & Phrommathed, P. (2005). Research methodology: Springer.
Negrão, L.L.L., Godinho Filho, M., & Marodin, G. (2017). Lean practices and their effect on performance: A literature review. Production Planning & Control, 28(1), 33-56.
Onofrei, G., & Fynes, B. (2019). Quality practices as a mediator of the relationship between lean practices and production fitness. International Journal of Lean Six Sigma, 10(1), 500-522.
Onofrei, G., Prester, J., Fynes, B., Humphreys, P., & Wiengarten, F. (2019). The relationship between investments in lean practices and operational performance: Exploring the moderating effects of operational intellectual capital. International Journal of Operations & Production Management, 39(3), 406-428.
Panizzolo, R., Garengo, P., Sharma, M.K., & Gore, A. (2012). Lean manufacturing in developing countries: Evidence from indian smes. Production Planning & Control, 23(10-11), 769-788.
Panwar, A., Jain, R., Rathore, A.P.S., Nepal, B., & Lyons, A. (2018). The impact of lean practices on operational performance–an empirical investigation of indian process industries. Production Planning & Control, 29(2), 158-169.
Panwar, A., Nepal, B., Jain, R., Rathore, A.P., & Lyons, A. (2017). Understanding the linkages between lean practices and performance improvements in indian process industries. Industrial Management & Data Systems, 117(2), 346-364.
Pathirage, C., Amaratunga, R., & Haigh, R. (2008). The role of philosophical context in the development of research methodology and theory. The Built and Human Environment Review, 1(1), 1-10.
Sarstedt, M., Ringle, C.M., Smith, D., Reams, R., & Hair, J.F. (2014). Partial least squares structural equation modeling (pls-sem): A useful tool for family business researchers. Journal of Family Business Strategy, 5(1), 105–115.
Secchi, R., & Camuffo, A. (2016). Rolling out lean production systems: A knowledge-based perspective. International Journal of Operations & Production Management, 36(1), 61-85.
Shah, R., & Ward, P.T. (2003). Lean manufacturing: Context, practice bundles, and performance. Journal of operations management, 21(2), 129-149.
Shah, R., & Ward, P.T. (2007). Defining and developing measures of lean production. Journal of operations management, 25(4), 785-805.
Sharma, V., Dixit, A.R., & Qadri, M.A. (2015). Impact of lean practices on performance measures in context to indian machine tool industry. Journal of Manufacturing Technology Management, 26(8), 1218-1242.
Soper, D.S. (2019). A-priori sample size calculator for structural equation models [software]. 2019, from https://www.danielsoper.com/statcalc/references.aspx?id=89
Sparrow, P., & Otaye-Ebede, L. (2014). Lean management and hr function capability: The role of hr architecture and the location of intellectual capital. The International Journal of Human Resource Management, 25(21), 2892-2910.
Upadhye, N., Deshmukh, S.G., & Garg, S. (2010). Lean manufacturing system for medium size manufacturing enterprises: An indian case. International Journal of Management Science and Engineering Management, 5(5), 362-375.
Vivares-Vergara, J.A., Sarache-Castro, W.A., & Naranjo-Valencia, J.C. (2016). Impact of human resource management on performance in competitive priorities. International Journal of Operations & Production Management, 36(2), 114-134.
Welman, J.C., Kruger, S.J., & Mitchell, B. (2005). Research methodology: Oxford University Press Cape Town.
Wong, K.K.-K. (2013). Partial least squares structural equation modeling (pls-sem) techniques using smartpls. Marketing Bulletin, 24(1), 1–32.
Yadav, V., Jain, R., Mittal, M.L., Panwar, A., & Lyons, A. (2019). The impact of lean practices on the operational performance of smes in india. Industrial Management & Data Systems, 119(2), 317-330.
Zhan, Y., Tan, K.H., Ji, G., & Tseng, M.-L. (2018). Sustainable chinese manufacturing competitiveness in the 21st century: Green and lean practices, pressure and performance. International Journal of Computer Integrated Manufacturing, 31(6), 523-536.