Lean production and operational performance in the Brazilian automotive supply chain

The purpose of this paper is to understand how lean production (LP) practices are associated with operational performance in the Brazilian automotive supply chain. A survey was carried out to identify the effect of 11 lean practices on five operational performance metrics. The sample comprised 64 companies of the Brazilian automotive supply chain. Results suggest that Brazilian companies are experiencing reduction of Lead time due to the implementation of total productive maintenance practices; and reducing inventory based on the adoption of just-in-time practices. Nevertheless, there appears to be a significant gap in the way these companies are implementing LP practices, which may hinder the achievement of better operational performance results. The survey was limited to companies from Brazil and, therefore, its findings might not be expanded to other companies or sectors. The results also provide a better understanding regarding LP practices and their individual effect on performance metrics.

[1]  Juan A. Marin-Garcia,et al.  Integrating human resource management into lean production and their impact on organizational performance , 2011 .

[2]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[3]  Naresh K. Malhotra,et al.  Marketing Research: An Applied Orientation , 1993 .

[4]  Terry S. Overton,et al.  Estimating Nonresponse Bias in Mail Surveys , 1977 .

[5]  Manimay Ghosh,et al.  Lean manufacturing performance in Indian manufacturing plants , 2012 .

[6]  J. Hair.  Multivariate data analysis : a global perspective , 2010 .

[7]  Shahram Taj,et al.  LEAN MANUFACTURING PERFORMANCE IN CHINA: ASSESSMENT OF 65 MANUFACTURING PLANTS , 2008 .

[8]  Olga Maria Formigoni Carvalho Walter,et al.  Métodos de avaliação da implantação da manufatura enxuta: uma revisão da literatura e classificação , 2013 .

[9]  Marcelo Nogueira Cortimiglia,et al.  The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies , 2016 .

[10]  Yasuhiro Monden,et al.  Toyota Production System: An Integrated Approach to Just-In-Time , 1993 .

[11]  Michael Lewis,et al.  Lean production and sustainable competitive advantage , 2000 .

[12]  J. W. Rogers,et al.  Implementing lean production systems: barriers to change , 2008 .

[13]  Ibrahim S. Karakadilar,et al.  Proposition of a model for measuring adherence to lean practices: applied to Turkish automotive part suppliers , 2012 .

[14]  R. Kodali,et al.  An empirical study for implementation of lean principles in Indian manufacturing industry , 2016 .

[15]  Paul Forrester,et al.  A model for evaluating the degree of leanness of manufacturing firms , 2002 .

[16]  Rambabu Kodali,et al.  Lean production: literature review and trends , 2015 .

[17]  F. Frank Chen,et al.  Decision support for lean practitioners: A web-based adaptive assessment approach , 2009, Comput. Ind..

[18]  S. Vinodh,et al.  Structural Equation Modelling of lean manufacturing practices , 2012 .

[19]  Pius Achanga,et al.  Critical success factors for lean implementation within SMEs , 2006 .

[20]  Torbjørn H. Netland,et al.  Critical success factors for implementing lean production: the effect of contingencies , 2015 .

[21]  Nancy Lea Hyer,et al.  Reorganizing the Factory: Competing Through Cellular Manufacturing , 2001 .

[22]  A. Graves,et al.  Implementing Lean in aerospace-challenging the assumptions and understanding the challenges , 2003 .

[23]  Alessandro Lucas da Silva,et al.  A layout design model for job shop environments with high variety of parts based on lean production concepts , 2012 .

[24]  Cleber Favaro,et al.  Supply chain mapping initiatives in the Brazilian automotive industry: challenges and opportunities , 2010 .

[25]  Jeffrey K. Liker,et al.  The Toyota way : 14 management principles from the world's greatest manufacturer , 2004 .

[26]  M. Quaddus,et al.  Supply chain risk management (SCRM): a case study on the automotive and electronic industries in Brazil , 2009 .

[27]  José Luis Duarte Ribeiro,et al.  A framework for assessing the use of lean production practices in manufacturing cells , 2011 .

[28]  Maike Scherrer-Rathje,et al.  Learning to be lean : the influence of external information sources in lean improvements , 2011 .

[29]  Herbert Kimura,et al.  Lean Manufacturing and Business Performance in Brazilian Firms , 2013 .

[30]  Sanjay Bhasin,et al.  Prominent obstacles to lean , 2012 .

[31]  Daniel Friel.  Transferring a lean production concept from Germany to the United States: the impact of labor laws and training systems , 2005, IEEE Engineering Management Review.

[32]  P. Garengo,et al.  Lean manufacturing in developing countries: evidence from Indian SMEs , 2012 .

[33]  Fernando Oliveira de Araujo,et al.  PROPOSAL FOR OEE (OVERALL EQUIPMENT EFFECTIVENESS) INDICATOR DEPLOYMENT IN A BEVERAGE PLANT , 2012 .

[34]  Lucila Maria de Souza Campos,et al.  Lean manufacturing and Six Sigma based on Brazilian model “PNQ” , 2013 .

[35]  Dinesh Khanduja,et al.  An empirical study on applicability of lean and green practices in the foundry industry , 2016 .

[36]  Andrew Taylor,et al.  Towards greater understanding of success and survival of lean systems , 2013 .

[37]  Marco Antônio Viana Borges,et al.  A critical analysis of quality managment implementation in a small brazilian company , 2014 .

[38]  Shahram Taj,et al.  The impact of lean operations on the Chinese manufacturing performance , 2011 .

[39]  Sanjay Bhasin,et al.  Performance of organisations treating lean as an ideology , 2011, Bus. Process. Manag. J..

[40]  Terry Wallace,et al.  Innovation and hybridization: Managing the introduction of lean production into Volvo do Brazil , 2004 .

[41]  Cary L. Cooper,et al.  Building a high‐commitment lean culture , 2011 .

[42]  Luiz Cesar Ribeiro Carpinetti,et al.  An Investigation of Improvement and Change Management Practices in a Brazilian Based Company , 2010 .

[43]  Bernard Penz,et al.  Stability contracts between supplier and retailer: a new lot sizing model , 2015 .

[44]  Torbjørn H. Netland,et al.  Implementing Corporate Lean Programs: The Effect of Management Control Practices , 2015 .

[45]  Peter T. Ward,et al.  Lean manufacturing: context, practice bundles, and performance , 2003 .

[46]  G. Tortorella,et al.  Making the value flow: application of value stream mapping in a Brazilian public healthcare organisation , 2017 .

[47]  Mônica de Fátima Bianco,et al.  Como o TQM opera e o que muda nas empresas? Um estudo a partir de empresas líderes no Brasil , 2001 .

[48]  Giuliano Almeida Marodin,et al.  Implementing lean production systems: research areas and opportunities for future studies , 2013 .

[49]  Toni L. Doolen,et al.  Critical success factors for the sustainability of Kaizen event human resource outcomes: An empirical study , 2011 .

[50]  Rosemary R. Fullerton,et al.  AN EXAMINATION OF THE RELATIONSHIPS BETWEEN JIT AND FINANCIAL PERFORMANCE , 2003 .

[51]  Krisztina Demeter,et al.  Factors influencing employee perceptions in lean transformations , 2011 .

[52]  F. Forcellini,et al.  BRAZILIAN AUTOMOTIVE INDUSTRY TRENDS IN LEAN PRODUCT DEVELOPMENT PRACTICES , 2011 .

[53]  Tarcisio Abreu Saurin,et al.  Managing barriers to lean production implementation: context matters , 2015 .

[54]  W. Hays.  Using Multivariate Statistics , 1983 .

[55]  Giuliano Almeida Marodin,et al.  Contextual factors and lean production implementation in the Brazilian automotive supply chain , 2016 .

[56]  S. Ahire,et al.  The role of top management commitment in quality management: an empirical analysis of the auto parts industry , 1998 .

[57]  James P. Womack,et al.  Lean Thinking: Banish Waste and Create Wealth in Your Corporation , 1996 .

[58]  Tarcisio Abreu Saurin,et al.  The impacts of lean production on working conditions: A case study of a harvester assembly line in Brazil , 2009 .

[59]  Martín Tanco,et al.  Applying lean techniques to nougat fabrication: a seasonal case study , 2013 .

[60]  Diana Adler,et al.  Using Multivariate Statistics , 2016 .

[61]  Glenn Gamst,et al.  Applied Multivariate Research: Design and Interpretation , 2005 .

[62]  José Luis Duarte Ribeiro,et al.  Identificação de oportunidades de pesquisa a partir de um levantamento da implantação da produção enxuta em empresas do Brasil e do exterior Identification of research opportunities based on a survey on lean production implementation conducted in Brazilian and foreign companies , 2010 .

[63]  Amelia S. Carr,et al.  Toyota production system for healthcare organisations: prospects and implementation challenges , 2015 .

[64]  Rosemary R. Fullerton,et al.  Lean manufacturing and firm performance: The incremental contribution of lean management accounting practices , 2014 .

[65]  S. Vinodh,et al.  Implementing lean sigma in an Indian rotary switches manufacturing organisation , 2014 .

[66]  R. Rummel.  Applied Factor Analysis , 1970 .

[67]  Cuneyt Eroglu,et al.  Lean, leaner, too lean? The inventory‐performance link revisited , 2011 .

[68]  R. Sitgreaves.  Psychometric theory (2nd ed.). , 1979 .

[69]  Reha Uzsoy,et al.  The effect of shop floor continuous improvement programs on the lot size–cycle time relationship in a multi-product single-machine environment , 2011 .

[70]  K. Demeter,et al.  The impact of lean practices on inventory turnover , 2011 .

[71]  Amit Rai Dixit,et al.  Impact of lean practices on performance measures in context to Indian machine tool industry , 2015 .

[72]  B. Tabachnick,et al.  Using multivariate statistics, 5th ed. , 2007 .

[73]  Rachna Shah,et al.  Defining and developing measures of lean production , 2007 .

[74]  Silvio Roberto Ignácio Pires,et al.  New configurations in supply chains: the case of a condominium in Brazil's automotive industry , 2008 .

[75]  Vincenzo Prudentino,et al.  Lean management and innovation in operational efficiency: the EGR project implemented by Pirelli Tyre Brazil in Santo André plant , 2012 .