Lean practices implementation and their relationships with operational responsiveness and company performance: an Italian study

Although many firms report large benefits from lean implementation, a lot of scepticism still remains regarding attainable results and the possibility to apply Lean approach outside high-volume manufacturing and stable context. In this work, combining field interviews with literature review, theoretical connections have been developed among Lean manufacturing techniques, operational responsiveness and company growth performances. A conceptual model has been proposed for investigating the network of influences among lean practices (supplier management, human resource management, just-in-time and total quality management practices), operational responsiveness (Product mix variety, Product innovation and Time effectiveness) and company growth performances in Italian companies. Using structural equation modelling, a second-order confirmatory factor analysis has been used to test the hypothesised relationships in the structural models. This study highlights that the operational responsiveness is only partially connected to a Lean strategy of a company. Indeed, the lean practices implementations are negatively influenced by product mix variety and innovation, while positively influenced by time effectiveness variables. Moreover, product mix variety and time effectiveness are the main characteristics of the operational responsiveness that positively influences company growth performances. So time effectiveness could be considered as a mediator between Lean best practices and firm growth. Moreover, no direct relationship has been found between lean bundles and firm’s performances. Lack of resources and mainly poor communication and managers’ commitment and support seem to be the main obstacles of lean implementation and success.

[1]  Roger G. Schroeder,et al.  THE ROLE OF INFRASTRUCTURE PRACTICES IN THE EFFECTIVENESS OF JIT PRACTICES: IMPLICATIONS FOR PLANT COMPETITIVENESS , 2003 .

[2]  Wallace J. Hopp,et al.  To Pull or Not to Pull: What Is the Question? , 2004, Manuf. Serv. Oper. Manag..

[3]  Roger G. Schroeder,et al.  A FRAMEWORK AND MEASUREMENT INSTRUMENT FOR JUST‐IN‐TIME MANUFACTURING , 1993 .

[4]  Qiang Tu,et al.  Absorptive capacity: Enhancing the assimilation of time-based manufacturing practices , 2006 .

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

[6]  Michael R. Kinney,et al.  Further Evidence on the Extent and Origins of JIT's Profitability Effects , 2002 .

[7]  X. Koufteros Testing a model of pull production: a paradigm for manufacturing research using structural equation modeling , 1999 .

[8]  D. Towill,et al.  Engineering the leagile supply chain , 2000 .

[9]  William J. Doll,et al.  Developing measures of time-based manufacturing , 1998 .

[10]  Angappa Gunasekaran,et al.  Relationship between generic strategies, competitive advantage and organizational performance: an empirical analysis , 1999 .

[11]  Ahmed M. Deif,et al.  Dynamic Lean Assessment for Takt Time Implementation , 2014 .

[12]  J. Birkinshaw,et al.  Management innovation , 2005, IEEE Engineering Management Review.

[13]  Roger G. Schroeder,et al.  The impact of just-in-time manufacturing and its infrastructure on manufacturing performance , 1997 .

[14]  R. R. P. Jackson,et al.  Production Planning and Control , 1965 .

[15]  Gülçin Büyüközkan,et al.  Assessment of lean manufacturing effect on business performance using Bayesian Belief Networks , 2015, Expert Syst. Appl..

[16]  Pietro Romano,et al.  Assessing the impact of just-in-time on operational performance at varying degrees of repetitiveness , 2013 .

[17]  Manoj K. Malhotra,et al.  A theoretical framework for analyzing the dimensions of manufacturing flexibility , 1999 .

[18]  Peter T. Ward,et al.  Configurations of Manufacturing Strategy, Business Strategy, Environment and Structure , 1996 .

[19]  Pietro Romano,et al.  Leveraging fitness and lean bundles to build the cumulative performance sand cone model , 2015 .

[20]  Bhanu S. Ragu-Nathan,et al.  Development and validation of a measurement instrument for studying supply chain management practices , 2005 .

[21]  P. Hines,et al.  Learning to evolve: A review of contemporary lean thinking , 2004 .

[22]  R. Schroeder,et al.  Relationships between implementation of TQM, JIT, and TPM and manufacturing performance , 2001 .

[23]  M. Holweg,et al.  Creating the customer‐responsive supply chain: a reconciliation of concepts , 2007 .

[24]  F. Lerch,et al.  Customer-Firm Relationships, Involvement, and Customer Satisfaction , 1995 .

[25]  Matthias Holweg,et al.  Lean distribution: concepts, contributions, conflicts , 2007 .

[26]  Samuel Bendahan,et al.  Causality and Endogeneity , 2014 .

[27]  V. Grover,et al.  An assessment of survey research in POM: from constructs to theory , 1998 .

[28]  Sengun Yeniyurt,et al.  THE IMPACT OF INFORMATION TECHNOLOGY ON SUPPLY CHAIN CAPABILITIES AND FIRM PERFORMANCE: A RESOURCE-BASED VIEW , 2006 .

[29]  J. March,et al.  A Behavioral Theory of the Firm , 1964 .

[30]  B. Byrne Structural equation modeling with EQS : basic concepts, applications, and programming , 2000 .

[31]  Jose Antonio Arantes Salles,et al.  Lean production and business efficiency: An artificial neural network analysis in auto parts companies , 2011, First International Technology Management Conference.

[32]  Seán Meehan,et al.  Customer Responsiveness: Getting it Fast and Right Through Impatience and Intolerance , 2002 .

[33]  Jayant Rajgopal,et al.  Analyzing the benefits of lean manufacturing and value stream mapping via simulation: A process sector case study , 2007 .

[34]  Maurizio Bevilacqua,et al.  Supply chain modelling and managing, using timed coloured Petri nets: a case study , 2012 .

[35]  E. Rauch,et al.  Implementation of Lean Production in Small Sized Enterprises , 2013 .

[36]  Maurizio Bevilacqua,et al.  Implementing lean information management: the case study of an automotive company , 2015 .

[37]  Mark E. Ferguson,et al.  PRODUCTION AND OPERATIONS MANAGEMENT , 2008 .

[38]  Giorgia Dal Pont,et al.  Complementarity and lean manufacturing bundles: an empirical analysis , 2011 .

[39]  R. P. McDonald,et al.  Structural Equations with Latent Variables , 1989 .

[40]  Garry Pairaudeau,et al.  Creativity, innovation and lean sigma: a controversial combination? , 2011, Drug discovery today.

[41]  A. Raturi,et al.  Sources of volume flexibility and their impact on performance , 2002 .

[42]  Elliott N. Weiss,et al.  TPM: PLANNED AND AUTONOMOUS MAINTENANCE: BRIDGING THE GAP BETWEEN PRACTICE AND RESEARCH , 1998 .

[43]  Evangelos Psomas,et al.  Quality management benefits through the “soft” and “hard” aspect of TQM in food companies , 2014 .

[44]  Roger G. Schroeder,et al.  Generic manufacturing strategies and plant performance , 2004 .

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

[46]  Toni L. Doolen,et al.  A review of lean assessment in organizations: An exploratory study of lean practices by electronics manufacturers , 2005 .

[47]  S S Mahapatra,et al.  Lean manufacturing in continuous process industry : An empirical study , 2007 .

[48]  Computer Staff,et al.  The Machine That Changed the World , 1992 .

[49]  Ron McLachlin,et al.  Management initiatives and just-in-time manufacturing , 1997 .

[50]  S. R. Devadasan Lean and Agile Manufacturing , 2012 .

[51]  M. Stevenson,et al.  Flexibility from a supply chain perspective: definition and review , 2007 .

[52]  Jörn-Henrik Thun,et al.  Do it separately or simultaneously—An empirical analysis of a conjoint implementation of TQM and TPM on plant performance , 2011 .

[53]  T. Bortolotti,et al.  Successful lean implementation: Organizational culture and soft lean practices , 2015 .

[54]  Gustavo M. Ugarte,et al.  Lean versus green: The impact of lean logistics on greenhouse gas emissions in consumer goods supply chains , 2016 .

[55]  Peter T. Ward,et al.  Impact of Information Technology Integration and Lean/Just-In-Time Practices on Lead-Time Performance , 2006, Decis. Sci..

[56]  Monideepa Tarafdar,et al.  Lean and agile supply chain strategies and supply chain responsiveness: The role of strategic supplier partnership and postponement , 2013 .

[57]  Siti Norezam Othman,et al.  Impact of lean practices on operations performance and business performance , 2013 .

[58]  Danuta Kisperska-Moroń,et al.  Improving supply chain performance to satisfy final customers: "Leagile" experiences of a polish distributor , 2011 .

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

[60]  Elazar J. Pedhazur,et al.  Measurement, Design, and Analysis: An Integrated Approach , 1994 .

[61]  Joaquín B. Ordieres Meré,et al.  The HOSHIN KANRI TREE. Cross-plant Lean Shopfloor Management , 2015 .

[62]  R. A. Inman,et al.  Agile manufacturing: Relation to JIT, operational performance and firm performance , 2011 .

[63]  John K. Gershenson,et al.  Classification scheme for lean manufacturing tools , 2003 .

[64]  J. Antonakis,et al.  Could lean production job design be intrinsically motivating? Contextual, configurational, and levels-of-analysis issues , 2006 .

[65]  Thaeir Ahmed Saadoon Al Samman,et al.  Modelling Lean, Agile, Leagile Manufacturing Strategies: an Fuzzy Analytical Hierarchy Process Approach for Ready Made Ware (clothing) Industry in Mosul, Iraq , 2014 .

[66]  Victor R. Prybutok,et al.  The relationship between JIT practices and type of production system , 2001 .

[67]  Xianggui Qu,et al.  Multivariate Data Analysis , 2007, Technometrics.

[68]  Chun Yu Chen,et al.  A comparative analysis of the factors affecting the implementation of occupational health and safety management systems in the printed circuit board industry in Taiwan , 2009 .

[69]  Soo Wook Kim,et al.  Disentangling leanness and agility: An empirical investigation , 2006 .

[70]  Krista B. Lewellyn,et al.  R&D Investment in the Global Paper Products Industry: A Behavioral Theory of the Firm and National Culture Perspective , 2015 .

[71]  Umit Bititci,et al.  Towards a contingency approach to performance measurement: an empirical study in Scottish SMEs , 2007 .

[72]  Roger G. Schroeder,et al.  Relationship Between JIT and TQM: Practices and Performance , 1995 .

[73]  Jeannie L. Johnson,et al.  Inbound open innovation for enhanced performance: Enablers and opportunities , 2013 .

[74]  Donald Reinertsen,et al.  Making R&D Lean , 2005 .

[75]  Xenophon Koufteros,et al.  The impact of organizational structure on the level of JIT attainment: Towards theory development , 1998 .

[76]  H. Van Landeghem,et al.  Analysing the effects of Lean manufacturing using a value stream mapping-based simulation generator , 2007 .

[77]  M. Holweg An investigation into supplier responsiveness: Empirical evidence from the automotive industry , 2005 .

[78]  Thomas Y. Choi,et al.  The Supply Base and Its Complexity: Implications For Transaction Costs, Risks, Responsiveness, and Innovation , 2006 .

[79]  Douglas C. Montgomery,et al.  Common myths of six sigma demystified , 2008 .

[80]  Anand Nair,et al.  Relationship between just-in-time manufacturing practices and performance: A meta-analytic investigation , 2010 .

[81]  Riza Sulaiman,et al.  A Conceptual Model of Lean Manufacturing Dimensions , 2013 .

[82]  José Moyano-Fuentes,et al.  What can we learn from the evolution of research on lean management assessment? , 2013 .

[83]  E. Kelloway Using LISREL for Structural Equation Modeling: A Researcher′s Guide , 1998 .

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

[85]  Markus Biehl,et al.  International supply chain agility ‐ Tradeoffs between flexibility and uncertainty , 2001 .

[86]  Jan Olhager,et al.  Lean and agile manufacturing: external and internal drivers and performance outcomes , 2009 .

[87]  M. C. Holcomb,et al.  Performance outcomes of supply chain agility: When should you be agile? , 2015 .

[88]  Jeffrey K. Liker,et al.  The Toyota Production System and art: making highly customized and creative products the Toyota way , 2007 .

[89]  M. Christopher,et al.  Building the Resilient Supply Chain , 2004 .

[90]  Marco Tantardini,et al.  LEAN PRODUCTION IMPLEMENTATION: A SURVEY IN ITALY , 2007, Dirección y Organización.

[91]  Dominick Salvatore Europe's euro and competitiveness crises☆ , 2015 .

[92]  G. Byrne,et al.  Using a Lean Six Sigma approach to drive innovation , 2007 .

[93]  Amir Albadvi,et al.  Performance management using a value-based customer-centered model , 2015 .

[94]  Rosemary R. Fullerton,et al.  Lean Manufacturing, Non-Financial Performance Measures, and Financial Performance , 2009 .

[95]  D. Samson,et al.  EXPLODING THE MYTH: DO ALL QUALITY MANAGEMENT PRACTICES CONTRIBUTE TO SUPERIOR QUALITY PERFORMANCE? , 1999 .

[96]  Baba Md Deros,et al.  A survey on lean manufacturing implementation in Malaysian automotive industry , 2010 .

[97]  Dusya Vera,et al.  Dynamic capabilities and operational capabilities: A knowledge management perspective , 2007 .

[98]  M. Christopher,et al.  The Supply Chain Strategy Conundrum: To be Lean Or Agile or To be Lean And Agile? , 2002 .

[99]  Brent D. Williams,et al.  Leveraging supply chain visibility for responsiveness: The moderating role of internal integration , 2013 .

[100]  Hewlett Packard,et al.  Time-based Competition , 2022 .

[101]  Roberto Panizzolo,et al.  Applying the lessons learned from 27 lean manufacturers.: The relevance of relationships management , 1998 .

[102]  Kenneth G. Kreafle Lean Product Development , 2011 .

[103]  Pietro Romano Impact of supply chain sensitivity to quality certification on quality management practices and performances , 2002 .

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

[105]  Thomas Lindsay Jackson,et al.  Hoshin Kanri for the Lean Enterprise: Developing Competitive Capabilities and Managing Profit , 2006 .

[106]  Earl R. Babbie,et al.  The practice of social research , 1969 .

[107]  Christian Hofer,et al.  The effect of lean production on financial performance: The mediating role of inventory leanness , 2012 .

[108]  Ana Beatriz,et al.  Relationships between operations strategy and lean manufacturing: An exploratory study , 2013 .

[109]  Jay Jina,et al.  Applying lean principles for high product variety and low volumes: some issues and propositions , 1997 .

[110]  Pietro Romano,et al.  The Impact of Supply Chain Integration on Responsiveness: the Moderating Effect of Using an International Supplier Network , 2013 .

[111]  Soo Wook Kim,et al.  Manufacturing Practices and Strategy Integration: Effects on Cost Efficiency, Flexibility, and Market-Based Performance , 2005, Decis. Sci..

[112]  S. S. Rao,et al.  SUPPLY MANAGEMENT, SUPPLY FLEXIBILITY AND PERFORMANCE OUTCOMES: AN EMPIRICAL INVESTIGATION OF MANUFACTURING FIRMS , 2010 .

[113]  Ma Ga Yang,et al.  Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms , 2011 .

[114]  J. Winch,et al.  Supply Chain Management: Strategy, Planning, and Operation , 2003 .

[115]  D. Towill,et al.  Supply chain migration from lean and functional to agile and customised , 2000 .

[116]  Chun Zhang,et al.  Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market? , 2003 .

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

[118]  Barbara B. Flynn,et al.  Relationship Between JIT and TQM: Practices and Performance , 1995 .