Lean Operations for Performance Excellence

• Main Authors: Nawanir, Gusman, Lim, Kong Teong, Maarof, Mohd Ghazali
• Format: Book
• Language: English
• Published: Suara UMP 2020
• Subjects: H Social Sciences (General)
• Online Access: http://umpir.ump.edu.my/id/eprint/31034/1/Lean%20Operations%20for%20Performance%20Excellence.jpg; http://umpir.ump.edu.my/id/eprint/31034/; https://mohbeli.com/product/lean-operations-for-performance-excellence/
• Institution: Universiti Malaysia Pahang

Originated from the shop floors of the Japanese automobile industry, in particular, Toyota Motor Corporation (TMC), in the late 1950s to early 1960s (Monden, 1983; Ohno, 1988), lean manufacturing has received much attention all over the world. The success of the TMC in implementing lean manufacturing attracted other Japanese manufacturers since 1973, as Toyota gained huge profits, while others suffered several losses. This encouraged other manufacturers to implement the same principles to leverage their organizational performance. Remarkably, sparked by the superiority of lean manufacturers in Japan; starting from the early 1980s, the principles of lean manufacturing were actively imported by the US and European manufacturers, in attempting to replicate the success of Japanese automobile industries. Surprisingly, lean manufacturing has meaningfully influenced the achievement of the US and European manufacturers. Even Krafcik (1989) acknowledged that high organizational performance depends largely on generating a lean manufacturing system. It has become a gold standard of modern operations management. Moreover, it has been widely claimed as a powerful approach to enhance companies’ performance. Nowadays, the success of lean manufacturers in Japan, the US, and Europe inspired manufacturers all over the world to adapt and emulate lean manufacturing principles. In the past three decades, experiences on lean manufacturing mainly came from developed countries, such as Japan, the US, and UK (Chang & Lee, 1995; Flynn, Sakakibara, & Schroeder, 1995; Huson & Nanda, 1995; Nakamura, Sakakibara, & Schroeder, 1998; Sakakibara, Flynn, Schroeder, & Morris, 1997). Recently, there was a significantly increasing number of industries employing these principles in the developing countries, such as China (Chen & Tan, 2011; Taj & Morosan, 2011), India (Singh & Ahuja, 2014; Thanki & Thakkar, 2014), Malaysia (Agus & Hajinoor, 2012; Nordin, Deros, & Wahab, 2010), and Indonesia (Nawanir, Lim, Othman, & Adeleke, 2018; Susilawati, Tan, Bell, & Sarwar, 2011). Lean manufacturing has proven its value far beyond its original industry; it is now applied in a wide variety of industries, not only manufacturing industries but also service industries; not only in large companies but also in small and medium enterprises (SMEs). This book provides an understanding of the potential effects of lean manufacturing on operations performance and business performance. It is indicated that to achieve the potential benefits of lean manufacturing, it must be implemented holistically, not piecemeal. Applying lean manufacturing practices in isolation or a limited subset could be unsuccessful in achieving the desired performance, it can even cause failures. The holistic implementation of lean manufacturing positively affects operations performance and business performance. Besides, operations performance positively contributes to the enhancement of the business performance of the companies. More importantly, operations performance complementary mediates the effects of lean manufacturing on business performance, in which both direct and indirect effects do exist and point in the same direction (i.e., positive effects). Hence, the higher the level of lean manufacturing implementation, the higher the operations performance and business performance. This book could be a stepping stone in dealing with manufacturing issues, especially in developing countries. It is also expected; the book can contribute to the manufacturers throughout the world with the significant and necessary advantages to compete globally.