SCRUTINIZING THE IMPACT OF ESSENTIAL LEAN METHODS ON SUSTAINABLE PERFORMANCE IN MALAYSIAN MANUFACTURING FIRMS

Authors

  • Muhammad Harith Zainal Abidin Department of Mechanical and Manufacturing Engineering, UPM, 43400, Serdang, Malaysia https://orcid.org/0000-0002-3373-0611
  • Zulkiflle Leman Department of Mechanical and Manufacturing Engineering, UPM, 43400, Serdang, Malaysia
  • Zainal Abidin Mohd Yusof Department of Chemical Engineering Technology, Universiti Kuala Lumpur MICET, Lot 1988, Bandar Vendor 70800, Alor Gajah Melaka, Malaysia
  • Md Yusof Ismail Department of Manufacturing and Materials Engineering, UIAM, Jalan Gombak, 53100, Selangor, Malaysia https://orcid.org/0000-0002-3373-0611

DOI:

https://doi.org/10.11113/jurnalteknologi.v84.18413

Keywords:

Lean Manufacturing, Structural Equation Modelling, Total Productive Maintenance, Continuous Improvement, Just-In-Time, Sustainable Performance

Abstract

Despite the fact that Malaysian manufacturing firms have implemented lean manufacturing principles to reduce resource waste and focus on customer demand, they still lack statistically validated lean manufacturing models to guide them in enhancing the sustainability of their businesses. This paper conducts empirical research of the multi-dimensionality of essential Lean Manufacturing (LM) methods (i.e., Total Productive Maintenance (TPM), Continuous Improvement (CI), and Just-In-Time (JIT)) and their association with sustainable performance (SP). 69 of 121 respondents’ usable surveys were collected from manufacturing sectors that are recognised by the Negeri Sembilan Investment Centre (NSIC). They are made up of small, medium, and large businesses. The structural relationship of constructs was validated using the Structural Equation Modelling (SEM). For direct linkages between LM Methods with Sustainable Performance, the JIT is the most significant determinant, and for the inter-relationship between LM Methods, the Continuous Improvement and TPM, both were significantly inter-connected, depend on one another. In terms of LM implementation, the developed model contributes to the well-being and comprehension of practitioners engaged in top management. Sustainable indicators for manufacturing organization decision makers to ensure that the LM implementation is compatible with the sustainability impact.

References

Arya, C., Amiri, A., & Vassie, P. 2015. A New Method for Evaluating the Sustainability of Bridges. Proceedings of the Institution of Civil Engineers-Structures and Buildings. 168(6): 441-453.

DOI: https://doi.org/10.1680/stbu.14.00069.

Jobin, M. V., Ramanan, T. R., & Sridharan, R. 2021. Forecasting Structural Equation Modelling of Lean Manufacturing Using High Order Statistical Functions. International Journal of Integrated Supply Management. 14(3): 291-305.

DOI: https://www.inderscienceonline.com/doi/abs/10.1504/IJISM.2021.117240.

Pinto Junior, M. J. A., & Mendes, J. V. 2017. Operational Practices of Lean Manufacturing: Potentiating Environmental Improvements. Journal of Industrial Engineering and Management (JIEM). 10(4): 550-580.

DOI: http://dx.doi.org/10.3926/jiem.2268.

Rose, A. N. M., Ab Rashid, M. F. F., Mohamed, N. N., & Ahmad, H. 2017. Similarities of Lean Manufacturing Approaches Implementation in SMEs Towards the Success: Case Study in the Automotive Component Industry. MATEC Web of Conferences. EDP Sciences. 87: 02024.

https://doi.org/10.1051/matecconf/20178702024.

Ahmad, N., Hossen, J., & Ali, S. M. 2018. Improvement of Overall Equipment Efficiency of Ring Frame through Total Productive Maintenance: A Textile Case. The International Journal of Advanced Manufacturing Technology. 94(1): 239-256.

DOI: https://link.springer.com/article/10.1007/s00170-017-0783-2.

Henao, R., Sarache, W., & Gómez, I. 2019. Lean Manufacturing and sustainable Performance: Trends and Future Challenges. Journal of Cleaner Production. 208: 99-116.

DOI: https://doi.org/10.1016/j.jclepro.2018.10.116.

Cherrafi, A., Elfezazi, S., Chiarini, A., Mokhlis, A., & Benhida, K. 2016. The Integration of Lean Manufacturing, Six Sigma and Sustainability: A Literature Review and Future Research Directions for Developing a Specific Model. Journal of Cleaner Production. 139: 828-846.

DOI: https://doi.org/10.1016/j.jclepro.2016.08.101.

Geng, R., Mansouri, S. A., & Aktas, E. 2017. The Relationship Between Green Supply Chain Management and Performance: A Meta-analysis of Empirical Evidences in Asian Emerging Economies. International Journal of Production Economics. 183: 245-258.

DOI: https://doi.org/10.1016/j.ijpe.2016.10.008.

Verrier, B., Rose, B., Caillaud, E., & Remita, H. 2014. Combining Organizational Performance with Sustainable Development Issues: The Lean and Green Project Benchmarking Repository. Journal of Cleaner Production. 85: 83-93.

DOI: https://doi.org/10.1016/j.jclepro.2013.12.023x.

Rocha-Lona, L., Alvarez-Reyes, S. E., Eldridge, S., Garza-Reyes, J. A., & Kumar, V. 2013. Lean Six Sigma Supply Chain Case Study: Aircraft Shipment Improvement in a Pharmaceutical Company. Advances in Sustainable and Competitive Manufacturing Systems. Springer, Heidelberg. 1475-1487.

DOI: https://doi.org/10.1007/978-3-319-00557-7119.

Yadav, V., Jain, R., Mittal, M. L., Panwar, A. and Lyons, A. 2019. The Impact of Lean Practices on the Operational Performance of SMEs in India. Industrial Management & Data Systems. 119(2): 317-330.

DOI: https://doi.org/10.1108/IMDS-02-2018-0088.

Laufs, U., Filipiak, K. J., Gouni-Berthold, I., Catapano, A. L., Mandraffino, G., & Benlian, P. 2017. Practical Aspects in the Management of Statin-associated Muscle Symptoms (SAMS). Atherosclerosis Supplements. 26: 45-55.

DOI: https://doi.org/10.1016/S1567-5688(17)30024-7.

Carlos Pinho, J. 2008. TQM and performance in small medium enterprises: The Mediating Effect of Customer Orientation and Innovation. International Journal of Quality & Reliability Management. 25(3): 256-275.

DOI: https://doi.org/10.1108/02656710810854278.

Ates, A., & Bititci, U. 2011. Change Process: A Key Enabler for Building Resilient SMEs. International Journal of Production Research. 49(18): 5601-5618.

DOI: https://doi.org/10.1080/00207543.2011.563825.

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.

DOI: https://doi.org/10.1080/00207543.2014.903348.

Garza-Reyes, J. A., Kumar, V., Chaikittisilp, S., & Tan, K. H. 2018. The Effect of Lean Methods and Tools on the Environmental Performance of Manufacturing Organisations. International Journal of Production Economics. 200: 170-180.

DOI: https://doi.org/10.1016/j.ijpe.2018.03.030.

Ben Ruben, R., Vinodh, S., & Asokan, P. 2017. Implementation of Lean Six Sigma Framework with Environmental Considerations in an Indian Automotive Component Manufacturing Firm: A Case Study. Production Planning & Control. 28(15): 1193-1211.

DOI: https://doi.org/10.1080/09537287.2017.135721.

Yang, M. G. M., Hong, P., & Modi, S. B. 2011. Impact of Lean Manufacturing and Environmental Management on Business Performance: An Empirical Study of Manufacturing Firms. International Journal of Production Economics. 129(2): 251-261.

DOI: https://doi.org/10.1016/j.ijpe.2010.10.017.

Kleindorfer, P. R., Singhal, K., & Van Wassenhove, L. N. 2005. Sustainable Operations Management. Production and Operations Management. 14(4): 482-492.

DOI: https://doi.org/10.1111/j.1937-5956.2005.tb00235.x.

Laufs, U., Filipiak, K. J., Gouni-Berthold, I., Catapano, A. L., Mandraffino, G., Benlian, P. (2017. Practical Aspects in the Management of Statin-associated Muscle Symptoms (SAMS). Atherosclerosis Supplements. 26: 45-55.

Pinho, J. C. 2008. TQM and Performance in Small Medium Enterprises: The Mediating Effect of Customer Orientation and Innovation. International Journal of Quality and Reliability Management. 25(3): 256-275.

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): 346-5366.

Garza-Reyes, J. A., Kumar, V., Chaikittisilp, S., & Tan, K. H. 2018. The Effect of Lean Methods and Tools on the Environmental Performance of Manufacturing Organisations. International Journal of Production Economics. 200: 170-180.

Cua, K. O., McKone-Sweet, K. E., & Schroeder, R. G. 2006. Improving Performance through an Integrated Manufacturing Program. Quality Management Journal.45-60.

Abdallah, A., & Matsui, Y. 2007. JIT and TPM. Their Relationship and Impact on JIT and Competitive Performances, Yokohama National University, International Graduate School of Social Sciences, Yokohama National University. 1(9): 1-18.

Teeravaraprug, J., Kitiwanwong, K., & Saetong, N. 2011. Relationship Model and Supporting Activities of JIT. TQM and TPM. 33(1): 101-106.

Hailu, H., Mengstu, S., & Hailu, T. 2018. An integrated Continuous Improvement Model of TPM, TPS and TQM for Boosting Profitability of Manufacturing Industries: An Innovative Model & Guideline. Management Science Letters. 8(1): 33-50.

Habidin, N. F., & Yusof, S. M. 2013. Critical Success Factors of Lean Six Sigma for the Malaysian Automotive Industry. International Journal of Lean Six Sigma. 4(1): 60-82.

Kaur, M., Singh, K., & Ahuja, I. S. 2013. An Evaluation of the Synergic Implementation of TQM and TPM Paradigms on Business Performance. International Journal of Productivity and Performance Management. 62(1): 66-84.

Green, K. W., Inman, R. A., Sower, V. E. and Zelbst, P. J. 2019. Impact of JIT, TQM and Green Supply Chain Practices on Environmental Sustainability. Journal of Manufacturing Technology Management. 30(1): 26-47.

Bashar, Abul, and Ahsan Akhtar Hasin. 2019. Impact of JIT Production on Organizational Performance in the Apparel Industry in Bangladesh. Proceedings of the 2019 International Conference on Management Science and Industrial Engineering. 184-189.

Phan, Anh Chi, Ha Thu Nguyen, Hao Anh Nguyen, and Yoshiki Matsui. 2019. Effect of Total Quality Management Practices and JIT Production Practices on Flexibility Performance: Empirical Evidence from International Manufacturing Plants. Sustainability. 11: 3093.

Chan, C. O., & Tay, H. L. 2018. Combining Lean Tools Application in Kaizen: A Field Study on the Printing Industry. International Journal of Productivity and Performance Management. 67(1): 45-65.

Dhingra, A. K., Kumar, S., & Singh, B. 2019. Cost Reduction and Quality Improvement through Lean-Kaizen Concept Using Value Stream Map in Indian Manufacturing Firms. International Journal of System Assurance Engineering and Management. 10(4): 792-800.

Kumar, S., Dhingra, A., & Singh, B. 2018. Lean-Kaizen Implementation: A Roadmap for Identifying Continuous Improvement Opportunities in Indian Small and Medium Sized Enterprise. Journal of Engineering, Design and Technology. 16(1): 143-160.

Zahoor, S., Abdul-Kader, W., Ijaz, H., Khan, A. Q., Saeed, Z., & Muzaffar, S. 2019. A Combined VSM and Kaizen Approach for Sustainable Continuous Process Improvement. International Journal of Industrial Engineering. 1(2): 125-137.

Hussain, K., He, Z., Ahmad, N., & Iqbal, M. 2019. Green, Lean, Six Sigma Barriers at a Glance: A Case from the Construction Sector of Pakistan. Building and Environment. 161: 106225.

Glover, W. J., Farris, J. A., & Van Aken, E. M. 2015. The Relationship between Continuous Improvement and Rapid Improvement Sustainability. International Journal of Production Research. 53(13): 4068-4086.

Akanmu, M. D., Hassan, M. G., & Bahaudin, A. Y. B. 2020. A Preliminary Analysis Modeling of the Relationship between Quality Management Practices and Sustainable Performance. Quality Management Journal. 27(1): 37-61.

Vinodh, S., & Joy, D. 2012. Structural Equation Modelling of Lean Manufacturing Practices. International Journal of Production Research. 50(6): 1598-1607.

DOI: https://doi.org/10.1080/00207543.2011.560203.

Khalili, A., Ismail, M. Y., & Karim, A. N. M. 2017. Integration of Lean Manufacturing and Quality Management System through Structural Equation Modelling. International Journal of Productivity and Quality Management. 20(4): 534-556.

DOI: https://www.inderscienceonline.com/doi/abs/10.1504/IJPQM.2017.082835.

Creswell, J. W. 2011. Controversies in Mixed Methods Research. The Sage Handbook of Qualitative Research. 4: 269-284.

Cua, K. O., McKone, K. E., & Schroeder, R. G. 2001. Relationships between Implementation of TQM, JIT, and TPM and Manufacturing Performance. Journal of Operations Management. 19(6): 675-694.

DOI: https://doi.org/10.1016/S0272-6963(01)00066-3.

Singh, A. S., & Masuku, M. B. 2014. Sampling Techniques & Determination of Sample Size in Applied Statistics Research: An Overview. International Journal of Economics, Commerce and Management. 2(11): 1-22.

Yusoff, S and Sazali Said. 2018. Lean Manufacturing Implementation from the Perspective of Small and Medium Enterprises. International Journal of Innovative Science and Research Technology. 3(10): 446-450.

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): 346-5366.

Zainuddin, A. 2014. Research Methodology and Data Analysis. Kuala Lumpur: Penerbit UITM Press.

Masoumik, S. M., Abdul-Rashid, S. H., Olugu, E. U., & Raja Ghazilla, R. A. (2014). Sustainable Supply Chain Design: A Configurational Approach. The Scientific World Journal. 1-16. DOI: https://doi.org/10.1155/2014/897121.

Khanchanapong, T., Prajogo, D., Sohal, A. S., Cooper, B. K., Yeung, A. C., & Cheng, T. C. E. 2014. The Unique and Complementary Effects of Manufacturing Technologies and Lean Practices on Manufacturing Operational Performance. International Journal of Production Economics. 153: 191-203.

DOI: https://doi.org/10.1016/j.ijpe.2014.02.021.

Cooper, C. R. & Schindler, P. S. 2011. Business Research Methods. 11th ed. New York: McGraw-Hill.

Hair, J. F., Tatham, R. L., Anderson, R. E. & Black, W. C. 1995. Multivariate Data Analysis. 4th ed. New York, NY: Prentice Hall.

Tabachnick, B. G., Fidell, L. S., & Ullman, J. B. 2007. Using Multivariate Statistics. Boston, MA: Pearson. 5: 481-498.

Hair, J. F., Celsi, M., Ortinau, D. J., & Bush, R. P. 2010. Essentials of Marketing Research. Vol. 2. New York, NY: McGraw-Hill/Irwin.

Zainudin, A. 2015. A Handbook on SEM for Academicians and Pratitioners. Bangi: MPWS Rich Publication

Martinez-Conesa, I., Soto-Acosta, P. and Carayannis, E. G. 2017. On the Path Towards Open Innovation: Assessing the Role of Knowledge Management Capability and Environmental Dynamism in SMEs. Journal of Knowledge Management. 21(3): 553-570.

DOI: https://doi.org/10.1108/JKM-09-2016-0403.

Byrne, B. M. 2010. SEM Modeling with AMOS: Basic Concepts, Applications, and Programming. 2nd ed. New York, NY: Routledge.

DOI: https://doi.org/10.1108/JKM-09-2016-0403.

Kline, R. B. 1998. Principles and Practice of Structural Equation Modeling. New York, NY: Guilford Press.

Abdallah, A., & Matsui, Y. 2007. JIT and TPM . Their Relationship and Impact on JIT and Competitive Performances, Yokohama National University, International Graduate School of Social Sciences, Yokohama National University. 1(9): 1-18.

Alhamdi, M., Alnoor, A., Eneizan, B., Abdulla, M., & Abdulaali, A. R. 2019. Determinants of the Production System Time (JIT) on Reduce Waste: Case Study in a Salsal Water Company. International Journal of Academic Research in Business and Social Sciences. 9(7): 17-32.

Chiu, Y., Yang, C. H., & Lin, P. C. 2017. A Just-in-Time Inventory Model with Preventive Maintenance and Defect Rate. International Journal of Information Systems and Supply Chain Management (IJISSCM). 10(4): 44-60.

DOI: 10.4018/IJISSCM.2017100103.

Zolkafli, U. K., Zakaria, N., & Danuri, M. S. M. 2021. The Adoption of Total Productive Maintenance (TPM) Concept for Maintenance Procurement of Green Buildings in Malaysia. International Journal of Sustainable Construction Engineering and Technology. 12(1): 40-55.

https://publisher.uthm.edu.my/ojs/index.php/IJSCET/article/view/6293.

Heredia-Mercado, R., Flores-Piñas, S., Chavez, P., & Raymundo, C. 2021. Lean Manufacturing Production Management Model Under a Change Management Approach to Enhance Production Efficiency of Textile and Clothing SMEs. International Conference on Intelligent Human Systems Integration. Springer, Cham. 766-772.

DOI: https://link.springer.com/chapter/10.1007/978-3-030-68017-6_114.

Okpala, C., Anozie, S., & Ezeanyim, O. 2018. The Application of Tools and Techniques of Total Productive Maintenance in Manufacturing. Int. J. Eng. Sci. Comp. 8(6).

Kapuria, T. K., Rahman, M., & Haldar, S. 2017. Root Cause Analysis and Productivity Improvement of an Apparel Industry in Bangladesh through Kaizen Implementation. Journal of Applied Research on Industrial Engineering. 4(4): 227-239.

DOI: https://dx.doi.org/10.22105/jarie.2017.108637.1025.

Habidin, N. F., Hashim, S., Fuzi, N. M. and Salleh, M. I. 2018. Total Productive Maintenance, Kaizen Event, and Performance. International Journal of Quality & Reliability Management. 35(9): 1853-1867.

DOI: https://doi.org/10.1108/IJQRM-11-2017-0234.

Reyes, J., Alvarez, K., Martínez, A., & Guamán, J. 2018. Total Productive Maintenance for the Sewing Process in Footwear. Journal of Industrial Engineering and Management. 11(4): 814-822.

DOI: http://dx.doi.org/10.3926/jiem.2644.

Erkayman, B. 2019. Transition to a JIT Production System through ERP Implementation: A Case from the Automotive Industry. International Journal of Production Research. 57(17): 5467-5477.

DOI: https://doi.org/10.1080/00207543.2018.1527048.

Mukwakungu, S. C., Mabasa, M. D., Mankazana, S., Mzileni, X., & Burakeye, S. A. 2019. The Impact of Just in Time (JIT) in Inventory Management–Perspectives from Two Case Studies in a South African Environment. Proceedings of the International Conference on Industrial Engineering and Operations Management. 5(7): 1271-1278.

Maheshwar, C. Y., & Javalagi, C. M. 2018. Application of Structural Equation Modeling to Establish Causal Relationships among Factors Affecting Enterprise Resource Planning (Erp) Implementation. Int. Journal of Engineering Research and Application. 8(3): 71-83.

Singh, T. P., & Ahuja, I. S. 2017. Evaluating Manufacturing Performance through Strategic Total Productive Maintenance Implementation in a Food Processing Industry. International Journal of Productivity and Quality Management. 21(4): 429-442.

DOI: https://www.inderscienceonline.com/doi/abs/10.1504/IJPQM.2017.085253.

Tesfaye, G., & Kitaw, D. 2017. A TQM and JIT Integrated Continuous Improvement Model for Organizational Success: An Innovative Framework. Journal of Optimization in Industrial Engineering. 22: 15-23.

Mardani, A., Nikoosokhan, S., Moradi, M., & Doustar, M. 2018. The Relationship between Knowledge Management and Innovation Performance. The Journal of High Technology Management Research. 29(1): 12-26.

DOI: https://doi.org/10.1016/j.hitech.2018.04.002.

Frempong, L. N., Agbenyo, W., & Darko, P. A. 2018. The Impact of Job Satisfaction on Employees’ Loyalty and Commitment: A Comparative Study among Some Selected Sectors in Ghana. European Journal of Business and Management. 10(12): 95-105.

Ariussanto, K. A. P., Tarigan, Z. J. H., Sitepu, R. B., & Singh, S. K. 2020. Leadership Style, Employee Engagement, and Work Environment to Employee Performance in Manufacturing Companies. SHS Web of Conferences. EDP Sciences. 76: 01020.

DOI: https://doi.org/10.1051/shsconf/20207601020.

Ozoekwe, Christiana, and K. T. Konya. 2021. Leaders’ Emotional Intelligence and Workplace Harmony in Manufacturing Companies in Port Harcourt, Rivers State, Nigeria. International Journal of Management Sciences. 9(1): 59-72.

Adil, M. S., & Ab Hamid, K. B. 2020. Effect of Teamwork on Employee Performance in High-Tech Engineering SMEs of Pakistan: A Moderating Role of Supervisor Support. South Asian Journal of Management. 14(1): 122-141.

Badar, M. Z., & Sari, D. K. 2019. Impact of Teamwork and Compensation on Employee Performance in Manufacturing Companies in Pasuruan, Indonesia. Indonesian Journal of Law and Economics Review. 4.

Downloads

Published

2022-07-26

Issue

Section

Science and Engineering

How to Cite

SCRUTINIZING THE IMPACT OF ESSENTIAL LEAN METHODS ON SUSTAINABLE PERFORMANCE IN MALAYSIAN MANUFACTURING FIRMS. (2022). Jurnal Teknologi (Sciences & Engineering), 84(5), 11-25. https://doi.org/10.11113/jurnalteknologi.v84.18413