Assessing the moderating role of the extent of implementation of lean methods in predicting productivity improvement

Abstract

Purpose The study aims to explore the argument of implementing the lean method to part or whole of an operation by examining the moderating impact of varying levels of the extent of implementation of four different lean methods, along with their functionalities, in predicting productivity improvement (PI). Design/methodology/approach As the focus of understanding the efficacy of lean principles is shifting from process to industry level, this study tried to generalize the approach by gathering data from 132 large Indian auto component manufacturers. This involves an assessing/monitoring approach rather than measurement. Findings Results highlighted the interdependence or individuality of the extent of implementation of lean methods and their functionalities. Findings revealed a significant moderating effect in improving productivity to a greater extent of 50%. Research limitations/implications Adopting an assessment approach to a measurement study provides a noteworthy contribution to bridging theory and practical consequences. The findings can be appropriately extrapolated to medium and small enterprises forming a critical connection in the entire automobile manufacturing ecosystem. Practical implications The study showed that even if a lean method is applied to a certain extent of operations the chances of PI are significant. This is important for decision makers as they confront problems of optimum resource allocation. Social implications PI, reduced cost and generalization of results would enable the auto component industry to become more competitive. Originality/value The examination of the moderation effect of a lean principle implementation extent, along with that of its functionalities to predict the improvement in productivity from its existing level, is a major outcome of this study.