Development of lean manufacturing implementation framework in machinery and equipment of small and medium enterprises

• Main Author: Chong, Jia Yuik
• Format: Thesis
• Language: English; English
• Published: 2021
• Subjects: T Technology (General); TS Manufactures
• Online Access: http://eprints.utem.edu.my/id/eprint/25982/; https://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=121062

Small and Medium Enterprises (SMEs) form the economic backbone of a country. Similarly, lean manufacturing (LM) has been proven as one of the useful methodologies used in creating value-add to customers and eliminating unnecessary waste. However, the adoption of LM in SMEs is not as vigorous compared to large-scaled organisations. A variety of LM implementation frameworks have been developed in different industries worldwide, but they still lack attention to suit the needs of SMEs. As such, this phenomenon should be investigated more contextually and specifically in an industry cluster. The primary objective of this study is to develop an effective LM implementation framework, which serves as a practical guideline, specifically for machinery and equipment (M&E) SMEs. The present extent of LM implementation in M&E SMEs and critical success factors (CSFs) is presented in this study which employed a mixed-method approach incorporating qualitative research as the main approach supported by quantitative research. Open-ended questions were used in conducting semi-structured interviews with selected multiple case studies involving SME respondents from the different management level. The thematic analysis method was utilised to analyse the qualitative data. Additionally, closed-ended survey questionnaires were employed for the descriptive and statistical data analysis to confirm and validate the results. The findings suggest that the current extent of LM understanding and implementation remains low to moderate, and the success achieved has been imbalanced. The most common challenges faced were related to human resource management (HRM) issues and the employee’s level of understanding in adopting lean. The identified predominant CSFs revealed through the analysis and interviews with respondents showed that the importance leading to the success of LM implementation include commitment and leadership of senior- top management, employee training to upgrade skills and expertise, employee involvement and empowerment, and the establishment and implementation of a practical LM framework for SMEs. Aside from that, SMEs revealed that the essence of customer focus could not be ignored. The lean model and strategic LM implementation framework were developed based on a systematic literature review and derived from the practical lean experiences of the three case companies. The conceptual lean model presents a simple and easy to understand structure for M&E SMEs to have an overview of LM implementation in the organisations for strategic planning. The proposed framework consisted of four implementation stages and 22 essential components to cater to the characteristics and features of SMEs. This validated LM framework has covered most of the necessary essential elements, understandable and can be implementable in M&E SMEs for industrial application. The Plan-Do-Check-Act (PDCA) Cycle served as a step-by-step practical approach and offered operational guidance aligned with company management systems. This comprehensive framework would help to ease the effort of SMEs lean practitioners in starting their lean implementation and transformation journey systematically and improve the organisation’s performances towards achieving a high degree of success.