Lean Manufacturing

Topics: Lean manufacturing, Manufacturing, Six Sigma Pages: 16 (5092 words) Published: July 5, 2009
The current issue and full text archive of this journal is available at www.emeraldinsight.com/1741-038X.htm

JMTM 17,4

Critical success factors for lean implementation within SMEs Pius Achanga, Esam Shehab, Rajkumar Roy and Geoff Nelder
Department of Enterprise Integration, School of Industrial and Manufacturing Science, Centre for Decision Engineering, Cranfield University, Cranfield, UK Abstract
Purpose – The aim of this research paper is to present the critical factors that constitute a successful implementation of lean manufacturing within manufacturing SMEs. Design/methodology/approach – A combination of comprehensive literature review and visits to ten SMEs based in the East of the UK were employed in the study. The companies’ practices were observed to highlight the degree of lean manufacturing utilisation within these companies. This was followed by interviewing of the relevant and key personnel involved in lean implementation. Results were analysed and validated through workshops, case studies and Delphi techniques. Findings – Several critical factors that determine the success of implementing the concept of lean manufacturing within SMEs are identified. Leadership, management, finance organisational culture and skills and expertise, amongst other factors; are classified as the most pertinent issues critical for the successful adoption of lean manufacturing within SMEs environment. Research limitations/implications – Continued scepticism within SMEs about the benefits of lean to their business is one of the fundamental limitations this research faces. SMEs are, therefore, not very willing to provide useful information and data, timely for further investigation. Originality/value – The novelty of this research project stems from the realisation of critical factors determining a successful implementation of lean manufacturing within SMEs environment. The results would provide SMEs with indicators and guidelines for a successful implementation of lean principles. Keywords Lean production, Small to medium-sized enterprises, Critical success factors Paper type Research paper

Received October 2005 Revised November 2005 Accepted December 2005

Introduction Globalisation and emerging technologies are having enormous impacts on the manufacturing industry around the world. This scenario has seen the exponential upsurge in new entrants to the market environment, prompting stiff competition in the market place (Umble et al., 2003). Many SMEs are vulnerable in that they operate in sectors where there are few barriers to new entrants and where they have little power to dictate to suppliers their needs as shown in Figure 1. This scenario puts SMEs in a very precarious position since they must operate in a very reactive manner to ever changing circumstances. As a result, the manufacturing environment in the UK is witnessing a decline in the number of manufacturing SMEs, as work is transferred to far east and elsewhere, in search of cheaper operating costs. However, SMEs are valued as part of the business ecology Journal of Manufacturing Technology Management Vol. 17 No. 4, 2006 pp. 460-471 q Emerald Group Publishing Limited 1741-038X DOI 10.1108/17410380610662889

The authors would like to thank the Engineering Physical Science Research Council (EPSRC) and the MAS in the East of the UK (MAS-East) for sponsoring this research project. Special appreciation is also extended to members of the Cranfield University Centre for Decision Engineering for their valuable support and resourcefulness.

Critical success factors for lean implementation 461

Figure 1. Porter’s five forces

for their role in the sustenance of most national economies, and are an important element of governmental strategies (Achanga et al., 2005a, b; Denton and Hodgson, 1997; Levy, 1993). The Department of Trade and Industry (DTI) in the UK commissioned a productivity improvement initiative known as the Manufacturing Advisory Service (MAS), to...

References: Achanga, P., Taratoukhine, V., Roy, R. and Nelder, G. (2004), “The application of lean manufacturing within small and medium sized enterprises: what are the impediments?”, paper presented at the 2nd International Conference on Manufacturing Research (ICMR 2004), Sheffield Hallam University, Sheffield. Achanga, P., Shehab, E., Roy, R. and Nelder, G. (2005a), “Lean manufacturing to improve cost-effectiveness of SMEs”, Proceedings of the Seventh International Conference on Stimulating Manufacturing Excellence in Small and Medium Enterprises, University of Strathclyde, Glasgow. Achanga, P., Shehab, E., Roy, R. and Nelder, G. (2005b), “Lean manufacturing for SMEs: enabling rapid response to demand changes”, paper presented at the 15th International Conference on Engineering Design, Melbourne. Al-Mashari, M., Al-Mudimigh, A. and Zairi, M. (2003), “Enterprise resource planning: taxonomy of critical factors”, European Journal of Operational Research, Vol. 146, pp. 352-64. Antony, J. and Banuelas, R. (2001), “A strategy for survival”, Manufacturing Engineer, Vol. 80 No. 3, pp. 119-21. Baker, R.C. (1996), “Value chain development. An account of some implementation problems”, International Journal of Production Management, Vol. 16 No. 10, pp. 23-36. Bicheno, J. (2000), Cause and Effect Lean. Lean Operations, Six Sigma and Supply Chain Essentials, PICSIE Books, Buckingham. Bicheno, J. (2004), The New Lean Toolbox Towards Fast and Flexible Flow, PICSIE Books, Buckingham. Bozdogan, K., Milauskas, R. and Nightingale, D. (2000), “Transition to a lean enterprise”, A Guide for Leaders,Vol. 1, Massachusetts Institute of Technology, Cambridge, MA. Bruun, P. and Mefford, R.N. (2004), “Lean production and the internet”, International Journal of Production Economics, Vol. 89 No. 3, pp. 247-60. Conner, G. (2001), Lean Manufacturing for the Small Shop, Society of Manufacturing Engineers, Dearborn, MI. Cook, C.R. and Graser, J.C. (2001), The Effects of Lean Manufacturing, RAND Publishers, Santa Monica, CA. Coronado, R.B. and Antony, J. (2002), “Critical success factors for the successful implementation of six sigma projects in organisations”, The TQM Magazine, Vol. 14 No. 2, pp. 92-9.
Critical success factors for lean implementation 469
JMTM 17,4
Creese, R.C. (2000), “Cost management in lean manufacturing enterprises”, AACE International Transactions, West Virginia University, Morgantown, WV. Denton, P.D. and Hodgson, A. (1997), “Implementing strategy-led BPR in a small manufacturing company”, paper presented at the Fifth International Conference on FACTORY 2000 – The Technology Exploitation Process Conference Publication No. 435, pp. 1-8. Eckes, G. (2000), The Six Sigma Revolution, Wiley, New York, NY. Hayes, B.J. (2000), “Assessing for lean six sigma implementation and success”, Six Sigma Advantage, available at: http://software.isixsigma.com/ (accessed 10 October 2005). Henderson, K. and Evans, J. (2000), “Successful implementation of six sigma: benchmarking general electric company”, Benchmarking: An International Journal, Vol. 7 No. 4, pp. 260-81. Holland, C.P. and Light, B. (1999), “A critical success factors model for ERP implementation”, FOCUS, IEEE Software, May/June, pp. 30-5. Iyer, K.C. and Jha, K.N.N. (2004), “Factors affecting cost performance: evidence from Indian construction projects”, International Journal of Project Management, Vol. 23, pp. 283-95. ¨ Kulmala, H., Paranko, J. and Sievanen, M. et al. (2001), “Cost perspectives of product development”, Proceedings of ISPIM The 13th International Conference, Lappeenranta University of Technology, 18-20 June 2001, Lappeenranta. Levy, J. (1993), “Medium-sized enterprises – a recipe for success”, Manufacturing Engineer, Vol. 72 No. 6, pp. 258-9, IEE. Murman, E., Allen, T. and Bozdogan, K. (2002), Lean Enterprise Value-Insights from MIT’s Lean Aerospace Initiative, Palgrave Publishers, New York, NY. Phillips, T. (2000), “The production system design laboratory (PSD)”, available at: http://lean2. mitedu (accessed 1 October 2004). Porter, M.E. (1985), Competitive Advantage of Nations, The Free Press, New York, NY. Roy, R. (2003), “Cost engineering: why, what and how?”, Decision Engineering Report Series, No. 1, Cranfield University, Cranfield, 18 September. Roy, R., Forsberg, S., Kelvesjo, S. and Rush, C. (2001), “Quantitative and qualitative cost estimating for engineering design”, Journal of Engineering Design, Vol. 12 No. 2, pp. 147-62. Safayeni, F., Purdy, L., van Engelen, R. and Pal, S. (1991), “Difficulties of just-in-time implementation: a classification scheme”, International Journal of Operations & Production Management, Vol. 2 No. 7, pp. 27-36. Shehab, E.M. and Abdalla, H.S. (2002), “A design to cost system for innovative product development”, Proceedings of IMechE: Part B, Journal of Engineering Manufacture, Vol. 216, pp. 999-1019. Umble, E.J., Haft, R.R. and Umble, M.M. (2003), “Enterprise resource planning: implementation procedures and critical success factors”, European Journal of Operational Research, Vol. 146, pp. 241-57. Volkoff, O. (1999), “Using the structurational model of technology to analyse an ERP implementation”, Proceedings of AMICS, pp. 235-7. White, R.E. (1999), “An empirical assessment of JIT in US manufacturers”, Production & Inventory Management Journal, Vol. 34 No. 2, pp. 38-42. Womack, J.P. and Jones, D.T. (1996), Lean Thinking, Simon & Schuster, London. Womack, J.P., Jones, D.T. and Rood, D. (1990), The Machine that Changed the World, Macmillan Publishers, The Massachusetts Institute of Technology, Woodridge, IL/Cambridge, MA.
Further reading Burton, T.T. and Boeder, S.M. (2003), The Lean Extended Enterprise, J. Ross Publishing, Fort Lauderdale, FL. About the authors Pius Achanga obtained his BSc degree in Information Technology at the University of Hull and an MSc in the Management Of Manufacturing Systems from Cranfield University. Currently, he is pursuing a three-year doctorate degree in Decision Engineering, with a collaborative effort of Cranfield University and the MAS in the East of the UK (MAS-East). His research is titled: developing a framework for assessing the impacts of lean manufacturing implementation within SMEs. Pius Achanga is the corresponding author and can be contacted at: p.c.achanga@cranfield.ac.uk Esam Shehab is currently a Lecturer in Decision Engineering, having joined the School in 2004. Prior to this, he was a research fellow in the Medway School of Engineering, University of Greenwich, working for a number of years in industry before he joined academia. He obtained both his first degree with first class honour and his master by research in mechanical engineering. He was awarded his PhD from De Montfort University, Leicester with experience in industrial projects with prestigious companies such as Sony Ericsson Mobile Communications. E-mail: e.shehab@cranfield.ac.uk Rajkumar Roy has a background in manufacturing engineering and artificial intelligence. He started his professional career in manufacturing industry back in 1987, and worked in the area of knowledge engineering, decision support and shop floor implementation of expert systems. His research projects have a strong focus on industrial applications. He is currently leading the research in Decision Engineering area at Cranfield. The research theme includes engineering cost estimating, design optimisation and micro-knowledge management. E-mail: r.roy@cranfield.ac.uk Geoff Nelder’s work includes research, teaching and consultancy related to identifying and implementing performance improvements in small and medium-sized manufacturing enterprises. He is currently assigned full-time to the DTI’s MAS as Chief Executive of the Service in the East of the UK. The MAS is tasked with helping manufacturing enterprises to improve their productivity. E-mail: g.nelder@mas-east.org.uk
Critical success factors for lean implementation 471
To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Lean Leadership Essay
  • Lean Sigma dissertation proposal Essay
  • Elements of Lean Manufacturing Paper
  • Sustainability: Lean Manufacturing and Ge Essay
  • Lean Manufacturing: Toyota Production System Essay
  • Lean Six Sigma in Xerox Essay
  • Lean & TQM Essay

Become a StudyMode Member

Sign Up - It's Free