Lean manufacturing performance in Indian manufacturing plants

Abstract

Abstract Purpose – The purpose of this paper is to examine the current state of lean adoption in Indian manufacturing plants and its impact on operational performance. Design/methodology/approach – A survey questionnaire was developed and adapted based on work done in US industries. The survey questionnaire was sent to 400 firms in four geographic regions in India. In total, 79 usable responses were received for the study. Findings – Since lean manufacturing is a multi‐dimensional construct, the results demonstrate that approximately 80 percent of the respondents have implemented many dimensions of lean – focus on customer needs, pull system, setup time reduction, total productive maintenance, supplier performance, statistical process control, and cross‐departmental problem solving. The operational metrics have improved on all accounts: high productivity, reduced lead time, improved first‐pass correct output, reduced inventory and space requirement. Interestingly, respondents have indicated that first‐pass correct output, reduced manufacturing lead time, and increased productivity are the three main drivers of lean implementation. Research limitations/implications – Since the sample size is not very large, the results need to be considered with caution. Originality/value – Lean manufacturing is a very popular concept in the developed world and in some countries in the developing world as well. Yet, little is known about its current status in India, except for a few case studies. The study investigates the degree of lean production implementation in Indian manufacturing plants and its impact on operational metrics. The study also indicates the relationship between lean dimensions/practices and operational outcomes.