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Purpose The purpose of this paper is to research the way in which Lean practices are affecting the performance of manufacturing small and medium enterprises (SMEs), analyzing the effects of Lean practices on companies’ operational, financial and market performance. Design/methodology/approach An online questionnaire was distributed among Portuguese organizations that fitted the category of SMEs and belonged to the manufacturing sector. A sample of 329 enterprises was analyzed with partial least squares–structural equation modelling. Four hypotheses on the impact of Lean practices on company performance were tested. Findings The results show that the effects of Lean on performance are positive, which stresses the benefits attainable with the implementation of Lean practices. The aggregated implementation of Lean practices, namely, customer involvement, statistical process, continuous flow and total productive maintenance leads to improvements in company’s global performance measured by market, financial and operational performance measures, and also improves each of these performance measures individually. It was also noticed that financial capability is one of the indispensable factors for the successful implementation of Lean practices. Research limitations/implications The results contribute to the investigation on the topic, broadening the literature on the implementation of Lean practices in companies around the world. Practical implications The research outcomes may be used as a motivation for other SMEs to implement Lean practices by acknowledging the positive impact on their performance. Furthermore, the degree of Lean implementation in the particular industry may constitute a signal for government and/or economic decision makers to define incentives such as fiscal benefits for companies that engage in Lean implementation programmes, partly financing workers cross-training, among other necessary investments. Originality/value This is the first study that examines the impact of the effect of Lean on operational, financial and market performance in a discriminated and simultaneous way.

Purpose The purpose of this paper is to better understand the role that leadership plays in the success of Lean management (LM) implementation, by trying to identify what is the impact of the transactional, transformational, directive and empowering leadership styles on the success of such an implementation in Portuguese companies, and what are the most important leaders’ attributes. Design/methodology/approach An on-line questionnaire was distributed to 65 manufacturing and services Portuguese organizations that have implemented LM. Findings The results suggest that the empowering leadership style has a positive impact on the success of LM implementation. Even though results do not allow concluding about the impact of the other styles, several leader’s attributes were identified as having influence: individualized consideration, information sharing, skill development, intellectual stimulation, assigned goals and self-directed decision making. Originality/value Very few studies have addressed the role of leadership in the success of adopting LM and, to the best knowledge, only one paper studied the critical attributes of leaders in LM implementation. Moreover, the present study focuses in Portugal, country where this topic has rarely been investigated.

The retail industry is becoming increasingly competitive; as a result, companies are seeking to reduce inefficiencies in their supply chains. One way of increasing the efficiency of operations inside a warehouse is by better allocating products in the available spaces. In this paper, we propose a new heuristic approach to solving the storage location assignment problem (SLAP) considering precedence constraints, in multi-aisle, multi-product picking warehouses. A two-phase heuristic procedure is developed: the products are clustered and assigned to the available spaces. We tested the procedure in the non-perishables warehouse of a real-world Portuguese retail chain, which supplies 191 stores per day. The results show that the new assignment of products allows for an improvement of up to 15% on the distance travelled by the pickers, which implies savings of approximately 477 km per month. This problem is a special case of SLAP since we are dealing with large percentages of non-uniform products. This procedure incorporates four relevant criteria for the allocation decision: the products’ similarity, demand and weight, and the distance travelled by the picker. By using a two-phase heuristic method, this study offers companies and academics an alternative and more effective solution for SLAP than the usual methods based on the creation of density zones.

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