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Toyota Production System (TPS) a systematic approach to identify and eliminate waste activities through continuous improvement and understand the principles of lean such as identification of value, elimination of waste and generation of flow (of value to the customer). This paper explores between lean manufacturing practices (supplier management, employee involvement, just in time, customer focus and statistical process control to monitor quality) and environmental performance outcomes (operational and innovation performances). The purpose of this study is to proposed structural relationship lean manufacturing practices and environmental performance model for Malaysia automotive industries. The conceptual model using Structural Equation Modeling (SEM) has been proposed. Base on the proposed conceptual model and reviewed, research hypotheses are being develop, the paper culminates with suggested future research.

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