Examining the Impact of Lean Practices on Flexibility Performance: The Moderating Effect of Environmental Dynamism

Abstract

This paper examined the effects of four core and internal lean practices on flexibility performance in Jordanian manufacturing companies. Lean practices included setup time reduction, continuous improvement, synchronization of operations, and pull system. A survey questionnaire was used to collect data from 157 manufacturing companies from different industry types. Hierarchical regression analysis showed that lean production posively and significantly affected flexibility performance. All lean practices proved to be positively and significantly related to flexibility performance. The most contributing lean practice was synchronization of operations followed by pull system and continuous improvement. The moderating effect of environmental dynamism was also examined. The results of the interaction terms showed that environmental dynamism positively and significantly moderated the relationship between synchronization of operations and flexibility performance. The findings of this study highlighted the important role of synchronization of operations, a widely neglected lean practice in the literature, in improving flexibility performance. Additionally, we contributed to the controversial issue in the literature concerning the impact of lean production on performance in a dynamic environment.

Green supply chain management initiatives and operational competitive performance

“…In the concluding remarks of the study conducted by Zu'bi (2015), it was established that environmental management practices have a significant positive effect on the flexibility performance of an industry. According to Jangga et al (2015), to be competitive in the supply chain business one will have to be very flexible.…”

Developing and validating lean manufacturing constructs: an SEM approach

“…The LM plants apply pull system. Its basic idea is to produce only when requested, move to precisely where required just as it is needed (Al-Zu’bi, 2015; Chen and Tan, 2013). In the final process, finished goods are pulled by customer demand (Shah and Ward, 2007).…”

“…For this purpose, the principle of single-minute exchange of die is frequently applied. Its basic idea is to separate internal and external setups, and subsequently convert most of the internal setups to external setups (Al-Zu’bi, 2015; Russell and Taylor, 2011). Therefore, most of the setup processes are performed while the machine is running.…”

Synergistic effect of lean practices on lead time reduction: mediating role of manufacturing flexibility

“…To increase the adaptability to the ever-changing demand while shortening lead time, a manufacturer should increase its flexibility (Al-Zu'bi, 2015), which is in line with the main objectives of LM (Hallgren and Olhager, 2009). Manufacturing flexibility (MF) refers to the capability of a manufacturing system to adapt to external and internal changes, yet continue to produce a variety of products and volumes without compromising performance (Swamidass, 2000).…”