Save it for a rainy day! Lean strategies for cost saving: The role of Lean maturity

Abstract

Purpose: This study investigates the effect of lean implementation on production cost reduction and the moderating role of lean manufacturing maturity.Design/methodology/approach: This study employed a cross-sectional survey, of which the samples were drawn using a cluster sampling procedure from 151 middle and top-level management of medium and large manufacturing companies gathered from the Federation of Manufacturers Malaysia (FMM). Data were analyzed using the PLS-SEM approach through SmartPLS4 software.Findings: The result revealed that lean implementation does not leverage production cost reduction as the lean journey requires long-term orientation, which finally leads to valid cost reduction. The moderating role of lean manufacturing maturity was significant and positive in the relationship between lean manufacturing implementation and production cost reduction.Research limitations/implications: Future research should include longitudinal settings as this study is cross-sectional, and future research might put the present model to the test in multiple industries and regions, including a cross-country comparison to improve the generalizability of the findings. Additionally, further studies could extend this study using a mixed-method approach.Practical implications: By offering a holistic perspective, this study expands the existing literature, contributes to knowledge of integrated lean implementation and supports the management in planning their path towards cost-cutting performance.Originality/value: This study answers the inconclusive finding between lean implementation and operational performance in terms of production cost reduction. The study contributes to the body of knowledge and, most importantly, to the practitioners in planning their lean journey.

Towards sustainable lean success: a systematic literature review on critical failure factors

“…Strong internal barriers such as a lack of staff involvement should be taken into consideration, and appropriate measures must be undertaken to control them (Yadav et al ., 2018b). Employees indicated a high level of resistance to change, which is worsened by the fact that the environment in which they had worked for virtually their entire lives did not highlight the need for change (Aripin et al ., 2023a; Costa et al ., 2019; DeSanctis et al ., 2018; Garza-Reyes et al ., 2022). The goal was to show them how to operate differently for better results.…”

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“…Kanban is a popular way to implement a pull system. It is used to optimize the flow of materials inside the manufacturing process as well as the flow between suppliers and customers [42,43]. Furthermore, the cellular layout is a JIT strategy that will help in increasing shop floor flexibility.…”

Unveiling Key Drivers of Industry 4.0 Adaptation in CKD Automotive Manufacturing Companies: Evidence From Asia and South America

“…Mourtzis, Angelopoulos and Panopoulos [76] and Petrillo, De Felice, Cioffi and Zomparelli [77] agreed that adapting I4.0 enables customized products. This will impact cost reduction, determined by the energy resources, waste consumption, and highly efficient working conditions [78]. Based on the available literature, it becomes apparent that finance is one of the drivers for I4.0 adaptation.…”