The impact of lean practices on inventory turnover

Abstract

Lean manufacturing (LM) is currently enjoying its second heyday. Companies in several industries are implementing lean practices to keep pace with the competition and achieve better results. In this article, we will concentrate on how companies can improve their inventory turnover performance through the use of lean practices. According to our main proposition, firms that widely apply lean practices have higher inventory turnover than those that do not rely on LM. However, there may be significant differences in inventory turnover even among lean manufacturers depending on their contingencies. Therefore, we also investigate how various contingency factors (production systems, order types, product types) influence the inventory turnover of lean manufacturers. We use cluster and correlation analysis to separate manufacturers based on the extent of their leanness and to examine the effect of contingencies. We acquired the data from the International Manufacturing Strategy Survey (IMSS) in ISIC sectors 28-35.

Increasing Production and Eliminating Waste through Lean Tools and Techniques for Halal Food Companies

“…A set of LSC tools was designed based on the Srinivasan [41] as well as definition of the LSC implementation and lean concept (Table 2) of Demeter and Matyusz [1]. Value-added activities are considered as tools to examine customer requirements in the whole supply chain because understanding customer value is important to continue improvement in the waste reduction system [69,70].…”

“…Womack [20] defines lean production as a system that creates value-added by using less of every input, which is based on the waste concept of the Japanese [21]. Demeter and Matyusz [1] emphasize that lean production or lean enterprise emerges when the company implements lean development, procurement, manufacturing, and distribution together. Lean production philosophy and concept are highly considered due to its global superiority in cost, quality, flexibility, and quick response [22].…”

“…Several companies invest in the implementation of LP to remain competitive. Demeterand Matyusz [1] believe that lean production is the most popular investment choice among companies. The process comprises pull production, quality development, process focus, continuous improvement, value stream management, and worker empowerment.…”

“…Most articles on LP focus on the implementation of systems, such as just-in-time (JIT), total quality management (TQM), total preventive maintenance programs, human resource management, value stream mapping, and vendor development, as well as their impact on operational performance [1,2,[7][8][9]. Fewer studies investigate the implementation of the lean concept in the supply chain, and identify the most important tools and techniques that carry out the objectives of the lean concept in the supply chain.…”

A Empirical Study on the Structural Equation Modeling of LEAN-NPD Application

“…Lean제조는 신제품 조업시간을 단축시키고 재고부담을 경감시켜 시장성과를 향상시킨다는 연 구도 있다 (Tu et al, 2006). Lean제조를 채택한 기업은 그렇지 않은 기업보다 재고부담이 적다 (Demeter & Matyusz, 2011). Lean제조와 품질혁신 기법(예, 6시그마)의 사용은 프로세스상의 문제를 해결해 주고 고객반응 시 간과 고객 리드타임을 줄여주어 고객만족에 기여한다 (Shah and Ward, 2003;Ward Zhou, 2006;Kim, 1999 Table 3.…”