Lean Production and Operational Performance of Manufacturing Firms in Rivers State

  • Ofoegbu, Wilson Chukwuemeka Faculty of Management Sciences, University of Port Harcourt, Nigeria
  • Efeh, Valentine Omorse Faculty of Management Sciences, University of Port Harcourt, Nigeria
Keywords: lean production, operational performance

Abstract

This study examined the relationship between lean production and the operational performance of manufacturing firms in Rivers State. The population involved all the sixty-two (62)manufacturing firms in Rivers State with a sample size of four (4) selected manufacturing firms using the Krejcie and Morgan sample size determination and simple proportion to arrive at the respondents for each Manufacturing firm. Data were collected using a structured questionnaire and interview protocol. Structural Equation Modelling (SEM) with the aid of the Analysis of Moment Structure (AMOS) was chosen to test the hypothetical model while the qualitative data was organised, coded, and analysed using the NVivo 11. The result showed that there is a significant and positive relationship between lean production and the operational performance of manufacturing firms in Rivers State. Therefore, concluded that lean production is a critical and highly imperative factor in sustaining business operations and performance and thus recommended that management of the manufacturing firms should develop procedures and policies to which employees will adhere and ensure routine checks on equipment and service processes.

Downloads

Download data is not yet available.

References

Abdel-Razek, R. H., Elshakour, M., H. A., & Abdel-Hamid, M. (2007). Labor productivity: benchmarking and variability in Egyptian projects. International Journal of Project Management, 15, 189-197. Retrieved from doi: 10.1016/j.ijproman.2006.06.001
Arif-Uz-Zaman, K., & Ahsan, A. M. M. N. (2014). Lean supply chain performance measurement. International Journal of Productivity and Performance Management, 63(5), 588-612. Retrieved from doi: 10.1108/ijppm-05-2013-0092
Azevedo, S. G., Govindan, K., Carvalho, H., & Cruz-Machado, V. (2012). An integrated model to assess the leanness and agility of the automotive industry. Resources, Conservation and Recycling, 66, 85-94.
Bagshaw, K. B. (2018). Lean application and efficiency of manufacturing firms: An empirical study of manufacturing firms in Rivers State, Nigeria. International Journal of Management Excellence (IJME), 11(2), 1553-1558.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. Retrieved from doi: 10.1177/014920639101700108
Belekoukias, I., Garza-Reyes, J. A., & Kumar, V. (2014). The impact of lean methods and tools on the operational performance of manufacturing organisations. International Journal of Production Research, 1-21. Retrieved from doi: 10.1080/00207543.2014.903348
Bicheno, J., &Holweg, M. (2009). The Lean Toolbox. Buckingham: Picsie.
Brown, T. (2010). Construct validity: A unitary concept for occupational therapy assessment, evaluation, and measurement.Hong Kong Journal of Occupational Therapy, 20(1), 30-42.
Buzzell, R. D., &Ortmeyer, G. (1995). Channel partnerships streamline distribution. Sloan Management Review, 3(6), 85-96.
Byrne, B. M. (2012). Choosing structural equation modeling computer software: Snapshots of LISREL, EQS, Amos, and Mplus. In R. H. Hoyle, Handbook of Structural Equation Modeling, Guilford Publication: 307-324.
Cannon, A. R. (2008). Inventory improvement and financial performance. International Journal of Productionand Economics, 115, 581-593.
Chanegrih, T., &Creusier, J. (2016). The effect of internal and external lean practices on performance: A firm-centered approach. ManagementReview, 2(1), 114-125.
Chavez, R., Gimenez, C., Fynes, B., Wiengarten, F., & Yu, W. (2013). Internal lean practices and operational performance: The contingency perspective of industry clockspeed. International Journal of Operations & Production Management, 33(5), 562-588. Retrieved from doi: 10.1108/01443571311322724
Chen, Z., & Tan, K. H. (2013). The impact of organization ownership structure on JIT implementation and production operations performance. International Journal of Operations & Production Management, 33(9), 1202-1229. Retrieved from doi: 10.1108/ijopm-06- 2011-0207
Chen, Z.-X., & Tan, K. H. (2011). The perceived impact of JIT implementation on operations performance: Evidence from Chinese firms. Journal of Advances in Management Research, 8(2), 213-235. Retrieved from doi: 10.1108/09727981111175957
Cooper, R., Schindler, R. (2001). Target costing and value engineering. Portland, OR: Productivity Press.
Dal Pont, G., Furlan, A., &Vinelli, A. (2008). Interrelationships among lean bundles and their effects on operational performance. Operations Management Research, 1, 150-158. Retrieved from doi: 10.1007/s12063-008-0010-2
Dhillon, A. S., &Vachhrajani, H. (2012). Impact of operational efficiency on overall profitability—A case study of GIPCL. Retrieved from http://amrita.edu/asb/pdfs/working paper
Feng, M., Terziovski, M., & Samson, D. (2007). Relationship of ISO 9001:2000 quality system certification with operational and business performance: A survey in Australia and New Zealand-based manufacturing and service companies. Journal of Manufacturing Technology Management, 1(9), 22-37.
Fornell, C.&Larcker, D. F.(1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18 (1), 39-50.
Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management, 1(9), 185-200.
Fullerton, R. R., &Wempe, W. F. (2009). Lean manufacturing, non-financial performance measures, and financial performance. International Journal of Operations & Production Management, 29(3), 214-240. Retrieved from doi: 10.1108/01443570910938970
Fullerton, R. R., McWatters, C. S., &Fawson, C. (2003). An examination of the relationships between JIT and financial performance. Journal of Operations Management, 21, 383-404. Retrieved from doi: 10.1016/S0272-6963(03)00002-0
Godden, B. (2004). Sample Size Formulas. Journal of Statistics, 3, 66.
Goyal, S. K., & Deshmukh, S. G. (1992). A critique of the literature on just-in-time manufacturing. International Journal of Operations & Production Management, 12(1), 18-28. Retrieved from doi: 10.1108/EUM0000000001293
Gupta, S. L., & Gupta, H. (2012). Research methodology: Text and cases with SPSS applications. (2nd ed.). New Delhi: International Book House PVT. LTD.
Gupta, V., Acharya, P., & Patwardhan, M. (2013). A strategic and operational approach to assess the lean performance in radial tyre manufacturing in India: A case-based study. International Journal of Productivity and Performance Management, 62(6), 634-651. Retrieved from doi: 10.1108/IJPPM-06-2012-0057
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2017). Multivariate data analysis: A global perspective (7th ed.). New Jersey: Pearson Education, Inc.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., &Sarstedt, M. (2014). A primer on partial leastsquares structural equation modeling (PLS-SEM): Sage Publications.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., &Sarstedt, M. (2016). A primer on partial leastsquares structural equation modeling (PLS-SEM): Sage Publications.
Heizer, J., & Render, B. (2011). Operations management (10th ed.). New Jersey: Pearson Education, Inc.
Holweg, M. (2007). The genealogy of lean production. Journal of Operations Management, 25, 420-437. Retrieved from doi: 10.1016/j.jom.2006.04.001
Hoyle, R. H. (2012). Handbook of structural equation modeling. London: Guilford Publication.
Hu, L. T., &Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6, 1-55.http://dx.doi.org/10.1080/10705519909540118
Jafarnejad, A. (2012). Production management and modern operation, (2nd Edition), Tehran University, Faculty of Management.
Jayaram, J., Vickeiy, S., &Droge, C. (2008). Relationship building, lean strategy and firm performance: An exploratory study in the automotive supplier industry. International Journal of Production Research, 4(6), 5633-5649.
Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard-measured that drive performance. Harvard Business School Press, Boston, Massachusetts.
Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard-measures that drive performance. Harvard Business Review, 70(1), 71-79.
Kaynak, H., (2003). The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management, 21, 405-435.
Khanchanapong, T., Prajogo, D., Sohal, A. S., Cooper, B. K., Yeung, A. C. L., & Cheng, T. C. E. (2014). The unique and complementary effects of manufacturing technologies and lean practices on manufacturing operational performance. International Journal of Production Economics, 153, 191-203. Retrieved from doi: 10.1016/j.ijpe.2014.02.021
Kuo, M. P., & Chen, Y. M. (2015). A study on the relationships among body sensory experience, customer satisfaction and customer loyalty-Beauty SPA center as an example. International Journal of Business Administrative Studies, 1, 61-67.
Leedy, P.D. and Ormond, J.E. (2010).Practical Research Planning and Design. (9th ed.), Pearson Education International, Boston.
Margono, H., & Sharma, S. C. (2006). Efficiency and productivity analyses of Indonesian manufacturing industries. Journal of Asian Economics, 17, 979–995. Retrieved from doi: 10.1016/j.asieco.2006.09.004
Margono, H., Sharma, S. C., Sylwester, K., & Al-Qalawi, U. (2011). Technical efficiency and productivity analysis in Indonesian provincial economies. Applied Economics, 43(6), 663-672. Retrieved from doi: 10.1080/00036840802599834
Marynell, T. M. (2013). Leadership for success with lean manufacturing: The relationship between style and successful implementation. Ph.D Thesis, Capella University, Minneapolis, Minnesota.
Mohammad, I., Suhaiza, Z., Sunghyup, S. H., Mohd, H. A., &Kwangyong, K. (2019). Impact of lean manufacturing practices on firms’ sustainable performance: Lean culture as a moderator. International Journal ofSportmanship Mark Sponsor, 17, 110–129
Nugraha, P., &Indrawati, A. (2017). The effect of social media experiential marketing towards customers’ satisfaction (A study in Chingu Korean fan cafe Bandung Indonesia). International Journal of Business Administrative Studies, 3, 56-63.
Nunnally, J. C. (1978). Psychometric theory. New York: McGraw-Hill.
Nunnally, J. C., & Bernstein, J. H. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill.
Ohno, T. (1988). The Toyota production system: Beyond large-scale production. Portland, OR: Productivity Press.
Piyachat, B. (2018). The relationships among lean production, operational performance andfinancial performance. Journal of Engineering and Applied Sciences 13(1), 43-50.
Poirier, C. C., & Quinn, F. J. (2004). How are we doing? A survey supply chain progress. Supply Chain Management Review, 8, 24-31.
Poya, A., &Soltani, F. G. (2015). The model for the assessment of lean manufacturing in small and medium industries using a combination of confirmatory factor analysis methods, clustering and technique prometee. Scientific and Research Journal of Industrial Management Studies,13(73), 55-90.
Rahman, S., Laosirihongthong, T., &Sohal, A. S. (2010). Impact of lean strategy on operational performance: A study of Thai manufacturing companies. Journal of Manufacturing Technology Management 21(7), 839-852. Retrieved from doi: 10.1108/17410381011077946
Ramayah, T., Sulaiman, M., Jantan, M., & Ng, F. C. (2004). Organizational learning, proprietary technology and manufacturing performance: A glimpse from the Malaysian manufacturing firms. International Journal of Innovation and Incubation, 1(1), 63-90.
Ranganathan, C., Dhaliwal, J. S., & Teo, T. S. H. (2004). Assimilation and diffusion of web technologies in supply-chain management: An examination of key drivers and performance impacts. International Journal of Electronics and Commerce, 9, 127-161.
Rasi, R. Z., Rakiman, U. S., & Ahmad, F. B. (2015). Relationship between lean production and operational performance in the manufacturing industry. IOP Conference Series: Materials Science and Engineering 8(3), 223-238.
Rosenzweig, E. D., Roth, A. V., & Dean Jr, J. W. (2003). The influence of an integration strategy on competitive capabilities and business performance: An exploratory study of consumer products manufacturers. Journal of Operations Management, 2(1), 437-456.
Russell, R. S., & Taylor, B. W. (2008). Operations management, along the supply chain (6th ed.). New Jersey: John Willey & Sons, Inc.
Sakakibara, S., Flynn, B. B., Schroeder, R. G., & Morris, W. T. (1997). The impact of just-in-time manufacturing and its infrastructure on manufacturing performance. Management Science, 43(9), 1246-1257.
Sarkar, M.,Echambadi, R.& Harrison, J,(2001). Alliance entrepreneurship and firm market performance. Strategic Management Journal, 22(6/7), 701-711.
Schonberger, R. J. (2007). Japanese production management: An evolution-with mixed success. Journal of Operations Management, 25, 403–419. Retrieved from doi: 10.1016/j.jom.2006.04.003
Sekaran, U. (2003). Research methods for business: A skill-building approach (4th ed.). New York: Wiley.
Sekaran, U., & Bougie, R. (2009). Research methods for business: A skill building approach (5th ed.). West Sussex, United Kingdom: John Willey & Sons Ltd.
Shafie R. M., &Habibollah, S. M. (2011). Appraisal of lean manufacturing using AHP. Scientific and Research Journal of Industrial Management Studies, Year 9(22), 49-74.
Shah, R., & Ward, P. T. (2007). Defining and developing measures of lean production. Journal of Operations Management, 25, 785-805. Retrieved from doi: 10.1016/j.jom.2007.01.019
Singh, B., Garg, S. K., & Sharma, S. K. (2010a). Development of index for measuring leanness: Study of an Indian auto component industry. Measuring Business Excellence, 14(2), 46-53. Retrieved from doi: 10.1108/13683041011047858
Singh, B., Garg, S. K., Sharma, S. K., & Grewal, C. (2010b). Lean implementation and its benefits to production industry. International Journal of Lean Six Sigma, 1(2), 157-168. Retrieved from doi: 10.1108/20401461011049520
Slack, N., Chambers, S., & Johnston, R. (2010). Operations management (6th ed.). England: Pearson Education Ltd.
Udeze, C. C. G., Ugbam, O. C., &Ugwu, J. N. (2019). Effect of lean manufacturing on performance of manufacturing organisations in Nigeria. AEFUNAI Journal of Accounting, Business and Finance (FJABAF), 3(3), 61-71.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180. doi: 10.1002/smj.4250050207
White, R. E., Pearson, J. N., & Wilson, J. R. (1999). JIT manufacturing: A survey of implementations in small and large US manufacturers. Management Sciences, 4(5), 1-15.
Womack, J. P., & Jones, D. T. (2003). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free Press.
Womack, J., Jones, D. T., &Roos, D. (1991). The Machine that Changed the World. Rawson Associates, New York.
Zahra, S. A., & Das, S. R. (1993). Building competitive advantage on manufacturing resources. Long Range Planning, 26(2), 90-100. Retrieved from doi: 10.1016/0024- 6301(93)90140-B
Zhu, K., & Kraemer, K. L. (2002). E-commerce metrics for Net-enhanced organizations: Assessing the value of e-commerce to firm performance in the manufacturing sector. Information System Research, 1(3). 275-295.
Published
2023-01-09
How to Cite
Wilson Chukwuemeka, O., & Valentine Omorse, E. (2023). Lean Production and Operational Performance of Manufacturing Firms in Rivers State. GPH-International Journal of Social Science and Humanities Research, 5(12), 30-43. https://doi.org/10.5281/zenodo.7514893