Lean Production Practices to Enhance Organisational Performance

Abstract

Service sector organisations are constantly overcoming the challenges facing the over-production and waste reduction within their environments. Industries are also becoming very competitive thus forcing them to seek suitable production organisation strategies with the aim towards enhancing their competitiveness and efficiency. The aim of this research study is to investigate the impact of lean production practices on the performance of service based businesses through the case study of a local baked goods supplier. The research framework adopted consists of questionnaire survey method implemented with different end users, thus covering the overall production-retail-customer cycle. The research results and analysis justify the objective of the research that lean production practices enhance the performance of the supplier company and the common tool identified were JIT (Just in Time), Value Steam Mapping (VSP) and the 5S methods. The results also suggest that JIT method has a higher impact towards improvement on performance relating to quality, speed, dependability, flexibility and cost of the supplier. However, the research study also identifies that one of the major challenges faced by the organisation while adopting lean practices was the lack of commitment from top management, continuous training and employee engagement measures.