The barriers and critical success factor for implementing lean manufacturing at SMEs

Subject Areas : Journal of Physical & Theoretical Chemistry

Mohd Amran  Mohd Daril ¹ (Quality Engineering Research Cluster, Quality Engineering Section, Universiti Kuala Lumpur, Malaysian Institute of Industrial Technology, Johor Bahru, Johor, Malaysia)
Shazlen Farhana  Mohamad Fadeli ² (Quality Engineering Research Cluster, Quality Engineering Section, Universiti Kuala Lumpur, Malaysian Institute of Industrial Technology, Johor Bahru, Johor, Malaysia.)
Mohamad Ikbar  Abdul Wahab ³ (Quality Engineering Research Cluster, Quality Engineering Section, Universiti Kuala Lumpur, Malaysian Institute of Industrial Technology, Johor Bahru, Johor, Malaysia.)
Khairanum  Subari ⁴ (Quality Engineering Research Cluster, Quality Engineering Section, Universiti Kuala Lumpur, Malaysian Institute of Industrial Technology, Johor Bahru, Johor, Malaysia.)
Latipah  Nordin ⁵ (Language Cluster, Student Development Section, Universiti Kuala Lumpur, Malaysian Institute of Industrial Technology, Johor Bahru, Johor, Malaysia.)
Muhammad Imran  Queshi ⁶ (Teesside University International Business School, United Kingdom)

Received: 2022-11-29 Accepted : 2023-04-10 Published : 2023-06-01

Keywords: factor analysis, CSF, EFA, Small Medium Enterprise,

Abstract :

Small Medium Enterprise (SME) gives a big pressure on the management of their assets. Lack of expertise and awareness will become the major obstacles in achieving a better business strategy. Lean principles are applied in manufacturing and service industries extensively, but its success application in industry has been poor. The main objective of this study is to identify the Barrier for implementation of Lean Manufacturing (LM) at SMEs and to determine the Critical Success Factors (CSFs) for Implementation of Lean Manufacturing (LM) at SMEs. The data was collected using questionnaire and all the data was analyzed by using SPSS. There are 208 respondents involved in this study and the questionnaire is accepted with Cronbach’s Alpha more than 0.7. From the new conceptual model created after KMO and Bartlett’s Test, the researchers show there is one construct eliminated for both CSFs and Barriers. This study found that the construct for the Barrier for implementation of Lean Manufacturing at SMEs were related to resources, management, knowledge and financial. The construct for the CSFs for Implementation of Lean Manufacturing at SMEs were related to responsibility & leadership, supplier, people management and resource. The proposed model from this study will only be suitable for SMEs in Pasir Gudang Industrial area.

References:

Abu, F., Gholami, H., Saman, M. Z. M., Zakuan, N., & Streimikiene, D. (2019). The implementation of lean manufacturing in the furniture industry: A review and analysis on the motives, barriers, challenges, and the applications. Journal of cleaner production, 234, 660-680.

Alefari, M., Salonitis, K., & Xu, Y. (2017). The role of leadership in implementing lean manufacturing. Procedia Cirp, 63, 756-761.

Awwad, M. A. (2021). A Maturity Model to Assess Organization’s Readiness to Adopt a Sustainable Business Model. The British University in Dubai (BUiD),

Belhadi, A., Touriki, F. E., & Elfezazi, S. (2018). Evaluation of critical success factors (CSFs) to lean implementation in SMEs using AHP: A case study. International Journal of Lean Six Sigma, 10(3), 803-829.

Chaple, A. P., Narkhede, B. E., Akarte, M. M., & Raut, R. (2021). Modeling the lean barriers for successful lean implementation: TISM approach. International Journal of Lean Six Sigma, 12(1), 98-119.

Dora, M., Kumar, M., & Gellynck, X. (2016). Determinants and barriers to lean implementation in food-processing SMEs–a multiple case analysis. Production Planning & Control, 27(1), 1-23.

Dora, M., Kumar, M., Van Goubergen, D., Molnar, A., & Gellynck, X. (2013). Operational performance and critical success factors of lean manufacturing in European food processing SMEs. Trends in food science & technology, 31(2), 156-164.

Elkhairi, A., Fedouaki, F., & El Alami, S. (2019). Barriers and critical success factors for implementing lean manufacturing in SMEs. IFAC-PapersOnLine, 52(13), 565-570.

Gaikwad, S. K., Paul, A., Moktadir, M. A., Paul, S. K., & Chowdhury, P. (2020). Analyzing barriers and strategies for implementing Lean Six Sigma in the context of Indian SMEs. Benchmarking: An International Journal, 27(8), 2365-2399.

Jaiswal, P., Singh, A., Misra, S. C., & Kumar, A. (2021). Barriers in implementing lean manufacturing in Indian SMEs: a multi-criteria decision-making approach. Journal of Modelling in Management, 16(1), 339-356.

Knol, W. H., Slomp, J., Schouteten, R. L., & Lauche, K. (2018). Implementing lean practices in manufacturing SMEs: testing ‘critical success factors’ using Necessary Condition Analysis. International Journal of Production Research, 56(11), 3955-3973.

Kumar, A. (2014). A qualitative study on the barriers of lean manufacturing implementation: an Indian context (Delhi NCR Region). Int J Eng Sci, 3(4), 21-28.

Netland, T. H. (2016). Critical success factors for implementing lean production: the effect of contingencies. International Journal of Production Research, 54(8), 2433-2448.

Ramadas, T., & Satish, K. (2018). Identification and modeling of employee barriers while implementing lean manufacturing in small-and medium-scale enterprises. International Journal of Productivity and Performance Management, 67(3), 467-486.

Salonitis, K., & Tsinopoulos, C. (2016). Drivers and barriers of lean implementation in the Greek manufacturing sector. Procedia Cirp, 57, 189-194.

Shrimali, A. K., & Soni, V. (2017). Barriers to lean implementation in small and medium-sized Indian enterprises. International Journal of Mechanical Engineering and Technology, 8(6), 1-9.

Zahraee, S. M. (2016). A survey on lean manufacturing implementation in a selected manufacturing industry in Iran. International Journal of Lean Six Sigma, 7(2), 136-148.