The impact of lean production on operational performance: A case study

Purpose–This paper aims to investigate the impact of adopting lean manufacturing principles on operational efficiency by eliminating seven major lean wastes (or Muda) in a Malaysian stationery manufacturer. Much of the research on lean considers its application to larger organisations with stable demand patterns. This research examines a small- and medium-sized enterprise (SME) with a volatile demand pattern. Design/methodology/approach– A process activity mapping (PAM)methodology was utilized to identify the potential for waste elimination. PAM is a visual tool that considers every step in a production process. Value-added and non-value-added activities are therefore examined to understand hidden wastes and their sources. Findings– The results revealed that the adopted lean principles significantly reduce the waiting times. This time reduction resulted in savings (reduction of cycle time) and to a certain extent, can be a crucial driver in continuous improvement sustainability in the production process. Research limitations/implications–The study focuses on a single case study and provides a springboard for further research. Future studies examining the results across a broader sample of organisations would develop the findings further. Practical implications– The extant literature cites mixed success for lean implementation programmes. The results demonstrate that lean is still recognised as a powerful approach to improving operations in SMEs. Originality/value– This paper reflects on the application of lean in a real case study showing the impact of lean on operational performance of an SME.