Transforming product development and production to be lean for improving business performance

Abstract

PurposeIn this study, the authors assess the current state of lean product development and the lean production shop floor, along with the impact of the former on process quality and the latter on product quality and customer complaint reduction. The interplay between process and product quality and customer complaint reduction is assessed, along with their impacts on business performance.Design/methodology/approachData were collected from 377 managers working at auto-component manufacturing firms in India. Confirmatory factor analysis was used for scale validation, and structural equation modelling was employed to test the research hypotheses.FindingsThe results of the statistical analyses reveal the positive influence of a lean production shop floor on process quality and lean product development on product quality and customer complaint reduction, and thereby on business performance.Practical implicationsThe findings of this research provide insights into the interplay between lean and quality factors and their influence on customer complaint reduction and business performance. Practitioners can use the proposed model to strategically design unique products and improve the efficiency and effectiveness of the production shop floor, which can help enhance the product and process quality. This can reduce customer dissatisfaction and improve the business performance.Originality/valueFew studies have simultaneously investigated the influence of lean product development and lean production shop floors in the Indian manufacturing context. To the best of our knowledge, this study is one of the first attempts to include customer complaint reduction as a construct in a lean model. It helps identify and prioritise the enablers of business performance and provides valuable insights for practitioners to strengthen lean implementation to attain a competitive edge.