Lean manufacturing alignment with respect to performance metrics multinational corporations case study

Abstract

PurposeThe purpose of this paper is to investigate lean tools correlation, interactions and implementation in manufacturing industry at multinational corporation and its impact on operational performance.Design/methodology/approachThis paper used a survey questionnaire based on previous work done in the US industry. The questionnaire was distributed to 340 firms in 11 countries in the MENA region. These firms are multinational companies operating in this region post-2001, i.e. Greenfield manufacturing facilities. Total usable responses were 139 from 340 contacted by emails and phone, whereas 15 were face-to-face. The survey included 139 companies of which 66 companies were from North America, 40 from Europe and the rest were from South-East Asia (mainly Japan and South Korea).FindingsMultinational manufacturing companies in MENA region are at an advanced level of lean implementation. Results present a detailed analysis of the top 16 lean practices and their impact on 15 operational performance metrics. In addition, the results also reveal a correlation and grouping/bundling of the 16 lean tools and their direct influence on the top 8 operational metrics.Research limitations/implicationsBecause the sample size only includes multinational companies operating in MENA region, the countries’ social, economic and political issues will directly influence them. For example, some of the countries have no or very weak unions, whereas other countries give the power to the organizations to force restrictions and guidelines that cannot be followed by other organizations. Therefore, the results need to be considered with caution.Originality/valueResearch about lean implementation in MENA region is rare, although few companies implemented lean since day one of their establishment. This research paper provides operations managers and practitioners with a guide that links lean tools implementation to operational performance metrics objectives with more depth and breadth in comparison with previous empirical studies on the topic.