Lean management in Indian industry: an exploratory research study using a longitudinal survey

Abstract

PurposeThe practice of lean management (LM) principles has given firms, from a variety of sectors, quantum jumps in productivity and performance. India is at the cusp of a major leap in economic growth, and adoption of LM is a must for ramping up the rate of growth of the GDP speedily, if the government is really intent on achieving its objective of becoming the third or fourth largest economy soon. This paper aims to study the status of implementation of LM in the LM Leaders (LML’s) in the Indian industry, to understand if they are ready to accept the challenges ahead.Design/methodology/approachThis is an exploratory research study. To study the level of maturity of LM in Indian industry, the authors selected the LM Leaders in the Indian industry (LMLII). By using a well-known survey instrument – the Lean Self -Assessment Tool (LESAT), Version 2.0 – designed and developed by MIT, the authors conducted a longitudinal survey over the period 2013 to 2016, a four-year duration. Surveys were conducted every year.FindingsSurvey results show an improvement in the overall average of “current state” scores between the years 2013 and 2016, indicating that LMLII’s have improved upon their LM adoption during these years. However, there is a striking gap between “where the industry wants to be” and “where it currently is”. This could drive future improvements. Based on the survey results, this paper draws lessons and proposes action points on how to improve the adoption and diffusion of LM principles and practices in the LMLII. Factors which need to be addressed to reinvigorate the practice of LM have been identified and classified as urgent, immediate and short term.Research limitations/implicationsWhile many “snapshot” studies have been done to study LM in Indian industry, a longitudinal study has not been done. Moreover, previous studies administer questionnaires to one company (case study method) or a group of companies in a sector of the industry. Thus, there was a research gap. A longitudinal study will help us take a holistic approach. In addition, studying LMLII will provide data from the most serious adopters of LM. Both these will add value to the current research on LM in Indian industry. The results will also help the LMLII’s to further improve the practice of LM in a systematic and rigorous way. However, as the study is limited to the LMLII, it would not be possible to apply the knowledge to the Indian industry as a whole. For doing so, one would need a larger, more representative sample.Practical implicationsUsing this paper, LMLII’s can develop practices which will improve customer satisfaction and reduce waste in manufacturing. They can ramp up LM intensity to make further quantum jumps in performance.Social implicationsLM, in addition to improving the output/input ratio (producing more for less), also emphasises waste reduction, customer satisfaction and efficient operations. All these three factors are essential for sustainable and happy society.Originality/valueThe work is original. This is the first longitudinal survey of lean practices in the Indian industry to study cross-sectional practices, and the results will propel the Indian industry to intensify the practice of LM.