The impact of shop floor culture and subculture on lean production practices

The role of management in lean implementation: evidence from the pharmaceutical industry

Purpose

The purpose of this study is to investigate how soft lean practices moderate the performance effects of hard lean practices. The authors provide new evidence from the pharmaceutical industry, which is characterized by a highly regulated and technical environment and has been largely uncharted in the lean literature.

Design/methodology/approach

Based on a review of the literature, the authors define a set of soft and hard lean practices. The authors test the hypotheses using factor analysis and moderated hierarchical linear regression on a unique dataset containing survey data and real performance measures of 351 pharmaceutical plants.

Findings

The results show that soft lean practices can be both enabling and constraining. When management engages in performance measurement, visualisation and employee empowerment the relationship between hard lean practices and performance is positively moderated. On the other hand, when managers emphasise goal setting and work standardisation the performance outcomes are reduced.

Practical implications

Effective lean managers build organisational commitment by motivating other employees to implement lean. They use performance measurement, visualisation and employee empowerment to focus on the “why”. Less effective managers engage in commanding and micro-management. Such managers focus on the “what” by using practices like goal setting and work standardisation.

Originality/value

This article contributes to the literature on lean management by empirically testing the moderator-variable interaction effects between soft and hard lean practices. In addition, it adds new evidence from the important pharmaceutical industry.

Effects of the organizational culture and knowledge exploration and exploitation on results in the EFQM model framework

Purpose

This paper aims to adopt Cameron and Quinn’s analysis of organizational culture and March’s learning framework to analyze the type of organizational culture (OC) that promotes learning competences and whether exploration and exploitation competences (ambidexterity) improve the European Foundation of Quality Management (EFQM) results (excellent results). In addition, this research tests if these competences exercise a mediating effect in the relationship between OC and performance.

Design/methodology/approach

A model is proposed whose relationships have been tested using structural equations. The sample was obtained from the SABI database. Two hundred valid questionnaires were returned via a webpage, in which four managers from each of the 200 organizations responded.

Findings

The results support the proposed relationships. Adhocracy, hierarchy and market culture have a positive relationship with excellent results. A hierarchical culture develops exploitation competences, and a market culture develops learning ambidexterity. Moreover, exploration and exploitation increase results. Finally, these two cultures indirectly influence results through exploration and exploitation competences.

Research limitations/implications

The proposed model can help managers who implement the EFQM model to better understand how the culture of their organization promotes learning and how these two variables improve their performance.

Practical implications

Because the EFQM model requires organizations to use a knowledge management system to enhance the effect of the enabliers criteria on excellent results, the managers of these companies must know that only market and hierarchy cultures are suitable for it. Besides, this study highlights the importance of two cultural values for the implementation of the EFQM Model and, therefore, to promote excellent results: market orientation and process control.

Originality/value

This study fills an existing gap in the literature by combining exploitation, exploration, OC and EFQM results in a single model and highlights the importance of market orientation and process control for excellent results and knowledge exploration and exploitation.

Optimising Changeover through Lean-Manufacturing Principles: A Case Study in a Food Factory

Operations management is a key aspect in any manufacturing business. Optimising the management of manufacturing operations allows improvement of the productivity and efficiency of industrial activities. To achieve this, reducing waste from manufacturing processes and, therefore, implementing lean-manufacturing principles, is key. This article presents a case study to reduce waste in changeover processes at a ready-meal manufacturer based in South Yorkshire, UK. We identified a large number of activities as part of the changeover process. We applied the Single Minute Exchange of Dies (SMED) methodology to reduce and, whenever possible, eliminate changeover, and line hopping to further optimise changeover. After implementing improvement measures, changeover time was reduced by nearly 30%, OEE was increased to over 70%, and labour costs were reduced by 10%. This shows how lean principles can aid in implementing more effective and economically sustainable manufacturing operations.

Influence of Organisational Culture on Total Quality Management Implementation in the Australian Construction Industry

This study explores the relationship between organisational culture and total quality management (TQM) implementation in Australia, with the purpose of identifying the particular culture that dominants the Australian construction industry, and distinguishing which cultures determine the successful implementation of TQM. Although the application of the competing values framework (CVF) for evaluating organisational culture (OC) in the construction industry has been studied by some scholars, research into OC and its impact on TQM procedures in connection to the CVF in project-based industries such as construction has received less attention. Thus, this research intends to determine the relationship between OC and TQM regarding the CVF in the Australian construction industry. The research methodology used the validated organisational culture assessment instrument (OCAI) CVF to frame OC, and TQM practices identified from the literature review. An online questionnaire was distributed through Qualtrics, whereby 42 valid responses representing various construction organisations in Australia were analysed through IBM SPSS Statistics 26 through endorsing k-means cluster analysis, and analysis of variance. The findings support that Australian construction organisations are dominated by the market and external focused cultures according to the CVF of organisational classification. Furthermore, the findings acknowledge that organisations that are dominated by hierarchical cultural characterises could provide an unfavourable environment for the successful implementation of TQM. Whilst an organisation that obtains a mix of cultures, specifically with the adhocracy and market cultures dominating could provide a favourable environment for the successful implementation of TQM.

Improving high lean team performance through aligned behaviour-value patterns and coactive vicarious learning-by-doing

Purpose

Why are some lean workfloor teams able to improve their already high performance, over time, and others not? By studying teams' and leaders' behaviour-value patterns, this abductive field study uncovers a dynamic capability at the team level.

Design/methodology/approach

Various methods were employed over three consecutive years to thoroughly examine five initially high-performing lean workfloor teams, including their leaders. These methods encompassed micro-behavioural coding of 59 h of film footage, surveys, individual and group interviews, participant observation and archival data, involving objective and perceptual team-performance indicators. Two of the five teams continued to improve and perform highly.

Findings

Continuously improving high lean team performance is found to be associated with (1) team behaviours such as frequent performance monitoring, information sharing, peer support and process improvement; (2) team leaders who balance, over time, task- and relations-oriented behaviours; (3) higher-level leaders who keep offering the team face-to-face support, strategic clarity and tangible resources; (4) these three actors' endorsement of self-transcendence and openness-to-change work values and alignment, over time, with their behaviours; and (5) coactive vicarious learning-by-doing as a “stable collective activity pattern” among team, team leader, and higher-level leadership.

Originality/value

Since lean has been undertheorised, the authors invoked insights from organisational behaviour and management theories, in combination with various fine- and coarse-grained data, over time. The authors uncovered actors' behaviour-value patterns and a collective learning-by-doing pattern that may explain continuous lean team performance improvement. Four theory-enriching propositions were developed and visualised in a refined model which may already benefit lean practitioners.

An empirical longitudinal study of adoption of lean management in India

Purpose

To identify the factors that need to be addressed by Indian industry to steeply ramp up its production and productivity in the coming years, so as to achieve the goal of the country becoming a 5 trillion dollar economy by 2025.

Design/methodology/approach

Lean Management Leaders in Indian Industry (LMLII), i.e. those companies in India who are well known for having adopted TQM, BE and Lean methods for many years, and achieved success in their business) in Indian industry were selected and surveys were done between 2013 and 2017, to assess the status of LM adoption, by using the LESAT (version 2.0) survey tool. A longitudinal empirical study has been done, over a period of five years, so that the identification of factors is based on a few years’ data rather than a one year, spot-check or snapshot view. A new method, titled the ‘Three Step Reverse Exploratory Factor Analysis Procedure (TSREP)’, has been attempted to identify the ‘root causes’.

Findings

LMLII's have improved in their adoption of LM over these years by about 10%. The root causes that can help in further advancement in adoption have been identified and classified under six component factors.

Research limitations/implications

The identification of LMLII's has been done based on the experience and views of experts in TQM/ BE/ Lean in India. Since this is a first of such study (viz., the term LMLII is being defined and used for the first time), this methodology has been adopted. However, in future, a systematic way to assess the criteria for LMLII's could be designed. Secondly, the sample size of LMLII's needs to be fully representative of the industry.

Practical implications

By using the results of this study, Indian companies can accelerate their LM adoption programmes, leading to quantum jumps in production and productivity, so as to achieve the 5 trillion USD economy by 2025. The practical implications are immense.

Social implications

Since LM is a bundle of Lean, TQM and BE, companies adopting LM will, due to the inclusion of waste reduction through 5S, JIT, kaizens and continuous improvement, address the Triple Bottom Line (TBL) protocol of the UN. TBL has comprehensive implications on society and environment, climate change and sustainability of business.

Originality/value

This work is original, at least in three ways. First, in the use of the concept of ‘LML’. Second, there is no previous longitudinal study done on Indian industry in LM. Third, the TSREP is being used for the first time. The value of this research is in its findings, in the identification of key factors for future growth and the use of a novel technique for improving upon the accuracy, analytical rigour and legitimacy of the results.

The relationship between investments in lean practices and operational performance

Purpose

Prior research has shown that operational intellectual capital (OIC) and investments in lean practices (ILP) lead to better operational performance. However, there have been no empirical studies on the synergetic effects between OIC components and ILP. More specifically, the question – can the efficacy of ILP be increased through OIC? – has not been studied. Accordingly, the purpose of this paper is to report the empirical results of potential synergetic effects between OIC, as a knowledge-based resource, and ILP.

Design/methodology/approach

The empirical data used for this study were drawn from the fifth round of the Global Manufacturing Research Group survey project (with data collected from 528 manufacturing plants). The hypotheses are empirically tested using three ordinary least square (OLS) models.

Findings

The authors’ findings highlight the importance of leveraging a system of complementary knowledge-based resources (OIC dimensions) and addresses the need for the reformulation of lean theory in terms of the emergent knowledge-based view of the firm. The results facilitate greater understanding of the complex relationship between ILP and operational performance. Building on the contribution of Menoret al.(2007), the authors argue that OIC represents a strategic knowledge-based resource that is valuable, hard to imitate or substitute and, when leveraged effectively, generates superior operational and competitive advantage.

Practical implications

From a managerial standpoint, this study provides guidelines for managers on how to leverage OIC to enhance the efficacy of ILP. The authors argue that firms consider investing in OIC to increase the return from ILP, which, in turn, will enhance their operational performance and provide competitive advantage. The authors findings provide strong evidence of the importance of human, social and structural capital to enhance the efficacy of ILP.

Originality/value

This is the first research paper that extends the application of the intellectual capital theory in lean literature, and argues that the OIC contributes to the efficacy of ILP. The analysis facilitates greater understanding of the complex relationship between OIC dimensions, ILP and operational performance.

A theoretical framework for the social pillar of lean

Purpose

The purpose of this paper is to propose a theoretical framework for the social pillar of lean (SPL), which is a neglected topic in the lean management literature.

Design/methodology/approach

The authors first identify shortcomings in research on the SPL that are attributable to neglect of relevant perspectives in organisational research. The authors then present a theoretical case outlining the factors that should be considered in SPL research, how they relate to one another and how they should be integrated in future studies of lean change implementation.

Findings

The theoretical framework for the SPL proposes a categorisation of factors and their relationships across levels of analysis that are relevant to the SPL. The inclusion of previously neglected perspectives, such as the relational coordination theory, within this framework offers new insights and directions for research.

Practical implications

By emphasising relationships, the SPL framework sheds light on the scale and complexity of the management challenges involved in lean implementation.

Originality/value

The proposed framework promises to enhance the efficacy of lean research by focussing on factors, such as relationships, that are most relevant to lean implementation.