Synergistic model development for lean manufacturing implementation at small and medium enterprises in Malaysia
Historically Lean Manufacturing (LM) is originally derived from Toyota Production System (TPS). The core functions of LM practices are to create high-quality products and to minimise non-value added (NVA) activities in a company. Although LM had successfully implemented in various large corporati...
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Format: | Thesis |
Language: | English |
Published: |
2018
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Subjects: | |
Online Access: | http://psasir.upm.edu.my/id/eprint/77605/1/FK%202018%20187%20ir.pdf http://psasir.upm.edu.my/id/eprint/77605/ |
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Summary: | Historically Lean Manufacturing (LM) is originally derived from Toyota Production
System (TPS). The core functions of LM practices are to create high-quality products
and to minimise non-value added (NVA) activities in a company. Although LM had
successfully implemented in various large corporations around the world since the
1980s, however, the evidence of LM’s adoption in Malaysian Small and Medium
Enterprise (SMEs) were rarely documented. Malaysian SMEs predominantly
characterised by low volume, highly mixed product yield as well as limited shop floor
management and human control processes. Therefore, the focal objective of this study
was to develop a model based on LM’s philosophy to help Malaysian SMEs improving
their competitiveness in manufacturing operations management by synergising or
cooperation of the LM critical successful factors including the efficiency of production
management and human resource development to create more positive impact on the
sustainability of effective business management system. To achieve the objective of
the study, three different research phases were integrated. The approaches cover
methods of, research review, exploring the LM implementation in Malaysia using
statistical inference and construction of Structural Equation Modelling (SEM) and
industrial research in the real industry involving two SMEs in northern of peninsular
Malaysia. The research review methods conducted by collecting qualitative research
data, including observations and examination of documents to assess the impact of the
implementation of the LM among the SMEs organisation. Then, for exploring the LM
implementation among Malaysian SMEs, surveys with 250 sets of questionnaires were
distributed. Quantitative data obtained with a response rate of 40% then was analysed
by using descriptive and inferential statistics. Results of the descriptive statistical
analysis show that most Malaysian SMEs provide positive feedback with the mean
score above 3.00 against the proposed implementation of LM variables comprising
elements of operations management efficiency, human resource development, and
ii
preservation of the business. The findings from SEM results also confirmed that the
LM variables did affect the performance of SMEs significantly. Then, the final model
called as Synergistic LM for Malaysian SMEs (SyncLM) was developed using SEM.
Lastly, the SyncLM model has verified its reliability through the implementation
framework in two case studies of SMEs show a high tendency for them to implement
and incorporate elements of the concept of LM that this synergy concept. The results
showed that SyncLM model has managed to reduce 6.85% production time and
18.25% product defects for the first case study. Positive results are also obtained from
second case study where the SyncLM model has successfully reduced 9.7%
production time and 4.2% of product defects. Additionally, over 80% of the
satisfaction scores have been achieved by respondents comprising management and
employees from both companies with the implementation capability and effectiveness
of benefits derived from the implementation of this SyncLM model. Therefore, it can
be concluded that the SyncLM was able to improve the sustainability of the business
functions of Malaysian SMEs. |
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