EFFECT OF LEAN MANUFACTURING PRACTICES ON SUPPLY CHAIN PERFORMANCE IN FOOD AND BEVERAGE MANUFACTURING FIRMS IN NIGERIA
Abstract
Purpose of Study: The study examined the effect lean manufacturing practices and supply chain performance in food and beverage manufacturing firms in Ibadan, Oyo state.
Methodology: To achieve the objectives, three food and beverage manufacturing firms were randomly selected from the twelve food and beverage manufacturing firms quoted in Nigeria Stock Exchange (NSE). Simple random sampling technique was used to draw up the sample size of 155 managers from production, purchasing, quality control, warehouse/ store and physical distribution departments of food and beverage manufacturing firms. Structured questionnaire subjected to reliability test was used to collect the needed information from the respondents. The information elicited from respondents was analysed with descriptive statistics and multiple regression analysis.
Result: The study revealed that there is positive and significant relationship between lean manufacturing practices and supply chain performance. It revealed that pull system, six sigma, 5s, kaizen and supplier relationship are positively related to supply chain performance. Based on the findings,
Recommendation: The study recommends that manufacturing firms should adopt lean thinking approaches and practices to reduce inherent variation with suppliers, processing time, and demand from customers in order to improve on the firm’s supply chain performance. Managers should ensure their workers understand, appreciate and embrace lean concept to achieve substantial reductions in production cost to strengthen competitiveness. Manufacturing firms should involve suppliers ‘decision making which is one of the best practices of lean manufacturing management.
Keywords: Lean manufacturing, Supply chain performance, Food and beverage manufacturing firms.
References
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Achanga, P., Shehab, E., Rajkumar, R., & Nelder, G. (2006). Critical sucesss factors for lean implementation within SMEs. Journal of Manufacturing Technology Management, 17(4), 460-471.
Alvarado, U., & Kotzab, H. (2001). Supply chain management: The integration of logistics in marketing. Industrial Marketing Management, 30(2), 183-198.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Belekoukias, I., Garza- Reyes, J., & Kumar, J. (2014). The impact of lean methods and tools on the operational performance of manufacturing organisations. International Journal of Production Research, 52(7), 43-53.
Bhasin, S., & Burcher, P. (2006). Lean viewed as a phhilosophy. Journal of Manufacturing Technology Management, 3(2), 23-32.
Bonavia, T., & Marin, J. (2006). An empirical study of lean production in ceramic tile industry in Spain. International Journal of Operations and Production Management, 26(5), 505-631.
Bowen, D., & Youngdahl, W. (2006). Lean service: In defence of production - line approach. International Journal of Service Industry Management, 12(3), 207-225.
Boysons, S. (1999). Logistics and extended enterprises: Benchmarks and Best Practices for the manufacturing professional. New York: Wiley.
Callen, J., Fader, L., & Krinsky, I. (2002). Just In Time (JIT): Across sectional plant analysis. International Journal of Production Economics, 36(7), 58-62.
Ciarniene, R., & Vienazindiene, M. (2012). Lean manufacturing: Theory and practice. Journal of Economics and Management, 17(2), 726-732.
Cudney, E., & Elrod, C. (2010). Incorporating lean concepts into supply chain management. International Journal of Six Sigma Competitive Advantage, 6(1), 12-30.
Cusumano, M. (1985). The Japanese automobile industry: Technology and Management at Nissan and Toyota. Boston: Havard University Press.
Dankbaar, B. (1997). Lean Production: Denial, confirmation or extension of sociotechnical systems design? Human Relations, 50(5), 567-583.
Gapp, R., Fisher, R., & Kobayashi, K. (2008). Implementing 5s within Japanese context: An integrated management system. Management Decision, 46(3), 112-119.
Gunasekaran, A., Patel, C., & Mcgaughey, R. (2004). Performance measures and metrics in a supply chain environment. International Journal of Operations and Production Management, 28(5), 991-1012.
Haan, D., Overboom, M., & Naus, F. (2012). Lean logistic service providers: Option or Utopia? Experiences from the Netherlands. Changing paradigm for inventory management in a supply chain context. International Journal of Operations Management, 12(7), 78-97.
Handfield, B., Monczka, M., Giunipero, C., & Patterson, L. (2009). Sourcing and supply chain management. Canada: South- Western publisher.
Harland, C. (1996). Supply chain management: Relationships, chains and networks. British Journal of Operations Management, 7(2), 23-28.
Harland, C., Caldwell, N., Powell, P., & Zheng, J. (2007). Barriers to supply chain information integration. Journal of Operations Management, 25(6), 34-54.
Harrison, T., Lee, H., & Neale, J. (2003). The practice of supply chain management: Where theory and application converge. Massachussets: Kluwer Academic Publisher.
Helms, M., Thibadoux, G., Haynes, P., & Pauley, P. (1990). Meeting the human resources challenges of JIT through management development. Journal of Management Development, 9(3), 28-34.
Hines, P., Found, P., Griffiths, G., & Harrison. (2008). Staying lean: Thriving, not just surviving. Cardiff: Lean Enterprise Institute.
Hirano, H. (1995). 5s for operators: 5 pillars of visual workplace. Portland: Productivity press.
Ho, S. (1999). The 5s auditing. Managerial Auditing Journal, 14(6), 294-302.
Ho, S., Cicmil, S., & Fung, C. (1995). The Japanese 5s practice and TQM training. Journal of Total Quality Management, 3(1), 19-24.
Howard, T. (2004). Strategic management research (2nd ed.). London: Oxford University Press.
Imai, M., & Kaizen, G. (1995). A common sense approach to continous improvement strategy. New York: McGraw Hill.
Jaskanwal, G., Deep, M., & Rajdeep, S. (2003). Application of Lean and JIT principles in supply chain management. International Journal of Management Research and Business Strategy, 3(4), 173-176.
Jasti, N., & Kodali, R. (2016). An empirical study for implementation of lean principles in Indian manufacturing industry. An international Journal of Operations Management, 23(1), 183-207.
Jones, C. (1998). Moving Beyond ERP: Making the missing link. Logistic Focus, 6(7), 2-7.
Kannan, V., & Tan, K. (2005). Just in time, Total Quality Management and Supply chain management: Understanding their linkages and impact on business performance. Journal of Supply Chain, 33(8), 153-163.
Karim, A., & Arif- Uz- Zaman, K. (2013). A methodology for effective implementation of lean strategies and its performance evaluation in manufacturing organisations. Business Process Management Journal, 19(1), 169-196.
Kumar, M., Antony, J., Singh, R., Tiwari, M., & Perry, D. (2006). Implementing the lean sigma framework in an Indian SME. Production and Planning Control, 17(4), 407-423.
Lee, H., & Corey, B. (1995). The evolution of supply chain management models and practice at Hewlett-Packard. Interfaces, 25(3), 42-63.
Lee, M., Padmanabhan, V., & Whang, S. (1997). Information distortionin a supply chain: The bullwhip effect. Journal of Management Science, 43(4), 546-558.
Liker, J. (2004). Toyota way: 14 management principles from the world's greatest manufacturer. New York: McGraw-Hill.
Liker, J., & Choi, T. (2006). Building deep supplier relationships. Harvard Business Review, 23(2), 67-76.
Mageto, J. (2009). Relationship between supply chain performance and supply chain responsiveness: A case study of supermarkets in Nairobi. University of Nairobi, Kenya.
Mbithuka, L. (2010). Lean manufacturing practices and supply chain responsiveness among vegetable oil processing firms in Kenya. International Journal of Production Research, 45(16), 3799-3822.
McLoughlin, D., & Horan, C. (2002). Markets- as - networks: notes on a unique understanding. Journal of Business Research, 55(7), 535-543.
Moden, Y. (1983). Toyota production system: practical approach to production management. Norcross: Industrial Engineering and Management Press.
Moden, Y. (1994). Smoothed production helps Toyota adapt to demand changes and reduces inventory in Toyota production system autonomy. Springer, 5(6), 63-73.
Ohno, T. (1998). Toyota production system- beyond large -scale production. New York: Productivity press.
Oliver, N., Delbridge, R., & Lowe, J. (1996). The european auto components industry manufacturing performance and practice. International Journal of Operations and Production Management, 16(2), 234-241.
Onwughalu, O., Okeke, K., & Henry-Chibor, E. (2017). Lean production and its effects in organisations: A study of selected manufacturing firms in Nigeria. Scholarly Journal of Science Research and Essay, 6(4), 85-98.
Palmer, V. (2001). Inventory management (Kaizen): In Engineering Management for Applied Technology. 2nd International Workshop, (pp. 55-56).
Peteraf, A. (2009). The cornerstones of competitive advantage: A resource- based view strategic management. Journal of Strategic Management, 14(3), 179-191.
Poirier, C. (1999). Advanced supply chain management. San Francisco: Berret-Koehler Press.
Reichart, A., & Holweg, G. (2007). Creating the customer- responsive supply chain: a reconciliation of concepts. Interantional Journal of Operations and Production Management, 27(11), 1144-1172..
Sanchez, A., & Perez, P. (2001). Lean inventory indicators and manufacturing strategies. International Journal of Operations and Production Management, 2(11), 1433-1452.
Seddon, J. (2005). Freedom from command and control: Rethinking management for lean service. Portland: Productivity Press.
Shah, S., Ganji, E, & Coutroubis, A. (2017). Lean production practices to enhance organisational performances. Retrieved from Matech web of conferences: http/www.reseaerchgate.net/publication/320200360
Simchi-Levi, D. (2008). Designing and managing the supply chain: Concepts, strategies and case studies. Boston: McGraw-Hill/ Irwin.
Sumo, J. (2015). Lean practices and supply chain performance among automobile assembly firms in Kenya. European Journal of Logistic, Purchasing and Suppply Chain Management, 14(3), 563-576.
Tan, K., Kannan, V., & Handfield, R. (1998). Supply chain management: Supplier performance and firm performance. International Journal of Purchasing and Material Management, 34(3), 2-9.
Taylor, D. (2006). Strategic considerations in the development of lean agri-food supply chains: A case of the UK pork sector. International Journal Supply Chain Management, 11(3), 271-280.
Terziovski, M., & Sohal, A. (2000). The adoption of continous improvement and innovation strategies in Australian manufacturing firms. Technovation, 20(10), 539-550.
Treville, S., & Antanakis, J. (2006). Could lean production job design be intrinsically motivating? Contextual, configurationally, and levels- of- analysis issues. Journal of Operations Management, 24(2), 99-123.
Vonderembse, M., Uppal, M., Haun, S., & Dismukes, J. (2006). Designing supply chains: Towards theory development. International Journal of Production Economics, 100(2), 223-238.
Womack, J., & Jones, D. (1996). Beyond Toyota: How to root out waste and pursue perfection. Harvard Business Review, 223(18), 140-158.
Womack, J., & Jones, D. (2009). Lean thinking: Banish waste and create wealth in your corporation. London, UK: Free Press.
Wu, Y. (2002). Effective lean logistics strategy for the auto industry. International Journal of Logistics Management, 13(2), 19-38.
Achanga, P., Shehab, E., Rajkumar, R., & Nelder, G. (2006). Critical sucesss factors for lean implementation within SMEs. Journal of Manufacturing Technology Management, 17(4), 460-471.
Alvarado, U., & Kotzab, H. (2001). Supply chain management: The integration of logistics in marketing. Industrial Marketing Management, 30(2), 183-198.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Belekoukias, I., Garza- Reyes, J., & Kumar, J. (2014). The impact of lean methods and tools on the operational performance of manufacturing organisations. International Journal of Production Research, 52(7), 43-53.
Bhasin, S., & Burcher, P. (2006). Lean viewed as a phhilosophy. Journal of Manufacturing Technology Management, 3(2), 23-32.
Bonavia, T., & Marin, J. (2006). An empirical study of lean production in ceramic tile industry in Spain. International Journal of Operations and Production Management, 26(5), 505-631.
Bowen, D., & Youngdahl, W. (2006). Lean service: In defence of production - line approach. International Journal of Service Industry Management, 12(3), 207-225.
Boysons, S. (1999). Logistics and extended enterprises: Benchmarks and Best Practices for the manufacturing professional. New York: Wiley.
Callen, J., Fader, L., & Krinsky, I. (2002). Just In Time (JIT): Across sectional plant analysis. International Journal of Production Economics, 36(7), 58-62.
Ciarniene, R., & Vienazindiene, M. (2012). Lean manufacturing: Theory and practice. Journal of Economics and Management, 17(2), 726-732.
Cudney, E., & Elrod, C. (2010). Incorporating lean concepts into supply chain management. International Journal of Six Sigma Competitive Advantage, 6(1), 12-30.
Cusumano, M. (1985). The Japanese automobile industry: Technology and Management at Nissan and Toyota. Boston: Havard University Press.
Dankbaar, B. (1997). Lean Production: Denial, confirmation or extension of sociotechnical systems design? Human Relations, 50(5), 567-583.
Gapp, R., Fisher, R., & Kobayashi, K. (2008). Implementing 5s within Japanese context: An integrated management system. Management Decision, 46(3), 112-119.
Gunasekaran, A., Patel, C., & Mcgaughey, R. (2004). Performance measures and metrics in a supply chain environment. International Journal of Operations and Production Management, 28(5), 991-1012.
Haan, D., Overboom, M., & Naus, F. (2012). Lean logistic service providers: Option or Utopia? Experiences from the Netherlands. Changing paradigm for inventory management in a supply chain context. International Journal of Operations Management, 12(7), 78-97.
Handfield, B., Monczka, M., Giunipero, C., & Patterson, L. (2009). Sourcing and supply chain management. Canada: South- Western publisher.
Harland, C. (1996). Supply chain management: Relationships, chains and networks. British Journal of Operations Management, 7(2), 23-28.
Harland, C., Caldwell, N., Powell, P., & Zheng, J. (2007). Barriers to supply chain information integration. Journal of Operations Management, 25(6), 34-54.
Harrison, T., Lee, H., & Neale, J. (2003). The practice of supply chain management: Where theory and application converge. Massachussets: Kluwer Academic Publisher.
Helms, M., Thibadoux, G., Haynes, P., & Pauley, P. (1990). Meeting the human resources challenges of JIT through management development. Journal of Management Development, 9(3), 28-34.
Hines, P., Found, P., Griffiths, G., & Harrison. (2008). Staying lean: Thriving, not just surviving. Cardiff: Lean Enterprise Institute.
Hirano, H. (1995). 5s for operators: 5 pillars of visual workplace. Portland: Productivity press.
Ho, S. (1999). The 5s auditing. Managerial Auditing Journal, 14(6), 294-302.
Ho, S., Cicmil, S., & Fung, C. (1995). The Japanese 5s practice and TQM training. Journal of Total Quality Management, 3(1), 19-24.
Howard, T. (2004). Strategic management research (2nd ed.). London: Oxford University Press.
Imai, M., & Kaizen, G. (1995). A common sense approach to continous improvement strategy. New York: McGraw Hill.
Jaskanwal, G., Deep, M., & Rajdeep, S. (2003). Application of Lean and JIT principles in supply chain management. International Journal of Management Research and Business Strategy, 3(4), 173-176.
Jasti, N., & Kodali, R. (2016). An empirical study for implementation of lean principles in Indian manufacturing industry. An international Journal of Operations Management, 23(1), 183-207.
Jones, C. (1998). Moving Beyond ERP: Making the missing link. Logistic Focus, 6(7), 2-7.
Kannan, V., & Tan, K. (2005). Just in time, Total Quality Management and Supply chain management: Understanding their linkages and impact on business performance. Journal of Supply Chain, 33(8), 153-163.
Karim, A., & Arif- Uz- Zaman, K. (2013). A methodology for effective implementation of lean strategies and its performance evaluation in manufacturing organisations. Business Process Management Journal, 19(1), 169-196.
Kumar, M., Antony, J., Singh, R., Tiwari, M., & Perry, D. (2006). Implementing the lean sigma framework in an Indian SME. Production and Planning Control, 17(4), 407-423.
Lee, H., & Corey, B. (1995). The evolution of supply chain management models and practice at Hewlett-Packard. Interfaces, 25(3), 42-63.
Lee, M., Padmanabhan, V., & Whang, S. (1997). Information distortionin a supply chain: The bullwhip effect. Journal of Management Science, 43(4), 546-558.
Liker, J. (2004). Toyota way: 14 management principles from the world's greatest manufacturer. New York: McGraw-Hill.
Liker, J., & Choi, T. (2006). Building deep supplier relationships. Harvard Business Review, 23(2), 67-76.
Mageto, J. (2009). Relationship between supply chain performance and supply chain responsiveness: A case study of supermarkets in Nairobi. University of Nairobi, Kenya.
Mbithuka, L. (2010). Lean manufacturing practices and supply chain responsiveness among vegetable oil processing firms in Kenya. International Journal of Production Research, 45(16), 3799-3822.
McLoughlin, D., & Horan, C. (2002). Markets- as - networks: notes on a unique understanding. Journal of Business Research, 55(7), 535-543.
Moden, Y. (1983). Toyota production system: practical approach to production management. Norcross: Industrial Engineering and Management Press.
Moden, Y. (1994). Smoothed production helps Toyota adapt to demand changes and reduces inventory in Toyota production system autonomy. Springer, 5(6), 63-73.
Ohno, T. (1998). Toyota production system- beyond large -scale production. New York: Productivity press.
Oliver, N., Delbridge, R., & Lowe, J. (1996). The european auto components industry manufacturing performance and practice. International Journal of Operations and Production Management, 16(2), 234-241.
Onwughalu, O., Okeke, K., & Henry-Chibor, E. (2017). Lean production and its effects in organisations: A study of selected manufacturing firms in Nigeria. Scholarly Journal of Science Research and Essay, 6(4), 85-98.
Palmer, V. (2001). Inventory management (Kaizen): In Engineering Management for Applied Technology. 2nd International Workshop, (pp. 55-56).
Peteraf, A. (2009). The cornerstones of competitive advantage: A resource- based view strategic management. Journal of Strategic Management, 14(3), 179-191.
Poirier, C. (1999). Advanced supply chain management. San Francisco: Berret-Koehler Press.
Reichart, A., & Holweg, G. (2007). Creating the customer- responsive supply chain: a reconciliation of concepts. Interantional Journal of Operations and Production Management, 27(11), 1144-1172..
Sanchez, A., & Perez, P. (2001). Lean inventory indicators and manufacturing strategies. International Journal of Operations and Production Management, 2(11), 1433-1452.
Seddon, J. (2005). Freedom from command and control: Rethinking management for lean service. Portland: Productivity Press.
Shah, S., Ganji, E, & Coutroubis, A. (2017). Lean production practices to enhance organisational performances. Retrieved from Matech web of conferences: http/www.reseaerchgate.net/publication/320200360
Simchi-Levi, D. (2008). Designing and managing the supply chain: Concepts, strategies and case studies. Boston: McGraw-Hill/ Irwin.
Sumo, J. (2015). Lean practices and supply chain performance among automobile assembly firms in Kenya. European Journal of Logistic, Purchasing and Suppply Chain Management, 14(3), 563-576.
Tan, K., Kannan, V., & Handfield, R. (1998). Supply chain management: Supplier performance and firm performance. International Journal of Purchasing and Material Management, 34(3), 2-9.
Taylor, D. (2006). Strategic considerations in the development of lean agri-food supply chains: A case of the UK pork sector. International Journal Supply Chain Management, 11(3), 271-280.
Terziovski, M., & Sohal, A. (2000). The adoption of continous improvement and innovation strategies in Australian manufacturing firms. Technovation, 20(10), 539-550.
Treville, S., & Antanakis, J. (2006). Could lean production job design be intrinsically motivating? Contextual, configurationally, and levels- of- analysis issues. Journal of Operations Management, 24(2), 99-123.
Vonderembse, M., Uppal, M., Haun, S., & Dismukes, J. (2006). Designing supply chains: Towards theory development. International Journal of Production Economics, 100(2), 223-238.
Womack, J., & Jones, D. (1996). Beyond Toyota: How to root out waste and pursue perfection. Harvard Business Review, 223(18), 140-158.
Womack, J., & Jones, D. (2009). Lean thinking: Banish waste and create wealth in your corporation. London, UK: Free Press.
Wu, Y. (2002). Effective lean logistics strategy for the auto industry. International Journal of Logistics Management, 13(2), 19-38.
Published
2024-07-04
How to Cite
Oluwaseyi, K. O. (2024). EFFECT OF LEAN MANUFACTURING PRACTICES ON SUPPLY CHAIN PERFORMANCE IN FOOD AND BEVERAGE MANUFACTURING FIRMS IN NIGERIA. African Journal of Emerging Issues, 6(12), 1 - 23. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/644
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