Model development of essential lean manufacturing methods on sustainable performance in Malaysian manufacturing firms

Malaysian manufacturing production has been declining for the last decade, according to the Department of Statistics Malaysia (DoSM). 5.70 percent is expected to decrease by the end of the quarter, based on the trading economics model and analyst expectations. Manufacturing organisations in Malaysia were forced to continuously improve their performance through operational excellence and product quality enhancement in order to survive under extreme pressure. Accelerating the adoption of Lean Manufacturing (LM) will help manufacturing organisations remain competitive in the market by increasing productivity and efficiency through the process of waste elimination and non-value-added activities. The purpose of this thesis is to conduct an empirical study of the multidimensionality of essential lean manufacturing (LM) methods (i.e., total productive maintenance (TPM), continuous improvement (CI), and just-in-time (JIT)) and their association with sustainable performance (SP) as perceived by middle to upper-level managers (i.e., executives, managers, senior managers, managing directors in the manufacturing firms in Negeri Sembilan, Malaysia. The novelty of this study lies in the developed conceptual model that correlates the constructs comprises of three essential LM methods and sustainable performance. A conceptual model is developed to explore the multidimensional relationship between the four main constructs. Based on a statistical analytic approach, 12 critical success factors of essential Lean Manufacturing Methods and SP were identified. 69 of 121 respondents’ usable surveys were collected from manufacturing sectors that are recognised by the Negeri Sembilan Investment Centre (NSIC). They are made up of small, medium, and large businesses. The conceptual model was validated using the Structural Equation Modelling (SEM) technique. The findings of this study suggested six hypotheses regarding the direct relationship between essential LM Methods and SP, with the JIT being the most significant determinant. Several findings, however, including the relationship between TPM and SP, the mediator role of TPM in the relationship between CI and SP, and CI and JIT, and the mediator role of JIT in the relationship between CI and SP, were not significant due to a number of constraints, including advancement of manufacturing standards and systems, employee knowledge levels, and a lack of delegation by top management. These finding were tested and it contribute to the effectiveness and integrating theory of LM on SP knowledge paradigm. Two case studies are used to validate the developed model. According to the first case study's findings, integrating of Value Stream Mapping, Benchmarking and essential LM practises resulted in a 3.85 percent increase in the Manufacturing Performance Index (MPI), from 0.75 to 0.78. The proposed integration method in this particular case study is the significant methodological contribution in this study. Furthermore, according to the value stream map, the production lead time (PLT) reduced by nearly 6.3 percent, from 24.1 days (current VSM) to 22.6 days (future VSM). The second case study also yields favourable results. After implementing integrated essential lean methods, the company was able to achieve a defect rate reduction of approximately 50%. Additionally, the reduction increases the company's productivity by 50% after defective products are converted to good products. Theoretically, a comprehensive conceptual model relating three essential LM methods and sustainable performance was developed, serving as a valuable reference for future researchers. As a result, it can be concluded that the fundamental lean methods, namely TPM, JIT, and CI, contribute to the sustainable performance (SP) of Malaysian manufacturing firms specifically in Negeri Sembilan state.

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