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A.P.S. Rathore
Department of Management Studies,
Malviya National Institute of Technology (MNIT), Jaipur, India
Abstract
Purpose – In the present era of intense competition, industries are adopting lean manufacturing for
successful survival. The concept of lean manufacturing is new for Indian process industries. The
purpose of this paper is to investigate the status of lean manufacturing in Indian process industries in
terms of lean practices, reasons and challenges of implementing lean manufacturing.
Design/methodology/approach – A survey was carried out to assess the level of lean
implementation in Indian process industries. Statistical tests were conducted to assess the significant
lean practices, reasons and challenges of implementing lean in Indian process industries.
Findings – It is observed that the level of implementation of lean manufacturing in Indian process
industries is still low. Results indicate that Indian process industries those who have implemented lean
found lean to be very useful to reduce wastes and to increase quality. Major lean practices being
implemented by Indian process industries are primarily those which are related to waste elimination or
improvement in quality. Indian process industries found that important challenges to implement lean
are to produce in small batches, to arrange for lean experts and to impart training to employees.
Research limitations/implications – In the present study, the sample size is small and hence, the
findings should be generalized cautiously. Although the study indicates that lean can be very useful if
implemented in Indian process industries but further empirical studies are required to quantify
performance improvements through adoption of lean.
Originality/value – The paper explores status of lean adoption in Indian process industries.
Considering the unique characteristics of process industries, the present research would be helpful for
making strategies to implement lean in process industry setups.
Keywords India, Lean manufacturing, Performance improvement, Process industry
Paper type Research paper
1. Introduction
In the present era of fierce competition, manufacturing organizations relentlessly make
efforts to improve their performance for successful survival (Hokoma et al., 2008).
According to Ghosh (2013), Indian manufacturing companies are also feeling the heat
of competition after the introduction of open market policies and industrial
Journal of Manufacturing
liberalization. Competition has intensified in all sectors whether it is service sector, Technology Management
discrete manufacturing or process manufacturing. Upadhye et al. (2010) underline Vol. 26 No. 1, 2015
pp. 131-160
that intense competition has motivated Indian manufacturing organizations to search © Emerald Group Publishing Limited
1741-038X
methods to reduce cost and to deliver on time with high customer satisfaction. DOI 10.1108/JMTM-05-2013-0049
JMTM Dangayach and Deshmukh (2003) measured the competitiveness of manufacturing
26,1 industries of India and found that the process sector showed least competitiveness on
competitive priorities such as quality, cost, delivery, innovation and flexibility.
As a result, it seems to be imperative for process sector of India to search for new
business strategies, not only to outperform their competitors but also to combat
other market challenges. One possible solution is to adopt a suitable world class
132 manufacturing methodology such as “lean,” which is considered to be immensely
successful to improve overall performance of an organization (Upadhye et al., 2010).
Adoption of “lean” in discrete manufacturing is widespread. In-fact, its success in
discrete manufacturing has motivated other industries too to endeavor lean
(Garza-Reyes et al., 2012). However, in process industries lean methodology is not
common (Gebauer et al., 2009). Barely any literature is available about lean
implementation in process industries (Abdulmalek and Rajgopal, 2007). Moreover,
managers still feel scepticism about the validity of lean manufacturing in process
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targets to identify and eliminate numerous wastes exist inside the factory or along
the supply chain.
Mady (1991) 44 manufacturing Effect of type of industry on Inventory represents 24 percent of total assets in process
enterprises in Egypt inventory control industries. Techniques such as MRP, JIT, Kanban, and zero
including textile, food and inventory are useful for inventory management
chemical companies
White (1993) 494 US manufacturing firms Benefits of JIT 90 percent gained benefits from implementing JIT. JIT is helpful in
including large portion of implementation reducing lead time, decreasing throughput time, improving
process industries production quality, increasing productivity and enhancing
customer responsiveness
Sohal and Egglestone 51 Australian industries Status of lean 82 percent industries were practicing lean manufacturing.
(1994) including 69 percent implementation Substantial benefits can be achieved through implementation of
industries from process lean manufacturing despite of type or size of industry
sector
Besson and Haddadj 50 US chemical firms Effect of employees’ skill on Successful implementation of lean manufacturing needs elevation
(1999) lean adoption in employees’ skills
Gyampah and Gargeya 48 manufacturing firms in Status of JIT Same fundamental understanding of JIT as in developed countries.
(2001) Ghana (most of the firms are implementation JIT manufacturing firms give emphasis on employees’ training,
from process sector) cellular manufacturing, setup time reduction, continuous quality
improvement and supplier relationship
Soriano-Meier and Survey of 30 UK ceramics Factors affecting JIT Lean production’s effects can only be seen in long term. There
Forrester (2002) industries implementation exists strong relationship between managerial commitment and JIT
implementation
White and Prybutok 494 US manufacturing firms Comparison of JIT practices Repetitive process industries have higher utilization of JIT
(2001) (including continuous flow implementation practices in comparison with non repetitive industries like job or
industries) batch production
Shah and Ward (2003) 1748 US manufacturing Investigation of lean Lean implementation depends on plant age and size but not on
firms practices implementation type. JIT practices are more common in discrete industries and
TPM practices are more likely to be implemented in process
industries
(continued )
process industries
Survey studies
Table I.
implementation in
regarding lean
Lean
135
implementation
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26,1
136
Table I.
JMTM
(continued )
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Table I.
137
implementation
JMTM which employ JIT manufacturing practices are more profit earning then non JIT firms.
26,1 In a study of 65 Chinese industries including textile, chemical, petroleum and food
industries, Taj (2008) revealed that the major areas of performance improvement
through lean as perceived by the practitioners are inventory, team approach, process,
maintenance, layout and handling, suppliers, setup, quality and scheduling/control.
According to Singh et al. (2010a), with the application of lean manufacturing,
138 wastes related to human efforts, inventory, time to market, and manufacturing space
can be reduced.
2.3.3 Application of lean practices in process industries. Shah and Ward (2003)
investigated the adoption of 22 lean practices in discrete and process industries and
found that lean practices related to TPM prevailed more in process industries and lean
practices related to JIT production were less implemented in process industries.
In a study of 246 Chinese firms, Chen and Shang (2008) found that most notable
JIT components used by Chinese firms are “setup reduction,” 5S, kaizen, “cross
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training” and “multi functional team.” Authors found that Kanban and “pull
production” are rarely used in Chinese firms.
Lyons et al. (2013) undertook a survey of 62 process industries in UK and explored
that only those lean practices are extensively used in process industries which are
associated with elimination of wastes. Authors found that use of 5S, TPM, “quality
management,” “visual control” and “statistical process control” (SPC) is widespread in
process industries, whereas use of “cellular manufacturing”, “JIT production” and “pull
production” is rare. In context to textile industries, Hodge et al. (2011) observed that
those who have implemented lean showed significant use of lean tools such as 5S,
kaizen, “value stream mapping” (VSM), and “visual control.” Whereas, lean tools
such as “cellular manufacturing,” kanban, “mistake proofing,” “policy deployment” and
“rapid improvements” were rarely used.
All these studies portray that 5S, TPM, “quality management,” “visual control,” SPC
and “work standardization” are in general applicable in process industries. These
studies also suggest that lean tools which are primarily related to JIT production
such as ‘pull production, kanban and “cellular manufacturing” are rarely used in
process industries.
2.3.4 Challenges to implement lean. Process industry environment imposes
certain challenges while implementing lean. In process industries batch sizes are
constrained by the fixed capacity of the processing equipment. If the batch quantity is
changed to a smaller quantity to implement JIT principles, this can result in poor
mixing and access waste (Ezingeard and Race, 1995). It can also need to expand
facilities, in order to have various sized mixing vessels to different batch sizes. Second,
large batch runs are essential for process industries due to large and inflexible
machines with long setup and changeover times which in turn demands maximum
utilization of resources (Powell et al., 2010). Houghton and Portougal (1995) warn that it
is difficult to achieve batch size reduction in process industries because it is associated
with setup reduction which is challenging with large fixed capacity equipments. Short
required lead times also limit the application of lean strategy in supply chains in
process industries (van der Vorst et al., 2001). Sewig (2008) and Melton (2005) describe
that resistance to change and confusion on validity are to be surmounted while
implementation of lean in process industries. Lack of training and unawareness about
lean concepts are also the major challenges which need proper attention while
implementing lean concepts in process industries. Another challenge to implement lean
in process industries is the difficulty to find expert personnel who leads the change Lean
(Kamakura, 2006). implementation
In a recent study of 68 UK manufacturing firms, Bhasin (2012) revealed following
obstacles to implement lean:
• insufficient supervisory skills to implement lean – 66 percent;
• employee attitudes/resistance to change – 60 percent; 139
• insufficient workforce skills to implement lean – 59 percent;
• insufficient senior management skills to implement lean – 58 percent;
• insufficient management time – 54 percent;
• cultural issues – 51 percent;
• cost of the investment – 50 percent;
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industries are being carried out in India for quite a time. Although, these studies
provide some important insights about implementation of lean in Indian process
industries but their scope is confined to a particular firm or a particular type of process
industry. Hence, their results cannot be generalized, as stated by Gupta et al. (2013).
Second, Table II confirms that considerable empirical research has been carried out
in Indian manufacturing industries regarding lean implementation issues (Singh et al.,
2010b; Garza-Reyes et al., 2012; Ghosh, 2013), but there is barely any exploratory
research focussed upon process sector of India. Present empirical study will bridge this
gap in research by addressing the prominent issues regarding lean implementation in
Indian process industries and will furnish important outcomes for general application
and upcoming research.
3. Research methodology
3.1 Development of survey instrument
Comprehensive literature review lead to the establishment of four issues, namely,
“reasons of lean implementation,” “reasons of not implementing lean,” “lean tools” and
“challenges while implementing lean” to fully explore the status of lean implementation
in Indian process industries. Accordingly, the survey questionnaire was developed.
Subsequently, the draft of survey questionnaire was discussed with academicians,
practitioners and other experts to maintain the quality of questionnaire in the form of
appropriateness and focus on relevant issues. Finally, a structured questionnaire
was designed.
The questionnaire was split in three parts. First part contained five questions
about general information of the company. The second part of questionnaire had
three questions related to awareness about lean manufacturing. Last part of the
questionnaire was related to lean manufacturing issues. There were four questions in
the last part to identify “reasons of not implementing lean,” “reasons of implementing
lean,” “lean practices” and “challenges while implementing lean,” respectively.
Table III summarizes the lean implementation issues and their corresponding items
identified along with the literature sources.
A five point Likert scale which ranged from 1 ¼ “not use at all” to 5 ¼ “always use,”
was used for the measures of “lean practices.” For the rest of the issues same scale was
used for all items, ranged from 1 ¼ “not important” to 5 ¼ “most important.” A copy of
the survey questionnaire is furnished in Appendix.
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Mukhopadhyay et al. (1998) Pharmaceutical Case study Integrated production planning system was helpful to implement lean
concepts in pharmaceutical firm
Roy and Guin (1999) Steel Case study Application of JIT in purchasing resulted in considerable cost savings
Dhandapani et al. (2004) Steel Case study Applying JIT production resulted in release of working capital and
decrease in inventory
Mahapatra and Mohanty 29 continuous Survey Most important lean tools are TPM, “automatic line stoppage,” VSM,
(2007) manufacturing industries “workplace organization” and “visual control.” Least important lean
in India practices are “work standardization,” “multipurpose handling” and takt
time. Continuous process industries perceive higher benefits than
discrete industries from lean manufacturing. Lack of management
support is most prevailing problem in implementing lean
Seth et al. (2008) Comprising 37 respondents Survey Used value stream mapping and proved that there exist several non
from edible oil industry value added activities in the supply chain of edible oil industry
Upadhye et al. (2010) Biscuit Case study Used value stream mapping and identified several wastes in the
manufacturing of biscuits
Singh et al. (2010b) 127 manufacturing Survey Major reasons of lean implementation in Indian manufacturing
industries industries included reduction of delivery time, reduction in cost,
enhancing range of products and due to stiff competition
Upasani (2012) 47 process industries Survey Indian process industries lag far behind the other industries in
implementation of supply chain management practices such as lean
manufacturing
Garza-Reyes et al. (2012) 46 manufacturing Survey Most important reason of lean implementation in Indian industries is
industries customer satisfaction. Kaizen is perceived as an important lean tool by
Indian industries
Ghosh (2013) 79 manufacturing Survey Although, the concept of lean is new for Indian industries, still several
industries Indian companies are at advanced level of lean implementation, and by
implementing lean they have achieved better operational performance
(continued )
Indian industries
Lean
Previous studies
141
implementation in
regarding lean
Table II.
implementation
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26,1
142
JMTM
Table II.
Literature Type of process industry Type of study Major findings
Khadse et al. (2013) 31 large manufacturing Survey TPM, continuous improvements and inventory reduction are primarily
industries used lean practices in Indian manufacturing industries. Reduction in
cost and wastes are the major benefits of lean implementation, while
“lack of understanding,” lack of top management support’ and
“financial benefits not recognized” are the major obstacles while
implementing lean
Gupta et al. (2013) Tyre Case study The important enablers for successful lean implementation are
organizational culture and human resource management. Over-
processing and excessive defects are the most important wastes in
radial tyre manufacturing. Lean practices are still in the nascent stage
in the industry
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Reasons of implementing 8 Elimination of wastes White (1993), Taj (2008), Singh 0.657
lean To decrease production costs et al. (2010b)
To improve quality
To facilitate JIT production
To increase demand management efficiency
To increase customer satisfaction
To increase supply chain efficiency
To increase utilization of space
Lean practices 20 Value stream mapping (VSM) Shah and Ward (2003), Lyons 0.800
5S et al. (2013)
Quick changeover techniques (SMED)
Setup reduction
Lot-size reduction
Total productive maintenance (TPM)
Visual control
Work standardization
Statistical process control (SPC)
Quality management programme
Takt time
Pull production
production levelling
mistake proofing
Kanban
Cellular manufacturing
Flexible and cross functional teams
Continuous improvement programmes
Supplier integration and partnership
Long-term relationship with suppliers
(continued )
internal consistency
Literature summary
of lean issues and
Table III.
Lean
26,1
144
JMTM
Table III.
Lean Implementation issue No. of items Items Literature source Cronbach’s α
Challenges to implement 11 To facilitate small batch production Bhasin (2012), Ezingeard and 0.603
lean To identify techniques for setup time reduction Race (1995), Houghton and
To deal with typical process characteristics (time and Portougal (1995), Powell et al.,
temperature, etc.) (2010), van der Vorst
To arrange lean implementation experts et al. (2001)
Scepticism/ cultural barriers
Lack of training
Short lead times
Perishable nature of products
Improper information exchange across supply chain
To facilitate JIT production
To facilitate JIT purchasing
Reasons of not 9 Large batch production is necessary for capacity Ezingeard and Race (1995), 0.721
implementing lean utilization Hokoma et al. (2008),
Process industries already have continuous Hokoma et al. (2010)
production
Lack of education and expertise on lean
Lack of financial resources
Lack of time
Cultural barriers (resistance to change)
Specific characteristics of process industries (time,
temperature and process dependence)
Lack of senior management’s interest and support
Lean is complex to implement
3.2 Survey administration Lean
A sample of 500 companies was taken from directory of ISO: 9001 certified process implementation
industries in India. Primarily, postal survey method was used to administer the
questionnaire. It was observed that initially the response rate was low in-spite of
repeated reminders. Hence, it was decided to search other means to increase response
rate. A few responses were collected through conducting face to face interviews. In
some instances, responses were collected through third party channels. These efforts 145
helped, and the response rate increased. To increase the response rate further,
emails were sent, followed by a telephonic request for reply. The questionnaire was
addressed to higher executives who were responsible for production. Finally, 126
responses received.
A measuring instrument should provide consistent results, and for it, test of reliability
is carried out. Cronbach’s α was calculated for all the responses for all constructs.
Variables having value of α more than 0.60 were considered to be highly reliable.
4. Observations of survey
Out of contacted 500 Indian process industries, 126 responded. In all, six responses
were incomplete which were excluded from further analysis. Hence, the number of valid
responses was 120. Therefore, the response rate achieved was 24 percent. It is worth
mentioning that response rate achieved in present study is similar to other such studies
carried out in Indian context. Ghosh (2013) in a study of lean manufacturing
implementation in Indian manufacturing companies received the response rate of 20
percent. In similar studies, Upasani (2012) and Pandey et al. (2010) could achieve the
response rate of 17.5 and 18.02 percent, respectively. Nonetheless, according to
Malhotra and Grover (1998) and Sahay et al. (2006) this response rate is adequate in
India for this type of surveys.
Respondents were asked if they are familiar with concept of lean manufacturing.
Surprisingly, 85 (70.8 percent) respondents replied that they were familiar with lean
manufacturing. For the reply to the question that if they think lean is useful for process
industries, 86 (71.7 percent) respondents replied in a “yes.” Therefore, the study
suggests that most of the organizations from Indian process sector are aware of the
concept of lean manufacturing and also think that lean is useful for process industries.
Not surprisingly, only 45 (37.5 percent) respondents have implemented lean
manufacturing (see Table IV).
Our study explored that out of 105 respondents from large process industries 45
(42.9 percent) have implemented lean whereas, 60 (57.1 percent) have not implemented
lean manufacturing. Surprisingly, all the respondents from small process industries
denied the adoption of lean manufacturing.
lean. One sample t-test (for test value of 3) was carried out to find out the significant
reasons of not implementing lean. Table V shows the mean scores of reasons and their
ranks (based on mean scores) of not implementing lean in Indian process industries.
The one sample t-statistics are also shown in Table V. Interestingly, the significant
reasons of not implementing lean are “large batch production is necessary for capacity
utilization” (9.640, 0.000) and “lack of education and expertise” (5.542, 0.000).
However, the other important reason to not opt for implementing lean is the belief
that process industries already have continuous production. On the other hand, Indian
process industries do not perceive that the typical process characteristic of process
industries “dependence of process on time and temperature” is a significant reason of
not adopting lean. Surprisingly, lack of resources such as time and finance, cultural
barriers and top management’s support are also not considered as important reasons of
not adopting “lean.”
Sig. Mean
Reasons of not implementing lean Mean Rank t (two-tailed) difference
Sig. Mean
Lean tools Mean Rank t (two-tailed) difference
0.006), “lack of training” (4.081, 0.000) and “to facilitate JIT production” (2.699, 0.010).
Surprisingly, Indian process industries do not perceive “scepticism” or “cultural
barriers” as significant challenge to implement lean.
“Perishable nature of product” and “improper information sharing in supply chain,”
are also not significant challenges while implementing lean in Indian process
industries.
Sig. Mean
Challenges while implementing lean Mean Rank t (two-tailed) difference
Lack of education and expertise are another reasons of not adopting lean. Khadse
et al. (2013) also observed that lack of understanding of lean concepts is a major
obstacle to implement lean in Indian industries. The concept of lean for Indian
industries is new (Ghosh, 2013). Hence, it will take considerable time for people in
process industries to understand this concept and to develop skills required to
implement lean manufacturing. Besson and Haddadj (1999) also found that developing
skills regarding lean implementation is essential to implement lean manufacturing.
Interestingly, Hokoma et al. (2008, 2010) reported that “unfamiliarity with JIT/TQM”
was the major reason of not adopting lean concepts, whereas, in our study we found
that familiarity with these concepts is fairly good in Indian process industries and
hence, it is not a significant reason of low adoption of “lean.”
Indian process industries who have adopted “lean,” perceive “customer satisfaction”
as the foremost reason for implementing “lean.” Garza-Reyes et al. (2012) also assert
that most important reason of adopting lean by Indian manufacturing industries was
“customer satisfaction.” We believe that the cut throat competition and ever demanding
customer has forced the Indian process industries to give emphasis to customer
satisfaction. Another major reason of implementing lean in Indian process industries is
“elimination of wastes.” As mentioned earlier, process industries generally have high
stock levels in the supply chain, huge cycle times of which only 0.3-5 percent involve
value adding operations and low material efficiencies, as low as 1-10 percent.
Hence, it seems rational for Indian process Industries to implement lean manufacturing
primarily to eliminate wastes. Our results are also in line to the findings of
Jain and Lyons (2009) and Lyons et al. (2013). In both studies from UK process
industries the authors found that lean was adopted primarily for elimination
of wastes.
We found that other major reasons of adopting lean in Indian process industries are
“to decrease production cost” and “to increase quality.” Process industries are subjected
to variable quality of raw materials and variable yield. It results in significantly
variable output quality. Also, due to the increased competition, superior quality is an
important market winning criteria. It seems that these factors are the driving forces to
adopt lean to increase quality.
Our results support the findings of Khadse et al. (2013) that Indian industries
perceive “reduction in cost” and elimination of wastes’ as the major reasons of lean
implementation. Moreover, our findings support the results of studies carried out by
Singh et al. (2010b) and Ghosh (2013) that Indian manufacturing industries perceive
JMTM lean implementation to be helpful in reduction of delivery time, reduction in cost,
26,1 enhancing range of products and to survive in stiff competition. Hence, it is worth
stressing that driving forces to adopt lean in discrete as well as in process sector are
almost identical in India scenario.
In the Indian process industries where lean manufacturing has been implemented,
primarily used lean tools are 5S, TPM, “visual control,” “work standardization,” SPC,
150 “continuous improvement programme” and “quality management programme.” Jain
and Lyons (2009) also found that 5S is a highly used lean practice in process industries.
Similar results were produced by Billesbach (1994), Jeanes (1995) and Mukhopadhyay
and Shanker (2005). 5S is very effective to make working environment suitable for lean
manufacturing (Melton, 2005). We believe that 5S is also effective to reduce NVAA at
primary stages of lean implementation. 5S also helps to efficiently implement TPM.
Indian process industries practice TPM as a major lean tool. Shah and Ward (2003)
and Bonavia and Marin (2006) also found TPM practices to be very important for
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process industries.
Results of present study show that “visual control” is a highly used lean tool in
Indian process industries. “Visual control” is helpful to communicate the information to
the shop floor in a very effective manner. Probably because of this, visual control is
used by majority of Indian process industries who have adopted lean. Simons and
Zokaei (2005) found “work standardization” to be very effective in cost saving in UK
food industries. Our results also show that “work standardization” is a highly
implemented lean tool in Indian process industries. The present study included
only ISO 9000 firms. May be this is the reason that the process industries who have
adopted lean follow “work standardization” as a major practice. Surprisingly,
we found that Indian process industries perceive SPC as an important lean tool.
Extensive use of “work standardization” and SPC by Indian process industries
confirms the claim that after globalization Indian companies give high priority to
quality improvement (Dangayach and Deshmukh, 2003). The use of these lean tools
indicates to some important insights about lean implementation in Indian process
industries:
• Lean tools such as 5S, TPM, “visual control,” “work standardization,” “quality
management” and “continuous improvement” are not specifically related to lean.
They are very common and highly used management techniques for shop floor
management, quality management and to articulate world class manufacturing
environment. Hence, it is not surprising if they are widely used in Indian process
industries. In-fact, Indian process industries might be using some of these
practices before adopting lean formally. In contrast, typical lean tools such as JIT
production, kanban and “pull production” are still not popular in Indian process
industries.
• Only those lean tools are highly used by Indian process industries which can be
adopted without significant changes in production strategies or setups, such as
5S, TPM and “continuous improvement.” Adoption of these tools does not
demand high investments of resources such as finance or time.
• The experts for implementing these lean tools are comparatively easy to arrange
because they are not industry specific.
• Use of these lean tools does not necessarily demand production in small batches
and, hence, these are more common in Indian process industries.
• These tools not only help to control the quality but also greatly help to reduce Lean
various wastes. implementation
• Considering the nascent stage of lean manufacturing in Indian process industries,
those lean tools which do not depend directly on process characteristics are
implemented primarily, for example, 5S, TPM and visual control.
Surprisingly, previous literature exemplifies VSM as a primary activity while adopting 151
lean manufacturing (Seth et al., 2008; Upadhye et al., 2010) in Indian process
industries. However, our study revealed that use of VSM is not common in Indian
process industries.
Present study also revealed that the Indian process industries who have adopted
lean perceive “customer satisfaction,” “elimination of wastes” and “improvement in
quality” as the foremost goals of adopting lean.
According to the results of the current study the most prominent challenge while
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implementing lean is “to produce in small batches.” Ezingeard and Race (1995) also
found that in process industries batch sizes are governed by the fixed capacity of the
processing equipment. Poor mixing or access waste can result if the batch quantity is
changed to a smaller quantity. Authors further add that to facilitate small batch
production, process industries sometimes need to expand facilities in order to have
various sized mixing vessels to different batch sizes. In such an environment it is
difficult to realize “production levelling” and “pull system.” May be this is a major
reason why Indian process industries have not implemented lean tools such as “pull
production,” Kanban and “production levelling.” Powell et al. (2010) also found that in
process industries it is a prominent difficulty to produce in small batches due to fixed
capacity of equipments. Large batch runs are also essential for process industries due
to large and inflexible machines with long setup and changeover times which in turn
demands maximum utilization of resources (Houghton and Portougal, 1995). To
arrange for lean experts and to provide training and education are other major
challenges to implement lean. Kamakura (2006) also found that while implementing
lean in process industries, the major challenge is the difficulty to find expert who leads
the change. It seems to be obvious because lean manufacturing is in nascent stage in
India. Second, the lean tools and techniques devised in discrete manufacturing Hence,
to get experts who can apply these practices with modifications, according to the
requirements of process industry setup is always difficult. In a recent study of UK
firms, Bhasin (2012) also found that “lack of supervisory skills to implement lean” is a
prominent obstacle to implement lean.
Surprisingly, Indian process industries do not think that scepticism and cultural
barriers are significant challenges to implement lean. These findings do not support the
earlier findings (Melton, 2005; Sewig, 2008; Garza-Reyes et al., 2012; Bhasin, 2012).
Dangayach and Deshmukh (2003) also reported that most of the companies in India are
enthusiastic about adopting performance improvement methods. Secondly, intense
competition, local as well as global, may have also motivated Indian process industries
to accept new strategies.
The important insights of the present study are summarized below, which can be
used while designing the lean adoption strategy in context to process industry in India:
• Although, concept of lean is relatively new for India, still Indian process
industries are aware of lean manufacturing and perceive lean to be useful for
performance improvement.
•
JMTM Driving forces to implement lean are very much identical in process and discrete
26,1 manufacturing industries in India, however, Indian process industries are far
behind than other manufacturing industries in India as far as lean
implementation is concerned. Hence, there is ample scope for adoption of lean
concepts in Indian process industries.
• Indian process industries those who have implemented lean found lean to be very
152 useful to reduce wastes and to increase quality.
• Major lean practices being implemented by Indian process industries are
primarily those which are related to waste elimination or improvement in quality.
Lean practices which are related to JIT production are still not widespread in
Indian process industries.
• Indian process industries found that biggest challenge while implementing lean
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is to produce in small batches. To arrange for lean experts and to impart training
to employees are also big challenges while implementing lean. In-fact, managers
in Indian process industries believe that “to produce in large batches for proper
utilization of capacity and equipments” is a major reason of not choosing lean
manufacturing for performance improvement.
• “Cultural barrier” is no more an important reason of not implementing lean in
process industries. This finding is very important in Indian context. This
outcome suggests that acceptance for any change has been gradually increased,
thus, it is much easier now to implement new methodologies such as lean, in
Indian process industries.
References
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Further reading
Jonsson, P. and Mattsson, S. (2006), “A longitudinal study of material planning applications in
manufacturing companies”, International Journal of Operations & Production
Management, Vol. 26 No. 9, pp. 971-995.
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Appendix. Lean Assessment Questionnaire
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Lean
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