Introduction:
In this report we tried to explain the relationship between lean manufacturing practices environmental management practices and environmental performance, business performance outcomes (e.g., market and financial performance).
The hypothesized relationships of this model are tested with data collected from 309 international manufacturing firms (IMSSIV) by using AMOS.
There is an increasing social demand for environmental sustainability and organizations recognize that it has implications for its competitive positions and are striving to inculcate environmental friendly practices. So in this report we try to explain how lean manufacturing practices can achieve this and what impact it has on business performance.
Lean manufacturing is a collection of tactical methods that helps in eliminating non-value added activities (waste) for delivering quality products with least cost at a greater efficiency.
Lean implementation is rapidly expanding throughout manufacturing and service sectors as a core business strategy to develop a competitive advantage.
The focus of lean manufacturing is on driving rapid, continual improvement in cost, quality, service, and delivery, significant environmental benefits typically "ride the coattails" or occur incidentally as a result of these production-focused efforts.
Lean production techniques create a culture of employee empowerment, and waste minimization, continuous improvement, which is very compatible with organizational characteristics encouraged under environmental management systems (EMS) and pollution prevention (P2). Other related business strategies such as "Six Sigma" can have the same effect.
Hypothesis Development:
H1: Lean manufacturing will be positively...
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...ste (preferably environmental waste) thus increasing environmental efficiency of the firm.
The paper is very important keeping in fact that it considers Environmental management as a prime factor or driving force for a firm’s efficiency. Presently we could see all the companies are surging towards a greener approach. Companies are trying hard to establish themselves as global environmental friendly firms by different certifications like ISO 14001, etc. and also Government rules & policy off late focuses more on environmental friendly approach.
In spite of few limitations of this paper, it provides some valuable managerial insights.
References:
http://www.wausau.k12.wi.us
http://www.sciencedirect.com
International Journal of Production Economics
J.C. Anderson, D.W. Gerbing Structural equation modeling in practice: a review and recommended two-step approach
Lean manufacturing refers to systematic identification and elimination of waste through CI processes in pursuit of perfection (Khan et al. 2013; Yang & Yang 2013). Lean production is now used worldwide in manufacturing plants to eliminate waste from all ar...
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Lean startup method helps entrepreneurs to develop businesses and products. This method first developed by Eric Ries in 2008. Eric Ries gained a lot of experience in U.S. startups before developing the Lean Startup method. Ries states that: '' Startups shorten their product development cycle by following businesss hypothesis driven experimentation, repetitive product unleashes and validated learning processes. This method prioritize customers and their needs in order to minimize market risks and some initial costs.
John Deere’s ability to operate profitably throughout their business cycle has been through proper supply chain management, rigorous cost controls, and lean productivity John Deere shows ambition towards future sustainment with agricultural equipment solutions and a larger global presence in their construction equipment product line. While agriculture equipment has gotten more powerful and larger than original designs, John Deere understands the importance of increased technology and innovation to meet the needs of customers around the world. John Deere strives to meet the business conditions for their customers by developing cost strategies that meet the goals and expectations of the current customer base and future
Manufacturing businesses and business leaders need to increase their focus on key success factors such as: innovation, productivity improvement, investment in people & skills, and funding. Innovation is not just about retention and development, or the latest technology. It’s also about practical and efficient problem solving and business transformation. In the manufacturing industry, this can be achieved by: refining or exploring new supply and distribution channels, establishing new business offerings, developing leaner organizational arrangements, improving processes, providing a better customer experience, and accessing green, clean technology – high on the agenda for environmentally conscious customers (Performance, 2011)
middle of paper ... ... doi:http://corporate.ford.com/microsites/sustainability-report-2012-13/blueprint-strategy. Hughes-Cromwick, E. (2011). The 'Standard'.
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The company that the author has chosen to compare his own organization with is the Toyota motor company. The Toyota Company has become a renowned leader in the area of quality management. Toyota’s theory of “keep it lean” has kept the company running at a level that eclipses the industry standards.
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