An ANP-based network to measure the impact of Lean production on organisational performance
Journal of Industrial Engineering and Management
JIEM
2013-0953
An ANP-Based Network to Measure the Impact of Lean Production on Organisational Performance
José Luis Ruano Pérez 0
Raúl Rodríguez-Rodríguez 0
Universitat Politècnica de València (Spain) 0
0 , Juan-José Alfaro-Saiz , María-José Verdecho
Purpose: The main objective of this research is to design a decision-making network, based on the Analytic Network Process (ANP) technique (Saaty, 1996), which will include the main elements to take into account when stating the effect that the application of LP techniques has got on the performance of an organisation, measured this through a Performance Measurement System (PMS). Design/methodology/approach: The authors have carried out a scientific literature search to state what the main LP techniques are -and how to group them into different clusters- and have then applied the ANP, its first phase, in order to design the decisional network. Findings: There is a gap in the literature when trying to identify and quantify to what extent the implementation of LP techniques affects to organisational performance. The ANP is an appropriate technique to do so due to the need of gathering and quantifying experts' opinions. Originality/value: The designed ANP-based network to measure the impact of LP over organisational performance is a novel approach. This paper justifies its usage and paves the way to implement the rest of the ANP phases in future research work.
lean production; organisational performance; analytic network process
1. Introduction
Lean Production (LP) means a set of techniques widely used not only in industry but also in-service organisations
like hospitals. LP has been regularly used, in greater or lower degree, in many companies in the last 40 years, as their
proper application usually results into more efficient processes and, extensively, organisations. It can be said that LP
was born in the context of the automobile industry in Japan, taking as initial point Ford’s manufacturing method.
Then, LP is an evolution of such a system, as it combines automated manufacturing with small batches
manufacturing. Then, the manufacturing of these small batches together with a fast organisation avoids both
excessive and obsolete stocks as well as low quality levels.
In general, LP is a market-oriented system focused on meeting customer’s demands. With a just in time strategy
what it is sought is to provide what the customer demands, in the way it is expected, with the adequate quality level
and delivering it when it is demanded. All this having manufactured the product with the minimum resources,
avoiding waste, waiting times and high stock levels.
There are many LP techniques such as the following:
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5 S are five basic principles, meaning: seiri (methodical arrangement), seiton (order), seiketsu (state of
cleaning), seiso (cleaning) and shisuke (discipline). In order to accomplish their more efficient
implementation, it is necessary an appropriate training on the adequate methods to apply to the working
area.
Total Productive Maintenance (TPM) is the total or final maintenance management. The question here is:
How is it possible to achieve zero level of breaking downs? The, the five breaking down phases of
equipment are analysed: latent minor defects, apparent minor defects, process execution below the
expected levels, intermittent stops and stops due to breaking downs.
Total Quality Management (TQM) is the total quality management. There are many techniques within
TQM but the main idea is that delivering quality products/services is the most important regarding the
production process independently of the production process employed.
Single Minute Exchange Die (SMED) is a technique that aims that the tool set up time can be expressed
with a single digit (less than 10 minutes). Its correct application facilitates a continuous production flow,
decreasing cycle times and, extensively, increasing production rates with lower stock levels.
There are more LP techniques such as Just in Time, standardisation, Poka-yoke, Baka-yoke, Heijunka, Jidoka,
Kanban among others and an organisation should analyse what of these are better for them and the degree of
relationships between them.
Hence, it is widely agreed that the application of LP techniques impacts over organisational performance. The main
question to be answered is: To what extent? In other words, an organisation invests resources on applying LP
techniques and it wants to know what the payback is.
In order to answer this question, this paper analyses next the main scientific literature that deals with LP and
performance measurement in order to demonstrate this research gap. It then moves into identifying appropriate
techniques that could be used to effectively link LP and performance management, at all decision-making levels. It
then selects one of these techniques, the Analytic Network Process and design a decisional network following the
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