A study of lean management in indian manufacturing msmes

Abstract

Lean Management philosophy has been recognized as one of the most revolutionary operating models of modern organizations. The basic tenet of lean of minimizing waste while maximizing productivity has garnered interest among organizations striving to transform their organizations in order to be better able to meet customer requirements, reduce costs and gain flexibility. Globalization has forced manufacturing organizations to adopt operational strategies like lean focusing on improving effectiveness and providing value to customers. Manufacturing sector in emerging economies like India is the main driver of growth. In this regard, it is pertinent to mention critical role played by Indian manufacturing MSMEs, who are responsible for about 45% of the manufacturing output. MSMEs due to their unique characteristics and limited resources differ from large enterprises when it comes to adopting approaches like lean management. In order to boost lean diffusion among Indian manufacturing MSMEs, Development Commissioner, Ministry of Micro, Small and Medium Enterprises (DC-MSME), Government of India initiated and#8215;Lean Manufacturing Competiveness Scheme (LMCS). This research is an endeavor to study implementation of lean management in Indian Manufacturing MSMEs in a structured manner in the context of the scheme. Lean management poses a unique challenge among practitioners and managers who have been unable to sustain improvement after reporting initial gains. Perusal of extant literature brings to light that success or failure of lean intervention is dependent on organizational culture. Adopting the premise of contingency theory, fit between organizational culture and lean management is necessary to attain performance improvement. Further, successful organizational transformation requires a holistic approach while adopting lean management. Lean management conceived as a sociotechnical system of hard lean tools and soft lean practices necessitates focus on integration of human side and technical side of lean...