The performance effect of the Lean package – a survey study using a structural equation model

Thomas Borup Kristensen, Poul Israelsen

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    Abstract

    Purpose - Our aim is to test and validate a system-wide approach using mediating relationships in a structural equation model in order to understand how the practices of Lean affect performance.
    Design/methodology/approach – A cross-sectional survey with 200 responding companies indicating that they use Lean. This is analyzed in a structural quation model setting.
    Findings - Previous quantitative research has shown mixed results for the performance of Lean because they have not addressed the system-wide mediating relations between Lean practices. We find that Companies using a system-wide approach to Lean practices perform significantly better than those using a scattered array of these practices. This paper shows that the effect of Lean’s flow production practices on performance is mediated by analytical continuous improvement empowerment practices, and by delegation of decision rights practices. Furthermore, the paper provides evidence that supports the view that actions of middle management enhance performance in the system-wide approach to Lean.
    Originality/value - In contrast to previous surveys, our results support case studies describing the multiple interdependencies of Lean practices in creating improved performance. Hence, we develop a new systemwide structural equation model approach with multiple mediations, and we validate this with substantial
    tests.
    Original languageDanish
    Publication date2 Dec 2013
    Number of pages25
    Publication statusPublished - 2 Dec 2013
    EventDet Danske Ledelsesakademi konference - Syddansk Universitet, Odense, Denmark
    Duration: 2 Dec 20133 Dec 2013

    Conference

    ConferenceDet Danske Ledelsesakademi konference
    LocationSyddansk Universitet
    Country/TerritoryDenmark
    CityOdense
    Period02/12/201303/12/2013

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