A study on lean supply chain implementation in Malaysia’s electrical and electronics industry: practices and performances
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Date
2010
Authors
Daud, Azman
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Abstract
This paper fulfils an identified knowledge, information and resources that needs and offers on theoretical and practical ways in order to have references for the organization in order to promote the acceptance and implementation of lean supply chain performances. The purpose of the study is to explain the extents of lean supply chain practices and lean performances towards lean supply chain performances as experienced by Electrical and Electronics firms in Malaysia. The extents of lean supply chain practices to be investigate as one of the best way to a sense of total improvements within mentioned sectors. The analysis approach that has been used in this study are simple regressions and multiple regressions in order to determine whether it’s have the statistically significant to the existence of extensions between the set of variables to be tested for several defined groups like top management, middle management and lower management that directly involve in lean supply chain. Besides, it could help to determine which of the independent variables account the most influences towards lean supply chain performances in Malaysia. It was also utilized to determine which of the independent variables would be main contributor to lean supply chain performances. The finding from this analysis revealed that cheaper cost towards internal waste lead and cycle time reduction were the most influential extended factors on lean supply chain performances, followed by better quality and faster throughput towards supplier engagement and collaboration. Whereas, demand signal component shows that there no direct influences through lean performances and lean supply chain performances. These are to say that not the
demand signal factor doesn’t contributed enough to the lean supply chain performances but it seems like the organizations giving less attentions to the demand signal activities. One of the limitations of this study is that the conclusion drawn from the survey was principally due to the variety of interpretations of what the term and concepts of “lean supply chain performances” actually means. Since, this is a newly concept that need to adapt, it’s possible that the lean practitioners should have a solid knowledge before they implement it. It’s a waste of multiple of resources if doing it wrongly. From practical implications point of views, attention should be given to improve employee participation and lean department should play a proactive role in practicing the lean supply chain as a strategic tool. Hence, the knowledge and information can be utilized to promote the acceptance and implementation of lean supply chain practices. Government bodies can therefore focus on related factors for further development of lean supply chain as a total improvement. Related government bodies for manufacturing and operation such as FFM, SME Corp and MPC can therefore focus on these factors for further research development of lean supply chain practices and performances. These organizations can organize more training and seminars to smaller manufacturing companies to expose the concept of lean supply chain upfront, as the concept can consider new, limits to insufficient resources.
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Keywords
Business Administration , Supply Chain , Electrical and Electronics Industry