Lean Manufacturing Practices In Malaysian SMEs. 1.0Introduction Research Background Why Lean Manufacturing needs to be practiced in SMEs? Problem Statement.

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Presentation transcript:

Lean Manufacturing Practices In Malaysian SMEs

1.0Introduction Research Background Why Lean Manufacturing needs to be practiced in SMEs? Problem Statement Malaysian SMEs do not indicate the holistic perspective of lean manufacturing implementation. In order to solve the main problem statement, the following sub-problems need to be addressed: Unfamiliar with Lean Manufacturing (must be familiar with the Lean production philosophy and its techniques) “Not for us” - misunderstanding of the lean concept (exist some misconceptions - only fit for specific industries) Not sufficient resources (lack of training budgets and staff development programs)

Research objectives The main overall research objective of this project is to: understand and evaluate basic lean practices, identify the obstacles, success factors and develop the best model to assist SMEs in implementing a successful business strategy. This overall research objective will be achieved through breaking down the research into four sections: What are the basic lean practices relevant to SME? What are the obstacles and how to overcome these obstacles? What are the critical success factors for lean implementation? What is best model/framework that can be applied in SME?

Scope of Work Malaysia - this research will be focusing on Malaysian SMEs which had implemented lean manufacturing in their manufacturing related firms. SME - “the category of micro, small and medium sized enterprises (SMEs) which employ 150 persons and which have an annual turnover not exceeding RM25 million” (SME CORP Malaysia 2012) Significance of Study This study attempts to enrich the research contributions in the aspects of: Theoretical contributions to knowledge and; ( expected to contribute the knowledge on practices and performances on lean in the SMEs.) Practical contributions to business and SMEs (expected to increase practitioner's understanding on lean manufacturing in the SMEs)

A study of current literature on the interface between Lean and SMEs has been conducted. Four different databases were used to search for journal articles from the last 18 years, using a combination of the two key word groups “lean” and “SMEs”. This search resulted in a list of journal articles that seemed relevant for the topic. Although much has been written on Lean implementations, the topic has rarely been studied in a SME context. The literature review of articles from the last 18 years revealed only 16 journal articles with the combination of “lean” and “SMEs”. After assessing the papers, only 9 articles addressed the topic in particular. These articles have been summarized in terms of their methodology employed, focus of research and main findings. 2.0Literature Review

3.0Methodology In order to collect the appropriate information required for this project, my research will include both primary and secondary research methods. Primary research ( Quantitative ) SMEs based in Malaysia (Case study with company - participation and direct observation) A survey (questionnaires, interviews, etc) Interviews (SPSS-Anova) Secondary research ( Qualitative) Literature review -the academic literature I will review includes books and journals from prominent authors in the field (Mann,David 2010; Fabrizio,Tom and Don Tapping 2006; Flinchbaugh, Jamie and Andy Carlino 2006) -the following keywords have been used to find academic articles on the appropriate online academic databases which include ABI Inform, Google Scholar, Science Direct,ISI web of knowledge : Lean,Lean manufacturing, Lean implementation, SMEs

Project plan Main question Broad research questionSpecific subject areasResearch method Lean Manufactu ring Practices in SMEs 1. What are the basic lean practices relevant to SME? Applying standard tools and techniques Literature review Interviews Surveys Teaching lean thinking and lean skills to everyone 2. What are the obstacles and how to overcome these obstacles? Addressing common lean manufacturing implementation myths Literature review Interviews Overcoming lean manufacturing challenges 3. What are the critical success factors for lean implementation? Leadership Literature review Interviews Case studies Skill and expertise Organisational culture Management 4. What is best model/framework that can be applied in SME? Continuous improvements Literature review Interviews Online literature Mapping the Value Stream (Identifies the bottlenecks)

This research can contribute: to practice by having a set of guidelines that can assist SMEs in their quest to implement Lean manufacturing. simple frameworks for introducing Lean as a part of regular operations in SMEs. 4.0Expected Outcomes