Journal 4

Research title & authors Research Title:

Lean production supply chain management as driver towards enhancing
product quality and business performance: Case study of manufacturing
companies in Malaysia.

Authors:
Arawati Agus, and Mohd Shukri Hajinoor.

Publisher (Vol, year, page International Journal of Quality & Reliability Management, 29(1), 92-
number) 121

Problem Statement To examine the relationship between lean productions of SCM to

products quality improvement and business performances in the
Malaysian manufacturing industry.
Underpinning In this research paper, the theory of SCM holds that, for the eventual
Theory/Concept product or services to be commercially advantageous to the
organizations involved in its creation and provision, value must be
added to a process faster than cost (Lamming, 1996, p. 3).

This vantage point is usually occupied by the firm or organization

conducting the last significant transformation of the product before it
reaches the consumer (through the downstream supply chain)
(Lamming, 1996, p. 3).

SCM involves integration, co-ordination and collaboration across

organizations and throughout the supply chain of such functions as
distribution planning, demand forecasting, purchasing, requirement
planning, production planning, warehousing, material handling,
inventory, packaging, order processing, and transportation.

Variables (IV/MV/DV) IV:

Lean Production (LEAN)

MV:
Product Quality Performances (PQP)

DV:
Business Performances (BPERF)

H1. Lean production has a positive structural effect

on PQP.

H2. Lean production has a positive structural effect

on business performance (BPERF).
 H3. PQP has a positive structural effect on business
performance (BPERF).

H1A. Reduced setup time has a positive structural

loading on lean production.

H1B. Continuous improvement programs have positive

structural loading on lean production.

H1C. Pull production system has a positive structural

loading on lean production.

H1D. Shorter lead time has a positive structural

loading on lean production.

H1E. Small lot size has a positive structural loading on

lean production.

Findings The results support the conceptual model, demonstrating strong

association between lean production, product quality performances and
business performances. The structure equation modelling (SEM) results
reveal that “reduced setup time” appears to be of primary importance in
the linkage between lean production, product quality performance and
business performances.

It is also instructive, from a score of 67.21 on the Malaysian Lean

Production Index, that manufacturing companies in Malaysia must
marshal their effort to implement a more effective lean production SCM
in order to improve on product quality performances and business
performances.
Overall Review: In this paper research, I can conclude that, the importance of the
relationship in between, lean production, product quality performance
(100-150) your own words
(PQP) and business performance (BPERF) in non - food in
on the journals or other
manufacturing industries from all around Peninsular Malaysia.
testimonial related to the
reviewed journal)
Malaysian manufacturing companies’ industry must continuously to
make improvement on their performances on the production lean,
product quality performance and also business processes to make sure
the increasing demands for high – quality goods by local market and
also overseas markets. Lean production practices provide a unified
vision for everyone in an organization to focus on quality improvement.
This pursuit is not only market-driven but also imperative for survival
during uncertain economic time.

This paper is relevant to experts because the findings may reveal

important aspects in the execution of lean production practices, which
may provide significant data to the managers so that it can use to solve
operation challenges and perhaps to develop a great performance. This
paper would be a good guidance on the particular interest to practicing
production managers or top level managers as it suggest what factors
should be highlighted to stimulate the adoption of lean production
concepts in the Malaysian manufacturing industry.