Chapter 1

1.1 Background

The ultimate goal of every manufacturing entity or company is to profit most cost-
effectively. When analyzed with demand and supply, this phenomenon has a strong
interdependency level—the ideology of competitive advantage sets in through how an
entity approaches its process. Every modern company tends to embrace the strategic
approach to increase output quality to assure a solid stance; hence, the optimization of the
process is looked into. Optimization plays a significant role in the stability and growth of
every manufacturing industry, and the modern strategy used in addressing this concept is
lean and lean management. Over the years, a couple of research work has been done to
improve the pre-existing knowledge of lean management. The yearning for the
continuous development of this solution has heightened.

1.2 Statement of Problem and Hypothesis

Over the years, there have been a rising number of growing industries with various
complexities in tasks and methods they are brought to completion. In this paper, more
issues were identified to be the following:

1. The existence of waste due to poor quality, rigidness, unresponsiveness, long

production time, and increased cost in the manufacturing process is a significant
problem faced in the manufacturing industry.
2. Another significant gap identified is the challenges with investigating factors that
inhibit the successful implementation of lean management in process industries.
3. Drastic and continuous increase in customer expectations. Customers’
expectations pertain to meeting lead time and delivering/rendering quality
services.
4. Growing complexities in the production process's economic, technical, and socio-
psychological disposition is another problem highlighted in the current research.
The solution to the problems identified in this research work is an imperative contribution
to the work to ensure sustainability in the manufacturing industries.  One of the solutions
to the issues stated is the increase in population sample for surveys and questionnaires
methodology. Based on (Rao 2013), the method applied to decipher the root cause of the
competitive market in terms of customer satisfaction is the surveys and questionnaires
approach. A relatively excellent effort was

exerted on this method, but the population sample is entirely restricted within a sub-niche
in the manufacturing industry. To close the gap in this body of work, the population
sample needs to be broadened in terms of the number of people and sub-niche reached
within the industry. Also, using an experimental approach will serve as another solution
to the stated problems. One of the ideal methods to solve the issues above is using a
concrete Survey approach in gathering data, which would lead to understanding where
the optimization issue stems from. This can be achieved by using a highly industrialized
region in obtaining data from the population sample available. In terms of time-frame, it
is ideal to ensure surveys are carried when industries under review are at equilibrium in
performance. This state will give room to decipher the anatomy of the operation of the
companies.

1.3 Conceptual frame work

Input Transformation Output

Compilation and Understanding Real-time value

evaluation of new variables to through
subject matter improve pre- implementation
(Lean tool & exiting ones of
Management) recommendation
(optimization)

1.4 Significance of study

The findings of this study elucidate the strategic approach of solving inefficient
manufacturing process in pertinent industries. Pre-exiting bodies of work have been able
to craft means of addressing the issue of ensuring lean management and lean tools are
probed and evaluated. This research will dig deeper into identifying the current
impediments coming from technological advancement and complications which tend to
mitigate the work rate in the industry.

1.4 Scope and Delimitation

The overall intent of this body of work is to understand and evaluate of lean tools and
lean management in the optimization of manufacturing process. This research also
constructively aims at understanding other managerial approach that effectively
contributes to the growth and stability of manufacturing entities.

This study will accomplish a viable understanding of the subject matter by thoroughly
analyzing related researches done across various industries and countries all over the
world. In order to prevent inconsistency of ideas compiled, a substantial number of
pertinent research works were looked into.

1.4 Definition of terms

1. Lean tool: Number of techniques used in limiting waste in resources.

2. Lean Management: Approach used in creating value to the customer by reducing

waste in resources and time

3. Lead time: The amount of time that passes from the beginning of a process until its
conclusion.

4. Optimization: The action of making the best or most effective use of a situation or
resource.
 Chapter 2

Review of Related Literature

Production or manufacturing process is one of the most imperative activities carried out
by mankind, based on the continuous need to meet basic and economic needs. Reiterating
the importance of the manufacturing process sheds more light on the goals and
precautions taken to achieve them. The ultimate goal of every manufacturing or
production entity is to reach a profit mark at a cost-effective rate, and this is basically
executed through endorsed strategies. Coming up with manufacturing strategies stems
from the fact that waste of resources and time is a consistent phenomenon in every
production or manufacturing set-up. Hence, in order to operate any entity optimally, a
strategic approach is required. The goal of this proposed research is to evaluate the effect
of lean tools and lean management on the optimization of production processes in the
modern-day world. 

There are few numbers of research work that technically covered the germane aspect of
leveraging lean tools and lean management. Competitive advantage is a germane factor
which an effective lean management bolster.  According to (Imam Ghozali, 2019), the
existence of waste due to poor quality, rigid, unresponsiveness, long production time and
increased cost in the manufacturing process. This research work showed the role of the
lean management control system as an integral part of lean management to achieve
competitive advantage and improve firm performance. The empirical study of lean
management by (Ramunė Čiarnienėa, 2015) further buttresses the point that lean
management elevates competitive advantage. This body of work effectively explained the
fact that the main reasons, beliefs and expectations regarding lean concept
implementation are centralized on the economic advantage that this approach gives firms.
The aforementioned research works syncs with the purpose of examining the role of
management control systems (MCS) to support the implementation of lean management
strategy to achieve competitive advantage and improve firm performance. (Malihe
Manzouri, 2014) elucidates the importance of lean tools in the production sector.
Substantial discussions were made on the point that major businesses around the world
have been trying to reduce the total cost and wastes across their supply chain to remain
competitive in the expanding global market. (Tinoco, 2004) supports the ideology stated
to a great extent in the sense that this research work also aims at mitigating waste in form
of time and resources in the production or manufacturing

sector. Both bodies of work effectively evaluated the rate of mitigating waste via the use
of lean tools and lean management approach. (Kazi Mohammed Saidul, 2018) further
supported the research work of Juan and Ezad by diversifying the sample used on the
evaluation of the impact of lean tools.  Kazi and Saidul took the research work to another
stage by evaluating different sectors in the production line to prove the viability of lean
management, which also showed that this approach improves the viability of lean and
lean management. (Mariusz Bednarek, 2020), Proved the application of lean management
at an elite category, the purpose of this paper is to provide a case study of Kaizen
Academy and to perform a qualitative comparative analysis with other similar
postgraduate programs. The study was additionally supplemented with a comparison with
the programs implemented by selected foreign entities. The implementation of lean
management by modern industries is another evidence that the success of the production
process is also dependent on the effective use of the aforementioned managerial
approach. According to (Jedynak, 2015), the implementation of lean management in a
manufacturing or production setting is very crucial. This research focuses on the issue of
implementation of lean management in organizations, which confirms the assertion that
lean management is indispensable. The issue of growing complexities in the
manufacturing industry is another factor which stimulates the need for the
implementation of lean management. (Neena Sinha, Misha Matharu, 2019) precisely
addressed the growing complexities in economic, technical, and socio-psychological
disposition of the production process. (Ibrahim, 2004) and (Rao, 2013) collectively agree
with the body of work of Neena.

These works unanimously conclude that the problems which emanate from growing
complexities are strategically solved by incorporating lean tools and lean management in
the managerial phase of the sector in study.

In conclusion, the manufacturing/production sector is an important sector which

continuously experiences growing complexities. These complexities surface in the form
of wastes, which could manifest in production time and resources.  The compiled body of
work in this literature review sheds light on the fact that the aforementioned gap is closed
by implementing lean management in manufacturing sectors. The implementation of lean
tools and lean management substantially mitigates loss, which has a drastic impact on the
optimization of the production process.

Chapter 3