CHAPTER 10

RESULTS AND DISCUSSIONS

10.1 INTRODUCTION
The present research is summarized and its major findings are given in this chapter. The
analysis of a large literature on the success and barrier factors of lean implementation in SMEs
over the years helped in the initial development of the success and barrier factors for SMEs.The
list of factors was further refined by conducting a focused group interview and subsequently a
model for implementation of lean in SMEs was developed. Later a questionnaire for measuring
the contribution of variables in the initial success factors and barrier factors was developed.
This accomplished the first, second third fourth and fifth objective of research as indicated in
chapter 1.

The sixth and seventh objectives were to identify and establish the relationship between
contributing variable in each success factors and each barrier factors models, which have also
been done. The final objective was to test all the models using SEM, which was also done.

10.2 MAJOR FINDINGS OF THE STUDY

The summary of major findings of the study is presented below.

10.2.1 SUCCESS FACTORS-MANAGERIAL AND STRUCTURAL

The significant role of managerial factors is widely acknowledged within the literature.
Significant role of managerial factors implies that, the top management should not only
concentrate on commitment and leadership, but it must also work on linking lean into the
business strategy, providing training in lean practices, formulation of business strategy based
on customer demand, doing data analysis with data that is easily obtainable, coordination with
business strategy and ensuring shop floor commitment and employee trust. The contributing
variables of structural factor are communication with supplier and financial availability.
Research also shows success of lean implementation depends on how lean is extended to
communication with supplier (Table 10.1). Supplier integration helps to bring minimization of
inventory and just in time delivery of material. The development of lean with supplier is one
of the most successful but more financially demanding aspect of implementing lean.

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Table 10.1 Success Factors

Variables Factors

1)Linking lean into the business strategy

2)Training in lean practices
3)Business strategy based on customer Managerial
demand
4)Data analysis
5)Coordination with business strategy
6)Shop floor commitment, employee trust
1)Communication with suppliers
2)Financial availability structural factor

10.2.1.1 MANAGERIAL FACTOR

Summary of findings suggests that to develop shop floor commitment and employee trust
construct - provide transportation for overtime work, provide food and allowance, encourage
and motivate the employee, criticize the worker privately and not in the crowd, coach and train
the employee and not command. In business strategy based on customer demand construct,
ensure quality, price and timely delivery in the business. For ensuring quality of job, work
based on the quality prescribed by customer order, customer rework should be free of cost and
production planning to be based on customer demand. In the data analyses construct, analysis
of data once or twice in a month's time based on SMEs, conversion of all documentation into
the computer for data analysis in SMEs, data analysis mainly to be carried out in raw material.
In linking lean into the business construct ,conduct the management programs related to lean
principles, ensure all level employees are aware about lean principles, seeking help of lean
consultant in the initial stage of lean implementation are the factors contributing under the
managerial construct towards the success of lean implementation in small and medium scale
enterprises (Table 10.2).This approach is essential because most of the literature considers
managerial factor as one of the factor for the success of the lean implementation.

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Table 10.2 Managerial Factors

Variables Factors

1) All level employees should aware about

lean principle
2)Lean supplier strategies and customer
Linking lean into the business strategy
strategies
3)Help of lean consultant may be required in
the initial stage of lean implementation
1)Quality, price and time delivery in business
2) For quality of job work based on the
quality
3)Prescribed by customer order, raw material Business strategies Based on the customer
4)Customer rework should be free of cost demand
5)Production planning based on customer
demand
1) Analysis of data once or twice in a month's
time based on SMEs
2)Convert all documentation into the
Analysis of data
computer for data analysis in smes
3) Data analysis mainly carried out in raw
material in smes
1)Overtime work provides transportation,
food and an allowance
2)Encourage and motivates the employee
3) Criticise the worker privately and not in Shop floor commitment and employee trust
the crowd
4) Coach and train the employee and not a
command

10.2.1.2 STRUCTURAL SUCCESS FACTORS

Many kinds of supplier communication strategies and financial sources can be identified for
implementing lean in SME. Hence, it is important for an SME to choose appropriate strategies

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for supplier communication and financial resources. This research mainly analyze the factor
supporting supplier communication and financial availability for the successful
implementation of lean in SMEs.The result of the study shows that in supplier communication
appointment of representatives, conducting supplier relationship program, electronic data
exchange, face to face interaction between supplier and buyer, reduction of the number of
supplier to 2 or 4 numbers, periodic evaluations of supplier and trust between partners.
Variables affecting the financial availability includes special scheme for SME, low interest
rates, machinery subsidies, tax wavier and support from industrial association (Table
10.3).These are the significant factors associated with supplier communication and financial
availability for successful implementation of lean manufacturing in small and medium scale
enterprises

Table 10.3 Structural success factors

Variables Factors
1)Appoint a representative
2)Conducting supplier relationship program
3)Electronics data exchange
4) Face to face interaction between supplier and buyer,
Communicates with suppliers
5)Reduced the number of supplier to 2 or 4
6)Periodic evaluations of supplier
7)Trust between partners
1)Special scheme of SME
2)Low interest rates
3)Machinery subsidies
Financial availability
4)Tax waiver
5)Support from industrial association

10.2.2 BARRIER FACTORS- EMPLOYEE AND PROCESS

This research investigates the relationship between lean implementation and its barrier factors.
To meet the successful implementation of lean manufacturing the SMEs should overcome two
barrier factors, one is the employee, and second one is the process factor, of small and medium
scale enterprises. A summary of our findings suggests that variables associated with employee
factor are lack of knowledge about existing specialist, lack of well-trained and experienced

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staff and cultural resistance to change. The summary of findings suggests that variables
associated with process factor are high rejection rate, employee absenteeism, and frequent
break down (Table 10.4).

Table 10.4 Barrier factors

Variables Factors

1) Lack of knowledge about existing specialist

2) Lack of well-trained experienced staff Employee

3) Culture and resistance to change

1)High rejection rate

2)Employee absenteeism Process

3) Frequent break down

10.2.2.1 EMPLOYEE BARRIERS

In order to successfully implement lean manufacturing in SME, the organization should have
well trained and experienced staff. But the large number of SMEs are hampered strategically
due to no on-site training in companies for new workers, most of the training in SMEs is
informal due to financial issues, SME office not conducting training programs periodically, the
problem of labor migration faced by the SMEs and there are no suitable methods or training
programmers based on the specific needs of SMEs. Most of the employee with SMEs have low
skill level and they do not encourage the ideology of skill enhancement. Training for enhancing
the skill and expertise of the employee is the very basic core improvement strategy in lean
manufacturing. While implementing lean manufacturing in organization some technicalities in
the application process requires employee skill. Lack of knowledge of the existing specialist is
a hindrance in successful implementation of lean manufacturing with in SMEs. This study has
also realized that it is difficult to find out skilled persons, and all SMEs are ready to offer more
salary to skilled employees. Application of lean manufacturing within any organization should
require knowledge about lean for the existing specialist to aid the actual implementation. For
the implementation of lean manufacturing, the creation of a supportive organization culture is

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an essential platform. This research clearly indicates that this is because of some psychological
reasons, fear of failure, breaking of routines, no confidence in workers, fear of financial losses,
fear about change in skill, the benefits and rewards of making the change are not properly
communicated with the employee and management, fear of job loss and fear about adding more
responsibilities (Table 10.5). Organization culture of the small and medium scale enterprises
reflects in their culture, personality of the owner/manager and are constrained in terms of the
changes they may be able to undertake.

Table 10.5 Employee barrier

Variables Factors
1) No on-site training in companies for new workers
2) Most of the training in SMEs was informal due Lack of knowledge about existing
financial issues specialist
3) MSME office should not conduct training
programs. Periodically, like SIDCO etc
4)Labor migration is a big problem faced by the SMEs
5)There is no suitable methods or training based on the
specific needs of SMEs
1) It is difficult to find out a skilled person in some
area Lack of well-trained experienced
2) Other SMEs is ready to offer more salary to the staff
employee
1) Some psychological reasons.
2)Fear of failure Breaking routines
3) No Confidence in workers Culture and resistance to change
4)Fear of Financial losses
5) Fear about change in skill some people think that
they won't able to make the transition well
6)The benefits and rewards of making the change are
not properly communicate with the employee and
management
7) fear about adding more responsibilities
8) Fear of job loss

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10.2.2.2 PROCESS BARRIERS

This research investigation has identified three main factors that are the critical process barriers
for the lean implementation within SMEs.They include high rejection rate, employee
absenteeism and frequent breakdown. The high rejection rate is the hindrance to the successful
implementation of lean manufacturing within SMEs. As regards high rejection rate, this
research clearly indicates that most of the SMEs are lacking in many aspects with regard to
lack of training programme, lack of periodical maintenance, low-quality standard material from
supplier, vendor inspection is not good, wear and tear of machines, communication gap
between supervisors and workers. Some organizations without moving to action they carried
out so much training programmes related to lean tools and techniques, while others carried
out no training at all, and therefore those organizations failed to equip skills and knowledge
required to address, the tools and techniques in lean manufacturing. Therefore, the organization
requires precise training that result in the employee receiving information along with practical
experience. Obviously, the challenge is to select the appropriate training and education for the
end user, and for this, organization needs to asses individual’s skills and knowledge and what
type of skill and knowledge these individuals need. In order to succeed in full implementation
of lean manufacturing, SMEs should have lower employee absenteeism levels. The research
clearly indicates that absenteeism is mainly because of not maintaining good employee-
employer relationship and boredom on the job. The top management needs to constantly
monitor the employee absenteeism. Also, top management has to provide the direction or
guidelines to reduce the absenteeism by proper job allocation. Management intervention is
necessary to take effective decision. Management has to resolve the conflicts to bring
everybody into same thinking, and build the cooperation among the different groups of the
employees in the organization. For the implementation of lean manufacturing, the machines
are to be free from breakdown. According to this research, it is clear that because of
overrunning of machines beyond their capability, carelessness in work, not replacing worn
/damaged parts periodically and ignoring warning signals of machines lead to frequent
breakdown (Table 10.6). It is important that every employee should have the deep
understanding of machine’s principle and practices with extensive training and education.

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Table 10.6 Process barrier

Variables Factors
1) Lack of training programs
2)Lack of periodical maintenance
3)Low quality standard materials from suppliers
High rejection rate
4) Vendor inspection is not good
5) Wear and tear of machines
6)Communication gap between supervisors and
workers
1)Not maintaining good employee-employer
relationship
Employee absenteeism
2)Boredom on the job
1) Overrunning machines beyond the capability
2) Not replacing worn damage parts periodically
3) Ignoring warning signals
4) No preventive maintenance
Frequent break down
5) Untrained personnel to operate equipment
6) Not reading the operator's manual

10.3 RESULTS OF THE VALIDATION OF THE PREDICTIVE MODEL

The below table shows the validation of the predicted model using t test. The table shows the
p values of, a model to identify the success factors of lean implementation, a model to identify
the factors of supplier communication and financial availability, a model to identify the barrier
factors in lean implementation, and a model to identify the employee barriers for implementing
lean manufacturing have p value greater than >0.05 So these models are significant at
probability level 0.05. However, through this approach of validation, the other two models,
identification and modelling of managerial factors, identification and modelling of process
barriers are not significant at probability level 0.05. As the research, results are not ruling out
these models a scope for further research is exiting. But in general, the research has strongly
indicated that the results are satisfactory to a larger extent, i.e. the significance of the four
models obtained through this approach of validation

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Table 10.7 Validation of the Predictive Models

Name of the Models P- Significant/Not

Value significant

A MODEL TO IDENTIFY THE SUCCESS FACTORS OF 0.380 Significant

LEAN IMPLEMENTATION

IDENTIFICATION AND MODELLING OF MANAGERIAL 0.008 Not Significant

FACTORS

A MODEL TO IDENTIFY THE FACTORS OF SUPPLIER 0.098 Significant

COMMUNICATION AND FINANCIAL AVAILABILITY

A MODEL TO IDENTIFY THE BARRIER FACTORS IN 0.215 Significant

LEAN IMPLEMENTATION

A MODEL TO IDENTIFY THE EMPLOYEE 0.172 Significant

BARRIERSFORIMPLEMENTINGLEANMANUFACTURING

IDENTIFICATION AND MODELLING OF PROCESS 0.007 Not Significant

BARRIERS

10.3 SUMMARY

During the doctoral work being reported in this thesis the various models for implementing
lean manufacturing in small and medium scale enterprises have been developed. This was due
to the interest shown by the SME organizations towards implementing lean manufacturing and
reap its subsequent benefits. Successful cooperation for data collection was ensured through
questionnaire survey and the face-to-face interview. In previous researches, there have been
extensive studies made on the topic of lean manufacturing; however, there has not been much
research on establishing the relationship between various success and barrier factors using
structural equation modeling approach. The current research study explore various success and
barrier factors in lean implementation and model their relationship using SEM.

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