LEAN MANAGEMENT PRACTICES TOWARDS

PRODUCTIVITY AND SERVICE DELIVERY,

ORGANIZATIONAL CULTURE AS MODERATION
IN LOCAL GOVERNMENT IN MALAYSIA

Written by:
RUDZIAH BINTI MOHD DARUS
Introductions

Local governments, also known as local authorities

(Malay: Pihak Berkuasa Tempatan, or PBT for short),
The local government is the lowest tier of the Malaysian
political hierarchy Government.
Establish under Act 1976 Act 171
Local Government Ordinances
Led by mayor for cities and president for rural districts
(regional) and municipalities.
155 PBTs
The Local Government Department and the Ministry of Lean management
Housing and Local Government have the responsibility -an approach to running an
for PBT (coordinators for policy and legal consistency) organization that supports
the concept of continuous
improvement.
The basic concept of lean
is a continuous effort to
eliminate waste and
increase added value
within organization.
 City Municipal Regional Total Agency
Negeri CounciL Council PBT authorized Total
Council
PBT
01 - Johor 3 7 6 16 0 16
02 - Kedah 1 4 6 11 1 12
03 - Kelantan 0 1 11 12 0 12
04 - Melaka 1 3 0 4 0 4
05 - N.Sembilan 1 2 4 7 0 7
06 - Pahang 1 3 7 11 1 12
07 - P.Pinang 2 0 0 2 0 2
08 - Perak 1 4 10 15 0 15
09 - Perlis 0 1 0 1 0 1
10 - Selangor 3 8 1 12 0 12
11 - Terengganu 1 2 4 7 0 7
12 - Sabah 1 2 23 26 0 26
13 - Sarawak 3 4 19 26 0 26
14 1 0
1 0 0 1
- W..P.KualaLumpur
15-W.P Labuan 0 0 0 0 1 1
16- w.P Putrajaya 0 0 0 0 1 1
151 4
Total 19 42 91 155

Source: Ministry of housing

and local employment
(29.10.2023)
Criteria City Council Municipal Council Regional Council

the main city or administrative center of a state or

Statement The central administrative area of a state. Areas other than the main city
region

more than 150,000

More than 500,000
Population Less than 150,000

fiscally sustainable financial, resources annual output of not sustainable financial resources, annual yield of not
Income less than RM100 million, less than RM20 million,providing comfortable annual output less than RM20 million
is able to offset expenses services

provide space and opportunities to traders

More focused on infrastructure facilities and
Service Providing services at a high promoting the growth of investment, business and public utilities
level commercial activities

Sustainable urban planning that is able to provide a

fiscally sustainable safe and comfortable environment to live in.

Developement annual output of not less than RM100 million is able to offset
Established city indicators as emphasized in the
expenses
Malaysia Urban Indicator Network (MURNInet)
System

has industrial centers, financial institutions, centers,

complete educational institutions,
Encourage locals to develop their communities
centers for cultural activities, sporting and leisure events, facilities,
Other faciliteis through efficient urban governance such as the
complete infrastructure, public utilities, including public parks that are
friendly to users, especially to the Disabled Person (OKU), implementation of Local Agenda 21 (LA 21)
certain recognition, whether at national or international level
Malaysian and Lean.

The Lean Management journey started in Malaysia after the

designation of the five year Malaysian National Quality Plan since 1993

Lean Management practises have emerged as one strategy used

to improve performance in response to the significant volume of
complaints about local government performance (Pepper & Sense, 2014).

Value stream mapping, lean thinking, kaizen, and five-sigma have all been
integrated into government organisations in the United Kingdom and Spain
as part of the reformation's organisational transformation (Radnor & Johnston, 2013;

Malaysian National Plan for 2001-2005, in order to overcome global competition,

lean management practices idea be implemented such as 5-S, kaizen,
and Value Stream Mapping to innovate government to becoming
more effective in playing its roles (Mohamed, 2014).
Quality accreditation :
i. SIRIM
ii. MPC
 Tool and Lean Technique Explaination
5s • Contains five elements: set aside (seiri), stacking (seiton), broom (seiso), uniform
(seiketshu), and always charity (shitsuke).

• To create a systematic and practical quality working environment that is effective for
improving service quality, simplifying work processes and saving costs (MAMPU,
2010).

Kaizen Continuous improvement that involves all individuals in improving performance in the
organization (Imai, 1997).

Value stream Mapping (VSM) A systematic visual tool for determining the flow of information materials involving the
movement of products or services to customers (Stevenson, 2012).

waste summed up (MPC, 2023)

1). Correction/Defects

2). Overproduction

3). Over Processing

4). Waiting: in terms of process, service delivery, or even approval.

5). Transportation: documents physically and file uploading activities.

6). Management / Staff Talent:

7). Inventory : dead money- documents that are stored

8). Motion: Movement activities in administrative activities.

Dependent Variable

Lean Management

Independent

i. Service Delivery
ii. Productivity
Productivity as the employee’s knowledge, skills and
capability to produce standards goods and services as the
international demands to the customers expected level of
standards .

Moderation
iii. Organizational Behavior

OB focuses on how individuals behave inside organisations.

Behaviour pertains to the actions and deeds of individuals
within an organisation. It involves comprehending their
emotions and attitudes as well as knowing about the activities
 PROBLEM STATEMENT
Local government is among the important agencies in developing and
fostering growth of particular area and residents, since they are divided
by geographical structures (Ibrahim, Ghani, & Embat, 2013

Often, local government gets criticism from the public for being
ineffective and inefficient in providing and delivering services to the
public. In a study done by Abdullah and Kalianan (2009), it was
mentioned that criticism received by local government included poor
service delivery, being inefficient, wasteful, bureaucratic, unresponsive,
and not citizen friendly.

Efficiency is doing the job right while effectiveness is doing the right
job. According to Drucker (1967), effectiveness is the ability to choose
appropriate objectives.
 Research
QUESTIONS
1.What extends Lean Management in the public sector of Malaysian
Local Government PBT.
2.How Lean management influence organization productivity and
service delivery in PBT in Malaysia.
3.How Lean management influence in local governments towards
productivity and service delivery cultural organization as
moderation variabl
Research

Research Benefits OBJECTIVES

Academic Benefit To determine the practice of Lean Management

• Academically, this research can be used as a
practices in Malaysian local government
contribution to thought or further study for
students or parties who carry out similar
research.
To see and analyse influence Lean
Management in relation to productivity and
Practical Benefit service delivery
• This research is expected to be used as input To see and analyse influence of Lean
and information to the government for the
purpose of PBTs to direct their strategic plan in
Management influence in Local Government
the latest management transformation towards productivity and service delivery
organization culture as moderation variable
 House of Toyota’
(Krajewski et. al,
2013)

THEORITICAL
FOUNDATION

The concept of Lean is

derived from the Toyota
Production System
(TPS) also known as
Lean Manufacturing,

main concepts namely

Just-in-time (JIT) and
Jidoka
 Siddiquee (2008); and Haque
(2001) had mentioned that
increasing demand from
public towards public sector
organizational productivity
has become more apparent as
the public lodges more
complaints with the Public
Complaint Bureau.

Nithia et al.,(2015) It was observed that lean

In old economic institutional
implementation failure can be caused by a theory, it was believed that
individual and their action
variety of factors, including a lack of financial,
intellectual, and human resources; inadequate
stakeholder education and training; poor
can be shaped by the
management commitment to the
implementation programme; organisational organisation through social
pressure to return to old behaviours; and lack of
implementation expertise.
and cultural factors
(Dequech, 2002)
 process of providing value
to customers through products,
services, or solutions.

motivational theories, motivated workers typically exhibit higher levels

of creativity, loyalty, productivity, and commitment to both their jobs
Previous
and their employers Nkrumah(2011)
research
OB is explained frequently on the topics such as absenteeism, turnover,
productivity, motivation and working in groups (Hellriegel, D., and Slocum(2007)
Martins and Terblanche (2003), an organization's culture is closely related to the
norms, values, and beliefs that its employees have created. The values,
customs, tales, beliefs, and organizationally imposed rules, processes, and
regulations of the workforce are all part of the enterprise environment
 Variable: y
 ORGANISATION
Dependent PRODUCTIVITY
Variable: x

LEAN
MANAGEMENT
PRACTICES
 5S
 KAIZEN Variable y2
 VALUE  SERVICE DELIVERY
STREAM
MAPPING
Moderation Variable: Z
BUDAYA ORGANISASI

Conceptual 

COMMUNAL
FRAGMENTED
 NETWORKED
Framework  MERCENARY
 H1: lean management practices are
well implemented

H2: Lean management provides higher

productivity to the organization and
effective service delivery through
organizational culture.
Hypothesis
H3:Organizational Culture has
influence in improving productivity and
service delivery in lean management.
 Primary data
Questionnaires thru google form with non
probility sample technique- Quantitative
Method
using a Likert scale.
SMART PLS

Data types
and Data
sources
 Likert Scale Value
Simbol Explaination Skor
SNA Strongly Not Agree 1
NA Not Agree 2 RS=
NS Not Sure 3 Lowest score range = n x lowest score = 155 x 1 = 155
A Agree 4 Highest score range = n x highest score = 155 x 5 = 775
SA Strongly Agree 5
Source : Sugiyono (2018) In determining the value of the scale range, calculations
are carried out with the following formula:

𝑛(𝑚−1)
RS= 𝑚
n = Total Sampel
m-1 = Total alternative answer (5-1)
m = Highest value item

Range of Variable Classification

No Rentang Skala Keterangan
1 155– 279 Strongly Not Agree
2 167.5 – 403 Not Agree
3 241.9 – 527 Not Sure
4 316.3 – 651 Agree
5 390.7 – 775 Strongly Agree

Sources : Sugiyono (2018)

 The Lean
management in
organization
behavior ,
Variable
Operations
i.high productivity
ii. good service
delivery
Q & A SESSION