Lean Strategy Implementation and the Roles of Performance Measurement: The Case of Malaysian Electrical and Electronic Companies

Abstract:

In recent years, the implementation of lean has been one of the influential development in the production domain of manufacturing firms due to highly competitive market. Therefore building a relevant performance measurement system is crucial in achieving the objectives of lean manufacturing. This research was carried out to identify the extent of lean implementation and the roles of performance measurements in supporting lean implementation. The research was based on the qualitative approach where data were collected using semi-structured interview among three companies from Electrical and Electronic (E&E) sector. The results show that respondents have focused a certain type of lean techniques in realizing lean strategies for eliminating wastes. The most common lean techniques are customer value, continuous flow & pull system and continuous improvement. In meeting the objective of lean manufacturing, the findings suggest that performance measurement system helped in identifying problems and defects, meeting requirement of customers and improving the engineering techniques. In addition the practice of lean strategies have resulted in an increase in the production processes and enhanced quality towards achieving firms’ targeted goals. Overall the results imply that performance measurement system are crucial and informational towards improving lean manufacturing implementation.

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