An exploratory analysis in applying lean manufacturing to a labor‐intensive industry in China

Can Lean Manufacturing principles, that are suitable for capital‐intensive manufacturing in the U.S., be applied to a labor‐intensive textile firm in China? Data were collected from a family‐owned manufacturing plant, Orient Hand bag Ltd., in Fujian, China, and an Arena™ simulation model was developed to answer this question. The results indicate that, by applying Lean principles, Orient’s production efficiency for one of its most troublesome textile products could be im proved. Similarly, are these Lean principles suitable for other labor‐intensive industries in developing countries?