Development of lean enterprise implementation methodology : an ISM approach

Purpose: There is a concern in literature about the critical elements of lean enterprise (LE) that can be represented as pillars of lean enterprise excellence. However, existing frameworks proposed on LE excellence are very few. The purpose of this paper is to develop a relationship model among the pillars of a proposed framework of LE excellence in Indian manufacturing industry by Jasti et al. (2020) with the help of interpretive structural modelling (ISM) and structural equation modelling (SEM). Design/methodology/approach: The ISM is constructed on two exemplary cases of lean operations from two Indian manufacturing organisations. These cases were selected based on the implementation of lean practices in respective organisations. The two manufacturing organisations which implemented lean practices at different levels were selected as contenders for constructing ISM. The relationships among pillars and constructs of LE framework are obtained from ISM, and later subjected to statistical testing for model fit by using SEM. The input to SEM was the respondent's data collected in a previous study. Findings: The outcome of the present study revealed that the successful implementation of LE framework requires an appropriate strategy along with top management commitment to get a complete benefits of LE. The study has proposed a strategy to implement the proposed LE framework in Indian manufacturing industry. This study has revealed that ISM developed based on the focal company that implemented lean practices effectively is statistically fit for LE framework. Research limitations/implications: The study has established paired relationships among lean pillars for an effective implementation of LE framework. The investigation was started by collecting opinions of experts to perform the appropriate interpretations subsequently. However, the expert judgements can be qualitative in nature and prone to bias and impact the final outcome. To overcome these a large-scale empirical survey is suggested to provide a better catch for interactions in LEs. Practical implications: This study helps in providing concrete practical implications to both academic researchers as well as industry professionals. The practitioners normally focus on finding readymade strategies for implementing LE in the organizations. The comprehensiveness of the present work helps the practitioners in implementing LE strategy with ease. The study revealed that management commitment and leadership is driving force but needs strategic implementation methodology for successful implementation. Social implications: Manufacturing industries across the world have been struggling to understand and implement LE strategy effectively. Most of the governments across the world are supporting and motivating various industry practitioners to implement LE strategy by providing financial assistance for conducting training programmes. However, many organizations across the world were not able to implement LE strategy successfully. The present study provides a strategy to implement LE framework effectively in an organization. Originality/value: The study offers a unique approach for analysing the underlying relationships among pillars of LE for effective management. Researchers can use the results of this study for developing frameworks in various domains of LE.