Impact of Lean Management Practices on Operational Efficiency: A case of Automotive Industry

Abstract

The main objective of this study is to describe and analyze lean management system and lean Practices. Lean management is to establish more value for the customer by eliminating non-value adding activities. Most of the companies are adopting the lean management system for the production process to improve their efficiency. This research was looking for to establish the impact of lean management practices on operational efficiency a case of automotive industry in Pakistan. The method of this study is descriptive and using case study of Toyota Motors Pakistan. Many organizations is adopting lean management to increase profit either directly by eliminating waste, reducing cost and minimizing inventory by improving productivity. On the other way lean management is directly effects on the operational efficiency and operational performance. Lean practices which help to improve the efficiency which are Reduction of waste, Just In time, Total Quality Management, Kaizen, 5S, Kandan these all are the terms use to reduce waste to improve the efficiency of organizations production. The research is mainly aimed to established the effect of lean practices on the operational efficiency of Toyota Motors Pakistan and Honda Pakistan. The data was collected exclusively from the questionnaire as per research instruction and the response rate is 71% was obtained. Descriptive statistic, correlation and regression analysis was used to present the results of the study. Waste reduction, Just in time and Kaizen are used to enhancing the operational efficiency of the organization.