Impact of Lean Production on Operational Performance: Moderating Role of ERP and Workforce Development

Abstract

This study was to examine the impact of lean production on operational performance: moderating role of ERP and Workforce development in manufacturing industries of Islamabad and Rawalpindi. In this study the focus was mainly on identifying the impactful relationship that exist among lean production, ERP, workforce development and operational performance of companies in Islamabad and Rawalpindi. To prove the relationship between dependent variable (operational performance) moderating variables (ERP, WFD) and independent variable (Lean Production), a structured questionnaire has been used to collect data from the officials associated with the manufacturing industries of Islamabad and Rawalpindi. Based on the data collected from 250 respondents through structured questionnaire, several hypothesis tests were applied. Results of those hypothesis tests have clearly indicated that there is a positive relationship between dependent variable (operational performance) and independent variable (lean production) with in the manufacturing industries of Islamabad and Rawalpindi. Moreover, ERP and workforce development plays vital role in optimizing operations of industries. SPSS 22 software was used to analyse the data. Some statistical instruments such as descriptive statistics, reliability, regression and correlation were used to conduct this research. Based on findings finally, it can be said that lean production along with ERP systems and skilled workforce tends to have strong positive effect on the operational performance of manufacturing industries of Islamabad and Rawalpindi