THE IMPACTS OF LEAN AND AGILE MANUFACTURING PRACTICES ON OPERATIONAL PERFORMANCE IN KARACHI

Abstract

Purpose: To improve operations capabilities, two initiatives are used by manufacturing plant managers i.e. Lean and Agile manufacturing. The motivation behind this investigation is to investigate Lean and Agile manufacturing capabilities impacts on operational performance. However, if we look more precisely, this research is for the exploration of the effects of Lean and Agile manufacturing on the performance of the firms in the FMCG industry. Methodology & Design: This study built up an exploration model relating Lean and agile manufacturing and operational performance through three authoritative variables of lean (daily schedule adherence, flow oriented layout and repetitive production) and two variables of Agile (high customization capability and efficient variety handling). The method used for this research is quantitative while the sample size for this study is 346 respondents all of them belong to FMCG firms. The data for the research is collected from primary sources that is, questionnaire. The statistical test used for this research includes Cronbach’s Alpha and Regression Analysis. Findings: The findings from the tests identifies that all the five variables have strong influence on operational performance. The statistical result shows that, the Sig. P value is less than 0.05, which provides significant evidence to reject the entire null hypothesis. This study found a negative relation between flow oriented layout and operational performance and also a negative relationship between efficient variety handling and operational performance. But the relationship of operational performance with daily schedule adherence, repetitive production and high customization capability is significantly positive. Limitations: The research is limited to the FMCG organization located in Karachi. Although there are a number of firm and production and supply chain activities are going on in Punjab region but, due to time and budget constraints the research is only been carried out into Sindh region. We have explored several practices and routine which associated with both leanness or agility. In spite of this, other practices or routines may have been found that can be associated to leanness or agility.