Lean Production. Impact on the Financials of a Firm

Master's Thesis , 2012 , 76 Pages , Grade: 1,0

Business economics - Business Management, Corporate Governance

The starting point for this dissertation is the assumption that implementing lean production in an operation leads to an increase in productivity, enhances quality, shortens lead times, and reduces costs. As a result of these single improvements a superior competitive position is achieved. Based on a literature review that compares several approaches to define lean production, a two staged concept is developed that comprises ten different practices of lean production. These practices are linked with ten performance indicators, which are grouped into three different perspectives: shareholder, cost, and process perspective.

The assumption that the lean production practices have an impact on the performance measures is tested with a questionnaire.
In total 76 respondents delivered the data to test the 100 links between lean production and performance. The results show that lean production implementation has a measurable impact on the performance parameters and a weaker impact on the cost perspective measures. The results are supported by previous findings that show equivocal results regarding the impact on measures, like "Return on Sales".

Inhaltsverzeichnis (Table of Contents)

• Abstract
• Table of content
• List of figures
• 1. Introduction
• 2. Literature Review
• 2.1. Lean Production
• 2.1.1. The philosophic approach towards lean production
• 2.1.2. The segmented approach along the value chain
• 2.1.3. The conceptualized approach of single practices
• 2.2. Lean production and performance
• 2.2.1. Studies on lean practices and firm performance
• 2.2.2. Studies on lean production adoption and firm performance
• 2.3. Performance Measurement
• 2.4. Implications from literature review
• 3. Methodology
• 3.1. Conceptual framework
• 3.1.1. Conceptualization of lean production
• 3.1.2. Conceptualization of financial performance
• 3.1.3. Itemisation of conceptual framework
• 3.2. Research design
• 3.3. Data collection
• 3.3.1. Survey design
• 3.3.2. Selection of participants
• 4. Results
• 4.1. Knowledge about lean production
• 4.2. Knowledge about financial performance measures
• 4.3. Links between lean production and performance
• 5. Analysis of results
• 5.1. Correlation analysis of knowledge and impact
• 5.2. Analysis of differences
• 5.3. Variances in the sample
• 6. Conclusion and Recommendations
• List of abbreviations
• Bibliography
• Appendix
• I Literature Review
• II Data
• List of figures

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation examines the impact of lean production implementation on a firm's financial performance. It aims to determine if the common assumption that lean production leads to enhanced productivity, quality, reduced lead times and costs, ultimately resulting in a competitive advantage, holds true. The research employs a two-staged concept of lean production, comprising 10 practices linked to 10 performance indicators, categorized from shareholder, cost, and process perspectives. This dissertation analyzes the impact of lean production practices on these performance measures through a questionnaire-based study.

• The impact of lean production implementation on firm financial performance
• The relationship between lean production practices and performance indicators
• The effectiveness of lean production in achieving a competitive advantage
• The application of a two-staged concept of lean production
• The analysis of data from a questionnaire-based study

Zusammenfassung der Kapitel (Chapter Summaries)

The dissertation begins with an introduction providing background information on the evolution of lean production from the Toyota Production System, highlighting key milestones and literature that contributed to its development. Chapter 2 delves into the literature review, exploring various definitions and approaches to lean production. It examines studies on the relationship between lean practices and firm performance and reviews different performance measurement frameworks. Chapter 3 outlines the methodology employed in the research, including the conceptual framework developed for lean production and financial performance, as well as the research design and data collection process. Chapter 4 presents the results of the study, focusing on knowledge about lean production and financial performance measures, as well as the links between lean practices and performance indicators. Chapter 5 analyzes the results, conducting correlation analysis and examining variations in the sample. The dissertation concludes with an overview of the key findings and recommendations for future research.

Schlüsselwörter (Keywords)

Lean production, lean manufacturing, Toyota Production System (TPS), firm performance, financial performance, competitive advantage, performance measurement, questionnaire-based study, correlation analysis, knowledge about lean production, impact of lean production practices.

• College: Durham University
• Grade: 1,0
• Author: Tobias Oden (Author)
• Publication Year: 2012
• Pages: 76
• Catalog Number: V1331675
• ISBN (PDF): 9783346828910
• ISBN (Book): 9783346828927
• Language: English
• Tags: Lean Production, Financial KPI, KPI, Financial, Improvement, Continuous, Lean, Lean Management, Management