Impact of lean manufacturing on performance and organisational culture: A case study of an apparel manufacturer in Sri Lanka

Abstract

The rapid change in fashion designs, varying order quantities and increasing quality levels at lowest possible cost, demand the apparel manufacturer to be focused on more effective and efficient manufacturing processes for survival in an immensely competitive market. The necessity of reducing cost of production has left manufacturers with the challenge of adopting lean manufacturing where the focus is on waste minimisation. The purpose of this study was to investigate the applicability of lean manufacturing practices for the apparel industry in Sri Lanka. The main objectives were to implement lean practices in an apparel manufacturing factory, to assess its influence on manufacturing performance based on lean performance indicators and to qualitatively compare the impact on the organisational culture with that of the Toyota Production System (TPS). A leading apparel manufacturing facility was identified which had already initiated the process of lean implementation. The initial state of performance and improvements after lean implementation were measured through key performance indicators (KPI), such as dock-to-dock, on-time delivery, first-time-through, fabric utilisation, etc., generated from published records and the company’s resource planning system. The impact of lean manufacturing on the organisational culture over the period of lean implementation was analysed through interviews and direct observation of the personnel who were directly involved with the implementation process. The KPIs reflect a favourable influence of lean adoption in bulk apparel production and a favourable cultural change towards one associated with TPS. The results showed that the lean implementation caused a reduction in the cost of production (10%), reduction of lead time (30%), and increase in plant efficiency (20%). Based on the positive trends of qualitative and quantitative performance indicators it was concluded that organisations in the bulk apparel production industry could achieve positive cultural shift and gain financial benefits as well through implementation of lean manufacturing practices.