2012 Lean Manufacturing in Developing Countries

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2012 Lean manufacturing in developing countries

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Production Planning & Control: The Management of

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Lean manufacturing in developing countries: evidence

from Indian SMEs
a
Roberto Panizzolo , Patrizia Garengo , Milind Kumar Sharma & Amol Gore
Department of Innovation in Mechanics and Management, University of Padua, Via Venezia

1, 35131 Padua, Italy
b
Department of Production and Industrial Engineering, MBM Engineering College, Jai Narain
Vyas University, Jodhpur 342011, Rajasthan, India
c
European Commission Scholarship (2010) cd. France, Management and Engineering,

Padova, Italy
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To cite this article: Roberto Panizzolo, Patrizia Garengo, Milind Kumar Sharma & Amol Gore (2012): Lean manufacturing in
developing countries: evidence from Indian SMEs, Production Planning & Control: The Management of Operations, 23:10-11,
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Production Planning & Control

Vol. 23, Nos. 1011, OctoberNovember 2012, 769788
Lean manufacturing in developing countries: evidence from Indian SMEs

Roberto Panizzoloa, Patrizia Garengoa, Milind Kumar Sharmab* and Amol Gorec
a
Department of Innovation in Mechanics and Management, University of Padua, Via Venezia 1,

35131 Padua, Italy; bDepartment of Production and Industrial Engineering, MBM Engineering College,
Jai Narain Vyas University, Jodhpur 342011, Rajasthan, India; cEuropean Commission Scholarship
(2010) cd. France, Management and Engineering, Padova, Italy
Downloaded by [Universita di Padova] at 08:36 31 October 2012
(Received in final form 10 November 2011)

India is emerging as a new manufacturing destination and many companies are seeking ways to increase the value
of their products and services by eliminating unnecessary processes and wasteful practices from their production
systems. The powerful lean manufacturing approach that has proved successful as an operations model in
developed economies, as well as in some large Indian companies, is now increasingly being recognised by the
small- and medium-size enterprises (SMEs). The purpose of this research is to investigate the adoption of lean
production in India and to examine the lean practices deployed by the SMEs. The case study methodology was
utilised and this article presents the findings of four SMEs in India that have implemented lean strategy to drive
significant improvement in manufacturing performance.
Keywords: lean practices; lean manufacturing; India; small and medium companies
1. Introduction
The past decades of the twentieth century were clearly
marked by the decline of the Fordist production
system. Among the various alternatives which emerged
to traditional production methods as depicted in
Fujimoto et al. (1997), the attention of managers and
researchers all over the world soon focused on new
production models based on techniques such as just-intime (JIT) and total quality control (TQC) and termed
World Class Manufacturing or Lean/Flexible
Production or Toyota Production System.
The dominant feature of these new production
systems is that they question the traditional assumption of trade-offs and are able to manufacture a wide
range of models but maintain high degrees of quality
and productivity (Krafcik 1988). Throughout the
1980s, and well into the 1990s, innumerable articles
took, as axiomatic, both the superiority of Japanese
manufacturing and its basis in new and improved
management practices. The message of much of this
literature was that new management techniques have
transcendent virtues which can be applied everywhere.
The culmination was perhaps the publication in 1990
of The Machine That Changed the World, preaching the
gospel of lean production and offering the promise of
two-for-one improvement for all who followed these
Japanese-initiated doctrines (Haslam et al. 1996).
*Corresponding author. Email: milindksharma@rediffmail.com
ISSN 09537287 print/ISSN 13665871 online
2012 Taylor & Francis
http://dx.doi.org/10.1080/09537287.2011.642155
http://www.tandfonline.com
The principles of JIT and TQC thus appeared one of

the most important turning points in the recent history
of operations management (Coriat 1991). Womack
and Jones (1996) continued their research in lean
production and studied the transfer of other companies
into lean crusade in their second book, Lean
Thinking. They explained that lean manufacturing is
much more than a technique; it is a way of thinking,
and the whole system approach that creates a culture in
which everyone in the organisation continuously
improve operations.
The successful application of various lean practices
had a profound impact in a variety of industries, such
as aerospace, computer and electronics manufacturing,
forging company, process industry (steel), machine
tools, joy and automotive manufacturing. In the last 10
years, even the manufacturers located in the developing
countries such as China and India are also working to
transform their manufacturing base from traditional
low-cost, labour-intensive Fordist production to
higher value, more flexible and more productive
lean manufacturing systems. The term lean
manufacturing is here used as shorthand for a broad
set of changes embodied in efforts to promote high
performance, continuous improvement, JIT and
ultimately much more efficient and profitable
production.
770
R. Panizzolo et al.
The driving forces leading this change are twofold.

First, the will of these countries to become more than
just a low-cost production platform for transnational
corporations, they are working to move up the value
chain to design and engineer next-generation, higher
tech, higher fashion and higher value products.
Second, there are so many companies now producing
goods in China and India that simply relying on their
low-cost labour to churn them out inexpensively
confers precious little competitive edge. Overcapacity
in many industries from automobiles to household
appliances is already leading to price wars, squeezed
margins and, in some cases, heavy losses.
As pressure on margins in the domestic market
increases, more Chinese and Indian companies with a
strong home base are successfully entering international markets. However, to generate profits from
increasingly big investments, these companies will have
to improve the utilisation of factories, manufacture a
broader and more customised range of products, and
enhance product quality. The best way to achieve these
goals would be to apply the same lean techniques that
leading manufacturers around the world have successfully implemented. As reported by Aminpour and
Woetzel (2006), there is much room for improvement.
Waste is endemic in these factories those owned by
multinationals and by locals alike. Machines often sit
idle, inventory piles up and bottlenecks choke production. Parts deliveries from suppliers arrive late. Defect
rates for components run high. So long as the
advantages of low-cost labour were substantial and
competition was limited, companies tolerated such
inefficiency. Now that margins are shrinking, they have
little choice but to find ways of raising their productivity and of improving the quality of their goods.
Lean techniques aim to identify and eliminate the
root causes of waste. But implementing these techniques in China and India presents challenges that can
easily trip up even companies that are well-versed in
the discipline. Managers lack not only crucial skills in
problem solving, coaching and performance management but also the industry-specific expertise needed to
accurately diagnose complex technical problems and to
rapidly develop effective solutions. Relentless growth
in many industries means that since factories
constantly scramble to fill orders and expand capacity,
they have little time to refine their production
processes. What is more, these factories often make
products in big batches, thereby creating large inventories of partly finished goods that are prone to
damage, since they lie around for lengthy periods. The
result is higher costs and late deliveries. Poor coordination between different steps in the production
process often creates bottlenecks. Furthermore, high
employee turnover undercuts the continuity that is

central to the use of lean techniques.
The purpose of our research study is to investigate
the adoption of the current state of lean practice in
four firms in India. This article presents the best
practice case studies from selected manufacturers that
have recently improved or deployed Lean strategies,
techniques and technologies.
In order to carry out the empirical study, a research
model able to accurately define and operationalise the
lean production concept had to be developed. More
specifically, we use a lean assessment tool to obtain key
information about the actual operations management
practice in these manufacturing facilities.
This article is organised as follows. First, we review
literature about lean manufacturing and its application
in India. Second, the research methodology is presented. Third, we describe the assessment tool and how
the empirical investigation was carried out. Fourth, we
present the findings and conclusion of the four assessed
companies.
2. Diffusion of lean manufacturing in India

As India is entering the global arena and emerging as
the new destination for global manufacturing, a
number of manufacturing management practices and
philosophies are finding their way into the Indian
industries. According to a study conducted by Deloitte
(2010) and the US Council on Competitiveness in 2010,
India ranks second in manufacturing competitiveness
and Indias talented pool of engineers and managers
are rapidly grasping the techniques and strategies
necessary to achieve success in the highly competitive
global markets. India has been on tenterhooks since
1991 when a series of reforms were initiated as
monetary, fiscal, trade, exchange rate, licensing regulations, capital issues and there was a sea of change
with the entire nation in the process of deconstruction,
the changes uprooting the deep-seated paradigms and
all that go with it mindsets, beliefs, attitudes, lifestyle
and so on. Today, India is the place to be for design,
development and manufacturing of innovative products and major companies from Europe, USA and
Japan are viewing Indian industries as active participants in the entire value chain. Many Indian companies are attempting to establish operations models that
have proved successful in the developed economies and
as the Indian-born Dean of Harvard Business School,
Nohria (2010) implied at a key address in Mumbai, it is
for the Indian companies to absorb modern operations
strategies and work to achieve, maintain and sustain as
a significant player in the global competition.

The lean manufacturing approach is such a powerful operations model that has been vastly explored
and practised by successful organisations in developed
countries and has been applied in Indian companies
recently. Research shows that initially, the lean implementation process was slow in India, similar to other
developing countries, largely because of the anxiety in
changing the mindset of people, lack of awareness and
training about the lean concepts, and cost and time
involved in lean implementation. Nevertheless, Indian
managers are learning from an array of lean practices
and over the last 5 years, there have been significant
efforts in developing a lean strategy. Evidence suggests
that the diffusion of lean manufacturing in India has
been substantial in the automotive and electronic
sectors that were exposed to global competition faster
(Mohanty et al. 2006, Dangayach and Deshmukh
2008). Although the lean production principles were
derived from the Toyota Production System in Japan
and popularised as the Japanese manufacturing technique (Wooldridge 2010), it seems today that Indian
companies are stronger proponents and practitioners
of lean production while the Japanese automakers are
now exploring ways to modify their approaches with
Toyota making an annual loss of USD 4.4 billion in
2009, a loss for the first time after 1963 on a yearon-year basis, and Japan tumbling to 27th position on
the IMDs World Competitiveness Rankings 2010.
According to Cusumano (1994, 2010), the Japanese
gains in manufacturing productivity and their rapid
expansion and replacement of product lines may have
indeed reached a limit. On the other hand, Indian
organisations are seeking ways to increase the value of
their products and services by eliminating unnecessary
processes and practices from all systems.
It is only in this decade that Indian industries have
realised the importance of manufacturing as a competitive weapon. This strategic asset has been typically
overlooked by the Indian top management in the past
but it has now become discernable probably because
the traditional sources of competitive advantage have
become order-qualifying criteria and no longer the
remarkable order winners anymore. The manufacturing in India is at a critical juncture as firms attempt to
adopt world class practices and face grim challenges in
the competition-driven market akin to those faced by
firms the world over. Indian companies need to reduce
the product development cycle times, develop products
that achieve strategic objectives, make optimum use of
resources, develop not one but a stream of new
products over time, and build on opportunities for
growth rather than getting obsessed with market share.
According to Womack (2008), companies in India have
to move from mass production model to lean
771
production since lean uses less of everything human

effort, investment in tools, engineering time and
inventory compared with mass production. The
lean producer combines the advantage of craft and
mass production while avoiding the high cost of the
former and the rigidity of the latter. Moreover, the
governments and companies in the developed countries
are pressing upon all entities in the supply chain to
ensure sustainability and environmental responsiveness
(Shukla et al. 2009) by providing cooperation under
certain bilateral frameworks. The government of India
has instituted the lean manufacturing competitiveness
scheme for micro, small and medium enterprises to
assist firms in reducing their manufacturing costs
through improved process flows, better space utilisation, scientific inventory management and reduced
engineering time. Although there is no specific percentage identified as the level of diffusion of lean
manufacturing in India, the debate around the lean
operations model and the level of diffusion in India can
be progressed by reviewing the studies, research, or
substantiating data available in this regard. Table 1
consolidates some work in this field.
The Indian automotive sector is way ahead of the
other sectors in the implementation of lean
manufacturing principles. It is observed that the
Indian companies having tie-up with reputed foreign
companies, this being common in the automotive
sector, progressed in the lean practices or became
aware of lean concepts through company-wide training
programmes. For example, Maruti Suzuki draws the
learning of lean manufacturing from its parent company Suzuki Motor Corporation and hinges its model
around four important pillars, namely cost, quality,
safety and productivity. Another example is Ford
India automobile plant near Chennai, built around an
array of new lean manufacturing techniques to make it
ultra-efficient and its products cost-competitive. The
lean approach enables Ford India to organise build-toorder production with parts and components supplied
from the adjacent 30-acre supplier park and other local
suppliers.
Indian small- and medium-size enterprises (SMEs)
have been consistently outperforming large industries
on crucial parameters such as production, employment
and role in the global market (Tuteja 2001). These
firms have shown a consistent growth rate, both under
a protected economy and an open economy (Ghose
2001), and they are of major importance to the future
economic growth of the Indian community, as well as
the international market. However, in order to sustain
this role, they need support in defining their specific
managerial needs and in finding the right approach to
respond to them (Dangayach and Deshmukh 2005).
772
R. Panizzolo et al.
Table 1. Evidence to comprehend the level of diffusion of lean manufacturing in India.
Industry
India
sector
in
Journal/research studies on
lean manufacturing in India
Authors/companies
Level of diffusion
Automotive
International Journal of
Production Research
Interfaces
Vilakshan XIMB Journal of
Management
IIM Bangalore Working Paper
No. 286
Dangayach and Deshmukh

(2001)
Balakrishnan et al. (2007)
Mohanty et al. (2006)
Saranga et al. (2009)
Ashok Leyland, Bajaj Auto,
Tata Motors, Ford India,
Maruti Suzuki India,
TVS-Wabco India
Very high
Machine tool
Advanced Manufacturing
Technology
Eswaramoorthi et al. (2010)
Medium to low
Electronics/IT/
engineering
Benchmarking: An
International Journal
Gurumurthy and Kodali

(2009)
Wipro, Samsung India,
Flextronics, LG Electronics,
Lapp India
High
FMCG
Advanced Operations
Management
International Journal of Rapid
Manufacturing
Upadhye et al. (2010)

Singh et al. (2010)
HUL, Britannia Industries,
Godrej
Medium to low
Process industries
Curie
Journal of Scientific and
Industrial Research
Mishra et al. (2008)

Mahapatra and Mohanty
(2007)
Grasim Industries, Jindal Steel,
Kansai Nerolac
Medium to low
Aerospace
SMEworld
Janakiram (2008)
Hindustan Aeronautics Ltd.
Medium to low
The large organisations in India have greater awareness of lean manufacturing while the SMEs lag behind.
In the SMEs, the perceived benefits of lean are low
and the management is often reluctant to invest in
consultants due to the high consultancy fees. The
research in the machine tool sector (Eswaramoorthi
et al. 2010) shows that the reasons for medium to low
diffusion have been attributed to frequent changes in
design, customer-specific tooling, long lead time to
produce a machine tool and resource constraints. The
process industry on the other hand has not extensively
explored the possibility of lean implementation as there
is a perception that the process industry is inherently
more efficient and presents relatively less need for
improvement activities. According to Mishra et al.
(2008), it is essential to systematically demonstrate how
lean manufacturing tools can help to eliminate waste,
achieve better product quality and inventory control.
More generally, lean manufacturing diffusion in India
could be constrained by lack of in-depth training,
inadequate number of qualified lean thinkers and

limited lean educationindustry association.
3. Research methodology
Case studies form the methodological basis of the
research presented in this article. Four Indian companies were selected from a larger pool of firms because
of better availability of data. Access to information is
an important factor in conducting case study research
(Yin 1994). In all four cases, access was gained through
the chief executive and senior management of each
company. The research team had unrestricted access to
the organisation at all levels, thanks to the consolidated collaboration with the authors.
Each case study presented is unique, the industries
are varied, some companies are Lean veterans, and
others have just implemented Lean processes for the
first time. The four cases were selected because the

adopted lean practices favour the selected companies
revival after the big jolt they experienced from the stiff
competition from domestic competitors and globalisation. These companies stand out from their peers
because their lean programmes have driven and
continue to drive significant improvements in
manufacturing performance, customer responsiveness
and bottom-line financial results. Timely following
best practices helped companies to regain their status
in the market and, considering the performance indicators identified by Bititci et al. (2011), they are
recognised as leading companies in their respective
sectors in India.
The unit of analysis was lean managerial practices.
The object of analysis was SMEs that were identified
using Scott and Bruces (1987) definition with some
further specifications to define both the characteristics
of the population from which the research sample was
drawn and the boundaries of generalisation of the
findings (Eisenhardt 1989, Yin 1994). These specifications are as follows: the management is independent,
i.e. capital was supplied by an individual or a small
group and a parent company could not influence the
adoption of lean practices; the company belongs to the
manufacturing sector; the area of operations is the
global market and the number of employees is between
100 and 250.
The data were collected by visiting the companies
and interviewing entrepreneurs and managers at different organisational levels. Company documents and
interviews with company consultants were used to
collect additional information and to better understand
the data gathered. The interview protocol was dynamically adjusted to maximise insights into the themes
that emerged during the interviews (Eisenhardt 1989).
The case studies were tested for construct validity and
internal validity. To ensure construct validity (Kidder
and Judd 1986), the authors looked for multiple
sources of evidence for each of the important elements
in the propositions using the triangulation technique
(Denzin 1978, Fielding and Fielding 1986). Use of
multiple informants and archival data helped authors
crosscheck pertinent information and verify the reliability of data obtained. To demonstrate internal
validity (Yin 1994, Shadish et al. 2001), the authors
recorded evidence of other factors that could be
alternative explanations for the observed patterns.
Although this study was retrospectively carried out
to the adoption of lean management practices, the
research team further engaged with the case study
companies to validate and verify oral data, observations, interpretations and conclusions. The research
team discussed each case study and created a map of
factual events and mapped their data (including oral
773
data, observations, documentation and research log)

against these events, together with the hypothesised
reasoning behind these observations. For example, on
adoption of a particular lean practice (factual event), a
change in management behaviour was observed (observation) which was possibly caused by a fear of
exposure (hypothesis). These maps were then tested
through discussions with individuals or groups of
individuals at the company to verify the validity of the
observation.
In order to carry out the empirical study, an
assessment tool able to accurately define and operationalise the lean production concept has been developed. In investigating this issue, we adopted an
approach that combined elements of systematic literature review (Denyer and Tranfield 2008, Rousseau
et al. 2008) with the authors previous knowledge of the
field. All the collected information was brought
together using the categorical aggregation and interpretation technique, which brings instances together
until something can be said about them as a group
(Buckley et al. 1976, Stake 1995). The identified tool
(Figure 1) allows for the operationalisation of a
complex and multidimensional concept such as lean
production. It summarises the principles contained
within lean production and allows the process of
adoption and implementation of lean production
philosophy to be studied better.
4. The assessment tool

Several studies in the literature have tried to identify
the determinants of these innovative production systems (Bartezzaghi and Turco 1989, Chan et al. 1990,
Moras et al. 1991, Goyal and Deshmukh 1992, Mehra
and Inman 1992, Sakakibara et al. 1993). An examination of these works shows, clearly, that this wide
range of best practices concerns:
. interventions in the manufacturing area;
. actions taken in other areas of the firm
(design, human resources, strategy, etc.);
. relationships with external actors (suppliers
and customers).
Early studies mainly focused on manufacturing
planning and control practices and on the characteristics of production processes in lean firms (Hall 1993).
In the area of manufacturing planning and control, the
goals are to synchronise production and market
demand, simplify management and speed up flows.
These goals can be attained through levelled and
synchronised production, the use of small lots, pull
774
R. Panizzolo et al.
AREAS OF INTERVENTION
Process & Equipment
IMPROVEMENT PROGRAMMES
PE1
PE2
PE3
PE4
PE5
PE6
PE7
PE8
PE9
Set up reduction
Flow lines
Cellular manufacturing
Rigorous preventive maintenance
Error proof equipment
Progressive use of new process technologies
Process capability
Order and cleanliness in the plant
Continuous reduction of cycle time
PPC1
PPC2
PPC3
PPC4
PPC5
PPC6
PPC7
PPC8
Levelled production
Synchronised scheduling
Mixed model scheduling
Under-capacity scheduling
Small lot sizing
Visual control of the shop floor
Overlapped production
Pull flow control
HR1
HR2
HR3
HR4
Multifunctional workers
Expansion of autonomy and responsibility
Few levels of management
Worker involvement in continuous quality
improvement programmes
Work time flexibility
Team decision making
Worker training
Innovative performance appraisal and performance
related pay systems
Manufacturing Planning & Control
Human Resources
HR5
HR6
HR7
HR8
Product Design
PD1
PD2
PD3
PD4
PD5
PD6
Parts standardisation
Product modularisation
Mushroom concept
Design for manufacturability
Phase overlapping
Multifunctional design teams
Supplier Relationships
SR1
JIT deliveries
SR2
Open orders
SR3
Quality at the source
SR4
Early information exchange on production plans
SR5
Supplier involvement in quality improvement
programmes
SR6
Reduction of number of sources and distances
SR7
Long-term contracts
SR8
Total cost supplier evaluation
SR9
Supplier involvement in product design and
development
Customer Relationships
CR1
CR2
CR3
CR4
CR5
CR6
CR7
CR8
Figure 1. The assessment tool.
Reliable and prompt deliveries

Commercial actions to stabilise demand
Capability and competence of sales network
Early information on customer needs
Flexibility on meeting customer requirements
Service-enhanced product
Customer involvement in product design
Customer involvement in quality programmes

control of flows and visual control of the shop floor
and so on (Monden 1983).
Whether it is possible to operate along these lines
depends on the availability of production processes
that are able to guarantee regularity and uniformity,
over time, of the mix. These conditions require, for
example, shortening of set-up times, the use of cellular
layouts and of mixed model lines, process capability,
availability and reliability of machines, the use of
error-proof equipment, and so on (Schonberger
1986). The perspective of analysis was only broadened
in later studies as it became clearer that setting up a
lean production system required the adoption of best
practices not only in relation to manufacturing but also
in other areas of the firm. This broadening of the range
of analyses led some authors to introduce such
concepts as core JIT and JIT infrastructure
(Sakakibara et al. 1992).
First of all, JIT operating practices have a profound
impact on human resources management insofar as they
require increased involvement and commitment on the
part of employees. Furthermore, human resources take
on strategic importance because of their role in carrying
out the continuous quality improvement plans which
are the basis for success in the lean production model
(Blackburn and Rosen 1993). This has meant that both
the instruments and the classic human resources management models have had to change.
Much attention is also being devoted to the study
of the relationships between product development and
manufacturing (Clark and Fujimoto 1990). All practices which seek to improve product producibility,
such as product simplification, parts standardisation,
modular architecture of the product and mushroom
concept, play an important role. In this way, it is
possible to improve the links between product development and manufacturing, that is, to design products
which are tuned to the physical and managerial
characteristics of the production system.
At the same time as studies on the relation between
the adoption of best practices in manufacturing and its
implications for other areas in the firm, the first studies
began to appear, in the international literature, where
operations were seen in a broader, more integrated
manner, upstream with suppliers and downstream with
customers, according to a view of networks of firms
and of the relations between them.
The subject of supply chain management has been
taken up by many authors who have described the
practices and the innovative policies adopted by lean
manufacturers (see e.g. Lamming 1993). These practices and policies highlight the importance of reducing
the number of suppliers; of establishing closer and
longer term relations with suppliers; of using
775
innovative vendor rating programmes based on

global costs; of involving suppliers not only in logistic
decisions (i.e. lot size, regularity and timeliness of
deliveries, quality at the source) but also at the
technological/strategic level (i.e. joint design of new
products/technologies and sharing business risks and
opportunities).
However, adopting a lean production logic also
means setting up innovative relationships with customers and, in comparison with other perspectives, this
has, so far, been somewhat neglected in the literature.
Harper (1985) was one of the first authors to analyse
this problem and draw attention to the crucial
importance of managing relations with customers.
This particular aspect was later taken up by other
authors (Schonberger 1990, Fincke and Goffard 1993,
Westbrook and Williamson 1993), who underlined the
need to construct a customer in organisation in which
the important topics are the capability and competence
of the sales network, exchange of information with
customers, the ability to carry out frequent and rapid
deliveries, and customer involvement in product planning and design.
This focus on suppliers and customers emphasises a
strategic vision of lean production, one which focuses
on the external networks of the firm. Some authors
have conceptualised this vision suggesting the use of
the term lean enterprise instead of lean production:
Weve seen numerous examples of amazing improvements in a specific activity in a single company. But
these experiences have also made us realise that
applying lean techniques to discrete activities is not
the end of the road. If individual breakthroughs can be
linked up and down the value chain to form a
continuous value stream that creates, sells, and services
a family of products, the performance of the whole can
be raised to a dramatically higher level. We think that
value-creating activities can be joined, but this effort
will require a new organisational model: the lean
enterprise (Womack and Jones 1994).
Building upon the literature, the model, depicted in

Figure 1, represents a conceptualisation of lean
production which consists of a number of improvement programmes or best practices that characterise
different areas of the lean company. These areas are:
Process and Equipment, Manufacturing Planning and
Control, Human Resources, Product Design, Supplier
Relationships and Customer Relationships. The principal improvement programmes are highlighted for
each of the above areas.
5. Empirical investigation
In this section, we present the four independent case
studies. The description highlights the important role
776
R. Panizzolo et al.
played by the change in the competitive environment

caused by the liberalisation of the 1991. For each case
study, we summarise the company profile, the managerial approach previous to and after 1991 and we
present in tabular form the following factors:
. Competitive factors characterising the environmental context after the liberalisation of
the 1991. The authors had access to the
dispatch advice-related documents and quarterly sales review reports to further crosscheck
the views expressed by the interviewers about
the subsequent ranked competitive factors.
. Lean manufacturing practices to face the new
competitive environment: the authors listed
the main lean manufacturing practice that the
company identified as a potential stimulus to
answer to the chances in the competitive
environment.
. Key changes introduced by the lean
manufacturing implementation.
. Benefits observed by following lean
manufacturing practices. Benefits observed
again strengthen the viewpoints of the authors
to carry out this study as all these benefits are
directly related to the improvement in the
overall business performance of the company.
. Barriers in implementing lean manufacturing.
The top management feels that these barriers
are temporary in nature and could affect the
lean manufacturing practice only in initial
stages of its implementation.
In the following, we summarise the four cases and
then we highlight the quantitative benefits observed by
adopting Lean Manufacturing.
5.1. Company A
Company A is the oldest surgical disposable needles
and syringes manufacturing company (established in
1981) and catering to the consumer goods market
segment. It belongs to a medium-scale industrial SMEs
located in the western part of India. The company
produces all types of disposable needles and syringes.
With 100 employees, it enjoys 15% market share in the
disposable needles and syringes market. Presently,
company A is the third largest manufacturer of
disposable needles and syringes in India and has
20% exports (mainly in US market) of total sales.
Plant and machinery together with the technology were
brought from Korea. It is an ISO 9001 certified
company.
5.1.1. Until 1991

During the 19501990 period, an era of limited supply,
the National industrial policy was restrictive and
regulative, therefore the companys production was
less than demand. Being the oldest disposable needles
and syringes manufacturer, the company enjoyed a
monopoly status in India. Initially, the company did
not have proper lean practices for manufacturing and
other peripheral business activities as demand outstripped capacity and it enjoyed a protected sellers
market.
5.1.2. Since 1991 to current time: adoption of a lean
manufacturing approach
After relaxation in the industrial policy, many new
companies have entered in this sector with foreign
collaboration. Since 1991, the company had to face
cut-throat competition from local SMEs and largescale manufacturers. It had to introspect its business
activities from all angles to survive in the highly
competitive market. The company decided to become
leading disposable needles and syringes manufacturer
in India (Vision) and to supply superior quality,
eco-friendly and low-cost disposable needles and
syringes on time (Mission). Owing to increased
competition, the company adopted proper lean
manufacturing practices that focused on waste
reduction and optimum utilisation of resources. The
company decided to adopt the best practices
characterising different operations (i.e. process and
equipment, manufacturing planning and control,
human resources, product design, supplier relationships, customer relationships, etc.). It also extensively
invested in electronic data interchange, internet, extranet, intranet, websites, bar-coding, fax, etc. and framed
a proper lean manufacturing strategy. The company
also hired professional help outside from consultants
and experts from time to time for proper implementation, use and review of lean manufacturing practices.
It is also thinking to appoint at least two full-time
employees to look after the lean manufacturing
activities round the clock (Table 2).
In 1995, the company has grown explosively and its
production volume has also increased. The company
also started exporting to Europe (12 countries) since
1998.
5.2. Company B
Company B is a small-scale bearing balls manufacturing company. It produces bearing balls for all types of
bearings. Its customer ranges from countrys largest
Delivery speed (provide

fast deliveries)
Dependable deliveries
(on time deliveries)
Product reliability
Easy and eco-friendly
disposal of the used
products
Conformance quality
Quick response to
customers
Competitive cost
Competitive factors
(after the 1991)
Table 2. Company A.
Process and equipment,

manufacturing
planning and control
Human resources
Product design
Supplier relationships
Customer relationships
Fast communication
with the trading
partners on real-time
basis
Online supplier
information tracking
Automatic release of
purchase orders
(based on inventory
level)
Lean manufacturing
practices to face new
competitive environment
Speed up the production process
Inventory size and lead time reduction by
implementing JIT technique
Quick launching of new product
Employees involvement in continuous quality
improvement programmes
Matching competitors features by continuously improving products and services
through supplier and customer involvement
in product development
Online information for internal functional
control like work-in-process on shop floor,
daily production target, daily, weekly and
monthly production schedule, data related
to quality control, all inventory control
aspects, detailed health analysis of each
equipment
Training of employees
Computerisation of companys purchase and
distribution system with more than 50% of
its vendors and customers connected
through the network
Key changes introduced by the lean

manufacturing implementation
Improved relations in
the supply chain
Better customer service
Accurate forecasting
An edge over competitors in the industry
Improvement
significantly in the
productivity and
waste elimination
Increase responsiveness
and crossfunctionality
Qualitative benefits
observed by following
lean manufacturing
practices
Lack of training and

awareness among
employees
Poor infrastructural
facilities
Resistance to change
and to adopt
innovations
Barriers in implementing
lean manufacturing

777
778
R. Panizzolo et al.
bearing manufacturing company to big multi-national

companies operational in India. It is an ISO 9002
certified SMEs and operates in a multi-plant environment, all located in the same vicinity in the western
region of India. The company has technical links with
a leading Japanese company. The company was
established in 1985 and started production in 1986.
It enjoys a 20% market share and it supplies products
to leading bearing manufacturing companies.
It exports 15% of its total production to overseas
market. Its MD is a graduate engineer in mechanical
engineering and is a quality-conscious person.
The number of employees in the firm is 100.
5.3. Company C
The company enjoyed and maintained its market share

consistently with reasonably handsome profit margins.
As the companys core competency lies in its quality, it
invested extensively to establish and maintain worldclass quality system in house, which further led to high
manufacturing costs. Since the company was getting
sufficient economic returns from its customers, it
hardly looked into its high production cost aspect.
There were excessive inventory and waste (due to scrap
and rework) in the work place. The company used to
purchase its raw material from some selected local
suppliers by paying hefty premium prices. There were
hardly any interdepartmental coordination that led to
delay and poor decision-making.
The Company operates in a multi-plant environment

in western India. It is in the business of iron handicraft
manufacturing and exclusively export-oriented unit.
Majority of its customers are based in United States of
America and Europe. The company is running five
overseas marketing offices also to look after marketing- and sales-related activities for better customer
services. It is a medium-scale company managed by
three professionally qualified partners. It is the largest
company in its segment of products and ISO 9001
certified company. The company was established in
1985 with a small turnover. The company has about
200 employees. The use of computers and IT tools is
very prominent in the day-to-day functioning of the
company. The strength of the company lies in its
innovative design and product development.

5.3.1. Until 1991
Post-liberalisation era allowed large multinational

corporations to come in India and sell the bearings at
much lower price than Indias local bearing manufacturers. That forces local bearing manufacturers to
negotiate their suppliers (bearing ball manufacturers)
on cutting their prices drastically. Also in 1992, three
new local manufactures in the same industrial region
started and launched production of bearing balls and
supplied them at much lower prices than the company
B. There was cut-throat competition in bearing market
that led the bearing manufacturing companies to
compromise on quality. No doubt, product quality of
Company B was much superior to that of new entrants
in the market. Initially, Company B did not realise the
degree of competition because of its high-quality
products but after losing about 25% of its market
share by such local companies, it decided to introspect
its internal system. It also started to explore export
opportunities but did not succeed much due to stiff
competition from Chinese manufacturers (Table 3).
Before the opening of the Indian economy and

liberalisation (1991), the company was following traditional industry practice due to a license regime in the
country. Much of the time was spent in translating
the design requirements of the customer orders into the
acceptable finished products. As majority of its
customers were based at overseas market, much of
companys productive time was lost in searching for
the quality customers and then to procure their repeat
orders. Retaining customers for the long duration of
time was the biggest challenge for the company, besides
the cost, quality and delivery issues. The fast-growing
competition from the China and the other local
manufacturers forced the company to cut its profit
margins considerably. Hence, the top management of
the company had to give a serious thinking to cut
down its production costs and other overheads.
Decision-making process was also slow and complex
in view of absence of the proper performance measurement system.
5.2.1. Until 1991
The company managed to regain its lost local

market share due to the entry of new local entrants, by
exporting its products at very attractive profit margins.
By following lean manufacturing practices, the company was able to attract international customers and
able to get much attractive international orders than
what it had lost in local market and was able to
economically justify the initiatives taken on lean
manufacturing.
Conformance quality
Product reliability
Product performance
Competitive price
fast deliveries)
(on-time deliveries)
Competitive factors
(after the 1991)
Table 3. Company B.
Qualitative benefits observed
by following lean
manufacturing practices
Reduction of waste
Quick decision-making
Completely booked for its
production till the next year,
20% of which is from export
orders
Accurate forecasting
Consistently being recognised
by best quality producer at
competitive prices
Won current years National
Productivity Councils
award
Key changes introduced by the

lean manufacturing
implementation
Use of extensively early
information exchange of
production plan with
suppliers
Reduced number of suppliers
and awarded them longterm contracts at
competitive prices
Cut down its selling price in the
domestic market
significantly
Check of the quality of raw
material at the own end of
the suppliers
Support to JIT deliveries
within the plan for managing inventory
Identify bottlenecks and take
corrective actions
Purchase section is fully
computerised
Process of purchase is
streamlined
Lean manufacturing practices

to face new competitive
environment
Production system and
procurement partner
Supplier relationship
Equipment innovation
Effective and fast communication
Shop floor supervision
Low priority by the

management
Resistance to change and to
adopt innovations
Lack of vision
Barriers in implementing lean

manufacturing

779
780
R. Panizzolo et al.

After liberalisation, due to intense competition,
spurred by the local and the Chinese manufacturers,
the top management of the company in consultation
with the division heads set a vision and mission for the
company. Vision and mission were revised as follows:
the vision was to be the leader in iron handicraft
products by producing innovative designed products at
competitive prices, and the mission was to continue
efforts for the design and development of iron
handicrafts through new product development, design
innovation, investment in sophisticated design
technologies, investment in manufacturing methods,
efficient management and deployment of the
lean manufacturing practices for cost reduction
(Table 4).
The two barriers listed above are observed primarily during interaction with the top management and the
supervisory operational level staff. Authors feel that
highly ranked barriers are due to the lack of awareness
and as the time passes, the mindset of the workers will
change.
After implementation of lean manufacturing with
the top managements involvement, the company
improved its operations in various quarters of business.
It was able to procure repeat orders from customers.
The company improved its lost market share, which
reflects its better economic performance and supports
our view. Thanks to the adoption of lean practice, the
company won the National award for being the largest
exporter in the iron handicraft sector. In the past 3
years, there is an increasing trend observed in market
share and sales turnover. It is interesting to note here
that most of the supply orders are repetitive in nature.
The company is not only able to maintain its customer
base but also widen its overseas market share.
5.4. Company D
The company is a leading manufacturer of brakes and
clutches of all types of four wheelers. It manufactures a
wide range of brakes and clutches of diesel commercial
vehicles (heavy, medium and large commercial vehicles) and passenger cars. It was established in 1973 and
situated in the most developed state of the western
India and belongs to a reputed industrial group of the
State. The company operates in a single plant
environment. It enjoys 40% market share in domestic
market for light commercial vehicles and 30% in
medium and heavy commercial vehicles. It does not
export its products.
5.4.1. Until 1991

Until 1990, the company enjoyed monopoly in supplying its products to OE (Original Equipment) manufacturers at premium prices. There was no strict
quality system either for manufacturing or service for
the customers. There was no proper supply chain
coordination in trading partners and the company was
running like a typical family-owned business. There
was no proper system in place to suggest the right kind
of business methods at the right time, which usually led
to poor decision-making and costlier production.
There was no proper control over inventory levels,
which resulted in surpluses and stock-outs many times
round the year. Frequent breakdowns in machines that
led to shut down of plant were very common. All these
causes ultimately led to rise in the manufacturing costs.
As companys 100% productions were booked in
advance most of the time, it hardly paid any attention
towards productivity improvement and reduction in
production costs efforts. The company was very
poor in adhering to the delivery schedules most of
the times.
Post-liberalisation and opening of the economy era
posed some serious challenges. Its largest customer was
based in the northern part of the country, which was
the biggest public sector company of India with a
foreign collaboration with a giant Japanese motor
company in light four-wheeler vehicles segment. Three
new companies started production of brakes and
clutches in the vicinity and area near to this public
sector company. To take the advantage of economies
of scale and scope, the customer (the public sector
company) of the company started giving preference to
the local manufacturers over its traditional supplier
and hence the company had to lose its market share
and monopoly. That was the turning point for the
company.
In view of the stiff competition, the top management of the company, in consultation with professionals, set a vision and mission for the company: the
vision was to develop the company with world class
capabilities in design, engineering, manufacturing,
quality control, sales and services. The stated mission
to be a reliable supplier of quality products to OE
manufacturers (Table 5).
All these efforts led to improvement in productivity
and improved deliveries at competitive cost. It further
helped to improve relations with vendors and customers. With this performance measurement system
development and management, the company

fast deliveries)
(on-time deliveries)
Low cost
Business relations with
supply chain partners
Innovative products
Design changes
Volume changes
Quick response
Competitive factors
(after the 1991)
Table 4. Company C.
Qualitative benefits observed
by following lean manufacturing practices
Fast flow of information that
lead to quick decisionmaking
Better supply chain
coordination
Better customer services
Getting repetitive orders
Improvement in relations with
vendors and customers
Fast new product development

lean manufacturing
implementation
Functions of the firm are
well-integrated as better
interdepartmental
coordination
Coordination among supply
chain trading partners
Enquiries from customers are
entertained on-line on real
time basis.
Inventory level (in house)
reduction drastically by
outsourcing practices
Order fulfilment in bulk
The whole organisation is
asked to introspect and
benchmark the processes
with the available worldclass technologies

environment
Continuous improvement with
zero defects
Speed up the deliveries with
close interdepartmental
follow-ups
Cost reduction
Matching competitors
products by constantly
improving existing products
Threats of insecurity among

employees
adopt innovations

manufacturing

781
factors

fast deliveries)
Low cost
Conformance quality
Product performance
Product reliability
Quick response
Competitive
(after the 1991)
Table 5. Company D.
lean manufacturing
implementation
Implementation of small lot
sizing with JIT deliveries
both within the plant and
among the outside supplies
Implementation of SCM/ERP
software
Supply chain coordination
among all trading partners
Improvement in the delivery
schedules
Removal of bottlenecks during
the production process
Set up a fix policy for preventive maintenance of the
plant at regular time
intervals
Revision of the companys
system operated to do take
corrective actions at right
time
Monitor companys
performance on daily basis

environment
Production system
Information system innovation
Supply chain coordination
among all trading partners
Interdepartmental
coordination

manufacturing
adopt innovations
Lack of vision
Low priority by the
management
Downsizing of the staff
Benefits observed by following

lean manufacturing practices
Quick decision-making
Better interdepartmental
coordination
Better supply chain
coordination
High customer satisfaction
Brand image
Avoid frequent breakdowns
Improvement in relations with
vendors and customers
Strict delivery schedules
782
R. Panizzolo et al.
783
Downstream value stream performance
Upstream value stream performance
Perfect order fulfillment

Order fulfillment cycle time
Customer complaints / returns
Delivery lead time

On time delivery
Delivery frequency
Quality performance
Factory
Suppliers
Customers
Internal value stream performance

WIP
Inventory rotation index
Overall equipment efficiency
Scrap and rework
Manufacturing throughput time

Manufacturing process time
Set-up time
Capacity utilisation
Figure 2. The operational performance measures investigated.
implemented ISO 9002 quality system also in 1993.

With the proper system development and practices, the
company is now able to become single largest quality
brakes and clutches manufacturer in India. Since the
company has drastically cut down its production cost
and improved deliveries, once again it is able to get
maximum share of business from its customers. After
the adoption of lean manufacturing practice, the
companys market share increased by 7%.
5.5. Quantitative benefits observed by adopting lean

manufacturing
The data shown in the Tables 25 give a qualitative
profile of lean manufacturing implementation in the
four companies. To better understand the benefits
achieved by the four companies, we have collected
information about the improvements that they have
quantitatively obtained in the form of value stream
mapping and other metrics usually used to show the
gains attained by adopting Lean Manufacturing. The
non-financial (operational) performance measures
investigated have been grouped into three classes, as
shown in Figure 2:
(1) Upstream value stream performance measures:
. delivery lead time;
. on-time delivery;
. delivery frequency;
. quality performance.
(2) Internal value stream performance measures:
.
.
.
.
.
.
.
.
WIP;
inventory rotation index;
manufacturing throughput time;
manufacturing process time;
set-up time;
scrap and rework;
overall equipment efficiency;
capacity utilisation.
(3) Downstream
measures:
value
stream
performance
. perfect order fulfilment;

. order fulfilment cycle time;
. customer complaints/returns.
Table 6 illustrates the degree of improvement
observed of the measures analysed. It comes clear that
all the four firms have attained significant operational
benefits in implementing Lean Manufacturing.
6. Discussion and conclusions

This section presents and discusses the empirical results
coming from the comparative analysis of the four case
studies. The considerations are organised according to
784
R. Panizzolo et al.
Table 6. Operational benefits gained by the four companies in implementing lean manufacturing.
Company A
Upstream value stream performance
Delivery lead time
Delivery
frequency
Quality performance
Improved
significantly
Improved
significantly
Improved
significantly
Improved
Downstream value stream performance

Perfect order fulfilment
Improved
On time delivery
Order fulfilment cycle time
Customer complaints/returns
Internal value stream performance
WIP
Inventory Rotation Index
Manufacturing throughput time
Manufacturing process time
Set-up time
Scrap and rework
Overall equipment efficiency
Capacity utilisation
Improved
significantly
Improved
Improved
significantly
Improved
significantly
Improved
significantly
Improved
Improved
Improved
significantly
the six areas which formed the assessment tool of

Figure 1.
6.1. Process and equipment

Among the various practices of the Process and
Equipment Area, the four companies have made
great efforts in order to reduce set-up times, which
were perceived as being one of the greatest obstacles to
obtain continuous flow-type production. For example,
Company A carried out many improvement programmes based on SMED techniques of Shigeo
Shingo.
The use of rigorous preventive maintenance also
appears to be a widespread practice. Company D
decided to set high targets for future in terms of
dependable deliveries, quality and manufacturing
costs. Therefore, it launched a TPM programme to
avoid frequent breakdown in the plant. It instructed
plant operators to use error-proof equipments only
on the machines. In order to take the advantage of
technology, it stressed on the need to update the
Company B
Company C
Company D
Improved
Improved
Improved
Improved
Improved
Improved
Improved
significantly
Improved
significantly
Improved
significantly
Improved
Improved
Improved
significantly
Improved
Improved
Improved
significantly
Improved
significantly
Improved
Improved
significantly
Improved
Improved
significantly
Improved
significantly
Improved
significantly
Improved
significantly
Improved
Improved
Improved
Improved
Improved
Improved
Improved
Improved
Improved
significantly
process technologies through the system of periodic

review. Company C too established a policy for the
preventive maintenance of the plant at regular time
intervals. The companys system operated in such a
fashion that it warned the plant supervisor at the
appropriate time to take corrective actions at right
time so as to avoid frequent breakdowns of the
machines.
6.2. Manufacturing planning and control

The lean practices belonging to this area, aimed to
streamline the production and to operate in accord
with the pull principle of the kanban system, are those
most adopted by the four companies. They have all
made great efforts in order to adopt practices such as
levelled production and synchronised scheduling as
a means to reduce the inventories and to be able to
swiftly react to meet customer needs. In particular,
Company D took initiatives on levelled production and
pull flow control in the plant. Small lot sizing with JIT
deliveries are implemented both within the plant and

among the outside supplies. It played an instrumental
role in reducing the inventory, the biggest threat to the
company. The company has recently decided to
implement SCM/ERP software for its operations,
which it is likely to implement within a short span of
6 months. This system will help in downsizing the
inventory levels and better interdepartmental coordination so that delivery schedules can be improved and
bottlenecks during the production process can be
removed.
6.3. Human resources

The analysis of the four case studies confirms what has
already been stated in the literature, that is, the
importance of human resources in the implementation
of lean production principles. In particular, involvement of workers in the continuous quality improvement programmes, expansion of their autonomy and
responsibility, the presence of multi-functional workers
have all, in managers opinions, been crucial for
improvements in firms performances.
In order to promote employee contributions and to
increase employee empowerment and responsibility,
Company C heavily invested in employee training, as a
means to impart them multitasking capabilities. In
turn, it also helped to boost the morale of the workers
by providing them a sense of autonomy and responsibility. In the case of Company B, shop floor
supervisors were extensively trained to identify bottlenecks and take corrective actions to reduce the scrap
and rework.
785
6.5. Supplier relationships

All the four companies have adopted innovative
behaviours with regard to supply chain management.
Some improvement programmes have been adopted to
a greater extent and this is particularly true in the case
of practices designed to increase the degree of operational integration between buyer and suppliers. For
example, Company B decided to re-engineer its entire
production system and procurement pattern to cut
down its manufacturing cost. It formed a team of
middle-level managers to look into the aspect of entire
operations. After a period of 1 month, the team
recommended many paths of improvement. First, the
development of long-term contracts with the suppliers
in order to receive the raw material from supplier at
competitive prices. Second, the steps to cut down the
cost of manufacturing at the first place, i.e. at buyers
end were also identified. Suppliers were instructed to
check the quality of raw material at their own end.
Moreover, online negotiation on internet with the
suppliers is being followed to have raw material at
competitive prices. Finally, JIT deliveries were encouraged within the plant for managing inventory. It
significantly helped in reducing the size of inventory. In
company A, purchasing office is fully computerised
and the entire process of purchase is streamlined so as
to cut down the inventory levels and raw material
costs. In order to reduce the manufacturing costs and
other overhead expenditures, the company started
outsourcing the resources which are easily and cheaply
available outside. Suppliers are also involved in product design and development. Through networking,
company developed core competencies and better
human resource in its supply chain.
6.4. Product design

The area of product design has received less attention
than those examined so far even though managers have
declared that much more energies need to be devoted
to the product development process. The growing
attention and awareness is linked to two important
considerations. Firstly, the fact that design is crucial
when satisfying customers needs and therefore crucial
for achieving higher levels of effectiveness. Secondly,
choices regarding product structure, materials and
technical solution to be adopted deeply affect product
cost, production lead time and production methods.
For example, Company C, after liberalisation, due to
intense competition, spurred by the local and the
Chinese manufacturers, has started thinking towards
adopting parts standardisation and product modularisation and its alignment with manufacturing and
marketing function.
6.6. Customer relationships

In this area, the four companies have implemented
those improvement programmes aimed to ensure
reliable and prompt deliveries and to develop commercial and marketing techniques in order to make
demands both more predictable and more stable. For
example, Company C, originally operated with a
supplying goods system based on stipulated delivery
periods and in this way the company was able to
procure only about 40% of the repetitive orders from
its customers. In order to succeed in dealing with this
problem, the company decided to go for early information exchange from customers about their needs.
It also computerises most of its business operations for
better flow of information and decision making.
After having examined which lean practices have
received more attention in the four case studies, we
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R. Panizzolo et al.
want now to make some final remarks about the

adoption and implementation process of these
practices.
As regards lean adoption challenges, all the case
studies investigated show some particular problems in
moving from a traditional approach to a lean
manufacturing environment.
Significant culture change appeared the top adoption challenge. The adoption of lean practices encourages participation and empowerment of the employees
and this is particularly important for Kaizen programmes. However, these new relations with the
workers are not simple to set up and this is particularly
true in labour contexts such as those of developing
countries where workers are frequently treated
unfairly.
Alongside cultural change, the lack of skills needed
to understand and improve steps in the production
process also requires attention. One way of filling the
knowledge gap quickly is to tap outside experts. In
India, this approach is complex because experienced
production engineers in lean manufacturing are scarce.
An alternative way to recruit skilled technical specialists is to look outside the national boundaries but in
doing this it is important to understand that the
technical and problem-solving skills of frontline factory workers still presents a special challenge because
their knowledge base is often close to zero and
turnover is so high. The challenge calls for experienced
instructors who can roll up their sleeves and overcome
the cultural customs that often impede training. More
than in Western plants, the companies must train the
workers who participate in the pilot projects to serve as
a cadre of specialists spearheading the rollout of
change throughout the plant or the company. A pilot
can demonstrate the benefits of lean manufacturing in
a tangible way that is much more likely to convince
sceptical factory workers than a more theoretical
approach.
A particular role is recognised to top management
commitment. Lean implementation seems to act as a
grassroots effort, and it becomes incumbent upon the
internal champion to educate and motivate the senior
leadership team to adopt lean. It is important that top
executives, who run the company, are committed both
to a long-term vision of adding value to customers and
society in general and to developing and involving
employees and partners. Moreover, there must be a
continuity in top leaderships philosophy. Nevertheless
the companies studied are all successful cases of lean
manufacturing adoption; it was not always simple to
get the right level of commitment from managers.
Creating a performance culture is another important topic. Indian executives and supervisors lack
experience in managing performance. They tend to

not use systematic management tools and the failure to
bear down on performance is also partly cultural.
These attitudes present a considerable problem, since
to implement lean techniques effectively, workers and
managers must collaborate to identify problems and
apply disciplined remedies. Another complication in
applying lean principles is the relentless, rapid pace of
change in most Indian factories as they add new
capacity and their product designs evolve. To cope,
companies must give lean initiatives shorter time
horizons than they have elsewhere and implement
them more swiftly.
Notes on contributors
Roberto Panizzolo is a Professor of
Operations and Supply Chain
Management at the Department of
Industrial
Innovation
and
Management of University of Padua.
He holds a Master of Science in
Engineering and a PhD in Industrial
Engineering. He is currently the director of the Postgraduate course in Lean
Manufacturing of the School of Engineering of the
University of Padua. Prof. Panizzolo has more than 20
years of experience in the field of Operations Management
and he is a senior consultant and qualified teacher for
business organisations. He has worked on many international projects and his research work has appeared in a
number of books and international journals.
Patrizia Garengo is an Assistant

Professor at the Department of
Industrial
Innovation
and
Management of University of Padua.
She holds a degree in Business
Economics
from
Ca
Foscari
University in Venice and a PhD in
Industrial Engineering from the
University of Padua. Currently, her
research is focused on performance management as a means
of supporting improvements in organisational capability in
SMEs. She has been giving a significant contribution to the
field of performance measurement and organisational development in SMEs, and has published a book and over 40
papers in international journals and conferences.
Milind Kumar Sharma is an Associate

Professor and has taught many
subjects related to Production and
Industrial
Engineering
and
Operations Management. Prior to
joining
the
Department
of
Production
and
Industrial
Engineering, M.B.M. Engineering
College, J.N.V. University, Jodhpur
in 1998, he has served in industry for 4 years. He has been

awarded research projects under the SERC fast track scheme
for young scientist by Department of Science and
Technology (DST), Career Award for Young Teacher
Scheme by the All India Council for Technical Education
(AICTE) and University Grants Commission (UGC), New
Delhi, India. His areas of research interests include management information system, performance measurement, supply
chain management and small business development. He has
published research papers in Production Planning and
Control, Computers and Industrial Engineering, International
Journal of Productivity and Quality Management, Journal of
Manufacturing Technology Management, International
Journal of Globalization and Small Business, International
Journal of Enterprise Network Management, Enterprise
Informations System and Measuring Business Excellence.
Amol Gore was awarded the European
Commission Scholarship for PostDoctoral
level
Research,
Management and Engineering, coordinated by France (EU) and based at
the Management Group, University
of Padua. He received a Doctorate in
Industrial
Engineering
and
Management,
from
Uleaborgs
Universitet-Oulu, Finland (EU) and Master of Science in
Engineering from the Institute of Technology LiTH, Sweden.
He has been the faculty for many programmes in India and
other countries including France, Finland, Norway and
Slovenia. He has worked as a reader at a business school
affiliated with the University of Mumbai. He has presented
research papers in international conferences and his research
has been published in international journals.
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Production Planning & Control: The Management of

Lean manufacturing in developing countries: evidence

Department of Innovation in Mechanics and Management, University of Padua, Via Venezia

European Commission Scholarship (2010) cd. France, Management and Engineering,

PLEASE SCROLL DOWN FOR ARTICLE

Production Planning & Control

Lean manufacturing in developing countries: evidence from Indian SMEs

Department of Innovation in Mechanics and Management, University of Padua, Via Venezia 1,

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(Received in final form 10 November 2011)

The principles of JIT and TQC thus appeared one of

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The driving forces leading this change are twofold.

employee turnover undercuts the continuity that is

2. Diffusion of lean manufacturing in India

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Production Planning & Control

production since lean uses less of everything human

Table 1. Evidence to comprehend the level of diffusion of lean manufacturing in India.

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Dangayach and Deshmukh

Eswaramoorthi et al. (2010)

Gurumurthy and Kodali

Upadhye et al. (2010)

Mishra et al. (2008)

inadequate number of qualified lean thinkers and

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Production Planning & Control

data, observations, documentation and research log)

4. The assessment tool

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Manufacturing Planning & Control

Reliable and prompt deliveries

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Production Planning & Control

innovative vendor rating programmes based on

Building upon the literature, the model, depicted in

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played by the change in the competitive environment

5.1.1. Until 1991

Delivery speed (provide

Process and equipment,

Key changes introduced by the lean

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Lack of training and

Production Planning & Control

bearing manufacturing company to big multi-national

The company enjoyed and maintained its market share

The Company operates in a multi-plant environment

5.2.2. Since 1991 to current time: adoption of a lean

5.3.1. Until 1991

Post-liberalisation era allowed large multinational

Before the opening of the Indian economy and

5.2.1. Until 1991

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The company managed to regain its lost local

Key changes introduced by the

Lean manufacturing practices