Abstract:
The paper is aimed at developing a model to measure
the impact of Lean manufacturing deployment on organizational
performance. The model will help industry practitioners to assess the
impact of implementing Lean constructs on organizational
performance. It will also harmonize the measurement models of Lean
performance with the house of Lean that seems to have become the
industry standard. The sheer number of measurement models for
impact assessment of Lean implementation makes it difficult for new
adopters to select an appropriate assessment model or deployment
methodology. A literature review is conducted to classify the Lean
performance model. Pareto analysis is used to select the Lean
constructs for the development of the model. The model is further
formalized through the use of Structural Equation Modeling (SEM)
in defining the underlying latent structure of a Lean system. An
impact assessment measurement model developed can be used to
measure Lean performance and can be adopted by different
industries.