ADOPTION OF LEAN MANUFACTURING PRACTICES IN SMALL AND MEDIUM ENTERPRISES, (SMES) ? A LEAN ENTERPRISE VEHICLE APPROACH

The SMEs sector plays a significant role in the economic development of any country. Lean Manufacturing Practices are implemented successfully in many large-scale manufacturing industries but not profoundly in the case of Small and Medium Enterprises (SMEs). This paper attempts to explore the extent of use of Lean Manufacturing Practices in SMEs and its successful adoption. The authors applied the model developed by Corner (2001) that demonstrates lean adoption in SMEs using the Lean Enterprise Vehicle model. The Lean Vehicle approach is a simple and easy method for SMEs that helps to identify the areas where the company has to improve so as to achieve a balance that results in successful adoption of lean practices. The degree of lean adoption is assessed based on the four critical business principles such as; Production & Inventory Management (PIM), Total Quality Management (TQM), Total Organizational Buy-in (TOB), Lean Manufacturing Techniques (LMT). The paper also attempts to prove adoption of lean manufacturing practices that result in better operational benefits. The paper provides a direction for further research to assess the level of balance a firm possesses in each business principle and on which it is deficient.