Lean production performance indicators for medium and small manufacturing enterprises: modelling through analytical hierarchy process

Lean production has been successfully implemented in different organizations including medium and small manufacturing enterprises (MSMEs) on using lean tools/techniques which lead to elimination of wastages and non-value added activities. The paper has identified 18 critical lean indicators in the Indian MSMEs through extensive literature review and discussions held with experts/practitioners to measure the results of lean implementation for the proper decision making. These indicators are categorized into three organizational aspects (Financial, Operational and Human Resources) and prioritized with the help of a reliable and valid analytical hierarchy process model. The weightage calculated for each aspect may be used to describe the critical leanness factors/indicators lean implementation and prioritizing the better one during decision making. The analysis identifies that Operational aspects are at top priority with “Overall Equipment Efficiency” as main indicator, followed by Financial aspects with “Expenditure on Employees” as major criteria and Human Resources focusing on “Management Commitment”. It is observed that in MSMEs, management commitment develops a vision enabling the successful and continuous implementation. It significantly affects the financial and operational aspects by providing training to employees to grow a lean culture and best performing equipments.