Framework of lean manufacturing implementation for wood and furniture industry in Malaysia

Abstract

Although research on the adoption of lean manufacturing (LM) in the furniture industry in emerging economies is slowly progressing, its urgent implementation has been emphasized by researchers and practitioners. Research on this aspect is therefore limited, particularly when compared to the vast amount of scholarly studies on the successful implementation of lean in developed countries. To support the narrow body of knowledge for this under-researched scope, this study presents the current shortfalls of implementing LM in terms of motives, barriers, challenges, and applications. More significantly, this research develops a framework to facilitate LM implementation in the Malaysian wood and furniture industry. In doing so, a methodological approach was implemented in four tiers. Firstly, a comprehensive review of contemporary literature was performed to assess the issues. Due to lack of information regarding lean tools adopted by the wood and furniture industry, the selection of LM practices was made based on research on the wood industry and validated by two responsible lean consultants appointed by the Malaysian Timber Industry Board (MTIB) for the Good Manufacturing Practice (GMP-5S) and Lean Management Program (LMP). Secondly, a pilot study on 148 wood and furniture SME companies in Kuala Lumpur and Selangor was carried out to improve the survey instrument. Thirdly, an actual survey to test the questionnaire was also conducted after the initial reliability and validity of the measurement scales had been determined. Focusing on investigations into 599 wood and furniture companies in Malaysia, the status of LM implementation (i.e. awareness, level and duration of lean implementation) was examined and the two context factors (i.e. company size and ownership) that influence the implementation of lean practices were investigated. Then, the barriers for implementing lean and the challenges while implementing lean on knowledge (KNW), resources (RES) and culture and human attitudinal issues (CUL) were verified using the partial least squares-structural equation modelling (PLS-SEM). The findings found that there is a notable lack of research and publications on LM in the wood and furniture industry. Based on the current situation, the status of lean implementation is not promising and can be considered as earlier implementation (started phase) based on three main reasons. Firstly, the 5S is the only lean tool implemented massively by companies; secondly, over half of the lean companies had only practiced lean for less than 2 years; and thirdly, more than half of the companies with some implementation agreed with the lean expertise constraint hinders companies from implementing lean practices extensively. The findings found that there is no relationship between LM practices with plant size and company ownership. Both lean and non-lean companies have different viewpoints on the issue of culture reluctance and financial constraints. Furthermore, the findings indicate that CUL, KNW and RES are positively and significantly related to the barriers and challenges in implementing lean. Thus, the aims are to strengthen the KNW, CUL and RES factors by providing educational support in the form of training sessions, site visits, workshops, and counselling. Finally, valid empirical evidence for the under-studied context of the Malaysian wood and furniture industry was provided and a novel ‘LM implementation framework’ to guide SMEs to successfully adopt LM practices was presented.