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ASP, The Art and Science of Practice: Tales from the Front: Case Studies Indicate the Potential Pitfalls of Misapplication of Lean Improvement Programs

Author

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  • Michael F. Gorman

    (School of Business Administration, University of Dayton, Dayton, Ohio, 45419)

  • Jayden Hoff

    (JLH Supply Chain and Operations Solutions, LLC, Tipp City, Ohio 45371)

  • Robert Kinion

    (Johnson Electric, Vandalia, Ohio 43077)

Abstract

In recent years, lean manufacturing concepts have become more popular as an ever-growing number of companies have implemented lean programs. Some companies tout huge savings and benefits; those that do not are evaluated on the factors that led to their failed attempts. We suggest that the failure to implement lean is often because of an excessive and errant focus on inventory reduction as the primary, or sole, form of waste reduction. We describe the academic and popular literature on this topic and explain some sources of confusion and consternation surrounding lean initiatives. We then discuss four case studies in which a company's primary focus was on inventory reduction, but it attained true economic performance enhancements through inventory increases. We provide insights on how managers can identify similar situations in which they can productively implement well-defined and planned business-improvement programs to eliminate other kinds of wastes.

Suggested Citation

  • Michael F. Gorman & Jayden Hoff & Robert Kinion, 2009. "ASP, The Art and Science of Practice: Tales from the Front: Case Studies Indicate the Potential Pitfalls of Misapplication of Lean Improvement Programs," Interfaces, INFORMS, vol. 39(6), pages 540-548, December.
    • Handle: RePEc:inm:orinte:v:39:y:2009:i:6:p:540-548
    DOI: 10.1287/inte.1090.0464
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    References listed on IDEAS

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    1. Michael F. Gorman & Sanjay Ahire, 2006. "A Major Appliance Manufacturer Rethinks Its Inventory Policies for Service Vehicles," Interfaces, INFORMS, vol. 36(5), pages 407-419, October.
    2. Peter McKenzie & Shekhar Jayanthi, 2007. "Ball Aerospace Explores Operational and Financial Trade-Offs in Batch Sizing in Implementing JIT," Interfaces, INFORMS, vol. 37(2), pages 108-119, April.
    3. Wallace J. Hopp & Mark L. Spearman, 2004. "To Pull or Not to Pull: What Is the Question?," Manufacturing & Service Operations Management, INFORMS, vol. 6(2), pages 133-148, August.
    4. Cannon, Alan R., 2008. "Inventory improvement and financial performance," International Journal of Production Economics, Elsevier, vol. 115(2), pages 581-593, October.
    5. Sadao Sakakibara & Barbara B. Flynn & Roger G. Schroeder & William T. Morris, 1997. "The Impact of Just-in-Time Manufacturing and Its Infrastructure on Manufacturing Performance," Management Science, INFORMS, vol. 43(9), pages 1246-1257, September.
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    Cited by:

    1. Diana Sánchez-Partida & Rodolfo Rodríguez-Méndez & José Luis Martínez-Flores & Santiago-Omar Caballero-Morales, 2018. "Implementation of Continuous Flow in the Cabinet Process at the Schneider Electric Plant in Tlaxcala, Mexico," Interfaces, INFORMS, vol. 48(6), pages 566-577, November.
    2. Roberto Chavez, 2014. "Supplier Partnership and Customer Relationship: The Role of Lean Practices," Working Papers 56, Facultad de Economía y Empresa, Universidad Diego Portales.

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