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Key Factors to Increasing Free Cash Flow for Manufacturers Utilizing Lean Production: An AHP-DEMATEL Approach

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  • Cathay Kuo-Tai Kang
  • Chieh-Yu Lin
  • Yi-Hui Ho

Abstract

This paper aims to apply AHP and DEMATEL to analyze the key factors and interrelationships of lean production to increase free cash flow for manufacturers. The AHP hierarchy was determined through literature and interviews with leading management experts. The assessment criteria were categorized into five major criteria and 15 sub-criteria, including production, sales, human resources, R&D, and finance. According to the AHP results, the first eight key factors were identified as the key factors to increasing cash flow for manufacturers who utilized lean production. DEMATEL was used to identify the interactions among the eight key factors and further identify the four more important ones. The four key factors are strategic planning, strategic deployment, leadership, and goal orientation. This paper proposes management implications and improvement suggestions for the four key factors and their interactions.

Suggested Citation

  • Cathay Kuo-Tai Kang & Chieh-Yu Lin & Yi-Hui Ho, 2022. "Key Factors to Increasing Free Cash Flow for Manufacturers Utilizing Lean Production: An AHP-DEMATEL Approach," Information Management and Business Review, AMH International, vol. 14(2), pages 28-45.
    • Handle: RePEc:rnd:arimbr:v:14:y:2022:i:2:p:28-45
    DOI: 10.22610/imbr.v14i2(I).3335
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