10.1108@ijqrm 10 2016 0177 PDF

International Journal of Quality & Reliability Management
Strategic Lean Actions for Sustainable Competitive Advantage

Cory R. A. Hallam, Ricardo Valerdi, Carolina Contreras,
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Cory R. A. Hallam, Ricardo Valerdi, Carolina Contreras, "Strategic Lean Actions for Sustainable Competitive Advantage",
International Journal of Quality & Reliability Management, https://doi.org/10.1108/IJQRM-10-2016-0177
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Strategic Lean Actions for Sustainable Competitive
Advantage
Abstract
Purpose: This paper adds to the quality management body of knowledge by solidifying the
connection between operational and strategic aspects of Lean transformation. Previous research
has examined these issues in isolation, demonstrating mixed results in financial and operational
efficiencies. We show that when operational and strategic change are jointly considered the
likelihood of success for Lean transformation increases.
Design/methodology/approach: We provide a literature review of 109 peer-reviewed papers on
Lean manufacturing and qualitative analysis of 23 Baldrige award winners (2000-2014) that
implemented Lean to assess the importance of strategic actions in achieving a sustainable
competitive advantage through Lean transformation.
Findings: We find that Lean transformation yields mixed results unless strategic actions are
taken by senior management. These strategic actions include but are not limited to knowledge
management, human resources, and business growth and can result in performance heterogeneity
by improving the output/input ratio of the firm. This performance can then manifest as either
doing the same level of business with fewer resources (a profit play) or doing more business with
the same resources (a growth play). As specific examples, we analyzed Baldrige Award winners
for evidence of Lean strategic action to drive performance gains. We suggest further model
validation through directed interview and/or survey research.
Originality/value: This paper clarifies the need for jointly implementing Lean tools with
strategic actions. Our findings provide more deliberate strategic actions for organizations
wishing to increase the likelihood of success of Lean transformation and ultimately improve
quality.
Keywords: Lean Manufacturing, Lean Management, Operations Strategy, Baldrige Award,
Strategic Action.
Paper Type: Research paper
1
1. Introduction
Increased global competition has fueled a growing interest in understanding the competitive
strategies that make some organizations outperform their competitors (Hutzschenreuter and
Israel, 2009; Teti et al., 2014). Meeting customer expectations and improving value creation
requires organizations to implement different management approaches in light of creating
competitive advantage (Modarress et al., 2005). These approaches encompass a variety of

philosophies, methods, and tools intended to increase an organization’s performance, with Lean
transformation being popular in recent times (De Souza and Carpinetti, 2014; Pakdil and
Leonard, 2014).
Lean can be defined as an operational strategy focused on improving competitive priorities
such as quality, flexibility, cost, and delivery within organizations (Bhuiyan and Baghel, 2005;
De Toni and Tonchia, 1996; Khanchanapong et al., 2014; Hallgren and Olhager, 2009). Evolving
from the Toyota Production System (TPS), Lean manufacturing comprises a series of practices
and principles intended to enhance an organizations’ operational and financial performance by
avoiding seven particular wastes and eliminating non-value added activities (De Souza and
Carpinetti, 2014; Douglas et al., 2015a; Ohno, 1988; Shah and Ward, 2003; Womack and Jones,
1996). This pursuit of reducing waste is seen as an operational requirement to remain
competitive and support just-in-time (JIT) operations (Agus and Shukri Hajinoor, 2012; Pakdil
and Leonard, 2014).
Lean manufacturing is credited with reductions in customer lead time, manufacturing cycle
time, manufacturing costs, all while improving quality (Hajmohammad et al., 2013;
Khanchanapong et al., 2014; Verrier et al., 2016). However, case study literature also shows that
organizations implementing Lean have realized different levels of success or failure (Womack
2
and Jones, 1996; Murman et al., 2002; Meade et al., 2010; Azadegan et al., 2013; Eroglu and
Hofer, 2011; Camacho-Miñano et al., 2013; Fawcett et al., 2016; Fullerton and Wempe, 2009;
Losonci and Demeter, 2013; Thomas et al., 2014). Notably, the problem of failed Lean
transformations has been attributed to focusing on Lean tools versus focusing on the underlying
Lean operational philosophy of the organization (Albliwi et al., 2014; Lewis, 2000; Hallam and
Keating, 2014; Sawhney et al., 2010).
The failure to achieve an effective and permanent Lean transformation remains a

management problem of organizations being unable to capitalize on the benefits of Lean (Kotter,
1995; Boyle et al., 2011; Karim and Arif-Uz-Zaman, 2013). There is a gap in the literature that
addresses the nuance of how to link Lean transformation strategies to leadership action in order
to capitalize on the benefits of Lean improvements (Hallgren and Olhager, 2009; Lewis, 2000;
Moyano-Fuentes and Sacristán-Díaz, 2012; Pepper and Spedding, 2010). This paper aims to
address this gap through a literature review and qualitative analysis. Furthermore, we propose
that the process involves two complementary and necessary parts to maximize returns to the
enterprise and fuel performance heterogeneity: 1) Lean transformation and 2) leadership strategic
action.
In this paper we provide a brief background on Lean manufacturing and operations to frame
the study. We then provide a structured literature review focused on analyzing the impact of
Lean manufacturing on organizational performance, and identify categories of strategic action in
the areas of knowledge management, human resource management, and business growth
(Bhasin, 2012a; Boyle et al., 2011; Meade et al., 2010; Sharma et al., 2015; Scherrer-Rathje et
al., 2009). We find evidence of these strategic actions leading to competitive advantage using
3
Malcolm Baldrige award winners from 2000 to 2014 as our sample of organizations. Finally, we
discuss the theoretical and practical contributions of this work and present conclusions.
2. Foundational Concepts
2.1 Lean Manufacturing
Historically, Lean has been shown to improve the value delivery process in manufacturing by
eliminating waste and improving value flow relative to traditional production techniques
(Bhuiyan and Baghel, 2005; Hines et al., 2000; Murman et al., 2002; Ohno, 1988; Womack et
al., 1990; Womack and Jones, 1996). Lean manufacturing emerged from the study of the
automobile industry, and the Toyota Production System (TPS) in particular (Womack et al.,
1990). The TPS was codified as a compilation of principles and practices intended to enhance an
organization’s operational performance by delivering a quality product on time at the lowest cost
(Ohno, 1988; Womack et al., 1990; Womack and Jones, 1996; Brown and Mitchell, 1991). As a
methodology for improving production performance, Lean has expanded as a business
philosophy that extends beyond manufacturing to service industries, supply chain management,
and product development operations (Bhamu and Singh Sangwan, 2014; Dyer and Nobeoka,
2000; Hallam and Keating, 2014; Stentoft Arlbjørn and Vagn Freytag, 2013).
Organizations undertaking a Lean transformation have reported achieving reduced lead
times, better efficiencies, improved quality, and reductions in inventory (Bhuiyan and Baghel,
2005; Netland et al., 2015; Yang et al., 2011). A well-recognized element of the Lean
philosophy is the elimination of the seven wastes in manufacturing characterized by Ohno
(1988), which include overproduction, waiting, transportation, processing, inventory storage,
movement, and defects. Upon implementation, many Lean manufacturers report cost savings
through optimizing the allocation of resources to deliver a product (Khanchanapong et al., 2014;
4
Lewis, 2000; Verrier et al., 2016; Vinodh and Joy, 2012). Lewis (2000) suggests that long term
Lean success is dependent upon the ability of an organization to appropriate the cost savings and
turn them into greater profitability.
2.2 Lean as an operational strategy
There are numerous strategies available for organizations attempting to gain sustainable
competitive advantage (Amoako-Gyampah and Acquaah, 2008; Teti et al., 2014). As an
operational strategy, Lean would appear to be a source of competitive advantage, as it can

deliver greater value with fewer inputs than non-Lean organizations. Lean is focused on
improving business operations, both within and across functions, to deliver greater value to
enterprise stakeholders (Bancroft and Saha, 2016; Nightingale and Srinivasan, 2011), and
touches on elements of plan and position strategies, as defined by Mintzberg (1987). Lean has
elements of a plan strategy because it requires leadership to set the organization in a certain
direction based on pre-defined needs aimed at achieving the goals associated with Lean
operations. Achieving successful Lean transformation is a position strategy, because it results in
improved competitiveness of an organization in its current business environment, the latter of
which is an opportunity for management action.
Competitive advantage is at the heart of organizational performance in free markets (Porter,
1985; Hosseini and Sheikhi, 2012). An organization is said to have a competitive advantage
when it is implementing a value creation strategy not simultaneously being implemented by any
competitor (Barney, 1991). Similarly, strategy can be seen as a set of decisions and actions that
an organization makes and takes to attain superior performance (Teeratansirikool et al., 2013). In
this sense, the concept of competitive strategy arises as an organizational approach intended to
provide organizations with a profitable and sustainable position within their market (Amoako-
5
Gyampah and Acquaah, 2008; Olson and Slater, 2002; Ortega, 2010; Porter, 1985; Schuler and
Jackson, 1987).
To create competitive advantage, organizations must often change the rules of the game by
reinventing the means by which a product or service is made, sold, or delivered (Barr et al.,
1992). In this regard, Lean would appear to change the rules of the game in favor of creating
competitive advantage based on how the value is created and delivered. However, a company
can only outperform its rivals over an extended period of time if it can establish a difference that
it can preserve (Porter, 1996). This raises the issue of sustainable competitive advantage.
2.3 Sustainable competitive advantage requires strategic action (the model)
Lean Strategy is deliberate as defined by Mintzberg and Waters (1985), as it requires firm
leadership to assign scarce human resources to alter operations from a current state to a future
state (Womack and Jones, 1996). Yet Porter (1996) suggests that a strategy to obtain competitive
advantage through operational effectiveness (OE) is unsustainable due to the appropriability of
information (Nelson, 1959; Arrow, 1962). In this line of reasoning, the tools and techniques
developed within the TPS are readily defined and documented (Ohno, 1988; Womack et al.,
1990; Hallam et al., 2010) and thus easily appropriated by mimicking firms, suggesting no
source of sustainable competitive advantage. Yet we see significant differences in the
performance of firms implementing Lean. Analyzing this phenomenon yields two important
observations. The first concerns organizational behavior, and the second concerns strategic
action.
Significant advances in short term operational performance can lead to firm heterogeneity
over some period of time, inspiring firms to attempt Lean implementation. However, the
application of a Lean operational strategy requires new ways of defining, managing, measuring,
6
and incentivizing operational processes, and thus by definition, requires changes in
organizational behavior (Womack and Jones, 1996; Murman et al., 2002; Nightingale and
Srinivasan, 2011; Scherrer-Rathje et al., 2009). Schein describes organizational behavior change
as one of the most difficult activities a firm can undertake (Schein, 1999). The more engrained
and long-lived the existing manufacturing behavior, the more difficult it will be to affect the
change. As a result, while the information for Lean transformation is readily appropriable, firm
performance heterogeneity may have an ability to last longer than expected due to an inability of
mimicking firms to effectively succeed in their own Lean behavioral transformation.
The successful implementation of a Lean strategy necessitates organizational behavioral
change (Psychogios et al., 2012). Yet, when viewed through the lens of strategic challenges
proposed by Rouse (2001), we also see that firm leadership needs to take strategic action to
exploit these changes in firm behavior. While Barr et al. (1992) discuss the need for strategic
action due to changing external environments, we posit that changing the internal environment of
the firm with Lean implementation requires strategic action on the part of enterprise leadership to
capitalize on the operational gains (Hallam and Keating, 2014).
Lean implementation is based on critical success factors (CSFs) intended to produce the
greatest competitive leverages based on an organizations’ competitive goals or strategies
(Jeyaraman and Kee Teo, 2010). Achanga et al. (2006) highlight that leadership and
management, finance, skills and expertise, and the culture of the recipient organization are four
critical factors. Similarly, Manville et al. (2012) show that senior management commitment,
support and enthusiasm, linking Lean to business strategy, linking Lean to the customer,
understanding the tools and techniques, project selection and prioritization, and training and
education are considered by managers as top six CSFs for Lean implementation. Following these
7
ideas, Netland (2016) proposed that commitment to, leading and taking an active part in the lean
program, providing and attending training and education, having a long-term plan and following
it up on a day-to-day basis, allocating resources and sharing the gains, and applying Lean tools
and techniques are some of the steps organizations must follow to succeed with the
implementation of Lean. As such, we propose that capitalizing on the superior operational
effectiveness achieved through Lean transformation requires further strategic action on the part
of firm leadership and management as shown in Figure 1. Furthermore, these strategic actions
fall into three categories, namely knowledge management, human resource management, and
business growth.
-INSERT FIGURE 1-
3. Methodology
We provide both a literature review and a qualitative analysis in this paper to assess the necessity
of strategic actions in achieving a sustainable competitive advantage through Lean
transformation. The literature review is focused on studies providing evidence of the impact of
Lean on operational, financial, and/or organizational performance, and the identification of
strategic actions in the areas of knowledge management, human resources management, and
business growth. We then utilized the Malcolm Baldrige National Quality Award (MBNQA)
winners from 2000 to 2014 to identify where Lean was implemented in their firm, and what
strategic actions they took. Our work, however, does not assess the degree of implementation
and/or sustainability of the Lean programs adopted by the winners. This sampled served as a
group of firms exhibiting performance heterogeneity.
8
3.1 Literature review
This study aims to provide a detailed review of the literature that identifies the relationship
between Lean and firm performance, and codifies the categories of Lean strategic actions.
According to Tranfield et al. (2003) and Onwuegbuzie et al. (2012) the use of literature review as
a research method helps identify, synthetize, and evaluate the existing work published by
scholars and researchers. In reviewing the literature, we focused only on peer-reviewed journal
articles since they represent scientifically validated knowledge (Machi and McEvoy, 2012;
Moher et al., 2009). To ensure a high quality analysis and obtain the most relevant articles, we
used the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses)
checklist method as proposed by Siddaway et al. (2015). Major research databases such as
Emerald Insight, Science Direct, IEEE, Springer, Taylor and Francis, and Wiley Online were
used to perform the search. In addition, Google Scholar was used as a web search engine.
A review of the references in the articles that we considered relevant to our study was used as
a second step to identify additional work that we were not able to identify through electronic
database searches. The review used “Lean and performance” as the main search term resulting in
hundreds of articles, most not relevant to the study. A combination of other key words such as
“Lean manufacturing”, “Lean production”, “performance”, “organizational performance”, and
“financial performance” were also used in the search. Articles referring to editorials, book
chapters, reviews, comments, conference proceeding, dissertations, and theses were excluded.
Knowing that the current literature in Lean and performance is very extensive, the review was
restricted to works that provided information regarding Lean strategic actions in the areas of
knowledge management, human resources management, and business growth.
9
The first narrowed search produced 485 peer-reviewed journal articles making reference to
Lean and performance, 466 of which were identified in electronic databases and 19 from a
review of the references. Of the 485 articles, 370 articles were excluded as they did not explicitly
mention Lean strategic actions. Our detailed review thus focused on the remaining 115 articles.
We reviewed the full text of these articles, excluded an additional 6 as not applicable to our
study, and focused our detailed review on the remaining 109 relevant peer-reviewed journal
articles published between 1994 and 2016. A summary of the findings is presented in Table I.
-INSERT TABLE I-
4. Discussion of Lean Strategic Actions
Table I suggests that the adoption of Lean practices have a positive effect on operational
performance, financial performance, and/or organizational performance. Among the 109 articles
reviewed, 50 articles discussed the impact of Lean on operational performance, 15 articles
assessed the impact on financial performance, and 55 articles analyzed the impact of Lean on
organizational performance. The literature review showed that among the 109 papers reviewed,
31% (34) articles make reference to the importance of knowledge management, 38% (41) of the
articles to human resource management, and to 64% (70) to business growth within the areas of
strategic actions.
4.1 Knowledge management
According to Jasti and Kodali (2016), if any organization has to implement Lean manufacturing
the employees of the organization should be well equipped in terms of knowledge. The ability of
the organization to adopt and manage knowledge and to better perform their activities provides a
10
platform for sustainable competitive advantage (Lewis, 2000; Todorova and Durisin, 2007; Tsai,
2001). In this sense, the concept of absorptive capacity plays an important role providing
organizations with the tools to acquire, assimilate, transform, and exploit new and external
knowledge (Bergh and Lim, 2008; Zahra and George, 2002). There are a number papers within
this review that state the importance of knowledge management in making Lean a successful
manufacturing strategy (Albliwi et al., 2015; Cudney and Elrod, 2011; Douglas et al., 2015b;
Julien and Tjahjono, 2009; Marodin and Saurin, 2013; Motwani, 2003; Waterbury, 2015).
In Lean companies, the skills and experience gained by workers becomes a resource that is
scarce and difficult to imitate by others (Lewis, 2000). Hence, companies transitioning to a Lean
structure have focused on implementing training, workshops, and meeting programs as a means
to enable the exchange of knowledge (Beatriz Lopes de Sousa Jabbour et al., 2014; Green et al.,
2010; Karim and Arif-Uz-Zaman, 2013; Netland et al., 2015; Simons and Zokaei, 2005; Sohal,
1996; Worley and Doolen, 2006; Yang et al., 2011). The Lean philosophy maintains that
knowledge transfer is essential to make Lean a fruitful endeavor (Cudney and Elrod, 2011;
Delgado et al., 2010; Emiliani, 1998; Herron and Hicks, 2008; Näslund, 2008). In fact, according
to Forrester et al. (2010), knowledge management in a Lean manufacturing environment should
be seen as a long-term strategic action. Using Toyota as an example, Forrester et al. point out
that knowledge about Lean is something that is gradually accumulated by workers and managers
in their daily activities through a constant learning process.
Cudney and Elrod (2011) state that Lean implementation may not achieve its intended
purpose if there is a lack of employee involvement, training, and knowledge transfer. Similarly,
Albliwi et al. (2015) consider knowledge management needs to be an important step for Lean
since, as Thomas et al. (2008) state, many companies have failed in Lean implementation as a
11
result of the lack of training and knowledge of Lean tools and techniques. Following this path,
Bhat et al. (2016) point out that the lack of knowledge about process management techniques and
scientific tools stalled the implementation of Lean among the lower level employees. Taj (2008)
argues that, despite the wide availability of knowledge and resources, many companies struggle
to become or maintain Lean process improvements. Albliwi et al. (2014) point out that lack of
training and education is an important factor of Lean implementation failure. Finally, according
to Bonavia and Marin-Garcia (2011), employees who lack skills or knowledge about Lean may
contribute discretionary efforts with little impact on performance. A successful Lean operational
strategy is dependent on the abilities of the employees to understand and exploit the principles
and practices of Lean in their daily activities, and thus becomes the focus of Lean strategic
actions in the category of Knowledge Management.
4.2 Human resources management
Within a Lean strategy, employee involvement was identified as a key element to ensure
performance improvements (Chadha et al., 2012; Furlan et al., 2011; Michaels, 1999; Rodríguez
et al., 2016; Sezen et al., 2012). Alsmadi et al. (2012) state that there is a significant association
between employee involvement in Lean environments and firm performance. However, despite
some authors stressing the importance of employee involvement in Lean programs, questions
still arise about how managers should support Lean programs and their teams for a successful
implementation (Belekoukias et al., 2014; Chavez et al., 2015; Jasti and Kodali, 2016; Hofer et
al., 2012; Scherrer-Rathje et al., 2009; Sim and Rogers, 2008; Vinodh and Joy, 2012).
According to Sohal (1996), to implement the transition to Lean successfully, employees must
take an active part in the change process otherwise the proposed change will be resisted. This
resistance to accept a Lean environment comes, in some cases, from the perception that Lean
12
threatens job security (Sim and Rogers, 2008). Lean success has been linked to employing fewer
people (Kinnie et al., 1998). Nevertheless, according to Womack and Jones (1996), Lean
thinking may be associated with employing fewer people if an organization is in a poor financial
state. In this sense, different authors agree that Lean is more a management processes rather than
a prescription for employment reduction (Allen, 1997; Kinnie et al., 1998). Moyano-Fuentes and
Sacristán-Díaz (2012) discuss that strategic actions such as downsizing will have an unfavorable
effect on Lean transformation. In a study performed by Taj (2008) in 65 manufacturing plants

implementing Lean manufacturing, it was found that only 20 percent of the plants reported
frequent annual layoffs while 80 percent reported either few or no layoffs. Bradford (1997)
identified how organizations were able to overcome financial losses without using layoffs to
reduce costs, employing strategic actions such as cutting pay and working hours, encouraging
early retirement, and being Lean from the start.
Firms reduce their workforce for different reasons including competitive pressures,
reductions in operating costs, reductions in headcounts, organizational redesign, and/or changes
in market demands (Bradford, 1997; De Meuse et al., 1994). A number of authors have
highlighted the importance of understanding the benefits and drawbacks of workforce reductions.
Although many organizations have improved their productivity after a downsizing program,
these should not assume that workforce reductions will eventually result in productivity
improvements (Morris et al., 2000). Datta and Basuil (2015) highlight that the potential of
workforce reductions to create value within a firm will not only depend on the overall strategy of
the firm but also on how effectively the downsizing process is implemented. According to
Bradford (1997), the reasons for reducing the workforce need to be clearly defined by
management. In this regard, Lean organizations may decide to take different approaches to
13
manage their employment levels. The concept of hiring freezes has been implemented as a
strategic action to reduce a workforce without implementing layoffs (Iverson and Zatzick, 2011;
Gandolfi, 2008).
Another approach organizations may use is the natural reduction of the workforce, through
employee turnover or natural attrition (Makawatsakul and Kleiner, 2003). According to Turner
(1988), the use of this approach is positive for organizations since it does not generate
disruptions to production. However, turnover and natural attrition may generate unfamiliar
responsibilities for employees who now cover the tasks previously performed by those who leave
the company (Makawatsakul and Kleiner, 2003). This can cause frustration and declines in
organizational commitment, and may be overcome by clear strategic action coupled with
knowledge management. Reduced hours or overtime is another approach implemented by
employers. According to Allan (1997) reducing overtime benefits improves an organization’s
performance by lowering costs and minimizing potential layoffs, as work may be spread among
other workers. Finally, layoffs have been seen as a necessary approach implemented by
managers to lower costs, enhance efficiency, improve productivity, and gain a competitive
advantage (Datta et al., 2010).
Whether an organization uses one human resource approach over another while becoming
Lean, different authors have pointed out that mangers should create programs to support and
encourage remaining employees to commit to the Lean program. These programs may include
training, rewards, communications channels, information sharing, appraising, and other activities
ensuring the wellbeing of employees (Allen, 1997; Bonavia and Marin-Garcia, 2011; Kinnie et
al., 1998; Netland et al., 2015; Piercy and Rich, 2009).
14
4.3 Business growth
One of the primary goals in a Lean manufacturing program is to reduce or eliminate all non-
value-added activities and their associated costs, with the goal of helping organizations improve
profitability and competitiveness (Bhasin, 2008; Bhasin, 2011; Jeyaraman and Kee Teo, 2010;
Mistry, 2005). However, according to Meade et al. (2010) profitability, as a key measure of Lean
success, has sometimes been the main cause of early termination of Lean programs due to lack of
impact on financial statements. In this case, financial metrics such as return on assets (ROA),
return on sales (ROS), earnings per share, profits, and market share are used to measure to the
impact of Lean on financial performance (Azadegan et al., 2013; Eroglu and Hofer, 2011;
Katayama and Bennett, 1996).
Currently, there is no agreement in the literature about the effect of Lean on profitability and
financial performance. Camacho-Miñano et al. (2013), Fawcett et al. (2016), Fullerton and
Wempe (2009) and Losonci and Demeter (2013) present different views that have reported a
positive, negative, or a mix in performance outcomes from Lean transformation. Other authors,
such as Hofer et al. (2012), provide information about studies presenting evidence of positive
effects of Lean implementation on at least one financial metric. Julien and Tjahjono (2009)
showed that by reducing waste with Lean implementation, profits can be increased via cost
reductions that flow through to the accounting statements. Similarly, Arbós (2002) found that
Lean approaches eliminate waste, resulting in lower costs. Wee and Wu (2009) showed how
Lean supply chain tools positively affect costs reduction and Singh et al. (2010) found Lean may
help an organization become cost competitive. Yang et al. (2011) concluded that the overall
impact of Lean manufacturing on financial performance is positive. Yet, according to Lewis
(2002), the major cause for finding a negative relationship between Lean and profitability is the
15
lack of ability of the organizations to appropriate the value generated by any savings that they
can make through Lean. This is why the process needs to be conceptualized through two steps:
Lean process improvement to create capacity/capability in operations and the strategic action to
translate the improvements to the firm’s financial benefit. These may take the form of doing the
same level of business with fewer input resources (a profit play), or utilizing the increased
operational performance to acquire new business with the same input resources (a growth play).
Absent the strategic actions, the financial health of the firm may see very little impact.
5. Lean and Baldrige: Evidence from Successful Firms
The Baldrige Performance Excellence Program, formerly known as the Malcolm Baldrige
Nationality Quality Award (MBNQA), was launched in 1987 by the US Government to
recognize and promote quality management practices and highlight achievements in quality
standards within organizations (Abdulla Badri et al., 2006; Pannirselvam and Ferguson, 2001).
The award is given to manufacturing and service businesses, education and health care
institutions, and nonprofit/government organizations. The Baldrige criteria consists of seven
categories that explain what processes, procedures, and outcomes are associated with quality
within an organization (Jacob et al., 2004; Wisner and Eakins, 1994). Within the seven
categories winners must demonstrate exemplary performance in areas such as (1) leadership, (2)
strategic planning, (3) customer focus, (4) measurement, analysis, knowledge management
(MAKM), (5) workforce, (6) operations, and (7) results.
The Baldrige award application summaries of the winning organizations, published by The
National Institute of Standards and Technology (NIST), were reviewed to find evidence of Lean
implementation (NIST, 2016). From 2000 and 2014 a total of 66 companies won the Baldrige
16
award, 23 of whom explicitly cited Lean implementation in their firms. Upon examination, the
organizations that were Lean adopters were reviewed in detail. The information obtained from
the review was classified into two parts as shown in Table II. The first part provides information
of Lean implementation within each of the seven Baldrige categories, while the second part
shows the implementation of Lean strategic actions. The Lean strategic actions were further
subdivided based on the results of the systematic literature review.

-INSERT TABLE II-
Of the 66 Baldrige winners from 2000-2014 analyzed, 23 were identified as using Lean in at
least one of the categories. Table II summarizes the data, showing the category in which they
implemented Lean, and which strategic actions they utilized for capitalizing on their Lean
improvements. We found that 74% (17 out of 23) of the organizations implemented Lean within
the Operations Focus/Process Management category and 48% (11 out of 23) of the organizations
implemented Lean within the leadership category. These were mostly in the healthcare and
manufacturing sectors. Forty-eight percent of the organizations implemented Lean within the
Workforce Focus/Human Resource Focus category, and the majority were implemented within
manufacturing organizations and small businesses. Lean was also used in the other categories,
with 39% of the organizations implementing Lean in the MAKM/Information and Analysis
category, 17% in the Customer Focus/Customer and Market Focus category, and 30% in the
strategic planning category. Finally, 83% (19) of the organizations reported Lean manufacturing
generated performance improvements (PI) in areas including cost, quality, waste reduction, lead
time, and efficiency.
17
When looking at the implementation of Lean strategic actions by the 23 Baldrige award
winners, it was observed that 96% (22) of the organizations considered knowledge acquisition as
a strategic action to be more competitive. Similarly, 96% (22) of the organizations highlighted
that they preferred the natural reduction of the workforce over a downsizing approach to manage
their employee levels. Eighty-three percent (19) of the organizations reported increased profits,
while only 13% (3) of the organizations reported higher sales. The fact that all firms in the
sample demonstrated some form of strategic action in response to their Lean transformation
further reinforces our argument that operational and strategic change are necessary conditions for
Lean transformation, as proposed in Figure 1. The relatively small number of firms (13%)
identifying growth as a strategic action suggests that there is room for further refinement of
management theory for improving the integration of strategic action into the Lean transformation
process. Follow on research would benefit from investigating the level of Lean Transformation
in these enterprises, and their ability to sustain the gains they achieved.
6. Conclusion
This paper provides a systematic literature review of peer-reviewed journal articles targeting
Lean manufacturing and performance, and categorized the types of strategic action firms might
undertake to capitalize on improved operations. Further, the paper provides a categorization of
Lean strategic actions into knowledge management, human resource management, and business
growth (Table I), and an integrated model is proposed suggesting a dual process of Lean
transformation and leadership strategic action (Figure 1). In addition, 23 winners of the Malcolm
Baldrige Nationality Quality Award (2000-2014) that utilized Lean transformation were
analyzed for evidence of utilizing Lean strategic actions (Table II) as a preliminary test of the
18
model. To this end, this paper has made several contributions to the quality management
literature while addressing the gap observed between operational and strategic change.
We can draw five conclusions from our study. First, Lean transformation does not always
succeed in terms of firm performance. Second, for Lean implementation performance gains to be
realized, leadership strategic actions must take place. Third, Lean strategic actions can result in
performance heterogeneity by improving the output/input ratio of the firm. Fourth, strategic
actions can be categorized within knowledge management, human resources, and business
growth, all with the intention of either doing the same level of business with fewer resources or
doing more business with the same resources. The former is a profit play, and the latter is a sales
growth play. Finally, Baldrige award winners that implemented Lean in multiple categories
showed evidence of utilizing Lean strategic action to drive the performance of the firm.
6.1 Implications for practitioners
Lean transformation does not always succeed in terms of firm performance. While evidence
exists that Lean can improve organizational performance, the management model we propose in
Figure 1 suggests the need to connect Lean improvement gains to management strategic decision
making. The findings of this work offer direction to those practitioners wishing to recognize the
organizational areas where Lean may provide potential improvements, as well as the Lean
strategies that can lead to achieve gains in competitiveness. The choice of strategic action may
impact the long term-sustainability of the transformation. More specifically, if Lean
transformation immediately results in layoffs to achieve improved profitability, the employee
response across the organization will be negative towards further Lean transformation. However,
working towards a more proactive business growth approach, employees that see the impacts of
their changes improving firm performance will be more inclined to support the transformation
19
effort. A more comprehensive model could be developed from our work to help firms plan for
operational gains and their subsequent use in competitive pricing, quality, delivery, inventory
reductions, and new product introductions. This latter effort could lead to enhanced firm growth
and long-term performance heterogeneity.
6.2 Limitations and future research
While we have considered a comprehensive evaluation of different Lean strategic actions, our
research is not devoid of limitations. There are three main limitations of this paper. First, we only
included peer-reviewed journal articles in our analysis, excluding other important sources of
information such as editorials, books chapters, reviews, comments, conference proceeding,
dissertations, and theses. Second, this paper is only based on literature review and qualitative
analysis which does not test theory with case studies or controlled experiments. In the current
work, we have not stated the order or relative importance of strategic actions nor the timing
between Lean transformation and Lean strategic action. Third, our work does not assess the
degree of implementation of Lean strategic actions across firms. It is possible that firms differ in
their investment and quality of implementation which may influence the degree of success in
terms of performance gains. This could be measured through detailed case studies and directed
surveys or interviews. We would hope that our work helps form part of the basis for exploring
these deeper management questions, especially as they relate to enterprise quality systems and
cultural changes within the firm, and that the model proposed in this paper can be tested and
improved with sound empirical evidence.
20
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Table I Lean and performance

Performance Lean Manufacturing Strategic Actions
Human
Author(s) Article Business Knowledge
Operational Financial Organizational Resource
Growth Management
Management
Supply chain processes: Linking supply logistics integration,
Prajogo et al. (2016) supply performance, lean processes and competitive x x
performance
Examining pathways to safety and financial performance in
Dobrzykowski et al. (2016) x x
hospitals: A study of lean in professional service operations
An empirical study for implementation of lean principles in
Jasti and Kodali (2016) x x x x
Indian manufacturing industry
Productivity and performance improvement in the medical
Bhat et al. (2016) records department of a hospital: An application of Lean Six x x x
Sigma
Sweating the Assets: Asset Leanness and Financial
Fawcett et al. (2016) x x
Performance in the Motor Carrier Industry
Netland and Ferdows (2016) The S-Curve Effect of Lean Implementation x x
Impact of Lean Production on Perceived Job Autonomy and
Rodríguez et al. (2016) x x
Job Satisfaction: An Experimental Study
Internal lean practices and performance: The role of
Chavez et al. (2015) x x x
technological turbulence
A systematic review of Lean Six Sigma for the
Albliwi et al. (2015) x x x
manufacturing industry
Impact of lean practices on performance measures in context
Sharma et al. (2015) x x
to Indian machine tool industry
Utilizing lean tools to improve value and reduce outpatient
Miller and Chalapati (2015) x x
wait times in an Indian hospital
Lean Six Sigma implementation in East Africa: findings from
Douglas et al. (2015b) x x x
a pilot study
Learning from the pioneers: A multiple-case analysis of
Waterbury (2015) x x x
implementing Lean in higher education
Implementing corporate lean programs: The effect of
Netland et al. (2015) x x x
management control practices
The contingency role of business strategy on the relationship
Jayaram et al. (2014) x x
between operations practices and performance
Lean manufacturing and firm performance: The incremental
Fullerton et al. (2014) x x x
contribution of lean management accounting practices
The unique and complementary effects of manufacturing
Khanchanapon et al. (2014) technologies and lean practices on manufacturing operational x x
performance
Table I Lean and performance (continued)

Author(s) Article Human
Business Knowledge
Growth Management
Management
The impact of lean methods and tools on the operational
Belekoukias et al. (2014) x x x
performance of manufacturing organisations
Critical failure factors of Lean Six Sigma: a systematic
Albliwi et al. (2014) x x x
literature review
A proper framework for design of aircraft production system
Barbosa and Carvalho
based on lean manufacturing principles focusing to x x
(2014)
automated processes
Arasanipalai Raghavan et al. Lean transformation in a high mix low volume electronics
x x
(2014) assembly environment
The moderation of lean manufacturing effectiveness by
Kull et al. (2014) dimensions of national culture: Testing practice-culture x x
congruence hypotheses
Hadid and Afshin Mansouri The lean-performance relationship in services: a theoretical
x x x x
(2014) model
Lean manufacturing implementation using value stream
Jasti and Sharma (2014) mapping as a tool: A case study from auto components x x
industry
Beatriz Lopes de Sousa Extending lean manufacturing in supply chains: a successful
x x
Jabbour et al. (2014) case in Brazil
Arif-Uz-Zaman and Nazmul
Lean supply chain performance measurement x x
Ahsan (2014)
Strategic customer service orientation, lean manufacturing
Hong et al. (2014) x x x x
practices and performance outcomes: An empirical study
Company Self-Assessment of Lean Enterprise Maturity in the
Hallam and Keating (2014) x x x
Aerospace Industry
Internal lean practices and operational performance: The
Chavez et al. (2013) x x x
contingency perspective of industry clockspeed
The effect of environmental complexity and environmental
Azadegan et al. (2013) x x
dynamism on lean practices
Lean production and business performance: international
Losonci and Demeter (2013) x x x
empirical results

Human
Growth Management
Management
Camacho-Miñano et al. What can we learn from the evolution of research on lean
x x
(2013) management assessment?
When does lean hurt? – an exploration of lean practices and
Longoni et al. (2013) x x
worker health and safety outcomes
Relationships between operations strategy and lean
Arnas et al. (2013) x x
manufacturing: An exploratory study
Lean and agile supply chain strategies and supply chain
Qrunfleh and Tarafdar
responsiveness: the role of strategic supplier partnership and x x
(2013)
postponement
A methodology for effective implementation of lean strategies
Karim and Arif-Uz-Zaman
and its performance evaluation in manufacturing x x
(2013)
organizations
A strategic and operational approach to assess the lean
Gupta et al. (2013) performance in radial tyre manufacturing in India: A case x x
based study
Impact of lean practices on operations performance and
Nawanir et al. (2013) business performance: Some evidence from Indonesian x x x
manufacturing companies
Implementing lean production systems: research areas and
Marodin and Saurin (2013) x x x
opportunities for future studies
Lean manufacturing performance in Indian manufacturing
Ghosh (2012) x x
plants
The effect of lean production on financial performance: The
Hofer et al. (2012) x x x
mediating role of inventory leanness
Moyano-Fuentes and
Learning on lean: a review of thinking and research x x x
Sacristán-Díaz (2012)
Lean Manufacturing in Developing Countries: Evidence from
Panizzolo et al. (2012) x x
Indian SMEs

Human
Growth Management
Management
Structural Equation Modelling of Lean Manufacturing
Vinodh and Joy (2012) x x
Practices
Implementing Integrated Lean Six Sigma for Software
Pillai et al. (2012) Development: A Flexibility Framework for Managing the x x
Continuity: Change Dichotomy
Bhasin (2012b) Performance of Lean in large organisations x x x
Lean and queuing integration for the transformation of health
Chadha et al. (2012) x x
care processes: A lean health care model
Monitoring quality goals through lean Six-Sigma insures
Gupta et al. (2012) x x
competitiveness
A comparative analysis of Lean practices and performance in
Alsmadi et al. (2012) x x x
the UK manufacturing and service sector firms
Lean production supply chain management as driver towards
Agus and Shukri Hajinoor
enhancing product quality and business performance: Case x x
(2012)
study of manufacturing companies in Malaysia
Proposition of a Model for Measuring Adherence to Lean
Sezen et al. (2012) x x x
Practices: Applied to Turkish Automotive Part Suppliers
Bhasin (2011) Performance of organisations treating lean as an ideology x x x
Lean manufacturing in the US South Atlantic Region: an
Velarde et al. (2011) overview of the current state of implementation in the x x
secondary wood industry
Complementarity and Lean Manufacturing Bundles: An
Furlan et al. (2011) x x
Empirical Analysis
The Impact of Lean Operations on the Chinese Manufacturing
Taj and Morosan (2011) x x x
Performance
Integrating Human Resource Management into Lean
Bonavia and Marin-Garcia
Production and Their Impact on x x x x x
(2011)
Organizational Performance
Impact of lean manufacturing and environmental management
Yang ate al. (2011) on business performance: an empirical study of x x x x
manufacturing firms

Human
Growth Management
Management
Demeter and Matyusz
The Impact of Lean Practices on Inventory Turnover x x
(2011)
Lean, leaner, too lean? The inventory-performance link
Eroglu and Hofer (2011) x x
revisited
A comparative analysis of integrating lean concepts into
Cudney and Elrod (2011) supply chain management in manufacturing and service x x
industries
Singh et al. (2010) Lean implementation and its benefits to production industry x x
A conceptual framework for critical success factors of lean
Jeyaraman and Kee Teo
Six Sigma: Implementation on the performance of electronic x x x
(2010)
manufacturing service industry
Green et al. (2010) Managing lean manufacturing in material handling operations x x
Impact of lean strategy on operational performance: a study of
Rahman et al. (2010) x x
Thai manufacturing companies
Analysing the impact of the implementation of lean
Meade et al. (2010) x x
manufacturing strategies on profitability.
Lean Production, Market Share and Value Creation in the
Forrester et al. (2010) x x x
Agricultural Machinery Sector in Brazil
The implementation of lean Six Sigma in financial services
Delgado et al. (2010) x x
organizations
Fullerton and Wempe Lean manufacturing, non-financial performance measures,
x x
(2009) and financial performance
Hallgren and Olhager Lean and agile manufacturing: external and internal drivers
x x
(2009) and performance outcomes
Browning and Heath Reconceptualizing the effects of lean on production costs with
x x
(2009) evidence from the F-22 program
Gurumurthy and Kodali Application of benchmarking for assessing the lean
x x
(2009) manufacturing implementation
Lean supply chain and its effect on product cost and quality: a
Wee and Wu (2009) x x
case study on Ford Motor Company

Human
Growth Management
Management
Lean, take two! Reflections from the second attempt at lean
Scherrer-Rathje et al. (2009) x x
implementation.
Julien and Tjahjono (2009) Lean thinking implementation at a safari park x x x
Lean transformation in the pure service environment: the case
Piercy and Rich (2009) x x
of the call service centre
Robinson and Schroeder The role of front-line ideas in lean performance
x
(2009) improvement
Gebauer et al. (2009) Lean management practices in the pharmaceutical industry x x
The Transfer of Selected Lean Manufacturing Techniques
Herron and Hicks (2008) from Japanese Automotive Manufacturing into General x x
Manufacturing (UK) through Change Agents
A continuing lean journey: an electronic manufacturer's
Lee-Mortimer (2008) x x
adopting of Kanban
Applying lean six sigma in a small engineering company – a
Thomas et al. (2008) x x x
model for change
Sim and Rogers (2008) Implementing lean production systems: barriers to change x x
Bhasin (2008) Lean and performance measurement x x x
Lean manufacturing performance in China: assessment of 65
Taj (2008) x x x
manufacturing plants
Lean, six sigma and lean sigma: fads or real process
Näslund (2008) x x
improvement methods?
Relationship building, lean strategy and firm performance: an
Jayaram et al. (2008) x x
exploratory study in the automotive supplier industry
Interrelationships among lean bundles and their effects on
Dal Pont et al. (2008) x x
operational performance
The Role of Communication and Management Support in a
Worley and Doolen (2006) x x x x
Lean Manufacturing Implementation
Lee-Mortimer (2006) A Lean Route to Manufacturing Survival x x
An empirical study of lean production in the ceramic tile
Bonavia and Marin (2006) x x
industry in Spain
Use the supply relationship to develop lean and green
Simpson and Power (2005) x x
suppliers

Author(s) Article Human
Business Knowledge
Growth Management
Management
Simons and Zokaei (2005) Application of lean paradigm in red meat processing x x
Supply Chain Management: A Case Study of an Integrated
Mistry (2005) x x
Lean and Agile Model
Lean, agile and traditional supply: how do they impact
Cagliano et al. (2004) x x
manufacturing performance?
Lean manufacturing: context, practice bundles, and
Shah and Ward (2003) x x x
performance
Chun Wu (2003) Lean manufacturing: a perspective of lean suppliers x x
A business process change framework for examining lean
Motwani (2003) x x
manufacturing: a case study
Design of a rapid response and high efficiency service by
Arbós (2002) lean production principles: methodology and evaluation of x x
variability of performance
Soriano-Meier and A model for evaluating the degree of leanness of
x x
Forrester (2002) manufacturing firms
Lewis (2000) Lean Production and Sustainable Competitive Advantage x x x
Quantifying benefits of conversion to lean manufacturing
Detty and Yingling (2000) x x x
with discrete event simulation: A case study
Michaels (1999) The making of a lean aerospace supply chain x x x x
Emiliani (1998) Lean behaviors x x x
Kinnie et al. (1998) Downsizing: is it always lean and mean? x x
Bradford (1997) Planning for a leaner, fitter company x x
Allen (1997) Lean and mean: workforce 2000 in America x x
De Toni and Tonchia Lean organization, management by process and performance
x x
(1996) measurement
Developing a lean production organization: an Australian
Sohal (1996) x x x x
case study
Katayama and Bennett Lean production in a changing competitive world: a Japanese
x x
(1996) perspective
World class manufacturing: further evidence in the lean
Oliver et al. (1994) x x
production debate
Total 50 15 55 70 34 41
Percentage 46% 14% 50% 64% 31% 38%
Table II MBNQA assessment

Lean Manufacturing Strategic Actions
Lean Implementation Baldrige Same labor with more business Same business but with fewer labor
Category (2011-2012) (2013-2014) Business Growth Knowledge management Human resource management
Absorptive Capacity
Award
Organization Industry
Received
Name /Sector Reduce Reduced
(Year) Grow Grow Freeze
workforce hours or Layoff
Sales Profits hires
naturally overtime
Focus
Focus
Focus
Results
MAKM
Strategic
Planning
Customer
Operation
Workforce
Leadership
Acquisition
Exploitation
Assimilation
Transformation
Hill Country
2014 Health Care x x x x x PI x x x x x x x
Memorial
St. David’s
2014 Health Care PI x x x x x
HealthCare*
Henry Ford
2011 Health Care x x PI x x x x x x
Health System
Schneck
2011 Health Care x x x x PI x x x x x
Medical Center
South central
2011 Health Care x PI x x x x x
Foundation
Elevations
2014 Nonprofit x x x x x x
Credit Union
City of Irving,
2012 Nonprofit x x x x PI x x x
TX
Lockheed
Martin Missiles
2012 Manufacturing x x x x PI x x. x x x x
and Fire
Control
Table II MBNQA assessment (Continued)

Category (2009-2010) Business Growth Knowledge management Human resource management
Absorptive Capacity
Award
Received
Sales Profits hires
naturally overtime
Focus
Focus
Focus1
Results
MAKM
Strategic
Planning
Customer
Operation
Workforce
Leadership
Acquisition
Exploitation
Assimilation
Transformation
Advocate Good
Samaritan 2010 Health Care x PI x x x x
Hospital
MEDRAD
(Now Bayer
HealthCare 2010 Manufacturing x x PI x x x x x
Radiology &
Interventional
Nestle Purina
2010 Manufacturing x x x
PetCare*
Honeywell
Federal
Manufacturing 2009 Manufacturing x PI x x x x x
&
Technologies
Montgomery
County Public 2010 Education x PI x x x
Schools
Small
Studer Group 2010 x x x x
Business
Small
Midway USA 2009 x x x x PI x x x x x
Business
Table II MBNQA assessment (Continued)

Category (2007-2008) (2003-2006) (2000-2002) Business Growth Knowledge management Human resource management
Absorptive Capacity
Award
Received
Sales Profits hires
naturally overtime
Focu4
Focu2
MAK3
Focus1
Results
Strategic
Planning
Customer
Operation
Workforce
Leadership
Acquisition
Exploitation
Assimilation
Transformation
U.S. Army
Armament
Research,
Development 2007 Nonprofit x x x PI x x x x x
and
Engineering
Center
PRO-TEC
Small
Coating 2007 x x x
Business
Company
MEDRAD 2003 Manufacturing x x x PI x x x
Premier Inc. 2006 Service x x x x x x PI x x x
DynMcDermott
Petroleum
2005 Service x x x x PI x x x x
Operations
Company
Boeing Support
2003 Service x x PI x x
Systems
MESA Small
2006 x x x x x PI x x x x
Products, Inc. Business
KARLEE
2000 Manufacturing x x x x x PI x x x
Company, Inc.
Total 11 7 4 9 11 17 19 3 19 22 10 5 5 22 1 6 4
Percentage 48% 30% 17% 39% 48% 74% 83% 13% 83% 96% 43% 22% 22% 96% 4% 26% 17%
Notes:
*Organizations that reported Lean implementation but did not specify the Baldrige category where Lean was applied
PI: Performance Improvements
1. Previously Process Management
2. Previously Human Resource Focus in (2003-2006) (2000-2002)
3. Previously Information and Analysis in (2000-2002)
4. Previously Customer and Market Focus
Figure 1. Process Model for Integrating Lean Operations and Strategic Actions
Lean Leadership Strategic

Operations Recognition Actions
Superior OE Strategic Knowledge

(c, t, q) Panning Management
Implementation
Human
Lean
Resource
Management
Business
Firm Resources
Development
Lean
Management
CSFs

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International Journal of Quality & Reliability Management

Strategic Lean Actions for Sustainable Competitive Advantage

*Related content and download information correct at time of download.

requires organizations to implement different management approaches in light of creating

competitive advantage (Modarress et al., 2005). These approaches encompass a variety of

Lean can be defined as an operational strategy focused on improving competitive priorities

and principles intended to enhance an organizations’ operational and financial performance by

1996). This pursuit of reducing waste is seen as an operational requirement to remain

and Leonard, 2014).

Keating, 2014; Sawhney et al., 2010).

The failure to achieve an effective and permanent Lean transformation remains a

Lean manufacturing on organizational performance, and identify categories of strategic action in

2.1 Lean Manufacturing

methodology for improving production performance, Lean has expanded as a business

Organizations undertaking a Lean transformation have reported achieving reduced lead

philosophy is the elimination of the seven wastes in manufacturing characterized by Ohno

(1988), which include overproduction, waiting, transportation, processing, inventory storage,

turn them into greater profitability.

2.2 Lean as an operational strategy

competitive advantage (Amoako-Gyampah and Acquaah, 2008; Teti et al., 2014). As an

operational strategy, Lean would appear to be a source of competitive advantage, as it can

operations. Achieving successful Lean transformation is a position strategy, because it results in

improved competitiveness of an organization in its current business environment, the latter of

which is an opportunity for management action.

Competitive advantage is at the heart of organizational performance in free markets (Porter,

2.3 Sustainable competitive advantage requires strategic action (the model)

advantage through operational effectiveness (OE) is unsustainable due to the appropriability of

source of sustainable competitive advantage. Yet we see significant differences in the

mimicking firms to effectively succeed in their own Lean behavioral transformation.

The successful implementation of a Lean strategy necessitates organizational behavioral

capitalize on the operational gains (Hallam and Keating, 2014).

greatest competitive leverages based on an organizations’ competitive goals or strategies

implementation of Lean. As such, we propose that capitalizing on the superior operational

of strategic actions in achieving a sustainable competitive advantage through Lean

Lean on operational, financial, and/or organizational performance, and the identification of

group of firms exhibiting performance heterogeneity.

“Lean manufacturing”, “Lean production”, “performance”, “organizational performance”, and

knowledge management, human resources management, and business growth.

4. Discussion of Lean Strategic Actions

reviewed, 50 articles discussed the impact of Lean on operational performance, 15 articles

4.1 Knowledge management

to Forrester et al. (2010), knowledge management in a Lean manufacturing environment should

in their daily activities through a constant learning process.

actions in the category of Knowledge Management.

4.2 Human resources management

effect on Lean transformation. In a study performed by Taj (2008) in 65 manufacturing plants

early retirement, and being Lean from the start.

reductions in operating costs, reductions in headcounts, organizational redesign, and/or changes

knowledge management. Reduced hours or overtime is another approach implemented by

employers. According to Allan (1997) reducing overtime benefits improves an organization’s

advantage (Datta et al., 2010).

al., 1998; Netland et al., 2015; Piercy and Rich, 2009).

Katayama and Bennett, 1996).

impact of Lean manufacturing on financial performance is positive. Yet, according to Lewis

5. Lean and Baldrige: Evidence from Successful Firms

Nationality Quality Award (MBNQA), was launched in 1987 by the US Government to

institutions, and nonprofit/government organizations. The Baldrige criteria consists of seven

(MAKM), (5) workforce, (6) operations, and (7) results.

subdivided based on the results of the systematic literature review.

-INSERT TABLE II-

time, and efficiency.

undertake to capitalize on improved operations. Further, the paper provides a categorization of

6.1 Implications for practitioners