Abstract:
The purpose of this paper is to examine the extent to which lean management practices are adopted by
manufacturing organizations in Sri Lanka and their impact on firms’ operational performance. Using a survey
questionnaire, data were collected against 13 lean practices from 45 middle and senior managers belonging to 45
manufacturing firms in Sri Lanka. Using factor analysis these lean practices were then clustered into three higher
level constructs namely just in time (JIT), waste minimization and flow management. The responding firms were
categorized into small and medium companies (SMCs) and large companies (LCs) based on size. The multiple
regression models were employed to investigate the effects of three lean constructs on operational performance
for both small and medium and large company’s categories. The operational performance is measured by four
parameters such as quick delivery compared to competitors, unit cost of products relative to competitors, overall
productivity and customer satisfaction.
According to results which found from the analytical tools indicates the positive relationship between lean
practices and operational performance. JIT and waste management constructs have a less significant impact on
operational performance in both LCs and SMCs whereas flow management construct has a significant impact on
LCs compared with SMCs. The paper provides insights into the adoption of lean practices in an Asian context
and using survey data, and provides further evidence regarding the relationship between lean practices and
operational performances.
