D.U. Journal of Marketing, Vol. No.

15, June 2012 (Published in November, 2014)

ACHIEVING OPERATIONAL EXCELLENCE IN

PRODUCTION PROCESS THROUGH LEAN
MANUFACTURING: AN EMPIRICAL STUDY ON RMG
INDUSTRY OF BANGLADESH

Usmita Afrose1
Shadrul Hassan Himel2

Abstract: Lean manufacturing has become a buzzword of new era. It is a

whole-systems approach that creates a culture in which everyone in the
organization continuously works to improve processes and production, to
minimize delays, to reduce costs and improve quality, and to provide
maximum value to customers. The benefits of lean manufacturing are
evident in factories across the world. The purpose of the study is to achieve
operational excellence in production process through lean manufacturing
focused on Garments Industry of Bangladesh. This study is quantitative in
nature. The study result shows that lean tools have significant influence in
achieving operational excellence in manufacturing process. Total
productive maintenance, just-in-time, set-in-order, standardization,
sustainability, response time, product availability, and customer experience
have been found highly significant at 5% level. Lean manufacturing is
relatively new concept and is not properly implementing in Bangladesh.
This concept is a vital tool for achieving overall operational excellence in
Ready Made Garment (RMG) industry of Bangladesh if it is properly
promoted, communicated, and implemented.
Keywords: Lean Manufacturing, Lean Tools, Operational Excellence,
Ready Made Garments (RMG) Industry.

INTRODUCTION
Every company‟s financial success depends on its ability to satisfy customers by
creating sufficient demand for its products and services so the company can make
sufficient revenues and profits. Customers demand quality products and on-time
delivery. That is why companies concentrate on getting improved productivity,
quality, lead-time, waste reduction as well as overall efficiency in manufacturing
and business operation. For the past few years almost every manufacturing
industry has been trying to get „lean‟ to improve manufacturing performance. In
today‟s competitive and changing business world, lean manufacturing (LM)

1
Assistant Professor, Department of Marketing, University of Dhaka, Bangladesh.
2
Lecturer, Department of Business Administration, East West University, Bangladesh.
88 D.U. Journal of Marketing, Vol. No. 15, June 2012

philosophy has brought changes in management practices to improve customer

satisfaction as well as organizational effectiveness and efficiency. It improves
operating performance by focusing on the quick and uninterrupted flow of
products and materials through the value stream. It is mentionable that value
steam mapping are required to bring a product or a group of products that use the
same resources through the main flows, from raw material to the arms of
customers. These actions are those in the overall supply chain including both
information and operation flow, which are the core of any successful lean
operation. Value stream mapping is an enterprise improvement tool to assist in
visualizing the entire production process, representing both material and
information flow (Peash, 2012). To achieve this, various forms of manufacturing
waste must be identified and eliminated. Now, many countries have started to
practice lean tools in hotel, pharmaceuticals, automobiles, garment, and other
industries. They observed tremendous improvement in their operation. Supply
chain management considers both inbound (upstream) and outbound
(downstream) flow of materials, services and goods to the firm. Lean production
can maintain balance in both aspects of supply chain (Lambert et al., 1998). The
implementation of a lean manufacturing strategy represents a robust contribution
to the phase sequence that leads to operational excellence and the continuous
improvement through the elimination of non-value added activities. The major
purposes of the use of lean technique are to increase productivity, improve
product quality and manufacturing cycle time, reduce inventory, reduce lead-time
and eliminate manufacturing waste. In brief, lean production focus on more value
with less work. Lean tools and techniques are frequently using in garments
industry in order to improve their overall manufacturing performance, which is
making them more competitive and successful in their area. This study is hoped
to provide useful knowledge and guidelines of Lean manufacturing to RMG
sector of Bangladesh.

LITERATURE REVIEW
Lean can be defined as “A systematic approach to identify & eliminate waste
(Non Value added Activities) through continuous improvement by flowing the
product at the pull of the customer in pursuit of perfection.” Lean Production
concept was introduced by a book titled The Machine that Changed the World
written by Womack et al. (Piciacchia, 2003). The tools and techniques of lean
manufacturing (LM) have been widely used in the discrete industry starting with
the introduction of the original Toyota Production System. Tools including just-
in-time, cellular manufacturing, total productive maintenance, single-minute
exchange of dies, and production smoothing have been widely used in discrete
parts manufacturing sectors such as automotive, electronics and appliance
manufacturing (Peash, 2012). The lean concept spread to Japanese factories after
it was first implemented in the Toyota Motor Company (Papadopoulou and
Achieving Operational Excellence In Production Process Through Lean Manufacturing 89

Ozbayrak, 2005). This is a Japanese concept applied in manufacturing firms. The

Japanese firms (firms in other countries as well) have been using this concept to
reduce the cost of any process (be it service or manufacturing) by removing
waste (Ferdousi and Ahmed, 2009). The idea of lean thinking comprises complex
cocktail of ideas including continuous improvements, flattened organization
structures, team work, elimination of waste, efficient use of resources and
cooperative supply chain management” (Green, 2000). Haque (2008) stated that
LM shortens the time between the customer order and the product build or
shipment by eliminating sources of waste. Another way of looking at lean is that
it aims to achieve the same output with less input- less time, less space, less
human effort, less machinery, less material, and less costs. On the other hand,
Total Productive maintenance (TPM) is more effective in Lean driven
enterprises. Main focus on the relationship between Lean and TPM, by
comparing their goals and principles as well as how Lean and TPM can
strengthen each other‟s results in order to reach sustainable growth of the
organization. Merging the benefits of two well-known methodologies, Lean
Thinking and Total Productive Maintenance, "Lean TPM" shows how to secure
increased manufacturing efficiency. Lean goals are not achievable without
reliable machinery and processes (Haque et al., 2008). Like Lean, TPM requires
employees‟ involvement in all levels throughout the organization (Houshmand
and Jamshidnezhad, 2006). An important tool that is necessary to account for
sudden machine breakdowns is total productive maintenance. In almost any lean
environment setting a total productive maintenance program is very important.
Lean manufacturing, often called (JIT) or Agile Manufacturing, is an operating
strategy that seeks to maximize operational effectiveness by creating value in the
eyes of the end customer. The focus is not on a department, area or process, but
on the optimization of the entire value stream --the series of processes between
receipt of customer order and delivery of finished product (lean.org). LM is
based on “Just-in-Time” production achieved by following three stages:
Customer demand (When it is required, in the quantity required), continuous
flow (flowing work to ensure that the right work unit arrives at the right time),
and leveling work (flexibility to distribute work evenly and effectively)
(psesbd.org). Lean production philosophy uses several concepts such as one-
piece flow, kaizen, cellular manufacturing, synchronous manufacturing,
inventory management, standardized work, work place organization, and scrap
reduction to reduce manufacturing waste (Russell and Taylor, 1999). The main
reasons for adopting a lean system under three broad categories: reducing
production resource requirements and costs, increasing customer responsiveness,
and improving product quality. It concluded that all of these combine to boost
company profits and competitiveness (EPA, 2003). Now, many countries have
started to practice lean tools in the garment industry. This practice has improved
their productivity, quality and lead-time and also made their customer more
90 D.U. Journal of Marketing, Vol. No. 15, June 2012

responsive. In addition to this lean production involves, motivates and develop

employee skills and knowledge through education and multi-skilling program
(Mazany, 1995). Knowledge is a necessary and sustainable source of competitive
advantage. Knowledge capital is important to business quality and capacity
(Spagat, 2005). Knowledge allows the organization to solve problems and seize
opportunities. So, knowledge regarding lean production can create efficiency in
the operations of the businesses, which are involved in manufacturing and
production process (Earl and Scott, 1999). Technology acquisition improves a
firm‟s performance. Firms with acquired technologies accumulate capital much
more quickly than firms without such technologies during regulated periods.
These results imply that in technology acquisition licensing, the government
screens a firm‟s application based on: (a) the industry to which the firm belongs,
and (b) its experience with technology acquisition. Furthermore, part of rent
based on restricted access to foreign technologies. Lean is a concept, which really
has strong correlation with effective use of technology (Kiyota and Okazaki,
2005).
Shigeo Shingo identified “Seven” forms of waste (Figure 01).

Figure 01: The 7 Wastes

Over-Production

1
Not Right First Time-Scrap,
Rework and Defects

7 2 Inventory

Over-Processing

6 3 Motion

5 4
Transportations Waiting
Source: (lean.org)
Achieving Operational Excellence In Production Process Through Lean Manufacturing 91

Overproduction is highly costly to a manufacturing plant because it prohibits the

smooth flow of materials and actually degrades quality and productivity. Excess
inventory increases lead time, consumes productive floor space, delays the
identification of problems, and inhibit communication. Motion waste is related to
ergonomics and is seen in all instances of bending, stretching, walking, lifting,
and reaching. Whenever goods are not moving or being processed, the waste of
waiting occurs. Much of a product‟s lead-time is tied up in waiting for the next
operation. Transporting product between processes is a cost incursion, which
adds no value to the product. Excessive movement and handling cause damage
and are an opportunity for quality to deteriorate. Processing beyond the standard
required by the customer by improving processing efficiency we ultimately use
less resource to achieve the same customer satisfaction. Non-Right First Time
(Scrap, Rework and Defects) means having a direct impact to the bottom line,
quality defects resulting in rework or scrap are a tremendous cost to
organizations. Associated costs include quarantining inventory, re-inspecting,
rescheduling, and capacity loss. (lean.org). Closely associated with lean
production is the principle of just-in-time (JIT), since it is a management idea
that attempts to eliminate sources of manufacturing waste by producing the right
part in the right place at the right time. This addresses waste such as work-in-
process material, defects, and poor scheduling of parts delivered.
(ifm.eng.cam.ac.uk).
The five-step thought process for guiding the implementation of lean techniques
is easy to remember, but not always easy to achieve: (a) Specify value from the
standpoint of the end customer by product family (b) Identify all the steps in the
value stream for each product family, eliminating whenever possible those steps
that do not create value (c) Make the value-creating steps occur in tight sequence
so the product will flow smoothly toward the customer. As flow is introduced, let
customers pull value from the next upstream activity, (d) As value is specified,
value streams are identified, wasted steps are removed, and flow and pull are
introduced, and (e) Begin the process again and continue it until a state of
perfection is reached in which perfect value is created with no waste (lean.org).
Continuous improvement is another fundamental principle of lean
manufacturing. Kaizen, which is the Japanese word for a continuous endeavor for
perfection, has become popular in the west as a paramount concept behind good
management. One of the most effective tools of continuous improvement is 5S,
which is the basis for an effective lean company. 5S is a first, modular step
toward serious waste reduction. 5S consists of the Japanese words Seiri (Sort),
Seiton (Straighten), Seiso (Sweep and Clean), Seiketsu (Systemize), and
Shitsuke (Standardize) (lmsi.ca). Another research Hhaled in 2011 explained the
5S in the following ways: (a) Seiri-Sort: The first step in making things cleaned
92 D.U. Journal of Marketing, Vol. No. 15, June 2012

up and organized, (b) Seiton-Set In Order: Organize, identify and arrange

everything in a work area, (c) Seiso-Shine: Regular cleaning and maintenance,
(d) Seiketsu-Standardize: Make it easy to maintain -simplify and standardized,
and (e) Shitsuke-Sustain: Maintaining what has been accomplished.
Lean manufacturing can also contribute to other components in business to
provide the customer better service which consists of many components. This
concept can focus on those measures that are influenced by the structure of the
distribution network. These include: response time, product variety, product
availability, customer experience, order visibility and returnability.
Companies such as Toyota, Pratt and Whitney, Sikorsky, Delphi, Ford and many
other companies have achieved large savings by implementation of lean
principles in their manufacturing activities (Schmidt, 2000). The garment
industry has opportunities to improve, but requires some changes. Under the
highly competitive environment, the garment industry has numerous
opportunities for improvement using lean principles (Mercado, 2007). The
companies that adopt lean production as a working philosophy within their
organizations can make significant improvement in terms of their operational
performance even if it is in a modified format that best suits their particular
business culture (Ferdousi and Ahmed, 2009).
The readymade garment sector (RMG) is the hub of the economy of Bangladesh,
accounting for more than 78% of the country‟s total export earnings. It is likely
that the future economic development of Bangladesh will be highly correlated
with this sector performance (Shahidullah, 2012).
In the face of fierce competition resulting from the rapid globalization of
businesses in Bangladesh, some companies across the garment industry sector
have been practicing lean manufacturing to remain globally competitive and
create a strong market position. But very few companies are practicing Lean
approach. Moreover there is a lack of research evidence regarding the impact of
lean practices on manufacturing performance improvement in Bangladeshi
garment firms Through the implementation of lean, the garment sector can
reduce costs, lead time, increase customer responsiveness, ensure order visibility,
and reduce the rate of return after purchasing products through reducing several
types of waste from the production process (Ferdousi and Ahmed, 2009).
All companies want to improve their productivity, which is measured by the ratio
of inputs (labor, capital, etc.) used to outputs produced. Major improvements can
be realized from the elimination of waste (i.e., all non-value-added activities)
through standardization of work practices and efficient use of the work force,
space and machinery. Other substantial improvements (innovations) may emerge
Achieving Operational Excellence In Production Process Through Lean Manufacturing 93

from machinery upgrading, quality system enhancement, and adopting more

economical production methods. Overall productivity levels of the Bangladesh
RMG sector are low compared to regional competitors. Hence, there is a
significant potential to increase the competitiveness of the industry
(www.lean.org). In spite of having great importance of lean approach in the
manufacturing sectors, sufficient study regarding lean manufacturing has not
been found in Bangladesh. That is why, this study has been conducted to better
understand the lean manufacturing as well as identify the tools and techniques
related to this concept and measure the impact of those tools on achieving
operational excellence in production process of a Ready Made Garment of
Bangladesh in a quantitative manner.

OBJECTIVES
The broad objective of this study is to achieve operational excellence in
production process through lean manufacturing focused on RMG Industry of
Bangladesh. There are some other specific objectives of this study. These are
given below:
1. To identify various lean manufacturing tools.
2. To explore how the identified lean tools lead to obtain operational
excellence in the production process of a garment company.
3. To identify the business challenges faced by garment industry of
Bangladesh to practice lean.
4. To identify the areas where changes need to be made to implement lean
in garment industry of Bangladesh.

RESEARCH QUESTIONS AND HYPOTHESIS DEVELOPMENT

The research questions and proposed hypotheses of this study are summarized
below:
RQ1 : Is total productive maintenance (TPM) effective in lean driven
enterprises?
H0 1 : Total productive maintenance (TPM) is not effective in Lean driven
enterprises.
RQ2 : Can just-in-time concept be easily maintained through lean
manufacturing?
H0 2 : Just-in-Time concept cannot be easily maintained through lean
manufacturing.
RQ3 : Can sorting be performed effectively to implement the lean
manufacturing?
94 D.U. Journal of Marketing, Vol. No. 15, June 2012

H0 3 : Sorting cannot be performed effectively to implement the lean

manufacturing.
RQ4 : Can set-in-order be a major concern while implementing the lean
manufacturing?
H0 4 : Set-in-order cannot be a major concern while implementing the lean
manufacturing.
RQ5 : Can shining environment be maintained to execute the lean
manufacturing?
H0 5 : Shining environment cannot be maintained to execute the lean
manufacturing.
RQ6 : Is standardization the major tool to implement lean manufacturing?
H0 6 : Standardization is not the major tool to implement lean manufacturing.
RQ7 : Can sustainability in the market be possible through the use of lean
manufacturing?
H0 7 : Sustainability in the market cannot be possible through the use of lean
manufacturing.
RQ8 : Will Response time be faster while implementing the lean
manufacturing?
H0 8 : Response time will not be faster while implementing the lean
manufacturing.
RQ9 : Can the product be made available effectively by following the
techniques of lean manufacturing?
H0 9 : The product cannot be made available effectively by following the
techniques of lean manufacturing.
RQ10 : Will customer experience be better when a firm uses lean manufacturing
approach?
H0 10 : Customer experience will not be better when a firm uses lean
manufacturing approach.
RQ11 : Will rate of return be decreased through the use of lean manufacturing
technique?
H0 11 : The rate of return will not be decreased through lean manufacturing
technique.

METHODOLOGY
A research design is a framework or blueprint for conducting marketing research
project (Malhotra and Satyabhushan, 2011). There are two helpful research
methodologies: quantitative and qualitative. As the purpose of this research is to
test the proposed hypothesises, so a descriptive research (quantitative method)
was chosen in this research to understand the relationship between dependent and
Achieving Operational Excellence In Production Process Through Lean Manufacturing 95

independents variables. Primary data was collected by applying survey method.

Secondary was collected from various articles, books, journals and web based
publications.
The target population of this study is the listed Garments companies of
Bangladesh. The sampling frame for this research is the list of registered
garments companies in BGMEA (Bangladesh Garments Manufacturers and
Exporters Association) and BKMEA (Bangladesh Knit Manufacturers and
Exporters Association). A simple random sampling technique (lottery method)
was followed to select five Garments. Data was collected from thirty respondents
from the selected garments‟ employees of various departments- procurement and
purchasing, inventory management, production, technical, logistics, and
marketing. The respondents have sufficient knowledge regarding lean
manufacturing concept so that they understand each and every word regarding
lean used in the primary data collection instrument. A semi-structured
questionnaire with both open-ended and close-ended questions was developed to
collect data. The researchers themselves collected data. Multiple regression was
been carried out to know the impact of independent variables on dependent
variable. Eleven independent variables have been identified. All of the items
were measured by using the 9 point Likert Scales anchored by 1=Extremely
Disagree, 2=Strongly Agree, 3=Somewhat Disagree, 4=Disagree, 5=Neutral,
6=Somewhat Agree, 7=Agree, 8=Strongly Agree, and 9=Extremely Agree.
Likert scale method was used because it produces a good reliability and validity
outcome.
Here Dependent Variable is- Operational excellence in production process
through lean manufacturing (LM). Independent variables: (a) Total productive
maintenance, (b) Just-in-time, (c) Sorting, (d) Set-in-order, (e) Shining
environment, (f) Standardization, (g) Sustainability, (h) Response time, (i)
Product availability, (j) Customer experience, and (k) Rate of return. Collected
data was processed through quantitative method using the Statistical Package for
the Social Sciences (SPSS 16.0).

Population regression equation:

Y = β0 + β 1X1 + β 2X2 + β 3X3 + β 4X4 + β 5X5 + β 6X6 + β 7X7 + β 8X8 + β 9X9 +
β10X10 + β 11X11 +e
Where, Y=Operational excellence in production process through lean
manufacturing.
β0 = Constant, X1 = Total productive maintenance, X2 = Just-in-Time, X3 =
Sorting, X4 = Set-in-order, X5 = Shining environment, X6 = Standardization,
96 D.U. Journal of Marketing, Vol. No. 15, June 2012

X7 = Sustainability, X8 = Response time, X9 = Product availability, X10 =

Customer experience, X11 = Rate of return, and e = Error
Hypothesis and coefficient of multiple determination testing (R² testing): From
the hypothesis and regression model, it can be specified that,
H0: R² = 0 (exist no relationship between dependent variable and independent
variables= Accept null hypothesis).
H1: R² ≠ 0 (exist relationship between dependent variable and independent
variables= Accept alternative hypothesis).
Researchers have taken eleven variables to examine their effect on achieving
operational excellence in production process of RMG of Bangladesh. There may
be many other lean tools, which may affect continuous improvement in
production process. Therefore addition of more variables (lean tools) and
samples would have been produced better result.

FINDINGS AND ANALYSIS

Respondents are asked to cite what they think about the impact of lean
manufacturing techniques on achieving operational excellence in production
process. They responded in a positive way. Of the total thirty respondents 10
percent extremely agree, 43.3 percent respondents strongly agree, 30 percent
agree, 10 percent somewhat agree and 6.7 percent has given neutral opinion
respectively. Every respondent think that lean manufacturing technique
contributes in achieving operational superiority as well as makes the garments
production more efficient (Table: 04).
Respondents‟ responses regarding each independent variable are given in the
appendix section with the use of frequency distribution.
The model summary is given below:

Table 01: Results of Regression Analysis

Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .814 .767 .635 .83142
Predictors: (Constant), Rate_of_Return, Sustainability, Response_Time,
Shining_Environment, Standardization, Total_Productive_Maintainance, Sorting,
Customer_Experience, Set_In_Order, Product_Availability, Just_In_Time
Achieving Operational Excellence In Production Process Through Lean Manufacturing 97

It is known that R² indicates the strengths of association between the independent

variables and dependent variable. The higher the value of R², the higher the
strengths of association between the dependent and independent variables as well
as the consideration of how much the variation in the dependent variables can be
explained by the variation in the independent variables. The value of R² in this
case is 0.767, which implies that 77 percent variation in dependent variable is
due to the variation in the independent variables. Here Adjusted R² is .635. The
difference between R² and Adjusted R² is around 13 percent, which s large. It
indicates that the addition of new independent variables may affect the regression
result.

Table 02: ANOVA

ANOVAb

Model Sum of Df Mean F Sig.

Squares Square

1 Regression 73.273 11 6.661 8.244 .002a

Residual 14.539 18 .808

Total 87.812 29

a. Predictors: (Constant), Rate_of_Return, Sustainability, Response_Time,

Shining_Environment, Standardization, Total_Productive_Maintainance, Sorting,
Customer_Experience, Set_In_Order, Product_Availability, Just_In_Time

b. Dependent Variable: Operational_Excellence_Production_Process_Lean

Manufacturing

From ANOVA table, it can be seen that the significance value is .002, which is
less than at .05 (significance level). The critical value of F for 11 and 18 degrees
of freedom is about 2.34. Because the calculated value of F is 8.244, which is
larger than the critical value, therefore the null hypothesis is rejected. It means
the independent variables affect on dependent variable.
98 D.U. Journal of Marketing, Vol. No. 15, June 2012

Table 03: Regression Coefficients

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Beta
Error
1 (Constant) 2.566 2.671 .931 .368

Total_Productive_Maintenance .165 .112 .417 4.012 .002

Just_In_Time .561 .125 .557 3.143 .006
Sorting -.051 .135 -.059 .381 .634
Set_In_Order .114 .120 .384 3.881 .003
Shining_Environment .143 .108 .049 .323 .347
Standardization .103 .117 .284 2.811 .006
Sustainability .175 .100 .294 3.746 .000
Response_Time .164 .109 .372 3.605 .013
Product_Availability .218 .113 .279 2.343 .042
Customer_Experience .221 .110 .338 2.012 .004
Rate_of_Return -.184 .140 -.367 .247 .714
a. Dependent Variable: Operational_Excellence_Production_Process_Lean
Manufacturing

Therefore the sample regression equation is:

= α + b1x1+ b2x2+ b3x3+ b4x4+ b5x5+ b6x6+ b7x7+ b8x8+ b9x9+ b10x10+ b11x11


Y = 2.566 + 0.417x1 + 0.557x2 - 0.059x3 + 0.384x4 + 0.049x5 + 0.284x6 +
0.294x7 + 0.372x8 + 0.279x9 + 0.338x10 - 0.367x11

Table-3 shows that majority of the variables are really significant to contribute in
lean manufacturing. These factors are- Total Productive Maintenance, Just-In-
Time, Set-In-Order, Standardization, Sustainability, Response Time, Product
Availability, and Customer Experience. Other three variables-sorting, Shining-
Environment, and rate of return have not been found significant with the value of
Achieving Operational Excellence In Production Process Through Lean Manufacturing 99

0.634, 0.347 and 0.714 respectively, which are greater than at .05 (significance
level). The standardized beta coefficients of Total Productive Maintenance is
0.417, Just-In-Time is 0.557, Set In Order is 0.384, Standardization is 0.284,
Sustainability is 0.294, Response Time is 0.372, Product Availability is 0.279,
and Customer Experience is 0.338 (Table: 03). So, it can be said that these eight
independent variables influence in achieving operational excellence in production
process. Among these variables TPM (total productive maintenance) and just in
time have been found as more significant dimensions because the beta coefficient
for these dimensions are .417 and .557 respectively, which are greater than other
dimensions.
So, the result of hypothesis testing:

Hypotheses Description Decision

TPM is not effective in Lean driven

Ho 1 Null hypothesis rejected
enterprises
Just-in-Time concept cannot be easily
Ho 2 Null hypothesis rejected
maintained through lean manufacturing.

Sorting cannot be performed effectively to

Ho 3 Null hypothesis accepted
implement the lean manufacturing.

Set-in-order cannot be a major concern while

Ho 4 Null hypothesis rejected
implementing the lean manufacturing.
Shining environment should not be
Ho 5 maintained to execute the lean Null hypothesis accepted
manufacturing.
Standardization is not major tool to
Ho 6 Null hypothesis rejected
implement lean manufacturing.
Sustainability in the market cannot be
Ho 7 possible through the use of lean Null hypothesis rejected
manufacturing.
Response time will not be faster while
Ho 8 Null hypothesis rejected
implementing lean manufacturing.

The product cannot be made available

Ho 9 effectively by following the techniques of Null hypothesis rejected
lean manufacturing.

Customer experience will not be better when

Ho 10 Null hypothesis rejected
a firm uses lean manufacturing approach.

The rate of return will not be decreased

Ho 11 Null hypothesis accepted
through lean manufacturing.
100 D.U. Journal of Marketing, Vol. No. 15, June 2012

CONCLUSION AND RECOMMENDATIONS

Lean manufacturing reduces all forms of non-value added activities in
organizations and improves its performance. The garments companies, which
want to implement Lean manufacturing approach in their organizations can
surely work with the variables appropriately for implementing the lean concept
effectively and get better result in manufacturing performance. This study has
attempted to know how lean manufacturing approach contributes in achieving
operational excellence in production process focused on Garments industry of
Bangladesh. Eleven variables (lean tools) have been identified through literature
review, which are related to LM approach. It is found that 10 percent respondents
extremely agree, 43.3 percent strongly agree, and 30 percent agree that
companies that adopt lean manufacturing as a working philosophy within their
organizations can make significant improvement in terms of their operational
performance. They pointed out that though it is comparatively expensive to set
the lean concept within organization, still this concept will pay long-term return
to their company. Multiple regression analysis has been carried out to evaluate
the contribution of each independent variable on dependent variable. The value
of R² in is 0.767, which implies that 77 percent variation in dependent variables
is due to the variation in the independent variables. Eight variables have been
found significant- Total Productive Maintenance, Just-In-Time, Set-In-Order,
Standardization, Sustainability, Response Time, Product Availability, and
Customer Experience and other three variables have no influence in achieving
operational excellence in the production process of a garment company.
Lean manufacturing is comparatively new concept in the context of Bangladesh.
Therefore, many of the garments companies still do not have appropriate
knowledge to implement the lean manufacturing concept effectively. It is also
found that respondents believe implementation of lean strategy definitely make
easier to achieve manufacturing superiority but its execution may be difficult
because of lack of knowledge in this approach. They also cited that it requires
large initial investment, which can demotivate the manufacturer to execute the
lean concept. Still, if lean production concept is properly promoted and
communicated to the manufacturer of the country, definitely this concept can be
learned and adopted by the manufacturer successfully, which will make our
manufacturing sectors specially garments sectors more efficient as well as
competitive in the world market by eliminating manufacturing waste and non
value added activities.
This study offers contribution on both theoretical and practical fields. This adds
theoretical body of knowledge through a comprehensive review of the factors or
tools of lean manufacturing to the supply chain and logistics management in the
area of Garment industry of Bangladesh. It provides obvious knowledge about
lean production tools, techniques, and strategies to manufacturers. Moreover, the
findings suggest manufacturers about the advantages of the adoption of lean tools
Achieving Operational Excellence In Production Process Through Lean Manufacturing 101

in the manufacturing process of a product or service. This study gives

information to develop a “operational excellence model” as well as
“manufacturing performance measurement model” through the adoption lean
tools by providing an in-depth analysis of the variables-Total productive
maintenance, Just-in-Time, Sorting, Set-in-order, Shining environment,
Standardization, Sustainability, Response time, Product availability, Customer
experience, Rate of return, and some other tools analyzed in this study. The
findings pose an interesting area to pursue further research in other industries
such as automobile, pharmaceuticals, hotels, electronics, consumer goods, and
other discrete industries. It would be more illuminating to conduct a longitudinal
study to understand the long-term effects and benefits of lean in Bangladeshi
garment industry. Some meaningful recommendations that can be put forward for
achieving operational excellence in production and business operation are
commit to lean, learn about lean, develop the basic knowledge and skill for
industrial engineering and quality control, implement trial concept, monitor and
evaluate trial concept, integrate them into the new production process, and most
importantly development of necessary physical infrastructure.

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Achieving Operational Excellence In Production Process Through Lean Manufacturing 103

Appendix
Table 04: Performance Improvement
Frequency Percent Valid Cumulative
Percent Percent

Valid Neutral 2 6.7 6.7 6.7

Somewhat 3 10.0 10.0 16.7

Agree
Agree 9 30.0 30.0 46.7
Strongly Agree 13 43.3 43.3 90.0
Extremely 3 10.0 10.0 100.0
Agree
Total 30 100.0 100.0

Table 05: Total Productive Maintenance

Frequency Percent Valid Percent Cumulative
Percent

Valid Neutral 1 3.3 3.3 3.3

Somewhat Agree 7 23.3 23.3 26.7
Agree 9 30.0 30.0 56.7
Strongly Agree 11 36.7 36.7 93.3
Extremely Agree 2 6.7 6.7 100.0
Total 30 100.0 100.0
104 D.U. Journal of Marketing, Vol. No. 15, June 2012

Table 06: Just-In-Time

Frequency Percent Valid Cumulative

Percent Percent

Valid Extremely Disagree 2 6.7 6.7 6.7

Strongly Disagree 5 16.7 16.7 23.3

Disagree 5 16.7 16.7 40.0
Somewhat Disagree 9 30.0 30.0 70.0
Neutral 7 23.3 23.3 93.3
Somewhat Agree 2 6.7 6.7 100.0
Total 30 100.0 100.0

Table 07: Sorting

Frequency Percent Valid Cumulative

Percent Percent

Valid Extremely Disagree 1 3.3 3.3 3.3

Strongly Disagree 9 30.0 30.0 33.3

Disagree 7 23.3 23.3 56.7

Somewhat Disagree 7 23.3 23.3 80.0

Neutral 6 20.0 20.0 100.0

Total 30 100.0 100.0

Achieving Operational Excellence In Production Process Through Lean Manufacturing 105

Table 08: Set-In-Order

Frequency Percent Valid Cumulative

Percent Percent

Valid Extremely Disagree 4 13.3 13.3 13.3

Strongly Disagree 8 26.7 26.7 40.0

Disagree 11 36.7 36.7 76.7

Somewhat Disagree 5 16.7 16.7 93.3

Neutral 2 6.7 6.7 100.0

Total 30 100.0 100.0

Table 09: Shining Environment

Frequency Percent Valid Cumulative

Percent Percent

Valid Extremely Disagree 1 3.3 3.3 3.3

Strongly Disagree 10 33.3 33.3 36.7

Disagree 11 36.7 36.7 73.3

Somewhat Disagree 5 16.7 16.7 90.0

Neutral 2 6.7 6.7 96.7

Somewhat Agree 1 3.3 3.3 100.0

Total 30 100.0 100.0

106 D.U. Journal of Marketing, Vol. No. 15, June 2012

Table 10: Sustainability

Frequency Percent Valid Percent Cumulative
Percent

Valid Neutral 1 3.3 3.3 3.3

Somewhat Agree 5 16.7 16.7 20.0
Agree 10 33.3 33.3 53.3
Strongly Agree 12 40.0 40.0 93.3
Extremely Agree 2 6.7 6.7 100.0
Total 30 100.0 100.0

Table 11: Response Time

Frequency Percent Valid Percent Cumulative
Percent

Valid Neutral 1 3.3 3.3 3.3

Somewhat Agree 3 10.0 10.0 13.3
Agree 5 16.7 16.7 30.0
Strongly Agree 15 50.0 50.0 80.0
Extremely Agree 6 20.0 20.0 100.0
Total 30 100.0 100.0

Table 12: Product Availability

Frequency Percent Valid Percent Cumulative
Percent

Valid Neutral 2 6.7 6.7 6.7

Somewhat Agree 1 3.3 3.3 10.0

Agree 10 33.3 33.3 43.3
Strongly Agree 11 36.7 36.7 80.0
Extremely Agree 6 20.0 20.0 100.0
Total 30 100.0 100.0
Achieving Operational Excellence In Production Process Through Lean Manufacturing 107

Table 13: Customer Experience

Frequency Percent Valid Percent Cumulative

Percent

Valid Neutral 3 10.0 10.0 10.0

Somewhat Agree 6 20.0 20.0 30.0

Agree 10 33.3 33.3 63.3

Strongly Agree 8 26.7 26.7 90.0

Extremely Agree 3 10.0 10.0 100.0

Total 30 100.0 100.0

Table 14: Rate of Return

Frequency Percent Valid Cumulative

Percent Percent

Valid Extreme Disagree 4 13.3 13.3 13.3

Strongly Disagree 7 23.3 23.3 36.7

Disagree 3 10.0 10.0 46.7

Somewhat Disagree 8 26.7 26.7 73.3

Neutral 4 13.3 13.3 86.7

Agree 2 6.7 6.7 93.3

Strongly Agree 2 6.7 6.7 100.0

Total 30 100.0 100.0