Performance evaluation of lean production based on balanced score card method using ANP and SIR: a case from Iranian home appliance industry

Abstract

Lean production is a productive philosophy with systematic perspective which takes steps toward eliminating waste materials by applying continual improvement in the sophisticated business processes. Appropriate implementation of this philosophy results in significant changes within a business. Despite the ample efforts devoted to lean production’s evaluation and implementation, this system’s efficient evaluation and implementation are still experiencing countless issues, which seem to be due to absence of a comprehensive model for examining and evaluating lean production within manufacturing companies. Having knowledge of the companies’ performance status, provides us with the possibilities of discovering weakness and strengths, allowing lead strategic managers to have higher performance comparing to their competitors by allocating more volume of market share to themselves. Balanced score card is an important management system which it will be explained using the following four dimensions: management system, exclusive reliance on financial criteria is incomplete and defective. This paper aims at performance evaluation of lean production using balanced score card (BSC), analytic network process (ANP) and inferiority and superiority based ranking (SIR) approaches where, four dimensions have been considered including financial performance, customer, internal business processes and innovation and learning. The expert questionnaire was used to evaluate lean production’s performance based on BSC, DEMATEL survey—for recognizing element’s internal relationships—and TOPSIS survey—for evaluating leanness of production line. To aid us in ranking the production line, data analysis was completed based on Super Decision and Visual PROMETHEE where, the fourth production line with total score of 0.77 stood in the first order, meaning the internal operations with the least level of cost which proves its leanness. The first and sixth line were placed in next ranks with total score of 0.72 and 0.36 which demonstrates leanness level respectively.

This is a preview of subscription content, access via your institution.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Notes

  1. 1.

    Simple Additive Weighting.

  2. 2.

    Technique for order preference by similarity to ideal solution.

References

  1. 1.

    Al Ebrahim, N., Nasiri, J.: Global market and Iran home appliances industry. In: Third Conference of Industries Research and Development, Tehran (2001)

  2. 2.

    Brunet, P., New, S.: Kaizen in Japan: an empirical study. Int. J. Oper. Prod. Manag. 33(12), 1426–1446 (2003)

    Article  Google Scholar 

  3. 3.

    Eroglu, C., Hofer, C.: Lean, leaner, too lean? The inventory performance link revisited. J. Oper. Manag. 29(4), 356–369 (2011)

    Article  Google Scholar 

  4. 4.

    Epstein, M.J., Roy, M.: How does your board rate? Strateg. Finance 85, 25–31 (2004)

    Google Scholar 

  5. 5.

    Farias, L.M.S., Santos, L.C., Gohr, C.F., Rocha, L.O.: An ANP-based approach for lean and green performance assessment. Resour. Conserv. Recycl. 143, 77–89 (2019)

    Article  Google Scholar 

  6. 6.

    Fry, L.W., Nisieiwcz, M., Vitucci, S.: Transforming organizations through spiritual leadership. Paper presented at the 2007 National Academy of Management, Philadelphia, PA (2007)

  7. 7.

    Fontela, E., Gabus, A.: World Problems an Invitation to Further Thought Within the Framework of DEMATEL. Batlelle Geneva Research Center, Geneva (1972)

    Google Scholar 

  8. 8.

    Haragovics, M., Mizsey, P.: A novel application of energy analysis: lean manufacturing tool to improve energy efficiency and flexibility of hydrocarbon processing. Energy Eng. Manag. Press 77, 382–390 (2014)

    Google Scholar 

  9. 9.

    Hofer, C., Eroglu, C., Hofer, A.R.: The effect of lean manufacturing in financial performance. Int. J. Prod. Econ. 138(2), 242–253 (2012)

    Article  Google Scholar 

  10. 10.

    Honge, P.: Impact of lean manufacturing and environment management on business performance: an empirical study of manufacturing firms. Int. J. Prod. Econ. 129(2), 251–261 (2011)

    Article  Google Scholar 

  11. 11.

    Kaplan, R.R., Norton, D.P.: Linking the balanced scorecard to strategy. Calif. Manag. Rev. 39, 53–79 (1996)

    Article  Google Scholar 

  12. 12.

    Kiriri, P.N.: Management of performance in higher education institution. Eur. J. Educ. 1(3), 168–176 (2018)

    Google Scholar 

  13. 13.

    Lawshe, C.H.: A quantitative approach to content validity. Pers. Psychol. 28, 563–575 (1975)

    Article  Google Scholar 

  14. 14.

    Monden, Y.: Toyota Production System; An Integrated Approach to Just-In-Time. Productivity Press, New York (1993)

    Google Scholar 

  15. 15.

    Olve, N.G., Roy, J., Manus Wetter, M.: Performance Drivers. Wiley, Chichester (1999)

    Google Scholar 

  16. 16.

    Pulkurte, R., Masilamani, R., Sonpatki, S., Dhake, R.: Cycle time education in assembly line through layout improvement. Ergonomics analysis and lean principles. Int. J. Appl. Sci. Eng. Res. 3(2), 455–463 (2014)

    Google Scholar 

  17. 17.

    Rother, M., Shook, J.: Learning to See. The Lean Enterprise Institute, Brookline, MA (2003)

    Google Scholar 

  18. 18.

    Robbins, S., Judge, T., Millertt, B., Boyle, M.: Organization Behavior. Pearson Higher Education, Docklands (2013)

    Google Scholar 

  19. 19.

    Saaty, T.L.: The Analytic Network Process Decision Making with Dependence and Feedback. RWS Publications, Pitsburgh (1996)

    Google Scholar 

  20. 20.

    Saaty, T.L.: Decision making with the analytic hierarchy process. Sci. Iran. 9(3), 215–229 (2002)

    Google Scholar 

  21. 21.

    Shah, R., Ward, P.T.: Lean manufacturing: context, practice bundles, and performance. J. Oper. Manag. 21(2), 129–149 (2003)

    Article  Google Scholar 

  22. 22.

    Shah, R., Ward, P.T.: Defining and developing measures of lean production. J. Oper. Manag. 25(4), 785–805 (2007)

    Article  Google Scholar 

  23. 23.

    Thomas, T., Sherman, S.R., Sawhney, R.S.: Application of lean manufacturing principles to improve a conceptual 238PU supply process. J. Manuf. Syst. 46, 1–12 (2018)

    Article  Google Scholar 

  24. 24.

    Xiaozhan, X.: The SIR method. A superiority and inferiority ranking method for multiple criteria decision making. Eur. J. Oper. Res. 131, 587–602 (2001)

    Article  Google Scholar 

  25. 25.

    Zhang, Z., Lee, M.K.O., Hoong, P., Zhang, L., Hoong, X.: A framework of ERP system implementation success in China: an empirical study. Int. J. Prod. Econ. 98(1), 56–80 (2005)

    Article  Google Scholar 

Download references

Author information

Affiliations

Authors

Corresponding author

Correspondence to Soroush Avakh Darestani.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Darestani, S.A., Shamami, N.H. Performance evaluation of lean production based on balanced score card method using ANP and SIR: a case from Iranian home appliance industry. OPSEARCH 56, 717–738 (2019). https://doi.org/10.1007/s12597-019-00391-2

Download citation

Keywords

  • Lean production
  • BSC
  • ANP
  • SIR