Benefits of Lean transformation efforts in small- and medium-sized enterprises

Abstract

This study examines the awareness, the implementation status, and the results from implementing Lean among small- and medium-sized enterprises (SMEs) in two segments of Virginia’s manufacturing industry. One hundred and eighty responses from a census mail survey (population size 1033) were analyzed and the results confirm previous research that smaller enterprises in these industries are marginally aware of Lean and its potential benefits. Smaller enterprises also have implemented Lean to a lesser degree than have medium or large enterprises. Also, fewer respondents working in small enterprises reported improvements in ‘lead-time,’ ‘on-time delivery,’ ‘inventory turnover,’ ‘cost per unit,’ and ‘sales per employee’ due to the implementation of Lean than respondents from medium and large enterprises. Small enterprises also indicated a lower need for Lean implementation support from third parties than did medium or large enterprises.