Managerial Measures of Lean Production in the Manufacturing Sector

The manufacturing industry contributes significantly to the Australian economy, specifically contributing 12.2% to the Australian Gross Domestic Product (GDP) (Australian Bureau of Statistics 2007). As such, in order to enable this industry to maintain its competitiveness, the Australian State and Federal Government encourages Lean manufacturing by providing Lean organisational training. This study analyses the effects of Lean manufacturing on, supplier relationships, customer involvement, production line efficiency, employee empowerment and financial results. Using a questionnaire administered to mangers of Lean manufacturing firms in New South Wales, Australia, employee empowerment and financial results were highly regarded by managers as outcomes of Lean implementation. The overriding results found that the implementation of Lean manufacturing processes was perceived by managers to a positive effect on production line efficiency. This study will assist the Australian Government in its decision making regarding its ongoing support for Lean manufacturing training within organisations.