Development of leanness index for SMEs

Abstract

Purpose This paper aims to discuss the concept of leanness and provide an effective assessment tool for measuring leanness of small and medium enterprises (SMEs). Design/methodology/approach A hybrid interpretive structural modelling–analytical network process (ISM-ANP) approach is used to develop leanness index for SMEs. The parameters for leanness are extracted from the literature survey, and the inter-relationships among them are identified through ISM approach. Further, the ANP tool is used to derive the weights of the parameters, and the leanness index is developed for SMEs. Findings A leanness assessment model is developed, which considers the interdependencies among leanness parameters. Continuous improvement, Just in Time and active management participation, respectively, get first, second and third ranks for leanness measurement in SMEs. Research limitations/implications This study is based on the expert’s opinion, and it may tend to be biased. However, future study will be performed as empirical research to catch more explicit concept and more insights of leanness in context of SME sector. Practical implications This paper provides guidelines to the managers of SMEs for measuring the leanness index and planning for future. This leanness index gives information regarding the degree of lean adoption in the organization. Originality/value The proposed model has been developed by the expert opinion of academicians and practitioners. The proposed model can provide guidelines and directions for managers for leanness assessment in SME context.

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