The effect of manufacturing agility competencies on lean manufacturing in increasing operational performance

Abstract

This study aims to assess the success of implementing Lean Manufacturing (LM) practices in food companies in Indonesia through the mediating role of Manufacturing Agility Competencies (MAC) to improve Operational Performance (OP). The method used is survey method. The study uses a positivist paradigm to see the effect of Lean manufacturing on operational performance. Testing used Structural Equation Modeling (SEM) by the Partial Least Square (PLS) approach. Finding of this study reveals that lean manufacturing practices have no positive effect on operational performance in Indonesian food industries. Meanwhile, the mediating role of Manufacturing Agility Competencies has succeeded in increasing the effect of Lean Manufacturing on operational performance. The originality of the research lies in the process of forming Manufacturing Agility Competencies as a strategy with a long process based on the experiences and observations made in food companies in Indonesia.

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