Evaluation of impact of lean management practices on dairy business performance

Abstract

Purpose This research was initiated by motivation from a real business problem that delves into lean management practices in dairy farm operations. It investigates how lean management practices can be applied as an improvement strategy in the dairy business to evaluate its impact on performance, where profitability is a decisive factor. Design/methodology/approach Based on the qualitative design, a 5-phase action research methodology was used in this study, where multiple data collection sources were used, including focus group discussions, on-site observation or Gemba walks and process mapping. The impact is evaluated by comparing the key performance measures with the same period before and after research. Findings The research revealed that lean management practices can significantly improve dairy business performance. It explained vital aspects of lean management practices and their sequence with examples of first-hand applications. It explained, how lean management practices were applied in dairy farm operations. Furthermore, the research resulted in significant benefits, in terms of quality, cost and profitability. Practical implications This research was conducted in a real business setting in the field environment, to improve dairy business performance. It was a distinctive application of lean management practices to solve a national problem. This could be used as a road map to bring continuous improvement at the national level to improve the performance of food value chains. Originality/value This research is unique because it addresses the methodological, population and empirical gaps in dairy farm operations. It adds value to the existing knowledge base by sharing best practices, developed and implemented for the first time to the best of our knowledge, like high-level process mapping and performance measures at different levels. Furthermore, the solutions can be simulated in related farm operations to bring breakthrough improvements in dairy business performance.

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