System Dynamics Approach for the Assessment of Leanness of Organizations

Abstract

Due to highly competitive, volatile and dynamic business environment, lean manufacturing is being seen as a winning strategy by manufacturers. Successful implementation of lean manufacturing can give an edge over their competitors, but during this implementation, they often fail to identify the direction in which the implementation should proceed. In order to help the organizations to progress in the right direction, there is a need to identify the variables and factors that affect the lean implementation process. A system dynamics approach has been applied to analyze the implementation process and help an organization towards becoming an effective lean organization. In this research, 17 variables are identified, through literature review and discussion with practitioners. A causal loop has been developed among the variables using system dynamics approach which represents “enablers” and “results”. This causal loop provides a visual representation of various cause and effect relationships and feedback loops to understand various factors and variables in a better way. It is probably one of the leading attempts to provide road map for implementation and assessment of leanness of organizations.