Lean Production Systems: An Integrated Approach

• In Event: Accounting Behavior Organizations/Government & Nonprofit
  In Paper Session: Pot Pourri - Accounting Behavior Organizations, Government & Nonprofit & International Accounting

Abstract

Toyota Production System approaches leanness through inventory reduction, increased capacity utilization and variability reduction by relying on an important subsystem called “respect-for-humanity”. In contrast, anecdotal evidence suggests leanness in the Western world is often achieved as a result of “lean becomes mean”. In this case study of a manufacturing plant in the United States, we found remarkable operational results and cost savings within a few years after the firm’s implementation of a lean production system. Results from the structural equation model show that suggestion autonomy, a self-reported measure, is lower than what the management team has expected. Yet, other results illustrated the positive motivational effects of suggestion autonomy on worker’s well-being, manifested in the form of higher employment security, lower effort-reward unfairness, higher job satisfaction, and higher overall satisfaction. Using the framework from strategic management accounting, results of second order factor from SEM supported the extent theories that an integrated approach to organizational design is related to worker’s overall satisfaction, which in turn can be developed as a firm’s unique capability as a sustainable competitiveness. That is, in a lean manufacturing, the signaling effect of worker’s overall satisfaction can be used to gauge a firm before it headed toward excessive leanness, decreased satisfaction and suboptimal performance, or the road of diminishing return.

Authors

• Khim l Sim, Western Washington University

• Anthony P Curatola, Drexel University

• Avajit Banerjee, Drexel