Impact of Lean Manufacturing (LM) Techniques on performances of the Textile Companies in Bangladesh

Abstract

This article aims to examine the impact of lean manufacturing (LM) techniques on performance of the Textile Companies in Bangladesh. There are 1461 textile companies in Bangladesh, but in this study the target population area has been considered for Chittagong only. There are 152 textile companies in Chittagong area. Responsible authorities of each company, Head of Administration, Accounts Manager and Production Manager has been considered as population for this study. Consequently, with recognizing at least one responsible person, the target population becomes (152*3) 456. From them, 120 respondents have been taken as sample for this study. This study was conducted on the basis of primary data. Data was gathered using questionnaires developed by the researchers. Data was analyzed using Partial Least Square (PLS) 4.0 software to run Structural Equation Model (SEM) to examine the impact of LM techniques on company performance. It is also found that there was a significant positive impact of LM techniques on performance of the textile companies in Bangladesh. It recommends that the textile companies should develop a policy framework to facilitate faster implementation of the best LM practices such as Just -in Time (JIT), Total Preventive Maintenance (TPM), and Value Stream Mapping (VSM), so that the companies will be able to reduce inventory costs and improve product quality and increase customer satisfactions. Though the study suffered limitation of scope because it covered only textile companies and for Chittagong Zone only but is one of the first to have assessed the impact of lean manufacturing (LM) techniques on performance of the Textile Companies in Bangladesh.