Lean Production for a Sustainable Future

 

In the past decades, Lean production has become the most widespread production paradigm applied in industry, while being one of the most popular subjects in business and manufacturing literature. Several industrial organisations worldwide have put into practice both Lean principles and practices to accomplish important transformations towards continuous improvement, value creation and waste elimination, while obtaining superior operational efficiency levels.

At present, Lean thinking theory has been evolving. Practitioners and academics have emphasised the importance of extending Lean production principles to other areas of the firm. More specifically, the aim of Lean thinking is to create a Lean enterprise that sustains growth by aligning customer satisfaction with employee satisfaction, offering innovative products or services profitably, while minimising unnecessary over-costs to customers, suppliers and the environment.

Regarding the last goal, the environmental performance of companies, in terms of pollution prevention and the reduction of resources’ utilisation, is an issue increasingly concerning both firms and customers more than ever.

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Lean production is naturally aligned with environmental protection objectives since both topics are mainly focused on waste reduction. However, although both concepts share several common goals, Lean and environmental protection are not always aligned, as there are various divergences that may lead to undesirable effects for the latter.

Several academics have approached this relevant topic and even more, some authors have studied the synergistic effects in combining both economic and environmental dimensions using Lean as a proxy.

Very recent findings in this research field indicate that the environmental performance of companies is generally enhanced in the long-term after the implementation of Lean practices. Moreover, results suggest that the environmental performance of firms is improved by using Just in Time (e.g. Flow layout and Value Stream Mapping) and Total Quality Management (e.g. Kaizen events, 5S and Spaghetti chart) practices in a Lean transformation context. A coherent and holistic implementation of these practices will lead to an improvement of a firm’s environmental metrics such as energy use, solid waste generation, materials use and air emissions release.

Nevertheless, managers must pay attention to the effect of Lean initiatives on environmental measures. For instance, Just in Time practices, which support frequent deliveries in companies, have been identified by several practitioners and researchers as the most problematic Lean tools for the achievement of environmental goals. These practices usually require more frequent deliveries and therefore higher levels of air emissions and energy consumption. In contrast, a drastic stock reduction derived from the implementation of Just in Time practices may also generate important energy savings. This suggests that organisations must find the right balance between storage and transport to minimise movements, stock, energy consumption, air emissions and total cost in general.

Concluding, firms must also pay attention to the environmental wastes produced, taking into consideration not only Lean objectives but also ecological targets. In this regard, Lean production is a strong tool for companies that aim to improve specific environmental measures and even more, there are some Lean practices that enhance environmental measures more than others. To achieve this optimally, it is of great importance that business managers and practitioners monitor in a proper way operational and environmental performance measures. An accurate control of operations’ environmental impact and the identification of wastes and hidden improvement opportunities facilitated by the implementation of Lean practices, may lead companies to become greener.

About the authors

Dr. Marcos Dieste is currently researching as a Postdoctoral Research Fellow in diverse fields such as strategy and operations management, sustainability, climate change, logistics, supply chain, tourism and service management at the University of Padova, Italy. He frequently collaborates in several international research projects with universities from the UK, Italy, Spain, India, USA and Brazil.

Roberto Panizzolo is Associate Professor of Operations Management and Lean Manufacturing at the University of Padova, Italy. His research activity has led to the publication of more than 160 works in national and international peer-reviewed journals, conference proceedings and books. Additionally, Professor Panizzolo has more than 25 years’ experience in corporate reorganisation projects, aimed at improving the operational performance of companies by redesigning their production and logistics systems.

References

Dieste, M., Panizzolo, R., & Garza-Reyes, J. A. (2020). Evaluating the impact of lean practices on environmental performance: evidences from five manufacturing companies. Production Planning & Control, 31, 739-756.

Dieste, M., Panizzolo, R., Garza-Reyes, J. A., & Anosike, A. (2019). The relationship between lean and environmental performance: practices and measures. Journal of cleaner production, 224, 120-131.

Garza-Reyes, J. A., Kumar, V., Chaikittisilp, S., & Tan, K. H. (2018). The effect of lean methods and tools on the environmental performance of manufacturing organisations. International Journal of Production Economics, 200, 170-180.

 
Daniel Camara