The effect of lean supply chain practice on supply chain performance in Egypt manufacturing industry

Abstract EN

The general objective of this paper is to determine the impact of lean practice on supply chain (SC) performance in Egypt manufacturing industry, an empirical framework was proposed for lean supply chain (LSC) practices to encompass the five processes (plan, source, make, deliver, return) of the supply chain operations reference “SCOR model” which constitute the main processes of supply chain management (SCM).

This study adopted a quantitative explanatory research design to test empirically the extent of applying lean practice in manufacturing sector in Egypt market throughout the SCOR model five processes, and to investigate the impact of applying LSC practices on the total SC performance (cost, time, quality, and flexibility).

A survey questionnaire was distributed to managers from 30 manufacturing companies from different industries implementing lean practice in their operations, only 66 validated questionnaires were obtained.

The results revealed.

First, the identification and empirical validation of lean practice implementation degree across SCM which provides means to focus on the most popular and elementary LSC practices among different manufacturing industry sectors in Egypt.

Second, the effect of LSC practices on the total SC performance, although not all aspects matter to the same extent and effect.

As, the practices of value stream analysis or value stream mapping (VSA or VSM), lean shop floor (LSF), customer relationship management (CRM), and information technology (IT) management have a significant positive effect on the total SC performance.

While supplier relationship management (SRM) and just in time (JIT) practices have an insignificant effect on the total supply chain performance.