Enhancing Sustainable Performance using Lean Quality Competitive Manufacturing Strategy: A Case Study in the Luggage Company

Abstract

Manufacturing companies must be more cautious in using their resources to create sustainable competitive advantages. A Lean Quality approach enables manufacturing companies to identify non-value-added activities and the severity of defects, thus sustaining their production process effectively and efficiently. The present research proposes a Lean Quality sustainable competitive manufacturing framework by combining the Sustainable Value Stream Mapping (SVSM), Quality, and Sustainability Index (SI) Assessment. This framework measures the contribution of the Lean Quality approach to achieving a better SI by considering the Defect Per Millon Opportunities (DPMO) indicator. The SVSM is applied to identify the non-value-added activities and the severity of the defect, and the Pairwise Comparison is applied to define the weight of performance indicators. The validation process is conducted using this framework to enhance the SI in an Indonesian luggage manufacturing company. The calculation of the DPMO value is 9,412, with a Sigma Level of 3.85. Based on the results of performance mapping for all sustainability indicators, the SI calculation results at the luggage company is 181.1 %. The company needs a continuous improvement program for the DPMO indicator, thus, reducing the value of change in all the other indicators related to the economic pillar. This research provides empirical evidence of the positive contribution of the Lean Quality approach to enhancing sustainable competitive manufacturing performance. The framework can assist the practitioners in implementing a Lean Quality approach and measuring its contribution to improving SI.