analysis of lean and agile manufacturing practices under universal, contingency and

396 Pages·2015·6.72 MB·English

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ANALYSIS OF LEAN AND AGILE MANUFACTURING PRACTICES UNDER
UNIVERSAL, CONTINGENCY AND CONFIGURATIONAL PERSPECTIVES
IN APPAREL EXPORT INDUSTRY OF PAKISTAN AND DEVELOPMENT OF
A STRATEGIC FRAMEWORK FOR IMPROVING ITS PERFORMANCE

BY
TAHIR IQBAL
2009-NUST-TFRPHD-EM-65

THE DISSERTATION
Submitted to
National University of Sciences and Technology
in partial fulfillment of the requirements for the degree of
DOCTOR OF PHILOSOPHY IN ENGINEERING MANAGEMENT

SUPERVISOR
DR NAWAR KHAN

DEPARTMENT OF ENGINEERING MANAGEMENT
COLLEGE OF ELECTRICAL & MECHANICAL ENGINEERING
NATIONAL UNIVERSITY OF SCIENCES & TECHNOLOGY PAKISTAN
2015
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ACKNOWLEDGEMENTS
God has blessed me extra ordinary help to grow in my professional career, for this, I
owe my gratitude to Him. I am deeply obliged to my advisor, Prof. Dr. Nawar Khan, for his
continuous guidance, in my, Academics and Research Studies. His encouraging suggestions
and comments have helped a lot in the completion of my thesis. I earnestly feel indebted to my
other Guidance and Evaluation Committee Members Dr. Syed Athar Masood, Dr. Syed
Tasweer Hussain Shah and Dr. Ali Rizwan for providing me constant advice at various stages
of this work. Their invaluable experience in research has helped me on a number of occasions
to correct my perceptions. I also take this opportunity to thank Assistant Prof. Dr. James Eric
Gaskin, Marriott School of Management, Brigham Young University, USA for the precious
time and effort that he spent for helping on issues related to Structural Equation Modelling
(SEM) during analysis part of my research study. I am also thankful to Mr Nadeem Talib and
Mr Bilal Ahmad Khan who helped me in learning SPSS and AMOS respectively.
My biggest debt is to my father Mian Sakhi Muhammad (Late) and my mother Jamila
Begum, who have contributed a lot towards enriching my life, by providing me a happy
childhood and constantly encouraging and supporting me in pursuit of knowledge and truth. I
also thank my brother and sisters for their moral support, especially my brother Mian
Tabassum Iqbal for encouraging me during the course of my academic career.
I must express my deepest gratitude to my wife Asma, daughter Rafia and sons, Hamza
and Abdullah, who suffered the most because of my long-standing commitments with this
research work. Indeed the major credit of all my achievements, during the course of this
research study, goes to their sustained patience and moral support.
I was very fortunate to receive scholarship awards from the National University of
Sciences and Technology for my PhD study. This award provided a considerable financial
support in timely completion of my dissertation.
I owe my gratitude to the officials of Pakistan Readymade Garments Manufacturers and
Export Association (PRGMEA) and Pakistan Hosiery Manufacturers Association (PHMA),
who, despite their heavy commitment, provided me all that data which could help me in the
completion of my Research.
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I also take this opportunity to thank Mr. Waseem the Principal Library officer NUST
College of E&ME for timely arranging various books and relevant literature throughout my
research work. Finally, it will really be injustice to ignore the contributions of administrative
staff of whole College of E&ME and NUST in smooth accomplishment of the official matters
and minimizing the unnecessary delays in documentation and other related matters.

Tahir Iqbal
Rawalpindi
2014
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DEDICATIONS

This Research Work is dedicated to:

My Father Mian Sakhi Muhammad (late) and Mother Jamila Begum
My Brother Mian Tabassum Iqbal and Sisters Rubina, Rukhsana, Nagina and Asfa
My Wife Asma, daughter Rafia and sons Hamza, Abdullah and Ibrahim
And
My Dearestt Friends
Chaudhry Muhammad Naeem Akbar
&
Ahsan Rana
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TABLE OF CONTENTS
Acknowledgements.……………………………………………………………………................... ii
Table of Contents…………………………………………………………….……........................... v
List of Abbreviations.…………………………………………………………………..................... x
List of Tables………………………………………………………………….................................. xiv
List of Figures ………………………………………………………………………….................... xvii
List of Symbols…………………………………………………………………………………….. xx
Abstract…………………………………………………………………….…….............................. xxi
CHAPTER 1: INTRODUCTION
1.1 Introduction and Theoretical Background………………………………………………… 1
1.2 Industry Background and Need of Study…………………………….................................... 5
1.3 Research Questions…………………………………………………………………………. 13
1.4 Aim and Objectives of Research ….……………………………………………………… 14
1.5 Research Approach………………………….………………………………….................... 16
1.6 Significance of Research ……. …………………………………………………………… 18
1.7 Research Scope……………………………………………………………………………. 18
1.8 Research Novelty and Contributions ………………………………………………………. 19
1.9 Thesis Report Structure ……………………………………………………………………. 21
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction……………………………………………………………………………….. 23
2.2 Lean (TQM & JIT) Manufacturing Paradigm…………………………………………….. 27
2.3 Lean (TQM & JIT) Theoretical Frameworks …………………………..………..……….. 35
2.4 Lean (TQM & JIT) and Organizational Performance…………………………………….. 45
2.5 Agile Manufacturing Paradigm……………………………………………………………. 60
2.6 Agile Manufacturing Theoretical Frameworks……….....………..………..……………… 70
2.7 Agile Manufacturing and Organizational Performance…………………………………… 82
2.8 Lean (TQM & JIT) and Agile Manufacturing Relationship …….……………………….. 90
2.8.1 Mutually Exclusive Paradigms………………………………..…………………… 96
2.8.2 Mutually Supportive or Lean (TQM & JIT) as Antecedent to AM Paradigms……. 100
2.9 Lean (TQM & JIT) and AM Relationship with Organizational Performance…..………….. 104
2.10 Literature Synthesis of Lean (TQM & JIT) and AM Practices …….………………………. 111
2.11 Implementation of Lean (TQM & JIT) and AM in Contextual Approach ……………….. 113
2.11.1 Contingency Theory ….………………………………………………….............. 113
2.11.2 Institutional Theory ………………………………………………………………. 116
2.12 Implementation of Lean (TQM & JIT) and AM in Configurational Approach………..…… 119
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2.13 Performance Measurement in Operations Management ……….…………………………. 119
2.14 Development of a 3-Stage Lean (TQM & JIT) and AM Integrated Manufacturing
Theoretical Framework …………………………………………………………………… 124
2.15 Awareness of Lean (TQM & JIT) and AM Practices in Pakistan…………………………. 125
2.16 Findings of Literature Review …………………………………………………………….. 129
2.17 Summary……………………………………………………………………………………. 130
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction………………………………………………………………………………… 131
3.2 Development of Conceptual Framework of Lean (TQM & JIT) and AM Integrated
Manufacturing…………………………………………………………………………….. 131
3.3 Research Constructs……………………………………………………………………….. 135
3.3.1 Organization Culture………………………………………………………………. 136
3.3.1.1 Top Management Commitment………………………............................. 136
3.3.1.2 Common Internal Infrastructure Practices………………………………. 137
3.3.1.3 Common External Infrastructure Practices... ……………………………. 139
3.3.2 Core Integrated Manufacturing Practices…………………………………………. 140
3.3.2.1 Core TQM Practices ……………………………………………………. 140
3.3.2.2 Core JIT Practices ……………………………………………………….. 142
3.3.2.3 Core AM Practices ……………………………………………................ 143
3.3.3 Performance Outcomes…………………………………………………………… 144
3.3.3.1 Operational Performance……………………………............................... 145
3.3.3.2 Market Performance……………………………………………………… 145
3.3.3.3 Financial Performance…………………………………………………… 145
3.3.4 Business Environmental Factors…………………………………………………… 145
3.3.4.1 Competitive Pressures…………………………………………................ 145
3.3.4.2 Market Dynamics………………………………………………………… 146
3.3.4.3 Technological Dynamics…………………………………………………. 146
3.4 Research Hypotheses……………………………………………………….......................... 146
3.4.1 Concept of Fit……………………………………………………………………… 146
3.4.2 Universal Perspective Fit Hypotheses……………………………………………. 149
3.4.3 Contingency Perspective Fit Hypotheses ……………………………………….. 157
3.4.4 Configurational Perspective Fit Hypotheses ………………….............................. 164
3.5 Research Design…………………………………………………………………………….. 165
3.5.1 Philosophy……………………..………………………………………................... 165
3.5.2 Approach……….…………………………………………………………………. 167
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3.5.3 Purpose……………………….……………………………………………..…….. 168
3.5.4 Strategy and Choice……………………………………………………………….. 169
3.5.5 Time Frame………………………………..………….……………………………. 170
3.5.6 Delimitations………………………………………………..…………………….. 170
3.6 Survey Questionnaire……………………………………………………............................ 171
3.6.1 Variables Operationalization………………………………………………………. 172
3.6.2 Independent Variables ……………………..……………….................................... 174
3.6.3 Dependent Variables……………………………………………………………... 180
3.6.4 Organizational Context Variables………..….…………………………………….. 182
3.6.5 Business Environmental Context Variables………….……………………………. 182
3.7 Survey Design………………………………………………………………………………. 183
3.7.1 Sampling Frame…………………………………………………............................ 183
3.7.2 Data Collection Method……………………………………………………………. 184
3.7.3 Variables Coding…………………………………………………………………... 188
3.8 Data Analysis Scheme …………………………………………………………………….. 188
3.9 Summary……………………..……………………………………………………………... 190
CHAPTER 4: EMPIRICAL DATA MEASUREMENT
4.1 Introduction………………………………………………………………………………… 191
4.2 Sample Description…………………………………………………………....................... 192
4.3 Descriptive Statistics and Variables Screening………………............................................ 192
4.4 Assessment of Potential Biases …………………………………………………………… 194
4.4.1 Non Response Bias …………………………………………………..……………. 194
4.4.2 Common Method Bias …………………………….………………………………. 196
4.5 Construct Items Analysis and Reliability……………………….......................................... 197
4.6 Constructs Validity………………………………………………………………….…….. 198
4.6.1 Exploratory Factor Analysis……………………………………………………… 203
4.6.2 First Order Confirmatory Factor Analysis …..…………………………………….. 210
4.6.2.1 Unidimensionality………………………………………………............. 211
4.6.2.2 Convergent Validity…………………………………………………….. 211
4.6.2.3 Construct Reliability…………………………………………................... 212
4.6.2.4 Discriminant Validity…………………………………………................ 212
4.6.3 Second Order Confirmatory Factor Analysis…………............................................ 213
4.6.3.1 Unidimensionality and Convergent Validity…………………………….. 218
4.6.3.2 Reliability…………………………………………………..…………….. 218
4.6.3.3 Nomological Validity…………………………………………............... 224
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4.6.3.4 Discriminant Validity…………………………………………............... 233
4.6.4 First Order Composite Scales…………………………………………………....... 233
4.6.5 Full Measurement Model with Composite Sclaes………………………………… 234
4.6.5.1 Discriminant Validity…………………………………………............... 234
4.7 Findings of Empirical Data Measurement…………..……………………………………. 238
4.8 Summary……………..……………………………………………………………………. 239
Chapter 5: EMPIRICAL DATA ANALYSIS
5.1 Introduction………………………………………………………………………………… 240
5.2 Analysis Methods Used…………………………………………………………………… 240
5.2.1 Structural Equation Modelling……………………………………………..……… 241
5.2.1.1 Model Fit Assessment Criteria………………………………………….. 242
5.2.1.2 Nested Models Comparison Criteria…………………………………….. 245
5.2.2 Multi-Group Moderation ………………………..………………………………… 246
5.2.2.1 Moderator Group Formulation……………………................................... 246
5.2.2.2 Multi-Group Moderation Assessment…………….................................... 247
5.2.3 Multiple Regression Analysis……………………………………………………… 247
5.2.4 Discriminant Analysis…………………………………………….......................... 249
5.3 Analysis Results…………………………………………………………….......................... 251
5.3.1 Universal Perspective Fit Results………….………………………………………. 251
5.3.1.1 Direct Fit Assessment – Covariation Fit…………….…………………… 251
5.3.1.2 Indirect Fit Assessment – Mediation Fit…………..…………………….. 257
5.3.2 Contingency Perspective Fit Results..……………………..……………………… 273
5.3.2.1 Moderation Fit……………………………………………………........... 273
5.3.2.2 Post-Hoc Analysis……………………………………………………….. 275
5.3.3 Configurational Perspective Fit Results…………………………………………… 287
5.3.3.1 Profile Deviation Fit……………………………………............................ 287
5.3.4 Gestalt Fit Results………………………………………………………….............. 290
5.4 Final Lean (TQM & JIT) and AM Integrated Manufacturing Developed Framework……. 294
5.5 Findings of Empirical Data Analysis……………………………………………………….. 297
5.6 Summary…………………………………………………………………………………… 297
Chapter 6: RESULTS AND DISCUSSIONS
6.1 Introduction…………………………………………………………………………………. 298
6.2 Results Discussions…………………………………………………………………............ 298
6.2.1 Results of Question 1……..……………………………………………………….. 298
6.2.2 Results of Question 2…….…………………………………….………………….. 299
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6.2.3 Results of Question 3….…………………………………………………………. 300
6.2.4 Results of Question 4………………………………………………………………. 300
6.2.5 Results of Question 5…..…………………………………………………………. 301
6.2.6 Results of Question 6….…………………………………………………………… 302
6.2.7 Results of Question 7…..…………………………………………………………. 302
6.2.8 Results of Question 8…….………………………………………………………… 303
6.2.9 Results of Question 9…….………………………………………………………… 304
6.3 Summary……………………………………………………………………………………. 305
Chapter 7: RECOMMENDATIONS AND CONCLUSIONS
7.1 Introduction…………………………………………………………………………………. 306
7.2 Research Contributions……………………………………………………………………... 306
7.2.1 Development of a Theoretical Framework of Lean (TQM & JIT) and AM
Integrated Manufacturing …………………………………………………………. 306
7.2.2 Theory Formulation of Lean (TQM & JIT) and AM Integration ………………… 308
7.2.3 Development of Research Process of Lean (TQM & JIT) and AM Integrated
Manufacturing……………………………………………………………………… 309
7.3 Recommendations for Apparel Export Industry of Pakistan………………………………. 310
7.4 Future Research Directions……………..………………..……………………………....... 313
7.5 Conclusions………………………………………………………………………….……… 315
Appendices
Appendix A Conceptual Framework Key Constructs Description with Literature Support… 317
Appendix B Survey Questionnaire…………………………………………………................ 324
Appendix C PHMA Support Letter 2012…………………………………………………… 333
Appendix D PRGMEA Support Letter 2012………………………………………………… 334
Appendix E PRGMEA Central Chairman Support Letter 2013…………………………… 335
Appendix F PHMA Central Chairman Support Letter 2013…………………....................... 336
Appendix G PHMA North Chairman Support Letter 2013………………………………… 337
Appendix H Giz - Navttc – Course Attendance Certificate………………………………… 338
Appendix I PRGMEA North Chairman Support Letter 2013………………………………. 339
Appendix J Descriptive Statistics…………………………………………………................. 340
Appendix K First Order Factor Measurement Model Results ….…………………..…… 344
Appendix L List of Publications………………………………………………………. 348
References ………………………………………………………………………………… 349
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LIST OF ABBREVIATIONS

AMOS Analysis of Moments Structures
AM Agile Manufacturing
Bns Billions
BPR Business Process Reengineering
CAD Computer-Aided Design
CAM Computer-Aided Manufacturing
CAT Computer Aided Testing
CAE Computer Aided Engineering
CAIP Computer Aided Inspection Planning
CAPP Computer Aided Process Planning
CB-SEM Covariance Based - Structural Equation Modelling
Ct Cronbach's Coefficient Alpha
CEO Chief Executive Officer
CIM Computer Integrated Manufacturing
CAGR Compound Annual Growth Rate
CM Cellular Manufacturing
CE Concurrent Engineering
CEO Chief Executive Officer
CI Common Infrastructure
CII Common Internal Infrastructure
CEI Common External Infrastructure
CFA Confirmatoy Factor Anlaysis
CFI Comparative Fit Index
CIP Common Infrastructure Practices
CITC Corrected Item to Total Correlation
CNC Computer Numerical Control
CP Change Proficiency, Core Practices
CR Composite Relaibility
CT Contingency Theory
CWQC Company Wide Quality Control
DF Degree of Freedom