A comparative study of lean and agile manufacturing with a related survey of current practices in the UK

Abstract

In response to changing success factors and environmental pressures, companies are aspiring to break out of mass production and become lean or agile. Whereas performance enhancements of lean practices have been demonstrated, it is now the case that markets have become increasingly characterized by turbulence, a situation in which reliance on lean practices is insufficient, and that survival requires adoption of agile practices. As a result, a comparative study of lean and agile manufacturing with a related survey of current practices in the UK was carried out, the results of which is presented in this paper. The paper explored the threats to lean and the drivers of agile manufacturing. Using data from a questionnaire survey, four hypotheses were tested, which was indicative of the benefits of agile manufacturing. In contrast to their lean counterparts, agile companies paid attention to a wider range of competitive capabilities. They therefore had a lower range of mean scores on competitive capabilities. Independent sample tests of significant difference in business performance measures revealed that the agile companies consistently outperformed their lean competitors on all business performance measures studied. In addition, a wider range of competitive capabilities and performance measures of the agile companies correlated significantly and positively whilst such correlation was observed for only a narrow range of capabilities and performance measures for lean companies. The results suggest that competing simultaneously on multiple competitive capabilities enhance performance better than a rather narrow focus on cost and quality.