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Effect of Supply Chain Digitalization on Lean Waste Reduction as Mediated by Lean Operations
Open AccessJournal Type: Research/Technical NoteSubject: Engineering & TechnologySubject Field: Industrial and Manufacturing Systems EngineeringVolume:148, Issue: 1, May, 2024Publish Date: 7 May 2024

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Pages: 239-255

Abstract

The lean operation aims for a continuous cycle with a just-in-time supply of raw materials, efficient production completion, and on-time delivery to customers. However, the pandemic made sustaining lean more challenging with parts shortages. Digitalizing Supply Chain is an agile tool that can improve production and inventory control to achieve and sustain lean manufacturing. Applying digital trends can benefit real-time data, immediate resolution, and faster turnaround time. An innovative, shorter, and more accurate process cycle promotes a circular supply chain, reduces lean waste, and supports building sustainable cities and communities. This research conducted a study on the effect of supply chain digitalization on the reduction of manufacturing lean waste as mediated by lean operations. A survey of 60 respondents from experts in supply chain and lean operations was made within the manufacturing companies in Calabarzon. Cronbach alpha initially tested the validity of the constructs in the questionnaires of the pilot study. The application of supply chain technology recorded the frequency to assess the level of digital trends adopted. Five-point Likert scale was used to determine the level of lean operations. Lastly, Baron and Kenny with regression tested the effect of the adoption of digital trends on the reduction of eight lean wastes in manufacturing examining the mediation of the level of lean operations. The study revealed a significant effect of technological adoption mediated by lean operation in the reduction of the eight lean wastes.

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