Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Assessing the Economic Efficiency of Lean Technologies Implementation in an Industrial Enterprise

Author(s): Andrey Zaytsev, Nikolay Dmitriev, Bunkovsky Dmit

Management of any enterprise should be aimed at finding and implementing the most economically efficient projects to achieve strategic goals. Modern trends reinforce the importance of intensive means of achieving business efficiency that help to maximize performance and reduce costs with minimal capital investment. One such means is adoption of lean technologies. The advantages of lean manufacturing have been considered in detail by the economic community, but there are a number of challenges in the economic assessment of the results of investment projects associated with introduction and use of lean tools. In this study, the authors propose an original methodology for assessing the economic efficiency of investment projects involving implementation of lean production tools. To this end, it is necessary to analyze current research in this field, propose an instrumental approach to evaluating the economic efficiency of lean tools adoption, build an assessment algorithm, and test the method at an industrial enterprise. The study proposes to consider the quantitative and relative assessment of the economic efficiency of lean tools. Calculations are based on mathematical methods and achievements of investment analysis. The practical significance of this study consists in the development of the original methodology that makes it possible to assess the economic efficiency of using lean technologies to substantiate rationality of further development of an enterprise in this direction. Based on the developed methodology, it is possible to provide recommendations for optimizing business operations of an enterprise. To substantiate the feasibility of using the approach proposed by the authors, it was tested at an industrial enterprise operating in the North-West of the Russian Federation. It was established that the use of lean technologies in certain structural units of an enterprise increases economic efficiency, which makes it possible to substantiate the need for further implementation of these technologies in other units to strengthen strategic advantages.

Get the App