The International Journal of Accounting and Business Society
Vol. 33 No. 1 (2025): IJABS

Maximizing Profitability: The Lean Way To Sustainable Manufacturing

Rachmawati, Christina (Unknown)
Mahmudy, Wayan Firdaus (Unknown)
Moh. Khusaini (Unknown)
Kurniawan, Andi (Unknown)



Article Info

Publish Date
04 Jan 2025

Abstract

Purpose - This quantitative study examines the impact of lean production practices on the financial performance and sustainability of Indonesian FMCG companies. By analyzing waste reduction, efficiency improvements, and eco-design integration, the research demonstrates that lean practices significantly enhance both financial performance and environmental responsibility. These findings offer valuable insights for multinational companies operating in similar contexts. Design/methodology/approach - This research employs a quantitative approach to discern the contribution of lean way to sustainable manufacturing. Through a comprehensive survey and meticulous observation, this work maps the intricate ways in which lean production practices affect economic and business outcomes, providing valuable insights into the real-world application of lean principles. Findings -. This case study demonstrates how lean production methods can substantially benefit a company's financial performance and overall operations. The implementation of lean production methodologies has a proven track record of improving efficiency, reducing waste, and elevating product and process quality, leading to substantial economic gains and enhanced business performance. Practical implications - Implementing lean production requires careful consideration of technological innovation and organizational culture. Neglecting either aspect poses a significant risk of hindering the successful implementation and realization of the myriad benefits that lean production offers. Originality/value - This article examines an Indonesian FMCG company's experience with lean production, providing a rare glimpse into how these methods are applied in a developing economy. This study aims to expand our understanding of lean production and offer useful guidance to multinational companies operating in comparable settings. Paper type -Case study

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Journal Info

Abbrev

ijabs

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Social Sciences

Description

The International Journal of Accounting and Business Society (IJABS), is published by Accounting Department, Faculty of Economics and Business, University of Brawijaya, Indonesia, which is a dissemination medium for research result from researchers and lecturers in management, accounting, ...