Achieving strategic goals by continuous improvement and lean manufacturing implementation: A structural equation model -system dynamics approach

Companies implement lean manufacturing tools (LMT) jointly to align with their strategic goals, and Mexican maquiladoras are no exception; however, little is known about the relationship between them or when these goals are achieved. In this paper, we present a structural equation model (SEM) that integrates five LMT, where Kaizen (KAI) as a continuous improvement program is the independent variable and Hoshin Kanri (HOK) as an alignment to objectives and as a dependent variable, with Kanban (KAN), Total Quality Management (TQM), and Poka Yoke (POY) as mediating tools, which are related by six hypotheses. The model was validated with information from 411 responses to a questionnaire applied to the Mexican maquiladora industry using the partial least squares approach in the WarpPLS v.8 software. Then, with the direct effects from the SEM, equations of the relationships between the variables are constructed and simulated using the system dynamics technique with Stella Architect v.3.0.1 to determine when LMTs reach adequate levels of implementation. The findings indicate that KAN, TQM, and POY reached implementation levels in approximately eight years, but KAI and HOK took up to 13 years, which may be due to constant changes in improvement approaches and strategic goals in response to the dynamism of globalized production systems.