Improvement of productivity by utilising lean manufacturing, just in time and production technology in the Thai SME manufacturing industry

Purpose This study aims to investigate the current situations, opportunities and obstacles in the Thai manufacturing industry and to create a model for improving efficiency while reducing the levels of inventory. Design/methodology/approach This study gathered information from in-depth interviews with 40 participants selected by snowball sampling from manufacturing companies in Thailand. Findings The results revealed that organisations have implemented lean production principles as a strategic initiative to mitigate losses. The implementation of comprehensive work manuals, offered in diverse languages such as Thai, Burmese, Cambodian, Japanese and English, serves as an additional mechanism to mitigate losses by ensuring clarity and understanding among the workforces. Furthermore, the integration of modern technologies, encompassing machine technology, robotics and artificial intelligence, is actively pursued to streamline production processes and consequently reduce losses. The results recommend that companies refrain from adopting just-in-time production systems due to operational challenges associated with fulfilling customer orders. Specifically, frequent machine shutdowns for adjustments are necessitated, leading to elevated unit costs. Manufacturing companies in Thailand continue to harbour potential for growth, despite the inevitable rise in employee wages leading to increased operational costs. Originality/value To navigate this challenging landscape, companies must remain adaptive, responding not only to shifts in customer preferences but also advancements in technology. Additionally, they must undertake a proactive examination of customer needs prior to initiating the production process, adopt a paradigm shift from low-cost production to premium-grade products that satisfy the demands of customers seeking superior product quality, and broaden customer bases both overseas and globally, and identify new target demographics.