Implementing Lean Green and Circular Practices to Develop Sustainable Operations

ABSTRACT Waste generation in the textile industry supply chain process has become a crucial challenge. This study seeks to address this by implementing lean green and circular manufacturing practices in Peruvian textile industries to improve its operational performance, ensuring timely delivery and reducing waste. A case study methodology was adopted comprising three analytically distinct and interrelated phases: systemic process modelling, rigorous identification of waste across operational and environmental dimensions, and the strategic integration of lean methods, environmental management practices and circular manufacturing principles to enable reconfiguration of existing production systems. Integrating the synergistic relationship between lean and green practices with circular manufacturing principles, we propose a lean green practices and circular manufacturing (LGCM) framework that enables the reconfiguration of existing manufacturing processes to achieve efficient, environmentally friendly production, enhancing the competitive edge in an eco‐conscious market. The findings demonstrate improvements in operational performance, notably reductions in order delays and defect rates, while also strengthening production dynamics and sustainability‐oriented operations in textile manufacturing. The study advances the sustainability and strategic management literature by providing a contextually grounded strategic framework for integrating and optimizing sustainability transitions in a real‐world emerging‐market context. The study framework has the potential to inform production industry practices, offering a replicable, scalable approach for sustainable manufacturing to maintain competitiveness in increasingly eco‐conscious markets.