Enhancing Operational Excellence of Wood and Furniture Manufacturing Industry in Malaysia: The Role of Lean Culture as a Generative Mechanism

This study addresses the research gap in lean manufacturing within the Malaysian wood and furniture industry. While proven effective in the Toyota Motor Company, the application of lean manufacturing practices in other companies remains uncertain. Therefore, this research aims to explore the role of lean culture as a generative mechanism for achieving operational excellence through the adoption of lean manufacturing practices. The proposed mediation research framework draws on a literature review. The independent variable in this study is lean manufacturing practices, encompassing work standardization, build-in quality, and just-in-time production. The mediator variable is lean culture, emphasizing respect for people and continuous improvement. Operational excellence serves as the dependent variable. Data were collected through a survey methodology from 193 wood and furniture manufacturing firms that participated in MTIB’s lean and 5S-good manufacturing practices programs. The collected survey data were analysed using PLS-SEM analysis in SmartPLS 4 software. The results reveal that both lean manufacturing practices and lean culture have a positive influence on operational excellence. Additionally, lean culture mediates the relationship between lean manufacturing practices and operational excellence. This study contributes to the existing knowledge by providing new statistical evidence of the associations between lean manufacturing practices, lean culture, and operational excellence in the context of the Malaysian wood and furniture industry. The findings emphasize the importance of incorporating lean practices and fostering a lean culture to achieve operational excellence.