Lean Manufacturing Practices and Environmental Performance

*Ruhet Genç*

### **Abstract**

Lean manufacturing is considered a rewarding production strategy due to its positive effects on organizational and economic efficiency in various industries. Given the growing ecological consciousness, environmental achievements of lean manufacturing also incorporate a strong economic relevance. The main objective of this chapter is, therefore, to investigate the impact of lean manufacturing practices on environmental performance and the existing coherences between Lean and ecologically oriented variables such as resource usage, energy consumption, and air pollution. The methodology is literature review evaluating the findings of research in this sphere. Besides the discussion of its principles and methods, current trends and challenges regarding lean production as a business model that supports eco-efficiency are presented. The implications of this study will allow executives to better recognize and simultaneously solve both the economic and environmental problems posed by their companies.

**Keywords:** lean manufacturing, environmental impacts, eco-efficiency, lean, environmental performance

#### **1. Introduction**

Lean Manufacturing, also known as Lean Production [1], has long been considered an advantageous manufacturing method in various companies and industries on a global level as it aims for continually improving quality and efficiency in production process [2, 3]. It is essentially about eliminating the activities that do not add value in the production and seven types of waste, also referred as muda in lean settings [4] and includes several techniques such as Total Quality Management, Just-in-Time [5], Kanban, and Jidoka [6]. It has become essential with the increased price competition that companies experience in face of changing customer demands for goods and services by helping them produce same amounts at the lower costs.

In response to growing concerns for environmental issues since the early 1990s, stemming from the climate change and exhaustion of natural resources, the relationship between Lean and environmental performance has been a critical topic in business and manufacturing literature especially from 2008 onwards [7]. Moreover, numerous companies adopted lean measures to advance their manufacturing methods for decreasing their environmental burdens since Lean Manufacturing focuses on increasing production efficiency and decreasing waste.

Considering the higher efficiency provided by lean systems, which is the reduction in energy and material resources needed per unit output, the waste of production such as the emissions to air and water, generation of solid or hazardous waste, and chemical hazards abated along with the high costs of production. Thus, lean methods may alleviate environment by means of its inherent emphasis on waste reduction even though they do not automatically involve environmentally responsible intentions [8]. Research shows that although lean systems may not directly aim for reducing environmental effect, changing the production system to lean resulted in higher efficiency in energy consumption and in less waste [9].

The fact that incorporating lean manufacturing techniques may address environmental waste problem even without prioritizing it led companies to adopt lean activities. By integrating environmental considerations, lean manufacturing may provide businesses with long-term benefits such as environmental sustainability and recognition as a responsible corporate citizen. In this regard, companies embraced lean practices to reduce their ecological footprint for maintaining a better public opinion. Furthermore, many of them considered the "triple bottom line" of economic, environmental, and social concerns into consideration and took precautions on a bigger scale than those necessitated by the regulatory bodies [10].

The main objective of this study is therefore to provide insights into the contribution of lean manufacturing practices and measures for achieving a better environmental performance of manufacturing systems and the existing relationship of these two concepts. This is accomplished through a literature review along with a critical discussion of the findings. Focusing on the meaning of the green concept waste, lean manufacturing is described as a rising business model for endorsing environmental efficiency. The most effective lean practices and their tools in relation to supporting greener production are underlined. The improvement of the environmental measures of the firms that adopt the lean manufacturing principles, the reduction in ecological impacts stemming from their industrial operations are highlighted. The results of this study are of interest to scholars as well as to business managers to better understand and overcome environmental problems encountered by their business organizations.
