Goodness of fit indices (GFI) is 0.903, should be higher than 0.9 [24]. Baseline Comparisons


Comparative fit indices 0.968, (higher than 0.95 great; higher than 0.9 traditional; higher than 0.8 sometimes permissible) [24].

Estimates: Maximum Likelihood Estimates

Regression Weights: (Group number 1 - Default model)


From the above table, it is observed that Lean practices are positively affected on operational, social, environmental, and financial performances (p ≤ 0.05).

Notes for Model

Computation of degrees of freedom (Default model)


Result Minimum was achieved Chi-square = 239.859 Degrees of freedom = 200 Probability level = .028

## **5. Conclusion**

A significant territory to explore is the role Lean manufacturing will play in this new modern period. This examination has reviewed the utilization of various arising advanced innovations just as set up Lean manufacturing practices to explore their relationship with operational performance in manufacturing. It reveals how Lean practices impact sustainable performance. By analyzing data from 203 manufacturing firms, we show that the firm should manage Lean practices in an integrated and coordinated way.

This study adds to explore on manufacturing improvement activities by researching the impact of both Lean manufacturing on operational performance. This examination pointed toward covering the exploration gap with respect to the intelligent impacts of Lean manufacturing on operational execution recently called attention to by Buer, Strandhagen, and Chan [25], just as tending to a portion of the impediments in the prior, comparative investigations. Lean manufacturing has for quite some time been viewed as the 'go-to' answer for improved operational execution and making an improvement culture in the organization. Rinehart, Huxley, and Robertson [26] undoubtedly recommended that Lean manufacturing 'will be the standard production method of the twenty-first century. The operational advantages of utilizing Lean manufacturing have been demonstrated in various past examinations and the aftereffects of the current investigation uphold those discoveries.

The discoveries from the structural equation model confirmed that Lean is as yet an important wellspring of competitive advantage. Albeit large numbers of the thoughts and techniques in Lean manufacturing can be followed far back, the emphasis on making an incentive for the client and decreasing waste are thoughts that will not get old, paying little mind to the mechanical advances that occur.

### **Acknowledgements**

The authors would like to thank the respondents who shared their time and responded to the survey. We would also like to thank the reviewers who helped to improve this chapter.

#### **Disclosure statement**

No potential conflict of interest was reported by the author(s).

*Effect of Lean Practices on Organizational Performance DOI: http://dx.doi.org/10.5772/intechopen.96482*
