APPENDIX 1

SURVEY QUESTIONNAIRE

A Study on widespread adoption of Lean Manufacturing Practices

(LMP) in Engineering Goods Manufacturing Firms

Section 1: Demographic Details

1.1 No. of employees : 101-300 301-500 501-1000 >1000

1.2 Products manufactured : Auto Components Non-Auto components Both

1.3 You supply products to? : OEMs Tier I companies Tier II companies

1.4 How would you categorize the product mix of the company in terms of Volume-Variety?
High Volume-More Variety High Volume-Less Variety
Low Volume-High Variety Low Volume-Low Variety

1.5 Whether the company is aware of Lean Manufacturing Techniques? Yes No

1.6 Do you agree that implementing Lean manufacturing techniques has organizational benefits?

Yes No

1.7 Have you started implementing Lean Manufacturing Practices? Yes No

If Yes, when? < 1 year 2- 3 years < 3 - 4 years > 4 years

1.8 What is the growth percentage of the company compared to last year?
0-5% 6-10% 11-15% > 15% < 0% (negative)
Section 2: How do you rate the following external factors are important that it is necessary to
practice Lean techniques?

Extremely
Important
Important

Important

Important
Very
Not
External Factors

Entry of foreign companies

Increase in raw material price
To meet International quality standards
Tough national and international competition
Competitive pricing by other manufacturers
Rapid Introduction of new products in the market
Government initiatives and schemes
The customer want the product fast
The customers are always demanding for a low price
Customers expectations are high and changing very often
Others (pl specify)

Section 3: Pl tick the following questions to understand your product characteristics

Strongly Agree
Disagree
Disagree
Strongly

Neutral

Agree
Product Characteristics

Our products has a constant demand throughout the year

Production line is able to achieve steady output rate
The products are delivered frequently in small lots
The company gets repeat orders for same component
Production line faces difficulty while change in job variety
The customer assist you in using quality control techniques
There is always raw material shortage in the market
There are sudden changes in supply quantities by the
customer
The delivery schedules are well planned
Most of the drawings are given by customer
The company purchases from atleast 3 suppliers for one item
70 % of our suppliers are within 50 kms radius
The company has contract agreements with its customers
We receive frequent engineering changes from customer side
Section 4: What are the reasons for not implementing Lean or the obstacles faced by the company
while implementing Lean Techniques? (Pl. in the box)

Strongly Agree
Disagree
Disagree
Strongly

Neutral

Agree
Implementation Challenges

Company is not fully aware of lean tools and techniques

Management is not interested in implementing Lean techniques
No proper training is provided to employees
Implemented but cannot continue due to high employee turnover
There is no interest shown from employees side
Employees are interested but not empowered
Employees are not ready to change to new practices
In some areas, employees slip back to the old method
The investment requirement is high for implementation
No consultant is available for guidance and implementation
Did not know where to start
Others (pl specify)

Section 5: How do you rate the Production & Inventory Management practices in your company?
(Pl. in the box)

Strongly Agree
Disagree
Disagree
Strongly

Neutral

Production & Inventory Management Agree

We predict the customer demand and accordingly the production

planning is done
We use the Pull production system and no waiting for material at
every work station
The inventory Levels are high at all work stations
Our suppliers supply material only when it is needed
We use Kanban squares or containers in the shop floor
Supermarket concept is used for maintaining inventory buffers
Product quantity routing has to be improved in many areas
99 % the products are delivered on time
Finished goods are stocked in excess to meet out the demand
The frequency of purchase is improved in last two years
Visual Pull Signals are well used in process flow
Section 6: How do you rate the extent of TQM practices in your company? (Pl. in the box)

Strongly Agree
Disagree
Disagree
Strongly

Neutral

Agree
Total Quality Management

All critical processes are controlled using SPC Charts

Waiting time for materials at work stations are very high
Rejections are eliminated using fail-proofing method at critical points
Every place in the organization is neat and well arranged
The components produced by us meets the international standards

Department level meetings are held regularly to solve problems

Whenever a problem occurs, the root cause is identified and solved
Most of the products received from suppliers are delivered at point of
use
We always compare our self with competitors
Communication (Top-down and Bottom-top) both ways need to be
improved

Section 7: How do you rate the extent of Total Organisational Buy-in, TOB practices in your
company? (Pl. in the box)

Strongly Agree
Disagree
Disagree
Strongly

Neutral

Agree
Total Organizational Buy-in

targets
Best performer announcements are made regularly
Sign Boards are very effective and displayed at appropriate positions
Department problems are solved as a team exercise
Employees are rewarded whenever an improvement is made
At least 25 % of employees suggestions are implemented
There is lack of financial support for effective implementation of lean
Most of the suggestions will come from managers rather than
operators
Most of the employees are not ready to change to a new method
Safety is a major problem in the departments
Employees are ready to stay back and work whenever need arises
Atleast 60% of the employees have attended training programmes
Section 8: How do you rate the extent of the following techniques implemented in the company?
(Pl. in the box)
NI Not Implemented, 1 Just started implementing, 2 Implemented but very less,
3 Implemented partially, 4 Implemented well, 5 Achieved Full implementation

Techniques Implemented NI 1 2 3 4 5
5S
QC Circles
Poke Yoke
Kaizen
Just-in-time
Line Balancing
Set-up Time Reduction
Group Technology
Visual Controls
Value Stream Mapping
Cellular Layout
Takt Time
Single Piece flow
Quick Change-overs
Total Productive Maintenance, TPM
Jidoka (Autonomation)
Standard Operating Procedure, SOP
Machine reliability
Section 9: How do you rate the benefits achieved by the company in the past two years?
(Pl. in the box)

Very Somewhat Not

Achievements Effective Neutral
Effective Effective Effective
Quality Improvement
Rejection Rate
Meeting Customer demand
Reduction in Inventory Level
Wastage Reduction
Productivity Improvement
Delivery Lead Time
Machine Downtime
Product Cost Reduction
Lot size reduction
Product Cycle Time reduction
Process Flexibility
Setup time reduction
Supplier Lead time reduction
Work Environment
Communication Flow
Employee Morale
Customer Satisfaction
Section 10: Pl. in the box)

Strongly Agree
Disagree
Disagree
Strongly

Neutral

Agree
Competitive Advantage

The products are sold at lowest price when compared to competitors

Customers buy our products only because of high quality
We have an excellent delivery performance record to satisfy our
customers
We are the only company to offer more number of variety products
Our products are known for its excellent design
Customers come to us because we can supply any volume of
requirement
We get orders because we only have the technology / machines
Customers come to us only for new product development
Our products are sold well because of the best service we provide

Section 11: Pl. in the box)

Significant Marginal No Marginal Significant

Measure
Decrease Decrease Change Increase Increase

No. of orders
New Customers
Production Cost
Market Share
No. of Products
Sales Turnover
No. of Employees
Export Orders (if applicable)
Asset Value
Sales Return
Cost Control

Name of the organization :

Name of the respondent :

Thank You for your valuable time!

Date: Signature of Respondent

 APPENDIX 2

SPSS OUTPUT TABLES OF SECOND STAGE K-MEANS

CLUSTER ANALYSIS

Initial Cluster Centers

Cluster
1 2
PIM Mean 4.09 2.55
TQM Mean 4.64 2.18
TOB Mean 5.00 2.58
LMT Mean 5.00 1.00

Iteration Historya
Change in Cluster Centers
Iteration 1 2
1 1.919 1.493
2 .018 .023
3 .000 .000
4 1.657E-6 5.435E-6
5 1.578E-8 8.362E-8
6 1.503E-10 1.286E-9
7 1.431E-12 1.979E-11
8 1.394E-14 3.051E-13
9 .000 3.801E-15
10 .000 .000

Final Cluster Centers

Cluster
1 2
PIM Mean 3.593 3.159
TQM Mean 3.709 2.560
TOB Mean 3.583 3.121
LMT Mean 3.966 1.931
 APPENDIX 3

OUTPUT TABLES OF DISCRIMNANT ANALYSIS

Variables Entered/Removeda,b,c,d
Wilks' Lambda
Step Entered Exact F
Statistic df1 df2 df3
Statistic df1 df2 Sig.
1 LMTMean .213 1 1 166.000 612.031 1 166.000 .000
2 TQMMean .182 2 1 166.000 369.875 2 165.000 .000
3 TOBMean .148 3 1 166.000 315.439 3 164.000 .000
4 PIMMean .143 4 1 166.000 243.870 4 163.000 .000
At each step, the variable that minimizes the overall Wilks' Lambda is entered.
a. Maximum number of steps is 8.
b. Minimum partial F to enter is 3.84.
c. Maximum partial F to remove is 2.71.
d. F level, tolerance, or VIN insufficient for further computation.

Wilks' Lambda
Number of Exact F
Step Lambda df1 df2 df3
Variables Statistic df1 df2 Sig.
1 1 .213 1 1 166 612.031 1 166.000 .000
2 2 .182 2 1 166 369.875 2 165.000 .000
3 3 .148 3 1 166 315.439 3 164.000 .000
4 4 .143 4 1 166 243.870 4 163.000 .000

Eigenvalues
Canonical
Function Eigenvalue % of Variance Cumulative %
Correlation
1 5.985a 100.0 100.0 .926
a. First 1 canonical discriminant functions were used in the analysis.
 Wilks' Lambda
Test of
Wilks' Lambda Chi-square df Sig.
Function(s)
1 .143 318.766 4 .000

Structure Matrix
Function
1
LMT Mean .785
TQM Mean .376
PIM Mean .297
TOB Mean .205

Functions at Group Centroids

Function
Balanced or Unbalanced
1
Balanced 1.908
Unbalanced -3.100

Classification Resultsa
Balanced or Predicted Group Membership
Total
Unbalanced Balanced Unbalanced
Balanced 104 0 104
Count
Unbalanced 0 64 64
Original
Balanced 100.0 .0 100.0
%
Unbalanced .0 100.0 100.0
a. 100.0% of original grouped cases correctly classified.
 APPENDIX 4

OUTPUT TABLES FOR CONSTRUCT VALIDITY

Reliability and AVE

Composite
Construct AVE Cronbach Alpha
Reliability
LE 0.929862 0.769200 0.898954
BA1 1.000000 1.000000 0.000000
CP1 1.000000 1.000000 0.000000
CA1 1.000000 1.000000 0.000000

Factor Structure Matrix of Loadings and Cross-Loadings

Scale Items LE BA1 CP1 CA1

PIM 0.8889 0.3809 0.5506 0.6805
TQM 0.9539 0.3040 0.7397 0.7318
TOB 0.8831 0.2444 0.7120 0.6798
LMT 0.7720 0.2539 0.4682 0.3754
BA 0.3357 1.0000 0.0956 0.6163
CP 0.7174 0.0956 1.0000 0.4850
CA 0.7200 0.6163 0.4850 1.0000
 APPENDIX 5

INDICATOR LOADINGS FOR CONSTRUCTS

Factor Loading, Residual and Weights

Construct Indicator Mean Stdev Loading Residual Weight

PIM -0.004919 1.032182 0.888900 0.209800 0.273200

LE TQM 0.002988 1.002216 0.953800 0.090300 0.330300

TOB 0.005413 1.000548 0.883100 0.220200 0.308900
LMT -0.002468 1.002619 0.772700 0.402900 0.219300
BA1 BA 0.003469 1.001998 1.000000 0.000000 1.000000
CP1 CP -0.002021 1.002726 1.000000 0.000000 1.000000
CA1 CA 0.000283 1.003022 1.000000 0.000000 1.000000

OUTPUT TABLE FOR CONSTRUCT CORRELATIONS

Correlation of Latent Variables

LE BA1 CP1 CA1

LE 1.000
BA1 0.336 1.000
CP1 0.718 0.096 1.000
CA1 0.720 0.616 0.485 1.000
 APPENDIX 6

OUTER PATH BOOTSTRAP RESULTS

Measurement Mode(Loading)--BootStrap

Entire
Mean of Standard
Sample T-Statistic
Subsamples error
estimate

PIM 0.8889 0.8900 0.0182 48.7859

TQM 0.9538 0.9540 0.0088 108.6761

LE
TOB 0.8831 0.8838 0.0169 52.1958

LMT 0.7727 0.7801 0.0331 23.3290

BA1 BA 1.0000 1.0000 0.0000 0.0000

CP1 CP 1.0000 1.0000 0.0000 0.0000

CA1 CA 1.0000 1.0000 0.0000 0.0000

 APPENDIX 7

INNER PATH BOOTSTRAP RESULTS

Structural Model BootStrap

Entire
Mean of Standard
Sample T-Statistic
Subsamples error
estimate

LE->BA1 0.3360 0.3417 0.0720 4.6637

LE->CP1 0.7180 0.7186 0.0543 13.2151

BA1->CA1 0.5750 0.5730 0.0426 13.5024

CP1->CA1 0.4300 0.4291 0.0789 5.4478

 APPENDIX 8

Product Classification - SIC Codes

Industry Group 361: Electric Transmission And Distribution Equipment

3613 Switchgear and Switchboard Apparatus

Establishments primarily engaged in manufacturing switchgear and switchboard

apparatus. Important products of this industry include power switches, circuit
breakers, power switching equipment, and similar switchgear for general industrial
application; switchboards and cubicles, control and metering panels, fuses and fuse
mountings, and similar switchboard apparatus and supplies. Establishments primarily
engaged in manufacturing relays are classified in Industry 3625. Establishments
manufacturing switches other than switchgear type are classified in Industry 3625 if
the switches are of the type used as industrial controls, in Industry 3679 if the
switches are of the type used in electronic devices, and in Industry 3643 if the
switches are of other types used in wiring circuits.

Air circuit breakers

Bus bar structures

Circuit breakers, power

Control panels, electric power distribution

Cubicles (electric switchboard equipment)

 Distribution boards, electric

Distribution cutouts

Fuse clips and blocks, electric

Fuse devices, power: 600 volts and over

Fuse mountings, electric power

Fuses, electric

Generator control and metering panels

Knife switches, electric

Metering panels, electric

Panelboards and distribution boards, electric

Panels, electric control and metering

Power connectors

Power switching equipment

Regulators, power

Switchboards and parts, power

Switches, electric power: except snap, push button, tumbler, and

Switchgear and switchgear accessories

Time switches, electrical switchgear apparatus

Industry Group 362: Electrical Industrial Apparatus

3621 Motors and Generators

Establishments primarily engaged in manufacturing electric motors (except

engine starting motors) and power generators; motor generator sets; railway motors
and control equipment; and motors, generators, and control equipment for gasoline,
electric, and oil-electric buses and trucks. Establishments primarily engaged in
manufacturing turbo-generators are classified in Industry 3511; those manufacturing
starting motors and battery charging generators for internal combustion engines are
classified in Industry 3694; and those manufacturing generators for welding
equipment are classified in Industry 3548.

Armatures, industrial

Coils for motors and generators

Collector rings for motors and generators

Commutators, electric motor

Control equipment for buses and trucks

Converters, phase and rotary: electrical equipment

Dynamos, electric: except automotive

Dynamotors

Exciter assemblies, motor and generator

Frequency converters (electric generators)

Generating apparatus and parts, electrical: except internal combustion

Generator sets: gasoline, diesel, and dual fuel

Generators and sets, electric: except internal combustion engine,

Generators for gas-electric and oil-electric vehicles

Generators for storage battery chargers, except internal combustion

Inverters, rotating: electrical

Motor generator sets, except automotive and turbo generators

Motor housings

Motors, electric: except engine starting motors and gear motors

Power generators
Railway motors and control equipment, electric

Resolvers

Rotary converters (electrical equipment)

Rotor retainers and housings

Rotors for motors

Servomotors

Sliprings for motors and generators

Starting equipment, for streetcars

Stators for motors

Storage battery chargers, engine generator type

Synchronous condensers and timing motors, electric

Synchros

Torque motors, electric