Lean Management, Supply Chain Management and Sustainability: A Literature Review Companies in a variety of economic sectors have adopted Lean Management (LM) in recent decades and in many cases this has enabled them to improve their results and their competitiveness (Moyano-Fuentes and Sacristán-Díaz, 2012). However, although many companies have successfully implemented LM, others have not achieved the results that they expected. One thing that these companies had in common was an inability to sustain their results over the medium- and long-term (Lucey et al., 2005). This has created an interest among researchers to examine why they are unable to sustain the results that have come from LM.32385
At the same time, the changes in the laws and regulations governing the environment, together with growing pressure and demands from stakeholders have resulted in companies developing greater environmental responsibility in recent years (Gordon, 2001). As an integrated management system, LM is not unaffected by these issues and there is a growing interest in the literature in linking LM to environmental sustainability.
In addition, these days it is not enough for many companies that have adopted LM to improve their results but they also want to be seen to be managing their businesses responsibly and to be aware of the impact that their activities are having on society, and they are therefore raising their corporate social responsibility (Taubitz, 2010).
And it is not only intra-organisational aspects that need to be focused upon for further strides to be made in the level of LM implementation; it is also vital for Lean principles and practices to be spread throughout the whole supply chain to derive the potential benefits of LM (Womack and Jones, 1996 and Hines et al., 2004). In this respect, one of the main challenges that companies that embark upon Lean initiatives are faced with is increased integration with their key suppliers and customers (Pérez et al., 2010). This is why an analysis of LM should be addressed from both a company focus and a supply chain focus (Hines et al., 2004 and Shah and Ward, 2007).
Meanwhile, a number of authors also underscore the fact that LM's ‘new frontier’ is its link to sustainability (Fliedner and Majeske, 2010) as a result of which it would be interesting to determine the results to date of the impact of LM on the three aspects included in the sphere of sustainability (environmental, economic and social). Sustainable supply chain management (SSCM) has received much attention from scholars and practitioners in the past years. It has become a method for simultaneous improvementof economic, social, and environmental performance. SSCM evaluation, therefore, is a significant duty for any types of organizations. Among evaluation methods, data envelopmentanalysis (DEA) seems to be an appropriate technique for assessment of the SSCM. One ofthe uses of DEA is to evaluate the efficiency of two-stage processes, where all the outputsfrom the first stage are intermediate measures that are considered as the inputs to the second stage. The resulting two-stage DEA models assess both the overall efficiency score ofthe whole process and each of the inpidual stages. Notwithstanding, there are majorweaknesses in the previous extensions of two-stage DEA models. Firstly, a challengingissue is that suggestions for improvements are offered only for input and output measures,and intermediate measures are neglected. Although, some extensions for network structures take into account intermediate measures, they arbitrarily assign an input or outputrole for the measures, thus in optimal solution for inefficient DMUs, this measures areforced to respectively take a lower or upper amount. Secondly, the efficiency scores are calculated based on inputs and outputs. That is, while the models consider these measures bycorresponding constraints, the intermediate measures are not included in the objectivefunction, or incorrectly assign an input or output role. Thirdly, in some cases, the formerdevelopments specify points on the efficient frontier only for inefficient stages, while fora network which is entirely inefficient such points are also required. Moreover, theorganization (which in DEA terminology is named decision making unit) is supposed tobe pided into two autonomous departments. It means that the performance of onedepartment is quite unrelated to another department, while from the organizationalperspective this is called into the question. To overcome these shortcomings, in this paper,innovative models are proposed. The proposed ideas are used for evaluating the sustainability of supply chains in resin producing companies
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