Assessment on Lean implementation in the Malaysia semiconductor manufacturing industry

One of the main issue with the different industries today is to manufacture exceptional quality products or produce best of class services with minimal cost spending as well as working towards waste reduction throughout the process of production. These and many other industries related problems had led to the formation of Lean manufacturing, a concept that was initially implemented by Toyota of Japan which mostly known as Toyota Production System. Concept of Lean manufacturing was widely spread across countries and industries because of higher living standard nowadays causes rising customer's expectation and fierce competition among industry players due to market globalization. With benefits gain from Lean principles, it helps company to survive during fluctuating demand in the market and improve quality of product at lower cost of expenditure. This research project is an attempt to investigate reasons associated with lean adoption in Small and Medium Enterprises (SMEs), popularity lean practices in use from the range of 13 lean practices and present strategic department to start lean within SMEs organization that constitutes a successful lean implementation at semiconductor manufacturing in Malaysia. Survey questionnaire is prepared to collect detail information on popularity of 13 lean practices identified, reasons of lean adoption and strategic department to start lean in SMEs from the target population of respondents. The response of 102 respondents were received and by applying statistical analysis to determine result of this research study. Results of study showed SMEs have a high understanding of the importance of lean application within SMEs. One of the main contributors is because semiconductor industry is one of the most dynamics with very fast changing in product models and customers demand behaviour as compare to other industries. Most popular lean practices are closely tied to SMEs capabilities such as least capital investment cost, easy to apply and produce immediate effect. Result of this research study would provide good reference and guidelines to SMEs for a successful implementation of lean and better insight of lean adoption within SMEs in the semiconductor manufacturing industry in Malaysia.