Tag
lean_operations
2 findings
Firms & operationsSystematic Inventory Control and Dead Stock EliminationPrior to intervention, plants held an average of 4 months of raw material yarn inventory including significant unrecorded dead stock; adopting inventory tracking and norms reduced plant yarn inventory by 21.7% post-treatment without causing material shortages.RCTFirms & operationsProductivity and Profitability Payoffs of Lean OperationsAdopting lean operational practices raised total factor productivity (TFP) by 17% in the first year (p = 0.061; IV coefficient = 0.477, p < 0.05), reduced quality defects by 43%, cut yarn inventory by 21.7%, and generated $325,000 in net annual profit per plant.RCT