Lean Manufacturing Practices and their Impact on Production Efficiency: A Study at Hyundai Motor India Limited

Abstract

Lean manufacturing has become a game-changer in the automotive industry, offering a paradigm shift in the approach to operations.Lean manufacturing represents a paradigm shift in how automotive companies approach their operations, aiming to maximize efficiency and minimize waste. The present study focuses on the effect of lean manufacturing on production efficiency in the case of Hyundai Motor India Limited, a leading automobile manufacturing company in India. The primary data were obtained using a structured questionnaire from 70 respondents while secondary data were obtained from industry reports, company records and peer-reviewed journals. The data was analyzed using statistical tools such as Chi-Square test, Pearson Correlation, Multiple Regression Analysis and Factor Analysis. The results show that the lean manufacturing practices are correlated with production efficiency with a very high positive correlation (r = 0.762) and the multiple regression model explains 77.8% of the variation in efficiency. There were three latent factors of lean manufacturing that were discovered: Process Efficiency & Flow, Quality & Error Reduction, and Workforce & Waste Management. Based on the findings of the study, the study concludes that lean practice is not only a tool for cost reduction but a systematic approach to enhancing productivity, quality and gaining competitive advantage in a high volume automotive production setting.