Enhancing the performance of micro, small and medium sized cluster organisation through lean implementation

Lean management principles are developed from Toyota production system (TPS) and have been successfully applied in many sectors to reduce waste and to improve efficiency. Each business operation requires the efficient integration of people, process and technology. Presently India is one of the fastest growing economies in the world. The micro, small and medium enterprises (MSME) sector is considered as the backbone of the Indian. One of the challenge in implementing lean management principles and tools in MSMEs is that it requires the analysis of present situation and deploying suitable lean tools with involvement of everyone. In this study, different attributes like the need, levels of implementation and the results of this concept in the MSME cluster organisations in and around Chennai. The results showed that there is a significant relationship between the strategic factors to the financial performance of the organisation.