Investigation of factors impacting lean implementation in the indonesian fast-moving consumer goods industry

Rio Kharisma Tanudiharjo, Florence Ng Jia Yun, John Heng Aik Joo, Ivan C. Arokiam

    Research output: Contribution to journalArticlepeer-review

    4 Citations (Scopus)


    The fast-moving consumer goods (FMCG) industry is promising in Indonesia, with recorded sales of more than USD 10 billion, which represents more than 18% of Indonesia's gross domestic product in 2016. Despite the lucrative market, FMCG companies face challenges due to intense competition and increasing operational costs. Consequently, Indonesian companies have begun to explore lean implementation to decrease their costs and improve efficiency, but with minimal success. This study investigates the critical success factors of lean implementation in the Indonesian FMCG industry, as such implementation cannot optimally occur if the implementing company does not successfully manage the important factors that affect lean implementation. This study tested various factors-namely, organizational culture, personnel capability, communication, and leadership and management involvement-that impact lean implementation and organizational performance in Indonesia's FMCG industry. It was also found that leadership and management involvement are the most important factors. Based on the obtained results, this research proposes recommendations regarding the best lean implementation practices in Indonesian FMCG companies.

    Original languageEnglish
    Pages (from-to)162-172
    Number of pages11
    JournalOperations and Supply Chain Management
    Issue number2
    Publication statusPublished - 2021

    Bibliographical note

    Funding Information:
    Ivan C. Arokiam (Dr) is an Assistant Professor and course director for Part Time BSc Engineering students at Coventry University. Ivan’s areas of expertise include Agile/Lean manufacturing, Production planning, Manufacturing process and Simulation. He has taught both post and undergraduate students in these areas and also carried out applied research around production optimization. Ivan’s applied research has been mainly through ERDF projects and he was also the principal investigator/project director of one of the main grant – Performance Improvement Initiative.

    Publisher Copyright:
    © 2021 Operations and Supply Chain Management Forum. All rights reserved.


    • Fast-moving consumer goods
    • Lean enterprise
    • Lean implementation
    • Lean manufacturing
    • Lean production

    ASJC Scopus subject areas

    • Management Information Systems
    • Statistics, Probability and Uncertainty
    • Management Science and Operations Research
    • Information Systems and Management


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