The Effects of Lean Management in Life Cycle Management Practices towards Sustainability Performance in Indonesia Pulp and Paper Industry

  • Authors

    • Mohd Haizam Mohd Saudi
    • Arry Hutomo Mustika Djaya
    • Nissa Syifa Puspani
    • Obsatar Sinaga
    • . .
    https://doi.org/10.14419/ijet.v7i3.28.23427
  • product lifecycle management practices, lean management practices, sustainability report, sustainability performance.
  • Lean management practices become incredibly important for organizations to associate with lifecycle management practices. This is due to the facts that financial statement alone would not be sufficient, but it is also vital for companies to analyze the economic, social and environmental aspects of the company's operations. Researchers produced a conceptual framework by using Stakeholder and Legitimacy theory. The Life Cycle Management (LCM) is being measured by using lean management to improve the production of the firms. The research tested 62 companies from pulp and paper industry from Indonesia.  This research also consists of 248 samples utilizing primary and secondary data. Finding reveals, a phenomenon with role of sustainability report disclosure and lean management practices adoption have significant effects on products lifecycle management practices towards enhancing sustainability performance. Moreover, our results yield insights to optimize the employees’ sustainability performance in the pulp and paper industry. The result of the research indicates that lean management has been identified, as the mediator for the enhancement of sustainable performance in the pulp and paper industry in Indonesia.

     

     

     
  • References

    1. [1] J. Tarigan, H. Semuel, Pengungkapan sustainability report dan kinerja keuangan, Jurnal Akuntansi dan Keuangan, 16(2014), 88-101.

      [2] R. Lozano, B. Nummert, K. Ceulemans, Elucidating the relationship between sustainability reporting and organisational change management for sustainability, Journal of Cleaner Production, 125(2016), 168-188.

      [3] D. Gritten, P. Kant, Assessing the impact of environmental campaigns against the activities of a pulp and paper company in Indonesia, International Forestry Review, 9(2007), 819-834.

      [4] K. Obidzinski, A. Dermawan, Pulp industry and environment in Indonesia: Is there sustainable future? Regional Environmental Change, 12(2012), 961-966.

      [5] R. Sundar, A.N. Balaji, R.M.S. Kumar, A review on lean manufacturing implementation techniques, Procedia Engineering, 97(2014), 1875-1885.

      [6] M.A. Taubitz, Lean, green & safe: Integrating safety into the lean, green and sustainability movement, Professional Safety, 55(2010), 39-46.

      [7] U.N. Ngoc, H. Schnitzer, Sustainable solutions for solid waste management in Southeast Asian countries, Waste Management, 29(2009), 1982-1995.

      [8] S. Hajmohammad, S. Vachon, R.D. Klassen, I. Gavronski, Lean management and supply management: Their role in green practices and performance, Journal of Cleaner Production, 39(2013), 312-320.

      [9] N. Piercy, N. Rich, The relationship between lean operations and sustainable operations, International Journal Operation Production Management, 35(2015), 282-315.

      [10] J. Alpenberg, D.P. Scarbrough, Exploring communication practices in lean production, Journal of Business Research, 69(2016), 4959-4963.

      [11] B. Verrier, B. Rose, E. Caillaud, H. Remita, Combining organizational performance with sustainable development issues: The Lean and Green project benchmarking repository, Journal of Cleaner Production, 85(2014), 83-93.

      [12] P. Bajpai, Management of Pulp and Paper Mill Waste, Springer International Publishing, (2015).

      [13] M. Eigner, T. Dickopf, H. Apostolov, System lifecycle management-An approach for developing cybertronic systems in consideration of sustainability aspects, Procedia CIRP, 61(2017), 128-133.

      [14] V. Srinivasan, An integration framework for product lifecycle management, Computer-Aided Design, 43(2011), 464-478.

      [15] N.D. Ciceri, M. Garetti, S. Terzi, Product lifecycle management approach for sustainability. In 19th CIRP Design Conference-Competitive Design, (2009), pp. 1-8.

      [16] M. Yeheyis, K. Hewage, M.S. Alam, C. Eskicioglu, R. Sadiq, An overview of construction and demolition waste management in Canada: A lifecycle analysis approach to sustainability, Clean Technologies and Environmental Policy, 15(2013), 81-91.

      [17] R.E. Freeman, Strategic Management: A Stakeholder Approach, University Press, Cambridge, (1984).

      [18] H. Zhang, Y. Ouzrout, A. Bouras, M.M. Savino, Sustainability consideration within product lifecycle management through maturity models analysis, International Journal Service Operation Management, 19(2014), 151-171.

      [19] S. Seuring, S. Gold, Sustainability management beyond corporate boundaries: From stakeholders to performance, Journal of Cleaner Production, 56(2013), 1-6.

      [20] D.M. Patten, Intra-industry environmental disclosures in response to the Alaskan oil spill: A note on legitimacy theory, Accounting, Organanizations and Society, 17(1992), 471-475.

      [21] C. Deegan, Legitimacy theory. In Methodological Issues in Accounting Research, Spiramus Press Ltd., (2006), pp. 161-183.

      [22] F. Díez-Martín, A. Blanco-González, C. Prado-Román, Explaining nation-wide differences in entrepreneurial activity: A legitimacy perspective, International Entrepreneur Management Journal, 12(2016), 1079-1102.

      [23] K. Hummel, C. Schlick, The relationship between sustainability performance and sustainability disclosure-Reconciling voluntary disclosure theory and legitimacy theory, Journal of Accounting and Public Policy, 35(2016), 455-476.

      [24] R. Suddaby, A. Bitektine, P. Haack, Legitimacy, Academy Management Annual, 11(2017), 451-478.

      [25] J.C. Aurich, C. Fuchs, C. Wagenknecht, Life cycle oriented design of technical product-service systems, Journal of Cleaner Production, 14(2006), 1480-1494.

      [26] G. Sonnemann, M. Margni M, Life Cycle Management, SpringerOpen, (2015).

      [27] R.R. Fullerton, F.A. Kennedy , S.K. Widener, Lean manufacturing and firm performance: The incremental contribution of lean management accounting practices, Journal Operation Management, 32(2014), 414-428.

      [28] W.Y. Chun, Lean manufacturing: A perspective of lean suppliers. International Journal of Operations and Production Management, 23(2003), 1349-1376.

      [29] P. Hines, M. Holweg, N. Rich, Learning to evolve: A review of contemporary lean thinking, International Journal of Operations and Production Management, 24(2004), 994-1011.

      [30] F. Pakdil, K.M. Leonard, Criteria for a lean organisation: Development of a lean assessment tool, International Journal of Production Research, 52(2014), 4587-4607.

      [31] A. Hutomo, R. Fitridayani, The impact of perceived environmental uncertainty, supply chain performance, and integrated domestic economy: Plywood manufacturer in Indonesia, International Journal of Business Management Study, 2(2015), 198-202.

      [32] P.J. Martínez-Jurado, J. Moyano-Fuentes, Lean management, supply chain management and sustainability: A literature review, Journal of Cleaner Production, 85(2014), 134-150.

      [33] J.F. Hair, M. Sarstedt, C.M. Ringle, J.A. Mena, An assessment of the use of partial least squares structural equation modeling in marketing research, Journal of Academy Marketing Science, 40(2012), 414-433.

  • Downloads

  • How to Cite

    Haizam Mohd Saudi, M., Hutomo Mustika Djaya, A., Syifa Puspani, N., Sinaga, O., & ., . (2018). The Effects of Lean Management in Life Cycle Management Practices towards Sustainability Performance in Indonesia Pulp and Paper Industry. International Journal of Engineering & Technology, 7(3.28), 227-231. https://doi.org/10.14419/ijet.v7i3.28.23427