Impact of Lean Manufacturing Practices on Financial Performance of Pharmaceutical Sector in Thailand

Abstract

Paitoon Chetthamrongchai, Kittisak Jermsittiparsert

Lean manufacturing practices plays vital role in improving financial performance of manufacturing organizations. Lean manufacturing practise could improve organizations financial performance by improving the quality of product, saving costs and time. Thus,the objective of this study was to investigate the association of lean manufacturing practices with financial performance of pharmaceutical firms in Thailand. This study is based on quantitative methods and questionnaire was used to gather the data to test the hypotheses of the study. Respondents of the study were employees of pharmaceutical firms in Thailand. Researchers used PLS to analyse the data to measure the influence and strength of the relationship between the independent variables. This study found that lean manufacturing practices and financial performance of pharmaceutical firms have a positive significant association. This study offer practical insight for pharmaceutical industry. Findings of this study indicated that implication of lean manufacturing is a cause of increasing financial performance of pharmaceutical sector in Thailand.The implementation of lean manufacturing practices could improve their cycle time, greater governance or control and enable timely information exchange to supportthe business trade of pharmaceutical firm that ultimately increase the profits of the pharmaceutical companies