The Relationship between Lean Management Practices and Operational Performance in Service Sector


  • Noor Aslinda Abu Seman , Zawin Nadjah Mohamad Hatta , Nor Kamariah Kamaruddi , Faizal Yamimi Mustaffa , Nurazwa Ahmad


The rapidly expanding service sector in Malaysia, along with the fast changing technology could increase the
service quality level which directly impacts operational performance. In an effort to improve operational
performance, the service sector needs to continuously improve its effectiveness as well as its efficiency to meet the
customer satisfaction demand by implementing lean management practices. Lean management has become one of
the approaches taken to increase performance and has been gaining more attention in the service sector. Therefore,
this study is aimed to determine the level of implementation of lean management practices and to examine the
relationship between lean management practices and operational performance in the service sector. Data were
collected among 70 government services agencies in Perak, Malaysia. The data were then analysed using Statistical
Package for the Social Sciences (SPSS) for descriptive analysis and inferential analysis. The findings showed that
the level of implementation of lean management practices in the service sector is highly adopted and the most widely
implemented lean management practice in the sector is the 5S practice. The results also revealed that there is a
significant and moderate positive relationship between lean management practice and operational performance in
the service sector. Hence, this study is important in providing guidelines for service government agencies in
implementing quality improvement through lean management practices in their organizations which may enhance
the public image of the organization and increase employee motivation to deliver good service.