Business Overall Performance and Sustainability Effectiveness: An Indicator to Measure Companies' Lean-Green Compliance

Within a lean context, the aim is to eliminate all forms of waste, including environmental waste, to improve productivity and reduce costs. Key to achieving this objective are operational performance and sustainability indicators. Lean companies must prioritize both operational performance and sustainability, remaining cognizant of their current status. With this in mind, the authors sought to ascertain whether lean companies demonstrate enhanced sustainability. Thus, the authors raised the following research question: does a lean company exhibit greater sustainability? However, these indicators have traditionally been measured independently, and few studies have indicated the need for a global indicator that could simultaneously address both. Such a global indicator would enable a clearer assessment and understanding of the trade-offs between operational performance and sustainability. This paper introduces such an integrated indicator, aiming to measure companies' lean-green compliance by intertwining sustainability issues with overall equipment effectiveness (OEE). The authors have termed this indicator business overall performance and sustainability effectiveness (BOPSE). Its primary goal is to evaluate business effectiveness by considering both operational performance and sustainability compliance. The sustainability strand was drawn from, adapted, and simplified based on the Global Reporting Initiative (GRI). This development was framed in a lean-green environment, emphasizing continuous efforts to identify and reduce all sources of lean waste, alongside the waste prevention perspectives of cleaner production, environmental compliance, and social responsibility, which play crucial roles in shaping the factories of the future. This paper presents the background and development of the BOPSE model. To answer the research question, two research methods were undertaken: a survey and case studies. The model was applied in three distinct case studies, demonstrating its usefulness in discerning varying levels of lean-green compliance through this integrated indicator.