Lean manufacturing implementation in food and beverage SMEs in Tanzania: using structural equation modelling (SEM)

Currently globally industries are increasingly adopting lean production methods to enhance operational efficiency and overall business performance. Lean tools, which significantly reduce waste, are particularly beneficial for small and medium enterprises (SMEs), including the food and beverage sector. However, research in developing countries like Tanzania has predominantly focused on large-scale industries, neglecting the contributions of SMEs and the impact of lean tools on waste reduction. This study fills that gap by examining the application of lean manufacturing tools and processes in Tanzanian food and beverage SMEs. Using Exploratory Factor Analysis (EFA) and Confirmatory Composite Analysis (CCA), data from 113 SMEs were analysed, revealing that lean tools and processes are strong predictors of improved output, with a significant portion of variance explained by the model. Key lean tools such as 5S, Value Stream Mapping (VSM), and Just In Time (JIT) were found to be instrumental in waste reduction and suited to the unique needs of SMEs in the food and beverage industries. Communication and training also emerged as crucial lean processes for minimizing waste. The study identified three latent variables; lean tools, lean processes, and lean output, which provided a comprehensive framework for lean manufacturing implementation in SMEs. This research is pioneering in expanding the theoretical understanding of lean manufacturing in emerging economies, highlighting the critical role of lean manufacturing and offering practical insights for improving industrial efficiency, sustainability, and competitiveness in the food and beverage sector.