Enhancing performance with lean 4.0: an investigation of the automotive manufacturing industry in Malaysia / Dara Affydah Binti Mohd Affendi Lim

Faculty of Manufacturing and Mechatronic Engineering Technology

Thesis (Master of Science) -- Universiti Malaysia Pahang - 2026

Includes bibliographical references

The integration of Lean manufacturing principles with Industry 4.0, known as Lean 4.0, offers a transformative opportunity for the automotive manufacturing industry. Lean 4.0 combines lean practices with digital technologies to enhance manufacturing performance. However, despite the benefits, many automotive manufacturers struggle with aligning lean practices with advanced digital technologies, leading to low adoption rates and uncertain implementation outcomes. This study aims to identify the key factors to the implementation of Lean 4.0 in the automotive manufacturing industry and to examine the impact of its implementation on the performance of the automotive industry in Malaysia. A quantitative research design employing a cross-sectional approach was adopted for this study. Simple random sampling was utilized, and according to G*Power software, a minimum sample size of 85 was required. Data were collected from 93 automotive manufacturing firms in Malaysia, with respondents comprising individuals from middle and senior management. The research instrument was developed based on previous literature, and its validity was confirmed through pre-testing to ensure the validity of the model. Data was analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique. The findings showed a positive and significant relationship between human factors (p=0.025), supplier factors (p=0.010), and customer factors (p=0.032) and Lean 4.0. However, there was no significant relationship between process factors and Lean 4.0 (p= 0.274). In addition, the implementation of Lean 4.0 shows a positive relationship with manufacturing performance, including increased profit, reduce production cost, fast decision making, increase production flexibility, increase productivity, and increase capable employees. This study emphasizes the strategic role of Lean 4.0 as a method to achieve manufacturing performance. By identifying the factors influencing the implementation of Lean 4.0, the findings of this study provide both theoretical and practical guidance to organisations in their efforts to improve performance and maintain competitiveness in the automotive manufacturing sector in Malaysia.