The effect of lean waste reduction technique to business results: a confirmatory study

Understanding of how to implement Lean successfully and how it contributes to performance in manufacturing organizational is still relatively lacking so that Lean exploration is still needed in the management aspect. This research will examine the effect of LMS, LWRT on LBR. This research was conducted on 30 companies in industrial centers in Indonesia, and the data were processed using the Structural Equation Model method. It was found that LMS has no significant effect on LBR, but LMS has a significant effect on LWRT, while LWRT has a significant effect on LBR. In detail, LBR variation of 78.8% is simultaneously influenced by LMS and LWRT, 21.2% is influenced by other variables. While 72.7% LWRT variation is influenced by LMS variation, and 27.3% is influenced by other variables. This result confirms Bergmiller’s research (2009) that LMS has a significant effect on LBR through LWRT for the manufacturing industry in Indonesia.