THE IMPACT OF LEAN PRODUCTION ON FIRMS’ PROFITABILITY

The aim of the present study is to investigate the relationship between lean production and firm’s profitability of 50 manufacturing companies in Abbas Abad industrial township of Tehran. A total of 200 questionnaires were distributed among respondents and 137 usable questionnaires were returned. Factor analysis and the findings show that lean production has a significant positive influence on the profitability of the selected companies. The results of the current study implies that lean production and its related concept need to be understood by managers and business owners in order to increase firms’ profitability.