Operational efficiency and waste in halal manufacturing: insights from case studies of Malaysian MSMEs

Abstract

This study explores waste in halal manufacturing firms in Malaysia to increase operational efficiency. Based on the multiple case study method, three micro, small and medium enterprises (MSMEs) in halal food sector are selected using purposive sampling technique. Interview protocol is developed comprising three parts; opening, waste in halal manufacturing, and closing. The managers or owners of the MSMEs are interviewed for about 30-45 minutes and recorded. The interview data are transcribed and analyzed using thematic analysis. The findings reveal eight themes, i.e., defect, overproduction, waiting time, non-utilized talents, transportation, inventory, motion and extra processing, called DOWNTIME waste. It implies the urgency to introduce and adopt supply chain digitalization and supply chain risk management in enhancing operational efficiency among MSMEs, the key players in halal supply chain. This study extends the operations management literatures by developing the nexus between DOWNTIME waste in lean management with halal industries context. In addition, the findings advanced the current understanding of operational challenges facing halal MSMEs through a qualitative exploration, offering depth beyond quantitative waste analysis found in the existing literature.