The purpose of this study is to explore the effect of lean practices on performance measures in the automotive industry and identify the lean criteria that can have significant impact on automotive supply chain. The identified lean practices can serve as a template to enhance the performance of a supply chain. The present study offers a multi-criteria decision-making approach to identify the effective performance practices in automotive lean supply chain. The decision-making trial and evaluation laboratory (DEMATEL) was applied on a matrix of observed values and the actual effect of proposed practices was observed. Further it was confirmed with the help of fuzzy-Vlsekriterijumska Optimizacija I Kompromisno Resenje (VIKOR; that means multicriteria optimization and compromise solution, with pronunciation). The criteria which had the most impact are proposed for achieving the future goals of leanness. It was found that among the lean criteria considered, quality management, information management and customer management practices influence the key performance measures more than others. Although DEMATEL and fuzzy-VIKOR were applied for situation leading to setting up of priorities of factors that considered affecting automotive manufacturer, the proposed methodology can be applied in diverse industrial settings. The present study may help decision-makers to device the appropriate strategy in identifying major practices that influence the lean supply chain.
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