Lean - Balanced Scorecard Integration Framework for Small Medium Enterprises

Lack of knowledge, management, and financial resources has led to inefficiencies in the operation process resulting in low productivity and competitiveness. Therefore, SMEs need management systems such as a Balanced Scorecard (BSC) and Lean Manufacturing (LM), two separate management systems used to determine the right strategies and priorities to achieve goals, increase productivity, and eliminate waste effectively. Both approaches can be used not only in manufacturing companies but also in service companies. However, a proper framework is needed to combine the two approaches for more efficient results. The proposed framework provides guidelines for SMEs to become business excellence using appropriate management systems. This framework consists of systematic steps that define a vision/mission, identify KPI targets, plan actions to eliminate waste, monitor, and evaluate. The literature review is used to consider the advantages of BSC and LM in addressing the problems and needs of SMEs.