The improvement in manufacturing process is never ending effort, which is being derived by the culture of the organization. Therefore, an attitude of perfection, innovation and devotion is an essential part for the process improvement of an organization. Recently, innovations in the field of engineering help an entrepreneur sell the products through competitive environment. Moreover, the timely delivery of goods and cost effective product is the yardstick, which contributes to the performance index. These improvements resulted from continued performance enhancement efforts, helps in producing right quality in the right times which means providing stability to the organization performance. The role of lean thinking and supply chain characteristics is to create an effective marked on the organizational performance including bonding of all the participants where-so-ever possible. The purpose of this work is to examine the challenges, which integrate the Lean Principles to Supply Chain Characteristics for the real world situation to achieve better utilization of resources, timely delivery to the customer, and deletion of non-value added items including the control on all type of wastages as linked with supply chain systems.

Existing literature on lean principles reveals the impact of lean principles on the organizational performance. During the past few years, the Indian manufacturing context has been competing with the global competitors directly to sustain their presence. One of the big motivations behind this is the steps taken in favor of replacing the policies and regulations for the manufacturing context by the government of India. In present, the manufacturing context is still far away to get the sustainable market because of customer perception variation i.e. cost, delivery and quality re-lated issues. To overcome the uncertainties based on the attributes i.e. quality, productivity, de-livery etc., almost all the manufacturing units use the basic of lean principle i.e. apply the 5’S. Whereas the heavy industries used the VSM approach especially the automotive product manu-facturers. The work presented in this paper gives an insight on the application of lean principles in the manufacturing context and analyzes the impacts using ISM approach.