LAUSR

Our research focuses on integrating circular economy (CE) and Lean Management (LM) within the manufacturing sector, a proactive response to the escalating pressures of globalization, environmental sustainability, and market competition. Through a comprehensive systematic literature review, the research uncovers how CE principles can fortify and enrich LM practices, the role of LM in facilitating a transition towards CE, their combined impact on manufacturing performance, and the crucial environmental factors influencing this integration. The findings underscore that CE principles significantly strengthen LM practices by advocating waste minimization and resource optimization, thereby contributing to operational efficiency and sustainability. Conversely, LM aids the transition to a CE by optimizing resource use and minimizing waste, aligning with sustainability goals. LM supports recycling and remanufacturing by employing Just‐in‐Time and value stream mapping methodologies, augmented by Industry 4.0 technologies for seamless CE integration. Despite challenges like integration barriers and the need for organizational change, the synergy between CE and LM offers substantial benefits for environmental performance, operational efficiency, and competitive advantage. Our paper enriches academic knowledge and provides practical applications in sustainable manufacturing practices, offering a roadmap for organizations striving for sustainable operational excellence. Moreover, it also paves the way for future studies to further explore the synergistic potential of CE and LM through empirical studies, quantitative analyses, and the exploration of Industry 4.0 technologies.