The relationship between Lean Six Sigma and organizational performance: an empirical investigation (original) (raw)
Related papers
2015
Research work on Lean, Six Sigma and Lean Six Sigma has become increasingly present in the literature in the field of operations management and business excellence and has extended to other areas as the need for process improvement is more prominent. Whether it analyzes theoretical aspects regarding the development and the evolution of the two methodologies or of the most recent merge between the two, known as Lean Six Sigma strategy or simply Lean Sigma, or it presents results of studies undertaken in different industry or service sectors, the knowledge provided by the articles, books or studies currently available is vital to all researchers, specialists in the field and to all businesses. In this consideration we propose a detailed review of the most significant findings drawn from studies concerning the evaluation of the performance of Lean Six Sigma strategy as pure theory or as evidence from organizations performed in the time-frame 2003 to 2014 that seeks to underline the les...
Lean Six Sigma represents a management approach for driving innovating processes inside a company in order to achieve superior results. It involves a practical analysis based on facts, aiming the innovation and growth, not only the efficiency of processes. It is a long term process of gradual and continuous improvement. The application of Lean Six Sigma in companies led to attaining superior financial performance by addressing new needs, by differentiating the products and services or by adjusting the business lines to new processes. Quality is more than making things without errors. It is about making a product or service meet the individual perception of a customer about the quality or value. Therefore, in what regards Lean Six Sigma, the concern is not only to "do the things right" but also to "do the right things right". We focus on the impact of implementing the Lean Six Sigma approach on Forbes Top 25 companies, seeking for the correlation between the implementation of Lean six sigma and the performance of top 25 Forbes companies. 22 of the 25 top fortune companies communicate that they use Lean six sigma to improve performance.
International Journal of Supply Chain Management, 2019
Many companies implement lean six sigma (LSS) approach aiming to improve business performance. However, not many companies can be benefited from this program as the implementation is not easy to be executed effectively. Thus, the objective of this study is to identify the important factors in LSS implementation and its relation on operational performance (OP) of the business. This study employed quantitative survey with structured questionnaire. Random sampling was used and the sample of this study was SME manufacturing companies which has implemented LSS approach. A set of questionnaires were sent out to 200 companies through email and targeted to LSS practitioners such as managing director, quality manager and production manager. Finally, 63 response have been received with 32% response rate. Statistical Package for the Social Science (SPSS) 22.0 version software was used to evaluate descriptive and the relationship between variables. This research studies the role of three factor...
Six Sigma vs Lean: Some perspectives from leading academics and practitioners
International Journal of Productivity and …, 2011
Purpose -The purpose of this paper is to present the fundamental and critical differences between two of the most powerful methodologies in a process excellence initiative in any organisation. Design/methodology/approach -The approach taken was to collate opinions from a number of leading academics and practitioners from five different countries. It was also important to ensure that all participants have a good knowledge and expertise in the field of both Lean and Six Sigma methodologies. Findings -Although both methodologies are focused on process and quality improvement, Lean is formalisation and codification of experience and judgement which is not a feature of Six Sigma. Lean emphasises speed and waste, however Six Sigma emphasises variation, defects and process evaluation.
Lean Six Sigma Implementation: Does Success Means Sustainability?
International Journal of Academic Research in Business and Social Sciences
Lean Six Sigma (LSS) has proven as an effective methodology and strategy for business success in both private and public sectors. LSS views business processes as engines that drive performance excellence and help to deliver business value. Hence LSS offers a comprehensible road map, tools and techniques for achieving superior process improvement for business success. However, prior researches of LSS were predominantly focused on the study of success factors for LSS implementation. Whereas, this research aims to explore does the LSS success factors still serve as the driving agents to sustain the continuation of LSS success through a case study on a company that had implemented LSS for 15 years (company D). Five LSS success factors are identified from literature review, which are Continuous Improvement Culture, Innovative Culture, Top Management Support, Employee LSS Knowledge and Communication. The study is quantitative based, the important level of each success factors and the perceived level of LSS project's performance are assessed via survey questionnaire which answered by 50 engineers or managers from company D. Data are analysed via Person Correlation to gauge the correlation between the 5 LSS success factors and LSS project's performance. Finding from the research suggests that LSS success factors Innovative Culture, Communication and Top Management Support which are commonly agreed by prior researchers as important factors for LSS implementation; are viewed by respondents via this research as factors that endorsing weak impact or correlation with LSS project's performance. Outcome from the research implies that there is/are other underlying variable within the scope of Employee LSS Knowledge and Continuous Improvement Culture that contribute to the sustainability of LSS implementation which is worth for further study.
Applying lean six sigma principles in organizations: The opportunities and barriers
Business Economics and Management Research Journal, 2022
This conceptual study initially provides a framework for lean Six Sigma principles in organizations. The research objective of this study is to present the mainlines of lean Six Sigma and to comprehend the perspective of organizational theories and applications of lean Six Sigma (LSS). The pursuit of excellence, LSS, aims to eliminate waste while improving the quality of organizational processes. However, the margin between good times and bad times can usually be thin for the organizations. While the coronavirus pandemic enters its third year and thanks to record-high inflation rates throughout the world, organizations are feeling the sharp price hikes of necessities including transport, energy, and utilities that reducing profits. So, as LSS focuses mainly on removing waste and decreasing the defects and variations in an organization's processes and aims at increasing customer satisfaction productivity, and quality, organizations that employ LSS principles in their operations will be more ready to react to unforeseen events or conditions which may jeopardize organizational structure and outcomes. In sum, this study aims to draw a framework on LSS and its key effects on organizations and to uncover a detailed review of LSS thinking and the opportunities and barriers to implementation of LSS in organizations.
Significant Factors of the Successful Lean Six-Sigma Implementation
International Journal of Mathematical, Engineering and Management Sciences
Based on an extensive literature review we have selected factors critical for Lean Six Sigma implementation success. Four variables were selected to be used as output variables measuring this project success: project on time completion, achievement of financial goals, sigma level achieved (that was measured using Defects per Million Opportunities, DPMO), and overall project success. Using empirical data from 256 Lean Six Sigma Projects, we present the model developed and identify significant factors for Lean Six Sigma implementation success. Empirical results, which were collected during Lean Six Sigma implementation in 39 business units of an Automotive Sector Company in North America and Europe, were analysed using Multivariate Analysis of Variance (MANOVA) and General Linear Model (GLM). Two main factors were found as positively linked with the different aspects of project success: the competency of the Black Belts team and the management support to the project.
Purpose – The purpose of this paper is to present the corporate views of the commonalities and differences between two of the most powerful methodologies for process improvement in organisations. Design/methodology/approach – The approach taken was to collate the viewpoints from various corporate professionals. Participants were chosen from different countries across the globe, with a median experience of 10 years as a quality professional with expertise in the field of both Lean and Six Sigma. Findings – Thirty-one key points have been highlighted as findings, as a summary of viewpoints provided by the participants. Fourteen commonalities and 17 differences between Six Sigma and Lean were identified. Key findings were grouped under four categories – Approach, Customer, Focus and Organisation. Research limitations/implications – The corporate opinions expressed in the paper are those of a few professionals selected for the study. It is important to capture the viewpoints of more such practitioners to arrive at sound and valid conclusions. Originality/value – The paper provides an excellent platform for both academicians and working professionals to understand the corporate views of commonalities and differences between the two powerful process improvement methodologies. The paper lays a platform for researchers to understand the applications of Six Sigma and Lean for process excellence.
Analysis of the Impact of Six Sigma and Lean Manufacturing on the Performance of Companies
Management Systems in Production Engineering
Moroccan companies seek to be competitive worldwide by improving quality, productivity, and customer satisfaction. Lean Manufacturing and Six Sigma are the most popular methodologies for continuous improvement in companies. The objective of this article is to determine the impact of Six Sigma and Lean Manufacturing on the performance of different companies. The data was collected by a questionnaire sent to the various companies and industries in Morocco. 45 companies responded to this study, divided into several sectors. The criteria of this study are based on two levels: Financial and operational performance. A statistical study is carried out by SPSS software to analyze and interpret the collected results. The results of this study show that companies using Six Sigma and Lean Manufacturing methodologies have a positive financial and operational performance compared to companies that only use Lean Manufacturing or companies that do not use Six Sigma or Lean Manufacturing. Therefore...
Lean Six Sigma principles and practices under a management perspective
Production Planning & Control, 2019
The purpose of this paper is to systematise principles and practices of the Lean Six Sigma (LSS) method to encourage and facilitate its implementation and management in different contexts. The construction of LSS principles and respective practices was based on grounded theory and supported by analysis of both most cited keywords in LSS literature and scientific gaps raised in LSS literature reviews. The LSS systematised principles and respective practices are presented in a descriptive and schematic manner, homogenising the theoretical basis for the development of new researches. This may assist researchers in developing new literature reviews, case studies and guidelines applicable to both specific and general business areas. In addition, this LSS review can contribute to the knowledge of the organisation's professionals by providing insights and raising relevant issues to be addressed when implementing LSS in different contexts, allowing managers to make better decisions.