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Applying Six Sigma To Achieve Enterprise Sustainability: Preparations And Aftermath Of Six Sigma Projects
Abstract
Sustainability is not a method or a tool; it is the state of a company in which the efficiency of resources is maximized, customers are satisfied to a great extent, an improved condition is long-lasting, success is maintained and competitive advantage is sustained. Literature review carried out in this research depicts that researchers have extensively worked on identifying and documenting the enablers, challenges, risks, projects, corporate commitments and strategic integration of Six Sigma with other frameworks. But at the same time, the literature establishes that Six Sigma is neither completely welcomed by companies nor the methodology has proven its worth for most of the corporations .The latter argument suggests the need for identification of gaps between the capabilities of Six Sigma methodology and the actual situation in the enterprise world. The theme of this paper is to explore the capabilities of Six Sigma that can enable companies to achieve the state of sustainability to a great extent. Three dimensions of Six Sigma are identified that includes strategic, tactical and operational dimensions. A Process Research and Development model (PRAND) is presented at the end of paper with guidelines for future research.
... Sustainable results can only be achieved when an integrated and cohesive approach is adopted with respect to training and learning [27]. A research call was made for six sigma integrations to help practitioners identify a robust set of improvement tools to be used in conjunction with the DMAIC process [28].However, most of the reported integrations fail to take full advantage of each methodology due to organizational constraints/philosophy. ...
... Recent studies have now re-focused research attention to incorporate psychological, and contextual human side of six sigma [58], goal setting [59], organizational context, and psychological safety [60]. Incorporating six sigma methodology with other strategic and tactical approaches has been much debated in the literature [27], and six sigma benefits can be sustained through instituting a formidable mechanism to address product innovation, cultural change, and environmental uncertainty. ...
... There is a little theoretical support on the effectiveness of six sigma projects on organizational achievements, and the existing literature seems to suggest that six sigma may hinder an organization's effort to be innovative. Six sigma challenges are multidimensional due to many reasons, ranging from management commitment, the bottom-up and top-down communication mechanisms, unrealistic expectations, inappropriate resources, inappropriate projects, problem definitions and failure to sustain the results of six sigma projects [27]. In aerospace companies' documentary [61], less than 50% of the respondents were satisfied with their six sigma programs. ...
... In recent time, a lot of studies that focused on the shared relationship between Six Sigma and other innovative management and practices were as follows; integrating and comparing principles and characteristic of Six Sigma with Total Quality Management [2], integrating and comparing principles and characteristics of Six Sigma with human resource functions [3], integrating with the theory of constraints [4], integrating with lean production [5], [6], Integrating with Business Process Management [7], integrating with value stream mapping [8]; integrating with Balanced score card SCOR model [9], integrating Six Sigma with IS0 9000 [10], Integrating with IS0 9001 [11], and integrating Six Sigma with the capability maturity model [12] are all part of the quality community's effort to maximize the positive effect of the Six Sigma method. Even with these numbers of Six Sigma Integration, there are still huge reported cases of Six Sigma failures which most researchers [13]; [14]; [15]; [16] aligned to organizations inability to retain knowledge and sustain learning environment. The experiences in the literature concerning many manufacturing companies that have implemented Six Sigma technique without creating the underlying culture of learning begot the era of shared relationship between Six Sigma and KM integration. ...
The case organization has over the years been plagued with a number of production challenges in the form of high rejection percentage of cable after extrusion due to insulation surface flaws, failed insulation thickness, low conductor diameter, and inconsistency in cable dimension etc. Although various consulting firms have been hired previously by the case organization in the past to help solve some of these problems, but after a while, the problem still persist and still pose a threat to the company. While thousands of studies have been previously conducted to study various aspects of Six Sigma, this study explored the potential benefits of incorporating Knowledge Management (KM) approach in Six Sigma-DMAIC implementation methodology in organizational context. The collected data were analyzed using descriptive and inferential statistics. Measurement System Analyses (MSA), Process Capability Analysis (PCA), Analysis of Variance (ANOVA), Design of Experiment (DOE) with Taguchi methods was conducted in the study. Minitab-17 Statistical Software and Microsoft Excel 2010 Software were used in the study. The completion of the study resulted to peak improvement in the process capability, with a significant reduction in Defects Per Million Opportunities (DPMO) from 13,900 to 10, thus improving the Sigma level from 3.7 to 5.2. The quantity of non-conformed cables rejected due to insulation surface flaws was reduced by 57% from the baseline value of 22,256metres to 9,570metres within the observed Production quarters.
... We can easily see that a company working with 3.4 defects per million opportunities (DPMO) has production processes with 99.99966% of products / services according to customers' specifications. This allows the company increasing the level of customer satisfaction, and therefore increasing the profits, thereby strengthening their business and ensuring a return on the implemented investment [4]. Six Sigma focuses on measuring the quality of the product / service, reducing variation, leading to improvement and cost reduction. ...
... SS 2: Applying Six Sigma to Achieve Enterprise Sustainability: Preparations and Aftermath of Six Sigma Projects (AlSagheer, & Mohammed, 2011) ...
The main objective of this paper is to gravely evaluate various service delivery improvement models and identify hypothesis from the models to analyze whether these models are significant to hotel industry or not, based on the critical examination of literature review. The paper critically scrutinizes six factors of service delivery which is widely used in hotel industry through a detailed literature review. And also through critical review it analyzes various models under each factor from different authors to identify hypothetical approach of these models significance in hotel industry. The review of various service delivery models under each factor revealed that these models play an important role in improving service delivery in hotel industry. In addition this paper provides a new gate way for the upcoming researchers. Due to the time limit the reviewed models under each factor has restricted to a certain number. This can be a suggestion for expand this study by including present and upcoming models for future research and also it provides new direction to service delivery improvement researchers. This paper discovers new direction in service delivery improvement research and offers theoretical and practical aid to researchers and practitioners in providing a direction for service delivery improvement.
... (Linderman, 2003) We can easily see that a company working with 3.4 defects per million opportunities (DPMO) has production processes with 99.99966% of products / services according to customers' specifications. This allows the company increasing the level of customer satisfaction, and therefore increasing the profits, thereby strengthening their business and ensuring a return on the implemented investment (AlSagheer, 2011). Six Sigma focuses on measuring the quality of the product / service, reducing variation, leading to improvement and cost reduction. ...
The purpose of this study is to analyze the impact of Six Sigma and TQM approaches inside organizations and if they are being used appropriately in order to support their future challenges. Organizations today are faced with ongoing challenges to their ability to continue to provide positive results to its shareholders so that it is possible to anticipate the needs of their customers. We aim to understand whether there is added value for the companies that are using both methodologies.
The small and medium scale manufacturing industries in India faced many problems in real life due to financial constraints, business uncertainty, and demand fluctuations, which cannot be solved by adopting standard solutions only. Therefore, it is necessary to quickly and efficiently meet customers’ changing demands by adopting business excellence practices. This study discussed the Six Sigma approach using define-measure-analyse-improve-control (DMAIC) methodology and developed tailor-made solutions (improvement measures) based on lateral thinking to solve the issues related to the manufacturing of the vehicle’s electric P20 wiper motor. The suggested improvement measures have finally achieved a 38% reduction in the rejection rate and total cost saving per annum Rs. 1,249,920. This study concludes that the DMAIC methodology is a compelling set of tools to give the dramatic business results methodically and the car manufacturing company appreciated this Six Sigma initiative at the vendor’s company in the production of wiper motors.
Processes in manufacturing and service organizations are regularly improved upon for better operational performance. Six Sigma is one of the management philosophies required to achieve improved quality and process performance in systems. Consequently, this study aims to investigate the existing literature that focused on Six Sigma philosophies in process industries and exposition on the future of Six Sigma approach in manufacturing. For the first time, this research focused on the recommendation of the fourth industrial revolution for process improvement and offer foreseeable decisions in every phase of the Six Sigma technique. Other aspects covered in this review include Six Sigma developments, metrics and capabilities, Six Sigma and quality management approaches; Six Sigma integration and innovation; Six Sigma and organizational sustenance and benefits of Six Sigma philosophies; confrontational concerns on Six Sigma Improvement Strategies and the future of Six Sigma. Future research directions focused on the Six Sigma philosophy and innovative technologies to support philosophy have been highlighted with effective recommendations.
Purpose-Six Sigma is based upon quality improvement by finding the root cause and refining processes to the precision of process outcomes. The purpose of this research was to conduct a systematic literature review (SLR) to explore the Six Sigma techniques and information technology (IT) management concepts to identify the IT management principle's impact on the sustainability of Six Sigma project efforts and identify the gaps that are essential to be addressed through further research. This research also discusses the principles of IT management upon the influence on Six Sigma projects, and subsequent contribution to organizational economic sustainability. An effective IT infrastructure including communication, data warehousing, and software maximizes the organization's knowledge for management and allowing products and services to be delivered with enhanced quality. Thus, in the absence of that cooperation, Six Sigma projects may be unsustainable. Design/methodology/approach-Literature published on Six Sigma, sustainability, and related IT management was investigated. The peer-reviewed journal articles were retrieved from different management science publishers, including Emerald, Elsevier, Science Direct, and Springer Link by using the search terms: Six Sigma, sustainability, and related IT management and their combinations. A content analysis was also adopted to analyze the relationship of IT management principles, Six Sigma applications, and sustainability in small-medium organizations. Findings-Two major themes were developed from the data analysis and coding process. First: effects of Six Sigma on organizational sustainability. Second: effects of IT principles on organizational sustainability.
This review explores critical success factors of Six Sigma implementation in hospitals and identifies the benefits. Data sources and Methodology: Prior studies on Six Sigma (SS) totaling 100 were selected from more than 100 journals. These studies came from numerous databases and are classified based on the year of publication. Journal names with corresponding number of papers selected are reported. The review reveals 25 critical success factors (CSF) necessary in the implementation of Six Sigma, encompassing numerous aspects of an organization such as managerial, statistical, and technical aspects. Twenty benefits derived from SS’s implementation are identified, including various improvements in terms of the organizations’ processes, financial performance, and quality of service. The success of Six Sigma implementation depends on several critical factors, some of which are best considered before its introduction, while others must be addressed during the process itself. Other factors are external and should be considered during and after its implementation. Not all Six Sigma initiatives are successful nor result in great benefits. Therefore, organizations must analyze their need for Six Sigma projects and base their decisions on the availability/presence of the CSF. Organizations, including hospitals, can gain numerous benefits from Six Sigma implementation but must first evaluate Six Sigma’s introduction and implementation against their abilities to achieve desired outcomes.
6 في موزعة مصانع) (صويلح، هذه في العاملين جميع وهم اسة للدر عينة بالكامل ُخذ أ فقد المجتمع لمحدودية ً ا ونظر العقبة) و وماركا، المقابلين، و (عددهم البالغ و المجموعة 001 (للتحليل الصالحة اإلستبانات وكانت. ً موظفا) 011 إستبانة) ، أهداف لخدمة تطويرها تم التي اسة الدر ، وسائ من مجموعة استخدمت حيث الوسط مثل الفرضيات اختبار و النتائج تحليل في االستداللي و الوصفي االحصاء ل ية المعيار افات االنحر و ، أبرزها: النتائج من عدد إلى اسة الدر وتوصلت المتعدد. و البسيط االنحدار لمعايير إحصائية داللة ذو أثر يوجد " ست سيجما ة" اتيجية إستر في التطوير. و االبتكار د ذو أثر يوجد لمعايير إحصائية اللة " ست سيجما ة" في التمايز. اتيجية إستر لمعايير أثر يوجد " ستة سيجما "في التطوير و االبتكار ، التمايز. و أهمها: من التوصيات من مجموعة إلى الدارسة وتوصلت 0 منهجية تطبيق توسيع. " ستة سيجما " للباطون) (مناصير الجاهز للباطون الحديثة األردنية الشركة في يادة بز ة الكبير ألهميتها ا و المستلزمات جميع تهيئه خالل من ذلك ويأتي التلف نسبة وتقليل المنتج جودة للتطبيق. المطلوبة التحتية لبنية 2 منهجية تطبيق إن. " ستة سيجما " الشركات مع المنافسة على ة الكبير ة القدر ولها المقدمة في المناصير مجموعه تجعل المنتج قطاع في األخرى المو و الهدر لتقليل ً استنادا االنتاج كلف وتقليل الجودة معيار حيث من اإلسمنتية ات التالفة. اد 4 أهميتها و الستة سيجما اتيجية بإستر اكاتهم إدر لتوسيع المبحوثة الشركات في للعاملين ية وتطوير يبية تدر امج بر إقامة. انعكاساتها. و 3 المبح ات المتغير عناصر جميع تقييم إعادة. ام التز وخاصة محدده مساهمتها كانت التي المستجدات تنشيط على العمل و وثة العمالء. على التركيز و العليا ة اإلدار ودعم 1 الحالية. اسة الدر إليها توصلت التي النتائج إطار في سيجما اتيجية إستر بناء. 2 وباألخص الشركات تجعل ة المستمر التحسينات على المعتمد المستمر التطوير. وتطور ابتكار حالة في المناصير مجموعة األفضل. المنتج وتوفير بائن الز رغبات اكبة مو مع 7 نامج بر بوضع للباطون) (مناصير الجاهز للباطون الحديثة األردنية الشركة في كافة المسؤولين و ين المدير على التأكيد. ستة. سيجما ألبعاد ً وفقا العكسية للتغذية متكامل الدال الكلمات ة: التطوير و االبتكار اتيجية إستر ستة، سيجما ، لل اإلسمنتية المنتجات مصانع التمايز، اتيجية إستر باطون الجاهز (األ في المناصير مجموعة ردن .) ال مقدمة مفهوم يعد ة إدار عالم في ية اإلدار المفاهيم أحد سيجما الشاملة الجودة ، ال موتورو شركة في المفهوم هذا ظهر وقد الثمانين بداية في يكية األمر ي وحقق الماضي، القرن من ات ً اسعا و ً ا انتشار وتطبيقه بتبنيه العالمية الشركات كبرى وبدأت كل وتعد المختلفة. ية اإلدار اءاتها إجر على ال وجنر سيجنل من بين من يكا أمر أوف وبنك جونسون آند وجونسون يك إلكتر تعتمد التي العالمية الشركات أشهر ستة" "سيجما مفهوم للجودة (السيسي، 2100). و نظام يعتمد
This article provides data on how system analysis and system thinking are applied in Six Sigma. We incorporated different approaches developed by systematically analyzing various literature focused on filling the voids in Six Sigma with system analysis. The article looks at the necessities of project managers, Black Belts, and Green Belts with regards to pursuing and fulfilling projects. The key purpose is providing Six Sigma with an extensive understanding of systems thinking. Improvements will be more focused and the results broader spread in any organization employing Six Sigma. The research applied to this topic will add to previous works and have some valuable input for success in Six Sigma.
Systems thinking are a gateway to actualize all ideologies in Six Sigma within the IE/EM profession and research fields. Furthermore, systems thinking is an alternative that can generate a better research and/or project management platform. It can aid in planning, implementing, and optimizing strategies that can collaborate with project completion and accessibility. A different style of tasks accomplishment and goal attainment is made possible by generating better results. As indicated by the resources, there is a significant correlation between services that are given by managers and the performance of required results when a project is completed. Each process for systems thinking and systems analysis is a vital component to Six Sigma for the optimization of necessary methods in the best way possible.
The demands for automobiles increased drastically in last two and half decades in India. Many global automobile manufacturers and Tier-1 suppliers have already set up research, development and manufacturing facilities in India. The Indian automotive component industry started implementing Lean practices to fulfill the demand of these customers. United Nations Industrial Development Organization (UNIDO) has taken proactive approach in association with Automotive Component Manufacturers Association of India (ACMA) and the Government of India to assist Indian SMEs in various clusters since 1999 to make them globally competitive. The primary objectives of this research are to study the UNIDO–ACMA Model as well as ISM Model of Lean implementation and validate the ISM Model by comparing with UNIDO–ACMA Model. It also aims at presenting a roadmap for Lean implementation in Indian automotive component industry. This paper is based on secondary data which include the research articles, web articles, doctoral thesis, survey reports and books on automotive industry in the field of Lean, JIT and ISM. ISM Model for Lean practice bundles was developed by authors in consultation with Lean practitioners. The UNIDO–ACMA Model has six stages whereas ISM Model has eight phases for Lean implementation. The ISM-based Lean implementation model is validated through high degree of similarity with UNIDO–ACMA Model. The major contribution of this paper is the proposed ISM Model for sustainable Lean implementation. The ISM-based Lean implementation framework presents greater insight of implementation process at more microlevel as compared to UNIDO–ACMA Model.
Purpose
The purpose of this paper is to provide a review of the critical success factors (CSF) for lean and six sigma and an analysis of these CSF as compared to previously popular change methods.
Design/methodology/approach
The paper uses a literature search and comparative analysis complemented with examples from previous case studies.
Findings
With only slight variations, the critical success factors are similar for all the change methods. Furthermore, the critical success factors seem to be relatively constant over time. Another important finding is that the CSF tend to relate more to how an organization approaches the change effort versus change method specific factors. The issues of management support and organizational culture are often emphasized as especially critical. The paper highlights and discusses three additional important CSF: strategic alignment, project management and training.
Practical implications
The awareness of CSF, in combination with an awareness of similarities between the methods, can potentially guide organizations in implementations of existing change efforts, and also prepare them for the next widely popular change method – when it arrives.
Originality/value
The paper presents the comparison of such aspects as goals, approaches, structure and tools and a detailed analysis of critical success factors.
Purpose
The purpose of this paper is to extend understanding of the success of the six sigma quality management initiative by investigating the effects of six sigma teamwork and statistical process control (SPC) on organizational‐shared vision.
Design/methodology/approach
The information used comes from a larger study, the data for which were collected from a random sample of 237 European firms. Of these 237 organizations, 58 have implemented six sigma. Structural equation modelling (SEM) was used to test the hypotheses.
Findings
The main findings show that six sigma teamwork and SPC positively affect the development of organizational‐shared vision. A positive but not significant influence is also observed between shared vision and organizational performance.
Research limitations/implications
Positive effects found in this study should be investigated further employing a larger sample of six sigma firms and including other variables such as organizational learning. Further, the effects of these variables on performance should be measured with real results from firms to test possible direct and indirect influence on performance.
Practical implications
The findings of this study offer a justification of six sigma implementation in firms. This study provides the authors with an in‐depth understanding of some structural elements that characterize the six sigma methodology, enabling the authors to provide an explanation for its success.
Originality/value
There is little empirical research on the positive effects of six sigma implementation and even less that explains the success of six sigma initiatives. This paper contributes to filling this gap. It also contributes to emerging literature on how the development of shared vision affects organizational performance.
Purpose
– This paper aims to clarify emerging aspects and trends of Six Sigma literature over 17 years, from 1992 to 2008.
Design/methodology/approach
– The literature on Six Sigma from 417 referred journal articles in business and management disciplines, information systems and computer science, engineering, healthcare, etc. were systematically analyzed based on a scheme that consists of four distinct dimensions: publication year and journal, major themes, research type, and application sector (i.e. manufacturing vs service).
Findings
– A number of key findings emerged: Six Sigma research is growing rapidly, covering various disciplines and domains with a great focus on Six Sigma tools and techniques; empirical research is dominant with more emphasis on case study approach; and the growing gap between manufacturing‐ and service‐focused articles implies the return of Six Sigma to manufacturing as its initial base. Although a large volume of literature is available on Six Sigma, the topic is still under development and offers potential opportunities for further research and applications.
Originality/value
– The paper provides both academics and practitioners with a useful framework for pursuing rigorous Six Sigma research through explaining the chronological growth of Six Sigma, challenging themes of Six Sigma research, dominating research types and application areas in Six Sigma, and the major sources of Six Sigma information.
Purpose
This paper aims to present the results of a study carried out by the author in the form of a panel discussion on the topic – “Is Six Sigma another management fad or fact?”
Design/methodology/approach
The approach taken for this paper was to form a panel of leading academics and practitioners who are familiar with the six sigma topic as well as general quality management/improvement fields.
Findings
The findings of this panel discussion was quite stimulating and the author believes that this will be extremely useful to both researchers and practitioners of six sigma.
Research limitations/implications
One limitation of this panel discussion was that majority of the people who participated in this study come from the USA. It would have been better to have different views from other parts of the world such as China, Sweden, Hong Kong, Australia, The Netherlands, Germany, etc.
Originality/value
The paper provides an excellent resource for those people who would like to know whether six sigma is just a management fad or fact. The people who had participated in this panel discussion were carefully chosen by the author.
Purpose – Six Sigma has been part of our business lexicon for more than a decade. Debates on its emergence as a strategic initiative have created critics who consider it as an old wine in a new bottle. Is Six Sigma a management fad? This article presents some common myths and realities of Six Sigma business strategy. The paper provides an excellent resource for those people who would like to know whether Six Sigma is just a management fad or fact. Design/methodology/approach – The paper discusses some common myths and realities of Six Sigma by critically reviewing the existing literature on Six Sigma and also provides a greater insight into the viewpoints of leading academics and practitioners. Findings – Six Sigma is neither a fad nor just another quality initiative. It relies on factual data coupled with hard work and is a disciplined and structured problem-solving methodology. The authors strongly argue its integration with other continuous/breakthrough improvement initiatives for sustaining the merits of Six Sigma in the twenty-first century. The paper also elucidates the role of academia in further developing and establishing the best practices of Six Sigma management strategy. Six Sigma will evolve over time like many other initiatives – however, the key concepts, the principles of statistical thinking, tools and techniques of Six Sigma, will stay for many years, irrespective of whatever the “next big thing” will be. Practical implications – In the authors' opinion, Six Sigma will continue to grow as a powerful management initiative for achieving and sustaining operational and service excellence. However, what will eventually determine whether Six Sigma is viewed by businesses as just a passing management fad or not, largely depends on the leadership and success of its execution. The authors believe that organisations developing and implementing Six Sigma should not view it as an advertising banner for promotional purposes. Originality/value – The paper yields a great value to both researchers and practitioners of Six Sigma in dispelling the myths of Six Sigma, which have been quite prevalent in the business fraternity.
Purpose
This research paper aims to: explore areas of weakness in six sigma implementations that may require enhancements in the methodology; to investigate implementation differences between manufacturing and services; and to investigate critical success factors.
Design/methodology/approach
Exploratory empirical evidence is presented from nine case study companies in Thailand, including manufacturers, sales and service companies and a national airline.
Findings
Key findings include: six sigma is more appropriate for high risk, complicated, large‐scale and cross functional projects; the six sigma methodology could be enhanced to ensure that projects are aligned to company goals; the evidence questions standard text book advice that a “Black Belt” (BB) should have a full time role, as a part‐time BB role can be more realistic particularly in a small company and the training materials available need to be improved to be more appropriate for service operations.
Research limitations/implications
The main research limitation is in the number of companies studied and the restriction to companies located in Thailand. In addition, the research is exploratory and future research is needed to look at the issues raised in depth.
Practical implications
All of the findings have practical implications. For example, the conclusion on the nature of the BB role is seen as a key issue for successful use of six sigma in small businesses.
Originality/value
Six sigma has been widely used in industry, but there has been limited rigorous academic research. This paper seeks to identify a series of issues worthy of further attention from the academic community using a rigorous research approach.
Purpose
The purpose of this paper is to present a mathematical model that can be used as an educational tool to reflect the philosophical aspects of sustainability.
Design/methodology/approach
This is a descriptive paper.
Findings
Everyone carries a sustainability deficit. Therefore, opportunities to reduce this deficit abound. Education is an excellent vehicle to achieve sustainability.
Practical implications
Helping individuals with extremely high sustainability deficit to make minimum improvements is more beneficial than a further reduction of the “deficit” by those who have it already low. Further action is certainly encouraged, especially to quantify the sustainability index.
Originality/value
The paper fulfils the need of providing an original model upon which educators may lean to, in order to enhance learning in sustainability.
Purpose
The purpose of this paper is to examine the dynamics of organizational learning and continuous improvement (CI) in the context six sigma implementation in business organizations operating in multicultural environments.
Design/methodology/approach
A specific research question is: does learning mechanisms and continuous improvement practices support each other and how, and what type of learning can be identified in the improvement of business processes. The question is linked to one of the fundamental issues currently discussed in the field of organizational learning; how do organizations get “from here to there”, in other words, what is the dynamics of the processes of learning and how progressive learning is achieved. A case study of a few Finnish companies is made and a procedural implementation model is applied.
Findings
The findings suggest that the learning process is characterized by measurement, detection and correction of errors, and cost reduction. In six sigma implementation, learning is a single‐loop type of learning. It is an incremental change process which reminds a technical variant of the learning organization. Continuous improvement occurs through procedural practices (the DMAIC‐cycle) which forms a structure for sustaining learning.
Research limitations/implications
In this study, an essential question remains still unanswered: what type of learning is appropriate when organizational performance is enhanced by process improvements in production, delivery processes, etc. and what kind of learning mechanisms are the most supportive to continuous improvement practices. Further research is needed to find out how (if at all) the technical (single‐loop) approach develops into social (cultural and political) type of learning enabling sustainable capability development. For researching this a longitudinal case study setting would be required. As this paper has reported on the authors' first exploration, further research is needed to increase understanding of learning mechanisms that support CI practices. In further studies it is necessary to “dig” in real life practices of six sigma implementation more deeply.
Practical implications
Management should invest in, and allocate resources to staff training in order to promote learning and CI. On the level of operational leadership, the role of the leaders needs to be more clearly defined and leaders should be empowered. Managerial implication is that the development of information systems is a necessity for supporting CI and progressive learning in six sigma implementation.
Originality/value
Explains the dynamics of continuous improvement and learning process. Presents findings from a case study in three Finnish multinational companies. Presents a few key success factors for progressive organizational learning in conclusion.
Purpose
Perfect competition (PC), despite its abstract nature, is central to the literature on shadow prices and remains an important benchmark in economic policy analysis. Adding sustainability to the conditions of PC, results in a meaningful benchmark, especially in the context of pursuing sustainability as a policy goal. On this basis, some standard explanations involving the comparisons with imperfect competition can be questioned. But, importantly the recognition of sustainability besides the standard conditions of PC provides the basis for expositing voluntary environmental stewardship. This paper aims to address these issues.
Design/methodology/approach
The paper focuses on PC and sustainability (PCS) and PC and PCS vs monopoly.
Findings
The implications of this simple analysis are at least three‐fold. First, in the sphere of applied economics and policy analysis, PC has served as an important benchmark – especially in the shadow pricing literature dealing with project appraisal and cost‐benefit analysis. The main argument in this paper is that PCS would prove to be a better benchmark because it would facilitate the choice of decisions that would satisfy the criteria for sustainability. Second, the recognition PCS prompts the reassessment of comparisons with imperfect market organizations such as monopoly. Within an unregulated context, monopolies, if able to exploit economies of scale, can expand output beyond the limits dictated by PC and PCS and hence compromise the possibilities of sustainability. Finally, and more importantly, the introduction of PCS as a benchmark enables the exposition of voluntary stewardship as a potential measure towards sustainability.
Originality/value
The paper offers insights into PCS.
Purpose
The purpose of this paper is to offer a practice guide for where to apply six sigma process improvement methodology to the corporate real estate function.
Design/methodology/approach
Based on years of direct experience provide practical guidance on how to get started and to overcome resistance that process improvement is not for service organizations like CRE.
Findings
World‐leading CRE departments are addressing cost pressure and performance expectations using process improvement, and the method of choice is six sigma. A methodology that emerged from mechanized manufacturing might seem ill‐adaptive to CRE and similar service cultures. Yet, with guided implementation and disciplined use, six sigma yields tangible results in service environments.
Research limitations/implications
Documenting and benchmarking process improvement results across CRE departments; surveying the level of business adoption of six sigma methodology compared to the level of CRE adoption within the same company and how this leads to business misalignment
Practical implications
World class benchmarks will be set in the future by CRE organizations that adopt six sigma process improvement methodology.
Originality/value
A provocative discourse furthering the cause six sigma within an industry that famously resistant to change.
Purpose
The purpose of this paper is to describe a business management system that addresses the following issue: Lean Six Sigma, total quality management, and other process improvement efforts center on the execution of process improvement projects; however, often these projects (e.g. Lean Six Sigma Black Belt projects) are identified in silos and do not benefit the business as a whole, e.g. $125 million is reported saved, but nobody can find the money.
Design/methodology/approach
The paper “Where process‐improvement projects go wrong,” Wall Street Journal , January 25, 2010 ( www.smartersolutions.com/blog/forrestbreyfogle/?p=2726 ) elaborates on the shortcomings of typical process improvement efforts by building an analog between process improvement programs and a spring's stress‐strain curve – stretching, yielding, and failing. To address the described issues, process improvement efforts need to be part of an overall enhanced business management system in order to have long‐lasting success. This structured organizational framework should integrate predictive scorecards with targeted strategies creation that blends analytics with innovation, which lead to the establishment of functional performance goals that pull for the creation of enterprise‐as‐a‐whole‐beneficial improvement projects, which positively impacts these target objectives.
Findings
The described nine‐step Integrated Enterprise Excellence (IEE) business management system provides the framework for achievement of these above‐described needs. The IEE system, for example, blends analytics with theory of constraints, competitive assessments, and economic environment so that created project work efforts have a whole‐system‐performance measurement benefit.
Research limitations/implications
In Lean Six Sigma and Lean kaizen event programs, improvement projects are often selected from a brainstorming‐list of potential opportunities. Initial gains when starting such a deployment can be achieved; however, this effort typically stalls out and the process improvement teams are laid‐off when times get tough. The reason for this rough‐time downsizing is that the previous team process improvement project efforts were not, in the eyes of executives, expended in areas so that a significant overall enterprise benefit was achieved. IEE provides a business management system for addresses these issues so that business improvement efforts have a whole‐organization benefit.
Practical implications
The IEE system can be used by management to address the business management problems of the day, e.g. management issues that led to the financial crisis and the problems that Toyota is now experiencing.
Originality/value
Many who have studied the IEE system have said that this system provides a framework for how business should be run and should be taught in business schools.
Purpose – The purpose of this paper is to critically evaluate the contributions of six sigma methodology to the improvement of service quality. Since its development in the late 1980s, six sigma has been extensively applied in manufacturing and quasi-manufacturing settings. This study aims to explore the challenges of six sigma in reaching a much wider field of application. Design/methodology/approach – Utilizing the service quality framework, the authors assess the contributions of six sigma and explore its limitations when applied to services. Findings – The relentless drive toward adopting six sigma to services has led both to a limited field of applications and to unrealistic expectations as to what six sigma is truly capable of achieving, particularly in knowledge-based environments. Research limitations/implications – This research focuses on highlighting gaps in the six sigma as applied to services; further work is necessary to identify and develop new methods and to study their effectiveness. Practical implications – The most immediate practical implication of this study is the call for the redesign of the curricula of six sigma black belts training programs; training in service quality is vital for the successful application of six sigma in service operations. Originality/value – This study provides a fresh look into six sigma application to services by combining a thorough analysis of the service quality model with the in-depth understanding of six sigma statistical concepts.
Purpose
The purpose of this research paper is to study the enablers of Six Sigma and to establish relationship among them using interpretive structural modeling (ISM).
Design/methodology/approach
The research paper presents a blend of theoretical framework and practical applications. In the paper, 11 enablers of Six Sigma are identified from literature survey and experts' opinion and then these are validated by questionnaire survey in India. Finally, ISM is used to obtain structural relationship among these enablers of Six Sigma.
Findings
The ISM‐based model indicates that “effective top management leadership role”, “availability of funds” and “availability of expert training” are strategic requirements; “organizational culture”, “organizational infrastructure”, “quality maturity level of organization”, and “employees' adaptability and flexibility towards learning” are tactical requirements. “Statistical thinking”, “committed work force”, “reliable data gathering and retrieval system”, and “technical competence” are operational requirements for Six Sigma applications.
Originality/value
Enablers are the building blocks for deployment of Six Sigma. To know the key enablers and relationship among them can help many organizations to develop Six Sigma competences. It is one of the foremost attempts to model enablers of Six Sigma. The paper provides useful insights to the Six Sigma implementers, consultants, and researchers.
Purpose
– The selection of right projects in a Six Sigma program is a major concern for early success and long‐term acceptance within any organization. One of the ever‐increasing challenges is to define and select right measure for improvement and appropriate problem definition. Many projects encounter the problem of no linkage with business objectives or customer needs, too large or high‐level project scope along with unclear problem and goal statement. Improperly, chosen metrics lead to sub‐optimal behavior and can lead people away from the organization's goal instead of joining them. This paper aims to propose a project selection methodology for different situations.
Design/methodology/approach
– This research develops a model for project identification; ensuring well‐defined projects are selected having large impact on customer satisfaction or bottom line. The model is described for the situations: availability of performance data, balanced business score card implemented and no data is available.
Findings
– A “top‐down approach” model is developed for project selection, since top management support for Six Sigma initiatives is absolutely critical to see tangible, significant results. The authors suggest establishing the linkage with data (either reactive or survey), otherwise through prioritization tool for project selection. Finally, factors influencing successful Six Sigma projects include management commitment; project selection and control skill, irrespective of whether this is a define, measure, analyze, improve and control or define, measure, analyze, design and validate/verify project.
Originality/value
– This approach will help the organizations to select the specific project from multivariate organizational and customer needs. Three different methods for project selection are explained with examples and reasons for selection. Merits and demerits of each method are also highlighted.
Purpose
Starting with the premise that the industrial age has ended, the paper seeks to examine how the underlying principles of sustainability will guide the creation of new economic and educational paradigms.
Design/methodology/approach
The paper utilizes classical economics, the principles of sustainability, and social capital as its theoretical framework.
Findings
Based on the neoclassical economic concept of free‐market capitalism, it does not make economic sense to invest in economic, environmental, or social renewal. However, social and environmental indicators demonstrate that a neoclassical capitalist model simply is not sustainable. There is a need for a new paradigm for a sustainable future that is based on biological, living systems as opposed to mechanistic systems. The new paradigm will also rely on the principles of classical economics, civic and social responsibility for its foundation. Service‐learning, as an educational model that is intimately integrated with society, is poised to respond to the global transformations that are taking place. It is a responsive and responsible pedagogy that promotes the core values that will be essential for success in the future.
Originality/value
This paper provides guidance on how the principles of sustainability will affect future economic development and will inform education in the field of service‐learning.
Purpose
Both total productive maintenance (TPM) and Six Sigma are key business process strategies, which are employed by companies to enhance their manufacturing performance. The purpose of this paper, therefore, will be to develop and implement an integrated Six Sigma maintenance (SSM) model for manufacturing industry
Design/methodology/approach
Through the development of a case study approach, the paper chronicles the design, development and implementation of an integrated Six Sigma maintenance (SSM) model. The model is subsequently evaluated for its effectiveness in the subject company.
Findings
A model is proposed and the effectiveness of the approach is subsequently evaluated highlighting the benefits the host organization received through this new approach by measuring the effects of implementation against the seven quality, cost and delivery (QCD) measures.
Practical implications
The design, development and implementation of a Six Sigma maintenance model shown in this paper provides a simple yet highly effective approach to achieving significant improvements in a company's product quality cost and delivery measures. The model combines contemporary business management techniques with total productive maintenance strategies and offers practicing maintenance managers and engineers a strategic framework for increasing productive efficiency and output.
Originality/value
The proposed SSM model contributes to the existing knowledge base on maintenance systems and subsequently disseminates this information in order to provide impetus, guidance and support towards increasing the development companies in an attempt to move the UK manufacturing sector towards world class manufacturing performance.
Purpose
The purpose of this paper is to construct a basic profit model of quality so as to highlight the economic implications of process quality in an accessible way.
Design/methodology/approach
Economic evaluation of the four profit parameters (price, unit costs, sales, fixed costs) using microeconomic analysis. For each parameter, the effect of better quality is described and a general logic to assess its profit impact developed.
Findings
For all four examined parameters, it can be shown that better quality results in better financial performance. Profit and quality are therefore positively correlated.
Research limitations/implications
The presented research is of conceptual nature, based on the objective to establish a general profit model of quality. The single parts of the described economic logic of quality might be subjected to empirical examination.
Practical implications
The arguments presented in this paper can help quality practitioners to better understand the economics of striving for best possible quality.
Originality/value
This paper fulfills an identified research gap by combining the disciplines of economics and quality management and tries to advance a profit perspective on quality which is suited to replace the still dominant cost perspective.
Purpose
This paper aims to present a quality and business improvement framework based on Six Sigma/design, measure, analyze, improve, and control (DMAIC); design for Six Sigma (DFSS); and Lean principles. An historical perspective on these methods is also provided.
Design/methodology/approach
Through a discussion of the fundamental components of Six Sigma, DFSS and Lean a deployment strategy is developed. This approach is consistent with Deming's philosophy of quality improvement and is based on his system of profound knowledge.
Findings
A quality/process improvement effort that utilizes Six Sigma and DMAIC, DFSS, and Lean can form two of the three basic building blocks of a company‐wide quality management system.
Research limitations/implications
Some implications for education of future business leaders in a variety of disciplines including engineering, statistics and business administration are discussed. More widespread education about DMAIC and the associated problem‐solving tools is needed.
Originality/value
This paper provides practical guidance for implementing quality and productivity improvement across a wide range of industrial and business endeavors.
Purpose
The purpose of this paper is to present part of the results from a survey on Six Sigma, more specifically to identify the best practices in the use of the Six Sigma methodology.
Design/methodology/approach
Data were collected in an exploratory‐descriptive survey on Six Sigma adoption in companies operating in Brazil. Then, the paper presents and discusses best practices in Six Sigma application.
Findings
The results point out relevant aspects related to the professionals involved with the program, the number of projects developed per year, as well as the return on investments made by companies. It is concluded that a good proportion of respondents adopt best practices according to the literature, but the subject needs a more detailed investigation of the financial benefits achieved with its application.
Research limitations/implications
It is important to stress that the importance of some of these exemplary aspects vary with the type of company but, overall, they might be generalised within the sample.
Practical implications
The results show that there are relevant points when applying Six Sigma that should be considered by companies interested in adopting it.
Originality/value
As the application of Six Sigma is relatively recent and there is little data published about its utilisation in a developing country, it is important to expand knowledge on this subject. The best practices identified in this paper may be useful to Six Sigma users and academics.
Purpose
To investigate the potential of combining six sigma (SS) and theory of constraints (TOC) to improve production system performance.
Design/methodology/approach
Based on the literature, this paper proposes an integrated TOC/SS framework and applies this framework to an axle manufacturing company to improve its gear‐cutting operation.
Findings
The results of the case study indicate that the company benefited tremendously from its emphasis on global improvement guided by the TOC concept. Managers were able to select a continuous improvement (CI) project that had greater impact on bottom line performance. On the other hand, SS provided various statistical tools and engineering techniques (such as value analysis, Pareto diagram and control charts) for defining the specific process to be improved, analyzing the root causes, and designing actions for making improvement.
Research limitations/implications
For the future effort of integrating TOC with SS and other CI techniques, we suggest the incorporation of a TOC methodology, thinking process (TP).
Practical implications
Overall, the integration of SS and TOC provides managers with an excellent platform for two CI techniques to work together and create great synergy.
Originality/value
This study adds to the CI literature and practice by demonstrating the value of a method of combining TOC and SS.
Purpose
– Details the implementation of six sigma at one UK based manufacturing company.
Design/methodology/approach
– Describes how and why one company has introduced six sigma, and looks at a number of specific improvement projects – the approach taken, the common fault causes and the benefits gained from introducing new practices.
Findings
– Six sigma has enabled the company to eliminate a wide range of long standing process variation problems. The projects undertaken highlight the importance of a structured process and the importance of data collection. Only when working with the facts, rather than on “gut feeling” do the real causes become clear and solutions effective.
Originality/value
– Brings to the attention of managers how six sigma can be used to enhance existing improvement efforts, and uses specific examples to show how the approach can be used to tackle long standing, and often hidden, quality issues.
Purpose – To provide a sound discussion on the Six Sigma methodology and see how it fits in with other quality initiatives. Design/methodology/approach – A conceptual paper that takes at in-depth look at the origins, pros and cons of Six Sigma and how it relates to some of the other quality initiatives in industry. Findings – The immediate goal of Six Sigma is defect reduction. Reduced defects lead to yield improvement; higher yields improve customer satisfaction. Six Sigma defect reduction is intended to lead to cost reduction. It has a process focus and aims to highlight process improvement opportunities through systematic measurement. Six Sigma implementation can have negative consequences if applied in the wrong project. Six Sigma is a toolset, not a management system and is best used in conjunction with other more comprehensive quality standards such as the Baldrige Criteria for Performance Excellence or the European Quality Award. Research limitations/implications – This is a conceptual study and hence there are no hypotheses tested as in an empirical study. It does provide a good foundation for future research. Practical implications – A very useful source of information and impartial advice for practitioners and researchers planning to practice the Six Sigma methodology and/or understand its pros and cons. Originality/value – This paper fulfils an identified information/resources need for Six Sigma methodology. It is based on utilizing an extensive set of statistical and advanced mathematical tools, and a well-defined methodology that produces significant results quickly. The success of this methodology within an organization has significant momentum that can only lead to fundamental organizational cultural transformation.
Purpose
This paper explores ways in which different dimensions of sustainability can be addressed at the strategic level within organizations.
Design/methodology/approach
Building upon previous research, the authors provide a conceptual overview before developing a framework that outlines how sustainability can be addressed during the strategic decision‐making process and as part of the organization's corporate, business and functional level strategies.
Findings
Research has demonstrated that many managers do not understand how to make their organizations more sustainable, even though they recognize the benefits of doing so. The framework developed in this paper suggests a way for managers to integrate sustainability into strategy. It focuses on the strategic decision‐making process, including the cognitive characteristics of strategic decision‐makers and the strategy content at the corporate, business and functional levels. The authors also address the role of organizational culture and vision in supporting sustainable strategies. The framework is illustrated by case examples of BHP Billiton, Loving Earth, the Australian Wine Industry, and Migros.
Practical implications
The framework can be used by managers and scholars to assess the degree to which organizations have strategically addressed sustainability and to identify opportunities for further improvements.
Originality/value
The value of this paper lies in the treatment of sustainability as a strategic, as opposed to an operational, issue. By adopting a strategic approach to sustainability, organizations are more likely to include economic, environmental and social considerations in all aspects of business on an ongoing basis.