INTERNATIONAL JOURNAL in Management (IJARM),RESEARCH International Journal of Advanced Research OF ADVANCED ISSN 0976 6324 (Print), ISSN 0976

6 6332 (Online), Volume 3, Issue 1, January- June (2012) IN MANAGEMENT (IJARM)

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BARRIERS AND ENABLERS IN IMPLEMENTATION OF LEAN SIX SIGMA IN INDIAN MANUFACTURING INDUSTRIES
Dr Z Mallick Professor in Mechanical Department Jamia Millia Islamia University, New Delhi, India Zmallick2002@yahoo.co.in Mr Shahzad Ahmad Asstt Prof in Mechanical Department AFSET, Faridabad, India ershahzadjmi@gmail.com Lalit Singh Bisht Research Scholar (corresponding author) AFSET, Faridabad, India lsbisht24@gmail.com ABSTRACT In this paper, study examines the barriers and enablers in implementation of lean six sigma (LSS) in Indian manufacturing sector. Indian manufacturing sector would contribute 25% of GDP and increase employability and enhance global competition in near future. In order to achieve the objectives, the various research questions were asked, which are key factors to initiate Implementing LSS tools. Keywords: LSS, chi-square, barriers, enablers, quality, GDP 1. INTRODUCTION Lean Six Sigma (LSS) is a key ingredient of quality management principles, practices, tool and techniques. It is process based improvement methodologies, the combination of both can provide the philosophy and the most powerful tools to solve problems and create rapid transformational improvement at lower cost. Lean Six Sigma have been successfully implement in many manufacturing sector such as General Electric, Toyota, DuPont, Boeing, Honeywell, Dell, Toshiba, HP, Sony, IBM, Seagate, Lenovo( Gang Niu et all., 2010). Due to commercial competition, enterprises must focus on low cost; eliminate waste and workforce effectiveness to get high profit by satisfying end user.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 3, Issue 1, January- June (2012)

Lean Six Sigma programs, which comprise statistical approaches with a systematic and quantifiable project-based improvement methodology, are proving to be extremely effective in tracking down the real causes of variation (Mortimer A L., 2006). By adopting this new approach, An Indian companies of all sizes, are now establishing a far better understanding and gaining much tighter control of their development. 1.1 Drawing from Lean Six-Sigma Manufacturing Process Improvement (a) To create solutions for processes. (b) Organization will receive more output of work and progress with less amount of effort. (d) It recognizes inefficiencies. (d)It reduces cycle time. (e) It reduces Non-Value-Added activities. (f) Increase in customer order accuracy. 1.2 Indian Manufacturing Sector Scenario The report of the Prime Ministers Group, constituted to look into the measures for ensuring growth of the manufacturing sector, submitted in 2008 had recommended the putting in place a well structured manufacturing-sector policy to attain sustained 12-14 per cent growth in this sector. The government released the NMP on 4 November 2011for bringing about a quantitative and qualitative change with the objectives to (i) increase manufacturing sector growth to 12-14 per cent over the medium term; (ii) enable manufacturing to contribute at least 25 per cent of GDP by 2022; (iii) create 100 million additional jobs in the manufacturing sector by 2022; (iv) create appropriate skill sets among the rural migrant and urban poor for their easy absorption in manufacturing; (v) increase domestic value addition and technological depth in manufacturing; and (vi) enhance global competitiveness of Indian manufacturing( India budget 2012) 2 REVIEW OF LITERATURE Lean Six Sigma is a new integrated concept that has objectives to improve quality, reduce processing time and reduce production cost. However, one needs to be careful when implementing Lean Six Sigma concepts into manufacturing sector. There is a need to think about manufacturing sectors characteristics. Identifying critical success factors for implementation is useful. But CSFs in themselves do not represent a coherent implementation framework; they need to be integrated into an implementation plan. The broader aim of the research is to develop an implementation framework to implement Lean Six Sigma into Indian manufacturing industry. A temporal dimension is an important feature of an effective implementation plan aimed at introducing an innovation at an industry level. Thought should be given to how different phases of such an innovation should be conducted. A feasible approach that has been used, is to introduce the innovation into a small number of targeted organizations whose success would encourage other organizations to follow their example (Kifayah Amar and Douglas Davis 2008).
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 3, Issue 1, January- June (2012)

Barriers and Enablers in implementing a successful Lean Six Sigma [Swee s kuik et all] Barriers Enablers Top Management apathy Top Management involvement Inability to change Able to Learn and accept changes Improper Planning Proper planning Lack of Training Quality workshop organize regularly Lack of Democratic talk Open talk about all waste Insulating organization from Cross Understand and implement cross business business Inadequate attention to internal and Internal and external customer satisfaction external customer is tracked and reviewed The implementation of Lean Six Sigma in Indian manufacturing sector is an area of heightened practitioner and researcher interest. A case study involving the development of a Six Sigma implementation framework was undertaken utilizing a coach-centered Indian manufacturing sector business improvement cluster. The case study employed a novel transfer programme involving Six Sigma DMAIC training, personal development workshops and a live Lean Six Sigma based business improvement project. This work based learning programme allowed the contextual application of core tools and techniques with the assistance of an expert coach. Benefits from the program were generated on four levels including knowledge and technology transfer between clusterbased manufacturing sector (incidental technology transfer). (Pantano, P. OKane and K. Smith.2006) 3. NEED AND OBJECTIVES OF THE STUDY Indian Manufacturing sectors needs to become more competitive and producing good quality with minimum waste by utilizing full man power to satisfy end user. To achieve customers satisfaction, Indian manufacturing sector have an obligation to ascertain the quality of goods as expected by the customer and find ways to meet them. The present study is aimed to find barriers and enablers in implementation of lean six sigma in Indian manufacturing sectors by knowing concern enterprise employees perception about factors which are basic for Lean Six Sigma. The present study finds the relationship of Lean Six Sigma factors with personnel view. 4. METHODOLOGY A questionnaire was constructed to find the perceptions of the employees of different manufacturing sector towards their organization. Total of 7 main statements were asked by 62 respondents, which are Critical success factor for implementation of lean six sigma. Employees were asked to rate the quality of several attributes using an interval, Likert scale ranging 1 to 5.The study period was from November 2011 to March 2012. Study comprised 62 respondents of 07 manufacturing sectors. The tests of factor analysis, chi-square and averages were used to analyze the data and interpret the results.

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 3, Issue 1, January- June (2012)

5. DATA ANALYSIS HYPOTHESES

AND

INTERPRETATION

WITH

TESTING

OF

Table 1: Respondents experience Experience Frequency Percentage 33.87 25.80 14.51 01.61 22.58 01.61 100.00 Valid percentage 33.87 25.80 14.51 01.61 22.58 01.61 100.00 Cumulative percentage 33.87 59.67 74.18 75.79 98.37 100

Below 2 yrs 21 2-4 yrs 16 4-6 yrs 09 6-8 yrs 01 8-10 yrs 14 Above 10 yrs 01 Total 62 Field Survey, 2011-2012

Above Table 1 shows that 33.87% of the respondents have work in the organization for less than 2 yrs while 25.80% of the respondents have work in the organization for 2-4 yrs and 14.51% respondents work for 4-6 yrs, 22.58% for 8-10 yrs and 01.61% respondents work for 6-8 yrs and above 10 yrs.The respondents were asked Seven question critical factors of Lean Six Sigma Implementation in their organization, these Seven question are prerequisite for Lean Six Sigma implementation and to find its Barriers and Enablers .Their responses are shown in given table. Table 2: All new employees are trained in the analysis methodology and problem solving tools Opinion Frequency Percentage Valid percentage 01.61 08.06 29.03 46.77 14.51 100 Cumulative percentage 01.61 9.67 38.70 85.47 100

Strongly 01 01.61 disagree Disagree 05 08.06 Neutral 18 29.03 Agree 29 46.77 Strongly 09 14.51 agree Total 62 100 Source: Field Survey, 2011-2012

Table 2 shows that 46.77% respondents agree and 14.51% strongly agree that new employs are trained in the analysis methodology and problem solving tools but other side 29.03%, 08.06%, 01.61% are either neutral, disagree, and strongly disagree respectively. Chi-square is calculated using formula = (O-E) /E

Where: =Summation
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 3, Issue 1, January- June (2012)

O= Observed frequency; E= Expected frequency Decision rule: Reject null hypothesis (H0), where calculated is greater than tabulated, and accept alternative hypothesis (H1) For Table 2 statement, calculated () = Degree of freedom d.o.f= 4 Tabulated () = at 0.05% level of significance, the tabulated value of for 4 degree of freedom is 9.488 Since the calculated is greater than tabulated we reject null hypothesis (H0) and accept alternative hypothesis(H1),this indicate that there is a relation of statement in table 2 to Barriers and enablers in implementation of Lean Six Sigma. Table 3: There is no fear of my superior for speaking out about waste (time, materials etc.) Opinion Frequency Percentage Valid percentage 3.22 6.45 27.41 45.16 17.74 100 Cumulative percentage 3.22 9.67 37.08 82.24 100 (O-E) /E =40.61

Strongly 02 3.22 disagree Disagree 04 6.45 Neutral 17 27.41 Agree 28 45.16 Strongly 11 17.74 agree Total 62 100 Source: Field Survey, 2011-2012

Table 3 disclose that 45.16% respondents agree and 17.74% strongly agree that they have no fear when to speak about waste to their superior but 27.41% respondents neutral and 6.45%, 3.22% respondents disagree and strongly disagree respectively . For Table 3 statement, calculated () = Degree of freedom d.o.f= 4 Tabulated () = at 0.05% level of significance, the tabulated value of for 4 degree of freedom is 9.488 Since the calculated is greater than tabulated we reject null hypothesis (H0) and accept alternative hypothesis (H1), this concluded that there is a relation of statement in table 3 to Barriers and enablers in implementation of Lean Six Sigma. (O-E) /E =35.91

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 3, Issue 1, January- June (2012)

Table 4: Quality leaders know about Lean Six Sigma Opinion Frequency Percentage Valid percentage 00 9.67 40.32 33.87 16.12 100 Cumulative percentage 00 9.67 49.99 83.86 100

Strongly 00 00 disagree Disagree 06 9.67 Neutral 025 40.32 Agree 021 33.87 Strongly agree 10 16.12 Total 62 100 Source: Field Survey, 2011-2012

Above Table 4 shows that 33.87% respondents and 16.12% agree and strongly disagree and 40.32% of the respondents have neutral view and 9.67% disagree about those quality leaders know about Lean Six Sigma. For Table 4 statement, calculated () = Degree of freedom d.o.f= 4 Tabulated () = at 0.05% level of significance, the tabulated value of for 4 degree of freedom is 9.488 Since the calculated is greater than tabulated we reject null hypothesis (H0) and accept alternative hypothesis (H1), this concluded that there is a relation of statement in table 4 to Barriers and enablers in implementation of Lean Six Sigma. Table 5 Customer satisfaction is tracked and reviewed Opinion Frequency Percentage 00 3.22 19.35 53.22 24.19 100 Valid Percentage 00 3.22 19.35 53.22 24.19 100 Cumulative percentage 00 3.22 22.57 75.79 100 (O-E) /E =34.72

Strongly 00 Disagree Disagree 02 Neutral 12 Agree 33 Strongly Agree 15 Total 62 Source: Field Survey, 2011-2012

Table 5 shows that 53.22% and 24.19% of respondents agree and strongly agree respectively when asked that their organization tracked and reviewed customer satisfaction and 19.35% of the respondents neutral and 3.22% disagree For Table5 statement, calculated () = Degree of freedom d.o.f= 4
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(O-E) /E =55.90

International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 3, Issue 1, January- June (2012)

Tabulated () = at 0.05% level of significance, the tabulated value of for 4 degree of freedom is 9.488 Since the calculated is greater than tabulated we reject null hypothesis (H0) and accept alternative hypothesis (H1), this concluded that there is a relation of statement in table 5 to Barriers and enablers in implementation of Lean Six Sigma. Table 6: Quality workshop organize regularly Opinion Frequency Percentage 1.61 6.45 33.87 38.70 19.35 100 Valid percentage 1.61 6.45 33.87 38.70 19.35 100 Cumulative percentage 1.61 8.06 41.93 80.63 100

Strongly 01 disagree Disagree 04 Neutral 21 Agree 24 Strongly agree 12 Total 62 Source: Field Survey, 2011-2012

When respondents were asked whether Quality workshop organize regularly in their organization then 38.70% and 19.35% respondents agree and strongly disagree respectively on other side 33.87% were neutral and 6.45% and 1.61% respondents disagree and strongly disagree For Table 6 statement, calculated () = Degree of freedom d.o.f= 4 Tabulated () = at 0.05% level of significance, the tabulated value of for 4 degree of freedom is 9.488 Since the calculated is greater than tabulated we reject null hypothesis (H0) and accept alternative hypothesis (H1), this concluded that there is a relation of statement in table 6 to Barriers and enablers in implementation of Lean Six Sigma. Table 7: Cross business opportunities linked with customer needs Opinion Frequency Percentage 1.61 6.45 20.96 64.51 6.45 100 Valid percentage 1.61 6.45 20.96 64.51 6.45 100 Cumulative percentage 1.61 8.06 29.02 93.53 100 (O-E) /E =33.01

Strongly 01 disagree Disagree 04 Neutral 13 Agree 40 Strongly agree 04 Total 62 Source: Field Survey, 2011-2012

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 3, Issue 1, January- June (2012)

From the table above, 64.51% respondents agree, 20.96% of the respondents neutral, 6.45% of the respondents disagree and strongly agree and 1.61% of the respondents strongly disagree that their organization understand of how cross-business opportunities, linked with customer needs, might offer different ways of approaching the market. For Table 7 statement, calculated () = Degree of freedom d.o.f= 4 Tabulated () = at 0.05% level of significance, the tabulated value of for 4 degree of freedom is 9.488 Since the calculated is greater than tabulated we reject null hypothesis (H0) and accept alternative hypothesis (H1), this concluded that there is a relation of statement in table 7 to Barriers and enablers in implementation of Lean Six Sigma. Table 8: Suppliers capabilities in supporting new technology/requirements Opinion Frequency Percentage 00 4.83 29.03 59.67 6.45 100 Valid percentage 00 4.83 29.03 59.67 6.45 100 Cumulative percentage 00 4.83 33.86 93.53 100 (O-E) /E =83.31

Strongly 00 disagree Disagree 03 Neutral 18 Agree 37 Strongly agree 04 Total 62 Source: Field Survey, 2011-2012s

This table shows that 59.67% of the respondents agree and 29.03% of the respondents neutral about the suppliers capabilities in supporting new technology/requirements and 6.45% of the respondents strongly agree and 4.83% of the respondents disagree that the suppliers capabilities in supporting new technology/requirements. For Table 8 statement, calculated () = Degree of freedom d.o.f= 4 Tabulated () = at 0.05% level of significance, the tabulated value of for 4 degree of freedom is 9.488 Since the calculated is greater than tabulated we reject null hypothesis (H0) and accept alternative hypothesis (H1), this concluded that there is a relation of statement in table 8 to Barriers and enablers in implementation of Lean Six Sigma. 6. RESULTS AND DISCUSSION The surveys revealed that majority of the manufacturing sector preferred and have ISO certification, and implement some tools and technique but relatively very less percentage.
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(O-E) /E =76.53

International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 3, Issue 1, January- June (2012)

Surveys disclose various Barriers and Enablers in implementation of LSS in Indian manufacturing sectors as in below Barriers and Enablers in implementation of LSS in Indian manufacturing sectors Barriers New employees are reluctant Enablers New employees are trained in analysis methodology Little steps initiate to eliminate waste Democratic talk about waste, to senior Quality leaders implements less tools of Quality leaders know about LSS LSS Employee follow mind numbing rules Customer satisfaction is tracked and reviewed Few employees implement quality tools Quality workshop organize regularly Quality of product still lag to world class Cross business linked with customer needs Suppliers not involved in organization Suppliers support new SPC technology/requirements 7. LIMITATIONS OF THE STUDY Following are some of the limitation of this study: (a). Sample size of 7 manufacturing sectors appears to be small, it can be extended to companies located in other parts of India too. More survey needs to make the results more representatives (b). Sample size is limited which is 62 respondents, it can be cover more respondents from top to bottom of organizations. REFERENCES [1] Gang Niu, Daniel Lau, Michael Pecht. (2010) PHM2010 Macau, IEEE [2] Mortimer A L., (2006) Six Sigma: Effective handling of deep rooted quality problems , Assembly Automation, Vol. 26, No.3, pp.200-204. [3] Duane K Allen, Phil Laure. (2006) Exploiting Lean Sigma quality tools to improve test and other process 1-4244-0052-X/06/$20.00 2006 IEEE. Pp 509-514 [4] http://indiabudget.nic.in(accessed on April 8, 2012). [5] Kifayah Amar and Douglas Davis. IMECS 2008 A Review of Six Sigma Implementation Frameworks and Related Literature, Vol II19-21 March, 2008, Hong Kong [6] Swee S. KUIK, Sev V Nagalingam & Yousef Amer, Implementation of Six Sigma methodology to improve supply chain network in the context of Malaysian manufacturing industries [7] C V. Pantano, P. OKane and K. Smith.2006 cluster-based Six Sigma Deployment in Small and Medium Sized Enterprises. IEEE, pp 788-792.

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