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1. Introduction
Application of Lean Six Sigma (LSS) for deploying
continuous improvement is increasing largely in the last
decade and seems to have become the de-facto approach
for industry. LSS represents the merger of two well known
improvement programmes that both have a long history:
Lean manufacturing and Six Sigma. The origin of lean
manufacturing is located in Japan, where elements of lean
manufacturing were applied from around 1950 (Womack
and Jones, 2003). Lean manufacturing became popular
after the publication of the books The Toyota Production
System (Ohno, 1988) and A Study of the Toyota Production
System (Shingo, 1989). Six Sigma, on the other hand,
started at Motorola in the USA in the 1980s. Interest in Six
Sigma increased rapidly after General Electric adopted Six
Sigma as their leading quality improvement programme
(Eckes, 2000; Henderson and Evans, 2000). The term LSS
has been introduced around 2000 (George, 2002). Between
Correspondence: W Timans, Mechanical Engineering, Stenden University of Applied Science, P.O. Box 2080, Emmen 7801 CB, The
Netherlands.
E-mails: jwj.timans@home.nl; werner.timans@stenden.com
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denition adopted by the EU Commission, SME organizations are enterprises with fewer than 250 employees, with
additional conditions, for example on maximal annual
turnover and balance sheet total.1
The well-known examples of company-wide implementation of LSS programmes largely come from large
organizations. There is (still) only limited insight into
successful implementations of LSS in SMEs. In this paper
we aim to present an overall picture of the implementation
of LSS in Dutch manufacturing SMEs and to explore the
critical success factors (CSFs) for implementation of LSS
in a manufacturing SME context. From the picture arising
we want to point out which factors are perceived to be
CSFs and which are impeding factors for the implementation of LSS programmes in SMEs. By rst focusing on the
status quo in the Netherlands we aim to infer from
experiences in the past what is really key and why.
To reach our objectives we address the following
research questions:
K
2. Literature review
Given our intention to describe the current overall picture
of the implementation of LSS in manufacturing SMEs in
the Netherlands and to identify the important CSFs, our
literature study focuses on implementation studies regarding LSS. In our search for SME deployment of LSS we
decided to include implementation studies on ( just) Six
Sigma as well, because we know from our experience that
in these studies often lean manufacturing methods are
included in the tools that are presented as Six Sigma tools.
This again illustrates that industry does not make the
same strong distinctions between Lean manufacturing, Six
Sigma and LSS that often occur in the more theoretical
debates. To illustrate the current state of this debate on the
integration of lean manufacturing and Six Sigma we also
added a few recent studies that focus on the integration of
both programmes.
Achanga et al (2006) carried out research on CSFs for
lean implementation. Case study research was carried out
within 10 UK manufacturing SMEs. The results were
analysed and validated through workshops, case studies
and Delphi techniques. Strong leadership, excellent project
management, nancial capabilities, organizational culture,
and skills and expertise are classied as the most pertinent
issues critical to the successful adoption of lean manufacturing within SMEs.
Earlier studies on the implementation of Six Sigma
(including lean aspects) in manufacturing SMEs were
carried out in the UK (Antony et al, 2005, 2008; Kumar,
2007). The studies of Antony et al (2005, 2008) present a
literature review based on the experiences of academics
and practitioners, followed by the results of a survey in UK
manufacturing SMEs, based on data collected using
questionnaires. The ndings show that Six Sigma was not
generally popular among SMEs. Management involvement
and participation, linking the programme to customers and
linking to the business strategy are the highest ranked
341
in the USA. Their results indicate that the lean manufacturing performance levels of organizations that also implemented Six Sigma exceed the performance levels of organizations
that have implemented lean manufacturing alone.
A literature study on the integration of Lean and Six
Sigma has been carried out by Pepper and Spedding (2010).
They conclude that there are a number of encouraging
articles discussing the use of an amalgamated approach,
but a closer integration towards a unied methodology
must be achieved, with scientic underpinning to provide a
sound theoretical foundation. The study of De Koning
(2007) is specically focussing on the scientic grounding
of LSS as an integrated programme, merging the Six Sigma
and Lean toolboxes, and clarifying concepts and classications. Schroeder et al (2008) used the grounded theory
approach and literature study to propose an initial
denition and theory of Six Sigma. The authors argue
that Six Sigma is different from prior approaches to quality
management in providing an organizational structure not
previously seen. Although this study is focussed on Six
Sigma, the conclusions could be valuable for the theoretical
grounding of LSS as well.
Snee (2010) discusses the advances of LSS in the last 10
15 years and trends that suggest how the methodology
needs to evolve. LSS is regarded as a holistic improvement
methodology addressing the ow of information and
materials through processes as well as the enhancement
of value-adding process-steps to create the product for the
customer. In his view this will naturally lead to making
improvement a business process similar to any other
important business process.
There seems to be a fair agreement on CSFs presented in
the implementation studies. In our study we start using the
13 formulated CSFs of Kumar (2007) and Antony et al
(2005, 2008) as a starting point. On these 13 CSFs there
seems to be fair agreement in our eld. With regard to the
debate on the merger of Lean and Six Sigma we feel
strengthened by the literature, in particular by Snee (2010),
that the combined approach of LSS is to prefer to keeping
both approaches tied to separate programmes.
3. Research design
The stages of our study are presented in Figure 1.
First, a short questionnaire was used to collect data on
LSS implementation issues from Dutch manufacturing
SMEs. This one-page questionnaire was merely used to
select the SMEs familiar with lean manufacturing or Six
Sigma (or both). The questions concerned the products
manufactured, number of employees, quality management
programmes applied and since when (lean manufacturing,
Six Sigma, ISO 9000, EFQM or other), and which tools
and techniques are applied. The questionnaire was sent in
October 2008 to about 1500 manufacturing SMEs in the
Netherlands, selected from a database of the Dutch
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K
K
35
30
percentage
343
25
20
15
10
Respondents position
Director
Quality manager
Operational manager
Belt functions
Other
24
22
13
14
27
5
0
<21
21-50
>250
The reason for choosing an upper limit of 300 employees was that we
expected that the real number of employees would in general be
somewhat lower, because of the rather pessimistic economic situation at
the time of the study. As a consequence a small number of companies
might not comply completely with the formal criteria for SMEs.
Automotive
Electronic instruments
Chemical
Packaging
Food
Polymer products
Metal components
Building components
Industrial equipment
Other
11
13
7
8
8
8
8
6
6
25
5S methods
Brainstorming
PDCA (plan, do, check, act)
Histogram
VSM (value stream mapping)
Pareto diagram
Process owchart/mapping
SIPOC (suppliers, inputs, process, outputs, customers)
Cause and effect analysis
Process mapping
Project charter
Failure mode and effect analysis
Quality costing analysis
Cause and effect diagram
Run charts
Kanban
SPC control charts (statistical process control)
Quick changeover, SMED (single minute exchange of die)
Poka-yoke
Kaizen events
Tally charts
Benchmarking
ANOVA
Balanced scorecard
Measurement system analysis
Scatter diagram
Regression analysis
design of experiments (DoE)
Matrix diagram
Relations diagrams
Quality function deployment
Hypothesis testing
Afnity diagrams
Taguchi methods
Process capability analysis
PERT chart (programme evaluation and review technique)
Force eld analysis
Usage mean
rating
5
4
4
4
4
4
4
4
4
4
4
4
4
3
3
5
1 and 5
3
3
2
4
2
4
2
4
2
3
1
3
2
1
1
1 and 2
1 and 2
4
1
2
Most frequent
rating
4.18
4.02
4.04
3.70
3.84
3.96
3.83
3.59
3.69
3.57
3.59
3.53
3.65
3.70
3.41
3.42
3.70
4.06
3.71
3.48
3.26
3.07
3.27
3.28
3.13
2.97
3.03
3.03
2.79
2.65
2.59
2.67
2.80
2.50
3.21
2.29
2.33
Usefulness mean
rating
5
4
4
4
5
4 and 5
4
4
4
4
4
4 and 5
4
4
4
4
5
4
4
4
4
4
4
3
3
2
3 and 4
4
3
3
4
2
2
1
4
1
3
Most frequent
rating
8
0
6
15
23
8
6
54
19
15
40
27
15
23
52
12
46
27
23
17
10
8
56
21
44
33
46
46
42
56
56
46
69
60
31
71
65
Unfamiliar
(%)
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Journal of the Operational Research Society Vol. 63, No. 3
345
346
Table 4 CSFs and mean ratings of importance and practice (ranked on importance)
Critical success factor
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Importance
Practice
Mean rating
Cronbachs alpha
Mean rating
4.1
3.9
3.8
3.8
3.8
3.7
3.7
3.6
3.5
3.3
3.3
3.3
0.98
0.96
0.97
0.94
0.75
0.93
0.90
0.70
0.88
0.61
0.70
0.88
3.6
3.2
3.0
3.0
3.0
2.9
2.8
2.9
2.9
2.7
2.6
2.3
Linking to customer
Vision and plan statement
Communication
Management involvement and participation
Linking to business strategy
Understanding of Lean Six Sigma
Project management skills
Organizational infrastructure
Project prioritization and selection
Cultural change
Education and training
Linking to suppliers
Stock reduction
Productivity
3.6
0.6
Defect reduction
4.3
0.5
3.9
0.4
Delivery on time
4.1
0.7
Sales improvement
2.3
1.0
0.0
1.0
Mean
1.9
0.9
Profit improvement
2.3
0.8
2.7
1.3
2.0
3.0
4.0
5.0
Standard deviation
Work environment
3.7
0.1
3.2
Learning
0.2
Job involvement
3.2
0.4
3.5
Organizational commitment
0.5
Customer satisfaction
0.3
Employee satisfaction
0.2
0
0.5
Mean
3.1
3.2
1
1.5
2.5
3.5
Standard deviation
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348
Characterization
Company prole
Strategic link
Structure
Imould
Chemic
Compmat
Aerosys
349
Table 5 Continued
Company
Characterization
Company prole
Strategic link
Structure
Machcomp
Blowmould
350
351
5. Discussion
On RQ1: What is the current status of implementation of
LSS in manufacturing/engineering SMEs in the Netherlands.
With respect to the current status of LSS in the
Netherlands we experienced that out of the 106 companies
invited to respond to the second questionnaire, 63 of them
were predominantly lean-oriented, 42 focused on Lean and
Six Sigma and one on Six Sigma alone. This means that
59% of the respondents was predominantly lean-oriented.
The second questionnaire was completed by 52 companies,
42% of them applying both Lean and Six Sigma to a
certain extent. From the analysis of tools and techniques
applied (see Table 3) we infer that the typical lean tools
(from 5S to Kaizen events) are on average more familiar
than the more sophisticated statistical tools (like DoE,
MSA, ANOVA, hypothesis testing, regression analysis).
However, the usage and usefulness ratings of more
advanced tools show salient differences, which is for
instance the case for DoE. There seems to be a high
potential in the application of more sophisticated tools and
a need for education in the backgrounds and applicationelds of these tools.
With regard to the management of LSS-implementation
it is clear that most Dutch companies are in a beginning
stage of deployment. Many companies are more or less in a
pilot phase, trying to gain experience from pilot-projects,
often stimulated by large companies to which they supply
products. Typical the responsibility for LSS-deployment is
delegated to an enthusiastic manager and only moderate
leadership is shown by Top management. However, the
general feeling about LSS is positive. The majority of the
survey respondents (85%) appreciate of the achievements
with regard to the implementation of LSS from reasonable to high. On the nal question of the questionnaire
on future expectations 77% of the respondents answered
that the importance of LSS-implementation is expected to
increase in the future.
On RQ2: What are the CSFs and impeding factors in LSS
implementation, especially for manufacturing SMEs? How
are these CSFs and impeding factors ranked by management?
From both our survey study and our case study research
practically all 12 CSFs seem to be important. In Table 4 all
the importance ratings are above 3, and in the results of
our case study research the importance of the CSFs is
underlined. Linking to customer, vision and plan statement,
communication and management involvement and participation are the highest ranked CSFs. In addition to the 12
CSFs a few new CSFs have been identied, personal LSSexperience of Top management, development of the project
leaders soft skills and supply chain focus. The differences
between the importance- and practice-ratings show that on
all CSFs there is room for improvement, but the highest
352
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