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To cite this article: Maneesh Kumar , Jiju Antony & M.K. Tiwari (2011) Six Sigma implementation
framework for SMEs a roadmap to manage and sustain the change, International Journal of
Production Research, 49:18, 5449-5467, DOI: 10.1080/00207543.2011.563836
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International Journal of Production Research
Vol. 49, No. 18, 15 September 2011, 54495467
Although Six Sigma has been in business lexicon for more than 20 years, research
has shown the need of practical implementation framework for successful
deployment of Six Sigma, especially in the context of small and medium-sized
enterprises (SMEs). This article proposes a Six Sigma implementation framework
customised to the needs of SMEs by performing a critique of quality management
frameworks/models for SMEs and drawing conclusion from the empirical
research conducted over 3 years. If Six Sigma is poorly launched, it will be
very difficult to reorganise and regain momentum. Though the framework was
tested in three SMEs and revised, still its robustness needs to be checked and
refined based on suggestions and comments from industry, practitioners and
academics.
Keywords: Six Sigma; framework; model; readiness; resilient; SMEs
1. Introduction
Resilience is defined by Merriam-Webster online dictionary as an ability to recover
from or adjust easily to misfortune or change or the capability of a strained body to
recover its size and shape after deformation caused especially by compressive stress
(http://www.merriam-webster.com/dictionary/resilience). Fiskel (2006) defines sustainable
enterprise resilience as the capacity for an enterprise to survive, adapt, and grow in the
face of turbulent change. Being resilient is vital in business (Berman 2009) as it gives the
owner and leaders of small and medium-sized enterprises (SMEs) the necessary fighting
power to survive and sustain in the erratic and adverse behaviour of the global market,
i.e. keep going no matter what happens (Cheng 2007). Organisations are focusing on the
ways to establish a sustainable business environment by minimising waste from business
processes through application of business improvement methodologies such as Six Sigma
(Kumar and Antony 2009).
In the attempt to manage change, many large organisations have pursued formalised
change programmes or quality initiatives such as Six Sigma that can have a significant
impact on the bottom-line and working culture of an organisation. It is evident from the
literature that Six Sigma implementation has evolved from manufacturing, after its
inception in Motorola in the mid-1980s, and has sailed across the service industry
(especially healthcare, financial services and the public sector) with a significant impact on
the bottom-line and customer satisfaction (Snee 2004, Kumar et al. 2008).
In spite of a number of Six Sigma success stories in large organisations, little research
attention has been given to SMEs (Llorens-Montes and Molina 2006). Many key questions
remain unanswered as the Six Sigma discourse in SME literature is emergent in nature
(Kumar 2007, Antony et al. 2008, Kumar and Antony 2008, 2009).
As pointed out by Welsh and White (1981), SMEs are not little big businesses, rather
they are distinct entities that form their own views of reality and hence the interpretation
and construction of new knowledge such as Six Sigma (McAdam et al. 2005, Martinez-
Costa and Jimenez-Jimenez 2009, Thomas et al. 2009). Thus, it is important to take
into account the key differences in the characteristics of SMEs and large organisations
while designing quality models/frameworks for SMEs or larger firms. For the information
of the readers, this research considers an organisation to be a SME if it has less than
250 employees as stated by Department of Trade and Industry (DTI 2006).
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3. Research methodology
The Six Sigma implementation framework for SMEs was constructed based on primary
data collected from survey and multiple-case studies and mapping the findings against
secondary data collected by critically analysing models/frameworks proposed in the
literature on CI initiatives in SMEs (as depicted in Figure 1). The survey was used in
the first part of the study to identify SMEs implementing Six Sigma and non-implementer
of Six Sigma. The identification of SMEs from the survey facilitated in sample selection
for conducting case studies in 10 SMEs to get more in-depth knowledge on the quality
practices prevalent in Six Sigma and non-Six Sigma firms.
Interviews were also conducted with three consultants working for manufacturing
advisory services (MAS) in Scotland and England to oversee the quality management
practices in manufacturing SMEs and suggest measures for improvement. One of the focus
areas while conducting the case study was to understand the implementation framework/
map used by SMEs to deploy Six Sigma across the organisation. The viewpoints of the
consultant were very useful in understanding the true picture of SMEs on their continuous
improvement journey. For more information on the first two phases of research, please
refer to Kumar and Antony (2008, 2009). The findings from the aforementioned phases
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Asher (1992), UK TQM implementation framework developed based Based on the assumption that data collection system to measure cost
on consultancy experience in manufacturing of quality or customer feedback system already exists
and service industry
Ghobadian and Gallear Multiple case-study in four firms (manufacturing BS5750 may require much earlier attention then in step 6 of
(1997), UK and service) to develop conceptual framework framework; chances of success from full blown implementation
for TQM implementation of TQM in SMEs is meagre due to resource constraints; no
validation of framework; framework constructed based on small
sample-size that may limit its generalisability
Yusof and Aspinwall Survey and multiple-case study in four firms to Does not explain how to operationalise the framework; does not
(2000), UK develop conceptual framework for TQM provide guidance on which Box to focus at the start of
implementation; samples from UK automotive implementation; no validation of framework
industry included in the study
Watts and Dale (1999), Conceptual model developed based on experience; Does not explain how to opertionalise the model; though model was
UK research methodology not clearly stated; indi- reported being used by SMEs, no published evidence available
cates the use of interview and group discussion on the efficacy of model
of small companies (manufacturing and
service)
M. Kumar et al.
Wilkes and Dale (1998), Multiple case study in seven firms (manufacturing Preparation of document still resource intensive; language used still
UK and service) to develop a revised EFQM model complicated from SMEs perspective; number of criteria does not
for SMEs fit a company with less than 50 employees; more samples needed
for validation of model
Husband and Mandal Conceptual model developed based on literature Use of the model not evident in literature even though it provides
(1999), Australia review process a basis for closer examination of quality methods and quality
models as they apply to SMEs
Hansson and Klefsjo Core value model for TQM implementation Limited discussion by researchers on how to make the framework
(2003), Sweden developed based on multiple case studies in operational taking into consideration the resources constraints
nine firms (manufacturing and service) faced by SMEs
Mackau (2003), Model developed based on literature review and Model not genralisable due to small sample size (one case-study);
Germany single case study in construction industry Does not provide any information on the length/pages of
document required to be filled in by SMEs for IMS certification.
It is believed that a dossier containing elements of three systems
(ISO 9001, ISO 14001 and SCC) would be lengthy and compli-
cated due to integration of three systems
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Thomas and Webb Conceptual framework and model developed Framework focuses more on the operational issues and application
(2003), UK based on survey in 500 UK manufacturing of statistical methods with limited discussion on strategic issues of
firms management commitment, resource availability to apply the
framework; framework and model needs to be tested for its
validity and usage in SMEs
McAdam (2000), UK Testing the application of balance scorecard and
business excellence model in 20 case study
SMEs by using grounded approach Industry
not specified
Gunasekaran et al. Single case study in manufacturing SME to Missed to provide suggestions on how to make the model opera-
(2000), UK propose a conceptual model tional, strategically align to business goals and ensure leadership
commitment to introduce such model at operational level; more
focus on application of tools and techniques at operational level
Khan et al. (2007), UK Developed a practical framework based on liter- Usage of PAM tool not clearly explained; attaining world class
ature review, 150 manufacturing company manufacturing status through application of Kaizen is
survey and semi-structured interviews in 20 questionable
SMEs
Deros et al. (2006), Development of conceptual benchmarking imple- Framework still at development stage and needs further validation;
Malaysia mentation framework by review of literature some elements of framework connected to each other though not
and validating it at six automotive proven statistically
manufacturing SMEs
Chileshe (2007), UK Development of conceptual framework by sur- No guidelines on how to operationalise the framework; still in
veying 63 construction SMEs in UK development stage with limited application till date
Biazzo and Bernardi Development of classification and conceptual Application is not yet evidenced in literature; complex model; Jargon
(2003), Italy map based on literature review used may confuse SMEs
Ahmed et al. (2004), Development of TPM/TQM implementation Framework needs to be tested and validated for practical usage;
Malaysia methodology based on completed survey framework was focused more at operational level and strategic
International Journal of Production Research
response from 63 manufacturing firms issues such as leadership and management commitment, rolling
out initiative on pilot basis or across organisation was not
included in discussion
Thomas et al. (2008), Integrated Lean Six Sigma framework based on Lacks strategic focus; model is applicable at operational level to
UK previous model proposed by Thomas and resolve chronic problems; it is not an implementation strategy that
Barton (2006). Model tested in one could be deployed across organisation
manufacturing SME
Note: Frameworks proposed only for large organisations or for both large firms and SMEs were not included in the review due to critical differences in
characteristics of the two groups.
5453
5454 M. Kumar et al.
Research Methodology
Triangulation Approach
Questionnaire
Semi-structured Observations Journal
Interviews articles,
facilitated in the design and construction of a practical framework for Six Sigma
implementation in SMEs.
quality improvement initiatives such as TQM in the SME environment. The first decision
is where to begin and this can be so difficult that many organisations never get started. If
the implementation of Six Sigma is planned at organisation-wide level, then the
organisation-wide support must be in place well before the Six Sigma projects begin.
The proposed 12 steps, as shown in Figure 3, in the five phases of the framework will
facilitate SMEs to apply Six Sigma in a systematic and logical manner. Though a few steps
of the framework are generic and applicable to all types or sizes of firms, Steps 35, Step 8,
Step 10 and Step 12 were designed specifically for SMEs taking into consideration the
characteristics of SMEs and constraints faced by them.
The framework was tested in three SMEs by conducting semi-structured interviews
with the middle management teams (the interviewees shortlisted for readiness test
participated in the framework testing as well). The comments and suggestions from the
interview process were incorporated in the framework to make some minor amendments
in the details of Step 3, Step 6, Step 8 and Step 12. The Six Sigma framework presented
in Figure 3 is the revised framework that will facilitate SMEs to successfully implement
Six Sigma and become resilient to tackle quality challenges in the global market.
Figure 3. Step-by-step approach in the five phase Six Sigma framework SMEs.
SMEs as the extent of SMEs preparedness for the introduction of Six Sigma. It is also
a way of assessing the degree to which the organizations present values are congruent with
the values needed in a Six Sigma organization. The readiness index was evaluated based
on the criteria established from literature and findings from survey and multiple-case
studies.
The five criteria to measure SME readiness for Six Sigma implementation was derived
based on findings from multiple case studies and reviewing literature on maturity models/
self-assessment models proposed for the implementation of TQM/change management
initiatives (Kaye and Dyason 1995, Ghobadian and Woo 1996, Dale and Lascelles 1997,
Dale and Smith 1997, Dale et al. 1997, Kaye and Anderson 1999, Bessant et al. 2001,
Oakland and Tanner 2006, 2007, Siha and Saad 2008). The top five criteria that constitute
Six Sigma readiness index were identified by comparing the findings from empirical
research with literature:
. Leadership
. Customer focus
. Measurement and process
. Systems and control
. People management
All criteria were assigned equal weight in evaluating the readiness index score. A score
is calculated for each variable within each factor on the 04 Likert scale, with 0 being
percept not implemented at all; 1 implying percept slightly implemented; 2 indicating
percept moderately implemented; a score of 3 indicating good implementation of
percept; and 4 being percept fully implemented. A score of 3 for each criterion indicates
that the organisation culture is ready to embrace Six Sigma. For more details on Six
Sigma readiness index, please refer to Kumar and Antony (2010). SMEs that achieve
the threshold value of 3 are ready to embark on Phase 1 of the framework for Six Sigma
implementation.
International Journal of Production Research 5457
Source: Adapted from Dale et al. (1997), Oakland and Tanner (2006, 2007).
and measure the commitment from the senior management team to invest time and
allocate resources for implementing the change. The preliminary stage of understanding
the need for change and commitment from the top management are vital steps which form
the foundation of the whole Six Sigma framework.
managerial level or due to lack of strong leaders to drive the initiative. GEs success
with Six Sigma was due in large part to the role that Jack Welch (former CEO) played
in relentlessly advocating the initiative and integrating it into the core of the companys
strategy (Mekong Capital 2004).
It is desirable that the senior management approves the Six Sigma initiative, defines the
purpose and scope of Six Sigma, and links it to the mission and vision of the organisation.
If the business leaders and their team cannot invest two days of their own time in learning
more about Six Sigma and their role, then they are not ready to start (Pande et al. 2000).
Some of the other roles and responsibilities of senior management and their performance
measures are cited in Table 3.
work on the Six Sigma project supported by an academic mentor. SMEs can take
advantage of free support available from social/professional networks on the internet such
as www.isixsigma.com, International Society of Six Sigma Professionals (ISSSP), and
LinkedIn, to name a few. The development of a network will facilitate SMEs to share their
experiences of implementing CI initiatives or using self-assessment tools with similar
companies on a common platform.
The action plan for this step is listed below:
. Educate the senior management team with executive or champion training.
. Create a Six Sigma steering committee comprising the top management (Writers
2007) to provide leadership, co-ordinate the review of on-going projects, liaise
with champions of different projects and allocate resources to them, ensure the
projects selected have strategic links to business objectives.
. Identify and select executive leaders to drive the initiative.
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4.3.1 Step 4: Identify and train the best people for the first wave of Six Sigma
It is essential to attract the best people with good leadership skills to be involved in the
companys first wave of training on Six Sigma (Pande et al. 2000, Pyzdek 2003, Antony
2004). There are three major reasons why top talent is so important to the Six Sigma effort
(Snee and Hoerl 2003):
. The better the talent, the better the result
. Top talent attracts more top talent
. Top talent becomes the next organisational leader
The selection of top talent for the key roles gives a clear message to the organisation
that the management is committed and serious about Six Sigma. This will provide an
impetus and motivation for other employees to get involved in the initiative. Appropriate
selection criteria should be developed by the top management to select the right people for
the first wave of training.
Taking into consideration problem complexity and resource limitation, SMEs do not
require an extensive role system where Master Black Belts, Black Belts (BB) are involved in
projects as are applied to large organisations (Kumar et al. 2006, 2008). Findings from
empirical research (Kumar and Antony 2008, 2009) indicate the need of 12 BB for a firm
with 250 employees. In the first wave of training, one or a maximum of two employees
from the firm (top talented people in the firm should be selected) should be selected for Six
Sigma Black Belt training. The BB can then train the rest of the employees, by taking train
the trainer approach, at different levels of Six Sigma expertise, i.e. Green Belt (GB; for
middle managers) and Yellow Belts (YB; for supervisor and shop floor employees).
5460 M. Kumar et al.
There is no need for Master Black Belt in a SME environment and the focus should be
on training more GB (in the second wave of training) as suggested by case study firms,
Six Sigma practitioners from MAS, and delegates at the 3rd International Conference on
Six Sigma. Estimated savings from a BB project in an SME environment is different from
that in large organisations. A typical BB in large organisations is expected to save
approximately 75k per project; whereas in a SME environment, BB may save 3035k
per project (supported by empirical research conducted by author, though no such figure is
available in the literature). The requirement of BB and typical savings from BB projects in an
SME environment is an unexplored area of research that requires further investigation and
development.
Key points to consider during the execution of Step 4 are:
. Select the best people from all the departments of the organisation.
. Identify the best training provider in the area, with a positive reputation and
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. Identify and prioritise those processes that have greater stakeholder and financial
impact.
with less effort and high impact in terms of productivity and profitability (Barrier 1992,
Struebing and Klaus 1997). The process performance measures determined by the senior
management facilitate everyone to focus on the initial projects strategically (Snee and
Hoerl 2003). The success of the pilot project would act as a model for the rest of the
organisation to follow. It is desirable that the finance department is involved from
the beginning of the project to ensure that the costbenefit analysis is carried out for each
Six Sigma project and savings are actually reflected in the bottom-line.
ongoing system to continuously satisfy these needs in the most efficient way possible
(Snee and Hoerl 2003). Training should not just be short-term but should involve
educating on a long-term basis, with regular training follow-ups and briefings (Antony and
Taner 2003).
As discussed in Step 4, BB can take the train the trainer approach to train the rest
of the employees at GB or YB level. This will not only save financial resources for SMEs,
but also build their own capability and understanding of Six Sigma for long-term
sustainability of the initiative. This approach was popular and practised by participating
case study firms in the empirical research conducted by authors. It is also advisable in the
authors opinion to develop a White Belt system for SMEs instead of heavily investing in
the BB system (Kumar et al. 2008). The author suggests that the White Belts may carry out
between 4 and 5 processes or quality improvement related projects using the DMAIC
methodology. The expected savings from a White Belt project can be around 5000 per
project. In our opinion, a company of size 100 should plan for about 10 to 15 White Belts,
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trained for a week on basic Six Sigma methodology. This is gray area of research that needs
further exploration and testing.
Other components of the supporting infrastructure that become key in this step are:
. A steering committee comprising the senior management people formed and
active (discussed in step 2).
. Executives trained at GB and BB levels should execute a project linked to the
strategic goals of the business and demonstrate potential savings generated from
the project. Once the project is executed, the GB/BB should be rotated back to
their original job and opportunity should be given to other employees to execute
projects. This way SMEs can take care of their scarce human resources as well as
build up their own knowledge intensive workforce.
. Continual training for new employees as well as experienced GBs.
. Training should not only focus on statistical tools and techniques application but
also on softer issues such as change management, leadership, culture issues, to
name a few.
. Audits should be carried out to ensure that the completed projects are continuing
to reap benefits (Snee and Hoerl 2003).
strong leaders. Top leaders should make themselves available for staff, keep in touch with
staff and communicate with all managers about the long-term strategies of the
organisation. Middle managers play a key role in the success of any change programme
(Kaye and Anderson 1999, Snee and Hoerl 2003) and their confidence in the initiative is
equally important.
5. Conclusion
Research had shown that Six Sigma or other CI initiatives have failed either due to lack
of understanding of how to get started or due to failure to link the initiative to strategic
business goals and measurable objectives. Management in such organisations are weak
and often involved in fire-fighting, paying inadequate attention to softer issues such as
leadership, culture change, employees training and education, etc., characteristics evident
in SMEs. If Six Sigma is only considered as implementation of statistical tools and
techniques to solve complex problems in the organisation, it is doomed to fail due to its
very weak linkage to strategic business objectives.
The key contribution of this article was the development of 12 steps of Six Sigma
implementation framework that was designed keeping into consideration the needs and
characteristics of SMEs. The proposed framework aims to provide a structured approach
to problem solving in cross-functional teams and aid SMEs to flourish and reach their full
improvement potential. It is not only imperative to drive improvement from implemen-
tation of Six Sigma initiatives but also to sustain the gains over the long-term. Phase 4 of
the framework suggests the ways to sustain the benefits from Six Sigma implementation by
focusing on intrinsic motivation of employees and sharing the learning across the firm.
Sustainability dimension would accoutre SMEs to absorb the ripple caused due to any
external disruption and make them more resilient to such changes.
The framework is equally applicable to all sizes and types of industry. For large
organisations, it is much easier to adapt the framework as they do not face the resources
constraint barrier. The practical applicability of the framework would be further tested by
conducting case studies in companies and also seeking suggestions for improvement from
world-class organisations, academics and practitioners of Six Sigma. Authors are also
working on establishing the time frame for the implementation of each phase of the
framework.
International Journal of Production Research 5465
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