Abstract
Background: Currently, globalisation, economic uncertainty and fluctuating market demands prompt leaders all over the world to improve their operations and to enhance innovations in processes, products and services in a very reactive manner. Literature shows that the adoption of an integrated Lean Six Sigma tool can assist them to compete with the rest of the world in a manner where productivity, quality and operational costs reduction are crucial for economic success. Aim: This article investigates the integration of Lean and Six Sigma tools as a unified approach to continuous improvement and develops a Lean Six Sigma framework for selected automotive component manufacturing organisations in KwaZulu-Natal (KZN), South Africa. Method: The quantitative methods of research were adopted. The target population (42) was organisations within the Durban Automotive Cluster of which five were used for the pilot work. An empirical study was conducted using a survey questionnaire in measurable format to gather practical information from the sample organisations on the status of their existing business improvement programmes and quality practices. Results: The results of the study demonstratedthat the organisations had a very low success rate of Lean and Six Sigma adoption as standalone systems, as they found it difficult to maintain the transition from theory to practice. Conclusion: Hence the adoption of an integrated Lean Six Sigma approach was absent and it can be concluded that the proposed Lean Six Sigma framework affords the KZN automotive sector a unique opportunity to integrate and operate with both tools of quality that complement its management style and industry demands.
Highlights
South Africa appears to be 20% more expensive than Western Europe and is 30% – 40% more expensive than China and India as an automotive manufacturing base
Brand Pretorius, former president of National Association of Automotive Component and Allied Manufacturers (NAAMSA), reported at the 2011 Car Conference that the automotive sector in South Africa is a centre of excellence and a strategic asset for the country and should consider adopting a more robust business model to adapt to the changing environment (National Association of Automotive Component and Allied Manufacturers [NAACAM] 2011:4)
This gives an indication that Lean as a standalone technique has limitations in improving an organisation’s performance. These limitations are the key focus areas that the Six Sigma technique can improve, which is highlighted in the literature (Arnheiter & Maleyeff 2005:17; Thomas, Barton & Chuke-Okafor 2009:114). This suggests that an organisation that operates with the Lean technique as a standalone system does not necessarily consider the importance of reducing process variation
Summary
South Africa appears to be 20% more expensive than Western Europe and is 30% – 40% more expensive than China and India as an automotive manufacturing base. Brand Pretorius, former president of National Association of Automotive Component and Allied Manufacturers (NAAMSA), reported at the 2011 Car Conference that the automotive sector in South Africa is a centre of excellence and a strategic asset for the country and should consider adopting a more robust business model to adapt to the changing environment (National Association of Automotive Component and Allied Manufacturers [NAACAM] 2011:4) This is supported by Ndaita, Gachie and Kiveu (2015:683) and Nunes (2015:896) who suggest that globalisation and volatile market dynamics in the new millennium prompt organisations from every industry to adopt specific business improvement techniques to strategically enhance their operational excellence and management philosophies in order to gain competitive advantage and to maintain a share in the market. Literature shows that the adoption of an integrated Lean Six Sigma tool can assist them to compete with the rest of the world in a manner where productivity, quality and operational costs reduction are crucial for economic success
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