Impact of lean six sigma practices on organizational performance in the public automotive manufacturing factories in Ethiopia, Africa: mediating effect of operational performance

This study aims to identify the critical success factors (CSFs) of Lean Six Sigma (LSS) at low-cost budget hotels, which are affiliated with virtual hotel operators (VHOs) that provide some knowledge on how CSFs influence the LSS implementation and how LSS can affect operational and organizational performances on the basis of employees’ perception. To achieve this objective, the researcher surveyed 120 respondents who work in hotels that are affiliated with VHOs, such as Airy Rooms, RedDoorz, and OYO Rooms at Semarang City. The result indicates that among the six CSFs that were determined, only three affected the LSS implementation, namely, management involvement and commitment, linking LSS to business strategy, and project selection and prioritization. LSS has a weaker direct influence on organizational performance than its relationship with operational performance. This study focused on hotels that have partnerships with VHOs, which do not implement LSS in their business environment. This research was based on employees’ perception if LSS was implemented in their working environment to give some points of view on what CSFs could successfully affect the LSS implementation and whether it could effectively boost the performances. At the end of part of the discussion, the authors attempted to explain the importance of CSFs in the hotel industry, especially hotels that are affiliated with VHOs, and how they can influence the success of LSS and finally can affect hotel performance.

Less than 10% of companies worldwide benefited from Lean Six Sigma (LSS) projects despite huge investments, but do not yield promising tangible and intangible results. Prior researches on LSS implementation and business performance ignore to consider operational performance as mediator. This research examines the relationship of critical success factors of LSS practices on business performance, mediated by operational performance. The stratified sampling on 119 LSS practitioners in E&E sector, using smart PLS, indicates LSS practitioners' perceived that management commitment, maturity level of LSS deployment and awareness of importance are critical factors having significant impact toward financial and non-financial performance. Also, LSS training, resources allocation, maturity level of LSS deployment and awareness of importance are significant factors toward operational performance. Interestingly, operational performance mediates the relationship between maturity level of deployment and awareness of importance on business performance. The customised LSS practical guide enclosed can assist companies achieve better business performance.

PurposeThe purpose of this paper is to explore the moderating role of Lean Six Sigma (LSS) practices in explaining the relationship between quality management practices (QMPs) and quality performance.Design/methodology/approachPartial least square-based structural equation modeling (PLS-SEM) was used to empirically examine the moderating effect of LSS practices on QMPs and quality performance in Malaysian medical device manufacturing companies.FindingsFindings revealed that both QMPs and LSS practices have a significant and positive effect on quality performance. Furthermore, LSS practices served as a substitute for moderating the positive relationship between QMPs and quality performance in such a way that the relationship becomes weaker as LSS practices increase.Originality/valueLSS is acknowledged as the most well-known hybrid methodology; however, due to its relative newness, it has not been studied in great detail. Unlike previous studies, this paper argued that Lean and Six Sigma practices are distinct from its predecessor TQM practices; moreover, both Lean and Six Sigma practices do not need to substitute QM/TQM practices instead of complimenting the QMPs. In addition, this study adds to the growing body of QM literature by empirically examine the effect of LSS practices in moderating the relationship between QMPs and quality performance.

PurposeWith the growing pressure to gain optimum level of quality and speed, Lean Six Sigma (LSS) practices have drawn considerable attention as a viable alternative for process improvement. However, previous studies revealed that there is very little systematic and rigorous research to validate the claims. In this regard, this paper aims to empirically examine the effect of LSS practices on quality performance in the medical device manufacturing industry.Design/methodology/approachFor this study, partial least square–based structural equation modeling (PLS-SEM) was used to empirically examine the effect of LSS practices on quality performance in Malaysian medical device manufacturing industry.FindingsThe findings of this paper revealed that LSS practices have a significant and positive effect on quality performance in the medical device manufacturing industry.Practical implicationsThis paper will serve as a valuable implication for industry practitioners in providing them with a clearer managerial direction to exploit the strength of LSS practices to achieve company’s quality goals. Moreover, this study will serve as a basis for future LSS scholars, providing them with valuable insights and directions for future research.Originality/valueThis paper develops a conceptual LSS framework that captures the integrated nature of two methodologies and provides empirical evidence that supports the positive influence of LSS practices on quality performance; hence, it contributes to the growing body of LSS literature in both theoretical and empirical sense.

Integrating Lean and Six Sigma found a powerful business tool for the strategy improvement process and saving time is produced. The main aim of this study is to identify the impact of Lean Six Sigma (LSS) practices on physiotherapy service quality at healthcare centers of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), using a descriptive-analytical approach. Data were collected using a questionnaire distributed among 49 physiotherapists working at UNRWA healthcare centers as a census sampling method between July 2016 and August 2017, following the stratified random sampling method. The Statistical Package for Social Science (SPSS) was used to analyze the collected data. The results revealed that there was a statistically significant relationship between Lean Six Sigma (LSS) dimensions and the quality of healthcare services provided in physiotherapy units at the UNRWA healthcare centers. Moreover, the application of Lean Six Sigma dimensions was adopted at 81% of UNRWA healthcare centers. Moreover, the percentage of patients’ satisfaction regarding the quality of healthcare services provided in physiotherapy units was 89%. The study emphasized the effectiveness of Lean Six Sigma dimensions application on the quality healthcare services provided in physiotherapy units at the UNRWA healthcare centers. Furthermore, employee training and reward according to a needs assessment to implement Lean Six Sigma successfully is highly recommended.

The effect of Lean Six Sigma practices on food industry performance: Implications of the Sector's experience and typical characteristics

Purpose This study aims to investigate the impact of lean six sigma (LSS) on operational performance in the Jordanian pharmaceutical manufacturing industry, with a particular focus on the mediating role of green manufacturing (GM). Design/methodology/approach A total of 280 questionnaires were distributed to top and middle managers as well as technicians across several Jordanian pharmaceutical manufacturing companies. The data collected was analyzed using path model analysis with Smart-PLS 3.0 software to examine the relationships between LSS, GM and operational performance. Findings The results indicate that LSS has a significant positive effect on operational performance, enhancing key dimensions such as flexibility, quality and cost. Additionally, this study reveals a significant positive relationship between GM practices and operational performance improvement. This research also identifies that GM mediates the relationship between LSS and operational performance, suggesting that the integration of green manufacturing practices amplifies the benefits of LSS in improving overall performance. These findings highlight that the adoption of LSS and GM not only contributes to waste reduction and cost efficiency but also enhances product quality, leading to significant improvements in operational performance. Practical implications The findings offer valuable insights for practitioners, particularly those in the pharmaceutical manufacturing sector, on how integrating GM practices can strengthen the impact of LSS on key operational performance metrics such as flexibility, quality and cost. By adopting LSS alongside GM, organizations can better balance environmental sustainability with performance improvement, ultimately achieving greater operational efficiency and competitiveness. Originality/value This study is pioneering in its examination of the Jordanian pharmaceutical manufacturing industry’s implementation of LSS and its subsequent impact on operational performance while also introducing the role of GM as a mediator in this relationship. This research provides new insights into how LSS and GM together drive operational excellence within the sector.

PurposeThis paper aims to develop a conceptual framework of the implementation of the contact points (CPs) between Lean Six Sigma practices and Industry 4.0 technologies.Design/methodology/approachA systematic literature review was carried out based on two samples. A first sample containing 78 articles was analyzed through bibliometric indicators. After that, a second sample of 33 articles was analyzed in-depth according to research questions.FindingsThe conceptual framework involves 13 CPs between Lean Six Sigma (LSS) practices and I4.0 technologies (what), going through the technical requirements needed (how), categorized as information technology (IT), automation and competence requirements, to finally present the main results reported in the literature (why).Research limitations/implicationsThis paper presents an innovative perspective of interactions between digital technologies and LSS practices, expanding knowledge about Digital LSS. Such perspective gives emphasis to the importance of technical requirements, such as communication and connectivity protocols, network topology, machine-to-machine communication (M2M), human–machine interfaces (HMI), as well as analytical and digital skills.Practical implicationsThe managerial implications regarding the digitalization of LSS practices address the investments required for the acquisition and maintenance of cyber-physical systems (CPS). Moreover, there is a need for the development of skills so that operators can successfully use the new technologies in a context of continuous improvement.Originality/valueThis paper presents a conceptual framework covering 13 CPs between LSS practices and Industry 4.0 technologies, the technical requirements and the expected results. It is hoped that this framework can assist future research and operational excellence projects towards digitalization.

PurposeThis paper compares impact of Industry 4.0 / emerging information and communication Technologies (ICTs), for example, Internet of things (IOT), machine learning, artificial intelligence (AI), robotics and cloud computing, on 22 organisational performance indicators under nine combinations of Lean Six Sigma (LSS) and quality management systems (QMS).Design/methodology/approachSurvey of 105 Indian organisations was done about their experience of using QMS, Lean Six Sigma and emerging ICTs. Respondents included both manufacturing and service enterprises of different scales and sectors. The responses collected were compared, and statistically significant difference among them was evaluated using chi-square test.FindingsThe study confirmed statistically significant difference among 20 organisational performance indicators under different combinations of QMS, LSS and ICTs. These indicators include quality performance, delivery performance, sales turnover, inventory level and so forth. However, for two indicators, namely, absenteeism and throughput, significant difference in responses was not established.Research limitations/implicationsAll possible combinations of QMS, LSS, only LSS tools and ICTs were not studied because of either theoretical impossibility (e.g. using LSS without LSS tools) or practically rare situations (e.g. organisations using ICTs and LSS without QMS). Furthermore, the impact from different sequences of implementing QMS, LSS and ICTs can be studied.Practical implicationsUsing this study, practitioners can identify which LSS, Quality System and ICT combination results in best performance and quick success. On theoretical front, the study confirms impact of LSS and QMS on organisational performance.Originality/valueThis study evaluates organisational performance under several possible combinations of QMS, LSS, and emerging ICTs, which was so far unexplored.

PurposeThis research aims to study the impact of sustainable supply chain management on both competitive advantage and organizational performance in the Ethiopian manufacturing industry.Design/methodology/approachThe objectives are achieved through collecting and analyzing data from 221 Ethiopian manufacturing industries. This research employs a quantitative approach, specifically descriptive and causal research methods. The data are collected by questionnaires administered directly to a sample of 221 respondents who are managers and supervisors in the manufacturing industry. In addition, data analysis was performed using structural equation modeling in the Smart-PLS Software version (SmartPLS 4.0).FindingsThe research reveals that SSCM substantially and positively impacts competitive advantage and organizational performance. Furthermore, statistical findings prove the connection between competitive advantage and organizational performance. Moreover, competitive advantage indirectly influences the relationship between SSCM and OP. The results suggest that successfully implementing SSCM can improve competitive advantage and OP.Originality/valueConsidering the triple-bottom-line approach and the mediating effects of competitive advantage, this study is the first to analyze the relationship between SSCM and manufacturing performance in Ethiopia. This study adds to the existing literature by providing empirical evidence on the impact of sustainable supply chain management (SSCM) on competitive advantage and organizational performance in the manufacturing industry of emerging markets.Research limitations/implicationsThe research is based on a cross-sectional study, which may prevent the generalization of findings derived from the current study. The analyzed variable in this study quantified OP, which is widely recognized as a very dynamic concept.

PurposeThe purpose of this paper is to contribute to the limited body of empirical knowledge on the impact of Lean Six Sigma (LSS) program implementations on organizational performance in financial services by investigating how antecedents of Lean Six Sigma program success (motivations, selected LSS methods and challenges) affect organizational performance enhancement via LSS program performance.Design/methodology/approachA sample of 198 LSS professionals from 7 countries are surveyed. Structural equation modeling (SEM) is performed to test the questioned relations.FindingsThis study’s findings comprise: (1) LSS program performance partially mediates the relationship between motivations for LSS implementation and organizational performance, (2) selected LSS method applications has a fully (mediated) indirect impact on organizational performance, (3) LSS implementation challenges also have an indirect (mediated) impact on organizational performance and (4) LSS program performance has a positive impact on organizational performance.Originality/valueThe findings of this research predominantly provide nuances and details about LSS implementation antecedents and effects, useful for managers in advising their business leaders about the prerequisites and potential operational and financial benefits of LSS implementation. Furthermore, the paper provides evidence and details about the relationship between important antecedents for LSS implementation identified in existing literature and their impact on organizational performance in services. Thereby, this research is the first in providing empirical, cross-sectional, evidence for the antecedents and effects of LSS program implementations in financial services.

Purpose The aim of this paper is to develop a model that incorporate lean six sigma (LSS) implementation, strategic control system (SCS) and organizational performance (OP) in Malaysian automotive suppliers. Design/methodology/approach A survey through questionnaire was conducted to determine the level of LSS implementation, SCS and OP measurement. In all, 252 sets of questionnaire were successfully collected that brought to 64.3 per cent response rate. Structural equation modeling (SEM) technique was adopted to analyze the data gathered from the survey. Exploratory factor analysis, reliability analysis and confirmatory factor analysis for testing the construct validity, test for reliability and model measurement were carried out. Findings This study has provided a comprehensive measurement instrument to implement the LSS practices, SCS and OP for Malaysian automotive suppliers. As a result, seven LSS constructs, four for SCS and four measures for OP have been identified. This research model is a mediator model in which it investigates whether the presence of SCS mediates the relationship between LSS and OP. The analysis result through the SEM method showed that SCS does not affect the relationship between LSS and OP. However, SCS is improving OP when coupled with LSS. Research limitations/implications This study has only focused on the structured relationship between LSS Construct, SCS and OP measures. It is possible for other factors in the LSS practices to be studied in future experiments such as total productive maintenance, culture change, role structure and project management skills. Originality/value Future researchers could apply the LSS, SCS and OP measurement as a benchmark for use and can be replicated in other industry or country in the world with minor modifications on the critical factors necessary to suit the goals of the organization, culture and business environment. It could also be used as a business excellence and supplier selection tool for practitioners and researchers.

PurposeThe electronic manufacturing service (EMS) industry recognizes Lean Six Sigma (LSS) as an effective business strategy to strive for cost reduction and improve the profitability and growth of a company. There are many factors affecting the success of an LSS program to meet desired profitability and growth. The purpose of this paper is to identify the critical success factors (CSFs) in successful LSS programs and to evaluate the CSFs’ impact on company performance.Design/methodology/approachThis study is carried out using the quantitative survey method containing structured questionnaires. The study population comprises the six multinational EMS industries in Malaysia that have successfully implemented LSS programs. The LSS practitioners, namely the holders of the Master Black Belt (MBB), the Black Belt (BB) and the LSS champions of the various international manufacturing sites of the six multinational EMS in Malaysia form the respondents.FindingsThe significance of this research is the identification of CFSs for the successful implementation of LSS within the EMS industry. It has identified management engagement and commitment as the most critical to the success of implementing the companies’ LSS programs. Moreover, an effective LSS training, an established LSS dashboard, a frequent communication among all value streams of organizations and a supportive organizational culture are also found to be essential ingredients for the implementation of LSS.Practical implicationsThe paper advises of the nurturing of appropriate CSFs for successful implementation of LSS in the EMS industry and to evaluate its impact on the company performance.Originality/valueThis research adds a new body of knowledge containing factors in the implementation of LSS that are significant in their relationships with operational and organizational performances in the EMS industry, using primary data. The results would provide the EMS industry and other Malaysian SME companies with guidelines for the successful implementation of Lean Six Sigma with the intention to remain competitive.

Over the last two decades, manufacturers in Australia have implemented process improvement methodologies to assist in driving down the costs of operations brought on by customers wanting better quality and responsiveness. Closely following in the footsteps of the manufacturers, since the early 2000’s, are service organizations, including those in Healthcare, Finance/Banking, IT and Government (Public sector). Lean Six Sigma is one such process improvement methodology. It is seen as the latest philosophy of continuous improvement in many companies world-wide. Following an extensive literature review, it is clear that Lean Six Sigma has been based on earlier continuous improvement philosophies like Total Quality Management as well as the combination of Lean and Six Sigma. There are clearly some similarities and differences between Lean Six Sigma and Total Quality Management. It is not clear in the literature whether companies are deploying Lean Six Sigma because the previous initiatives failed and it will result in better outcomes or it is a natural progression to adopt a new innovation and a new technique. It is not clear if the drivers to deploy Lean Six Sigma are different to previous quality improvement initiatives. Total Quality Management was introduced in the 1980’s to create a culture of continuous improvement, improve quality and enhance an organization’s competitive advantage and it is interesting to establish if Lean Six Sigma has been deployed to deliver something else or the same since Total Quality Management did not deliver the expected benefits. It is clear in the literature that Lean Six Sigma has been successful but success seems to vary according to the performance or success measure used. For example, if success is defined as higher market share then Lean Six Sigma may not be deemed successful but if success is defined as process cost reduction or savings resulting from an improvement project due to better delivery performance and process capability then it may be deemed successful. The literature covers the concept of a “Mature” deployment of Lean Six Sigma which is another way of measuring success apart from success from improvement projects. An organization which has a high level of maturity and where projects are successful is one that is likely to have a culture of sustainable continuous improvement. Little attention has been directed towards how Lean Six Sigma should be deployed. Some companies have deployed Six Sigma first then Lean and other companies have deployed Lean first to identify low hanging fruit and then implemented Six Sigma and others have implemented the combined program from day one. Also, the literature suggests that deployment of Lean Six Sigma needs to be different in small and medium-sized organizations. In the literature, it is clear that the phases of a Six Sigma methodology (Define-Measure-Analyze-Improve-Control) are well-defined but there has been little attention given to the definition of what constitutes a Lean Six Sigma methodology. For example, in many companies Lean Six Sigma deployments use the DMAIC methodology and also use Lean tools at various stages and in others Lean is separately deployed concurrently with DMAIC. Factors critical to success of Lean Six Sigma have been identified in the literature. It is unclear whether these factors are critical to short-term gains or long-term sustainable benefits. This phenomenon also seems to be the case for Total Quality Management (TQM) implemented by many organizations around the world during the 1990’s. Included in these critical success factors for Lean Six Sigma is the need for highly-trained Lean Six Sigma experts, known as Master Black Belts and Black Belts (and other levels of “Belts”) and the importance of corporate or organizational factors. In the literature the concept of a competency-based perspective of these factors is introduced. In Australia, Lean Six Sigma has been deployed successfully in many companies involved in manufacturing and service, both large and small and medium-sized and in the public sector. However, it has been disbanded in some companies because of an apparent failure of the program, which also appears to be the case for some Total Quality Management deployments. It is unclear as to why this has happened but it is suggested that it is so due to the different measures of success of the program. Also in Australia, some anecdotal evidence suggests that the ongoing deployment of Lean Six Sigma is susceptible to a change of the Chief Executive Officer of the organization. Other evidence suggests that the companies that disbanded the program some years ago are re-deploying it using funding provided by the Australian Federal and State Governments. Further evidence suggests that the Lean Six Sigma programs are now becoming very successful in many other industry sectors like Healthcare and Government in Australia. Thus, in this thesis the researcher considers the following research questions relating to a Lean Six Sigma deployment. 1. What are the key drivers and success measures of a Lean Six Sigma deployment? 2. How has Lean Six Sigma been deployed and is it affected by organizational size? 3. What are the competencies of an organization that result in the successful deployment of Lean Six Sigma? 4. What are the personal competencies of the deployment leader and project leaders for the Lean Six Sigma deployment to be successful? 5. What success factors are common between Lean Six Sigma and previous quality improvement initiatives such as Total Quality Management (TQM)? In developing and examining these questions, a comprehensive literature review and four fieldwork phases involving qualitative and quantitative research was completed. There are two fieldwork phases using qualitative research (fieldwork phases 1 and 3) and two fieldwork phases using quantitative research (fieldwork phases 2 and 4). Fieldwork phase 1 (Chapter 4) involves face-to-face interviews using semi-structured questions with senior managers in organizations in Australia that have deployed Lean Six Sigma. Seven case organizations have been selected – four cases in manufacturing and three in service. This has revealed a number of significant issues relating to key drivers, deployment strategies, critical success factors and challenges and benefits of the deployment. Factors critical to success include organizational competencies and competencies of the experts involved in Lean Six Sigma. Fieldwork phase 2 (Chapter 5) considers an in-depth analysis of Lean Six Sigma in one of the seven organizations. The aim of fieldwork phase 2 was to gain insights into the relationship between critical success factors and performance measures for this case. The case was in Healthcare and was chosen as a result of the interest of the interviewee in fieldwork phase 1 to examine their improvement program more fully using input from all senior managers. Fieldwork phase 3 (Chapter 6) involves the use of an open questionnaire with two Lean Six Sigma experts. The aim of fieldwork phase 3 was to gain further insights into the required competencies of the Master Black Belt and Black Belt in Lean Six Sigma. Using the insights from fieldwork phases 1, 2 and 3, a model for the sustainable deployment of Lean Six Sigma program was developed. Sustainability is defined as the combination of successful projects and a level of maturity of the Lean Six Sigma deployment. Fieldwork phase 4 (chapter 7) involves testing the developed model using a National Survey of Operations Excellence Managers in Australian organizations that have deployed Lean Six Sigma. The aim of fieldwork phase 4 is to obtain objective evidence of what factors are critical for a sustainable Lean Six Sigma deployment. A number of key insights are revealed contributing to the theory and practice of Lean Six Sigma. A discussion of the key insights are presented in chapter 8 followed by conclusions and recommendations being presented in chapter 9.

The purpose of this study is to develop a nested theoretical model (LSS-DC) by critically examining two distinct theoretical concepts, including Lean Six Sigma (LSS) and Dynamic Capabilities (DC), for achieving organizational sustainable performance optimizations (PO). The robust integration of this dynamic concept is achieved using a systematic literature review, synthesis, and empirical evidence derived from 2005 to 2022. The vital benefits of LSS-DC are identified. This study utilizes a systematic literature review method adapted. It reveals the cross-sectional literature search strategy deploying selective keywords DCs, LSS, DCs and LSS, DCs and LSS and PO. In this niche domain employing descriptive and thematic analysis, key insights are extracted from the literature, encompassing a total of 21 peer-reviewed journals. The selection criteria revolve around three aspects: ‘Purpose’, ‘Authorship’, and ‘Credibility and Accuracy’. The authors gathered the secondary data from credible databases such as Scopus, Web of Science, PubMed, ERIC, and IEEE using the keyword search. The study reveals the robust integration of theoretical concepts of LSS and DCs and their impact on organisational performance. The findings suggest that integrating the micro-foundations of DCs (sensing, seizing, and transforming) with LSS allows organisations to not only identify improvement opportunities but also efficiently and effectively act upon them, ultimately leading to sustainable performance optimisation across various aspects of the business. The specific type of DC integration with LSS depends on the organisation’s goals and priorities. The findings of this study are subjective to some extent due to the applied research methodology. Further empirical research is needed to gain a deeper understanding of the phenomenon. This study considers LSS as DC providing an empirical (LSS-DCs) model for sustainable performance optimisation. This is achieved by robustly integrating two distinct theoretical concepts derived from an extensive literature review and the analysis of the data-driven implementation. Finally, the study offers a deeper understanding in terms of how contextual organisational characteristics enhance the outcome of LSS-DC.