Implementation of Lean Six Sigma in Small and Medium Scale Enterprises

IMPLEMENTATION OF LEAN SIX SIGMA IN SMALL AND MEDIUM SCALE
ENTERPRISES
Keywords:
Lean methodology, Six sigma, small scale
enterprises, implementation of LSS
ABSTRACT
Lean six sigma is an amalgamation of two
change and improvement methodologies in
business. Together they form a hybrid
approach of improvement that is
comprehensive and allows to increase the
efficiency of the organisation. These two
methodologies have evolved at the same
time in different countries and hence it is
not productive to compare their outcomes.
Rather their forces should be teamed to
produce an improvement in the production
process. However, there is a lack of
understanding about how these
methodologies should be implemented.
Moreover, the application of lean six
sigma methods in context to small and
medium enterprises are also limited. The
following article reviews available
literature reviews and identifies the
common trends and practices. From this
analysis a common approach to the
implementation pf leans six sigma
methodologies has been produced.
1. INTRODUCTION TO LEAN SIX
SIGMA
Lean six sigma is a management technique
through which a team of members and
allowed to collaborate their efforts to
produce enhanced results by eliminating
wastes and reducing variation. It is a
collaboration of two separate techniques:
lean manufacturing and Six sigma. This
method identifies eight kinds of waste that
need to be removed from the operational
system (Furterer, 2016). These have been
defined though the pneumonic
“DOWNTIME”. It stands for defects, over
production, waiting, non-utilised resources
and talents, transportation, inventory,
motion and extra-processing. However, a
unifying framework that can combine
these two methods is still lacking. The goal
of this research is to collect information
from various literature provide a combined
and holistic approach to this method
(Albliwi et al. 2015). It is often defined as
the most challenge yet most rewarding
initiative to ever have been conceived. It
first developed in Motorola in 1980s and
has much evolved since then.
2. BACKGROUND
In order to be able to understand what this
management technique entails; it would be
advisable to look into the details of its
origin. Since, the factors or the
requirements that led to its development
would hold the key for the development of
a uniform frameworks for it. The idea
began with the measurement of product
variation curve (Chugani, 2017). In order
to find a measurement and management
technique that was more suitable to their
own particular needs, Motorola engineers
developed the six-sigma model from the
already established three sigma model.
This became the accepted way to measure
productivity and cultural change within the
company. Unlike the name suggests the
six-sigma method has four aspects, instead
of six that have not been pointed out in any
other business methodologies (Allen,
2019). The six sigma has a clear focus on
the impact to the bottom line. Six sigma
projects cannot be started unless the team
members agree on the amount of saving
that will be generated from it. It has been
very successful in accounting for human
aspects of variation such as culture,
change, focus and training along with
variations possible on the process such as
stability, reduction and capability to bring
about continuous improvement (Kumar,
2016).
Lean is the other method that has also
evolved alongside and can be traced back
to its origin in Toyota production System.
The idea behind lean was to minimise the
waste and addressing the flow issues
within a large-scale company or project. It

was believed that streamlining the flow
would enhance the productivity. These two
methods were combined to bring out the
best results possible. There are five
essential lean principles. First principle
aims to specify the value of the product in
the eyes of the customer. Next principle
will identify the value stream and try to
eliminate the wastes as efficiently as
possible. The third principle believes that
the value flow should be in accordance to
the demand or pull of the customers.
Fourth and fifth principles incorporates the
employees, empowers them and motivates
them to constantly strive for perfection and
improvement (McFarlane, 2019). As was
relayed in the second principle, the wastes
have been grouped into seven parts. These
include the waste of overproduction, time,
transportation, process inefficiency,
inventory, motion and waste generated
through making defective products
(Laureani and Anotny, 2017).
As the popularisation of these methods
grew, they were employed in various
companies, mostly large scale. This often
required the operational framework of the
company to be change in order to adapt
with Lean six sigma.
3. PROBLEM STATEMENT
Lean and six sigma had evolved
simultaneously and both are involved in
enhancing the production and operations in
an organisation. They are well suited
together and are able to bring forth
substantial changes. However, a uniform
framework approaches for the
methodologies combined has not been
introduced. There is also a lack of literary
and research work in the field as a result of
which information about it is also scarce.
There is a need for a new model which is
most suited to the different needs and
requirements of companies as well as
teams (Antony et al. 2016). There are
myriads of frameworks and approaches to
choose from. However, not all of them are
tested and may it may not bring the best
results. It has been suggested that the
frameworks and approaches can be
developed if companies or organisations
record their own lean six sigma
experiences and note down the areas where
they faced difficulties or felt the need to
deviate from the principles along with
specification about the project.
Information from such sources can be
reviewed on a large scale to establish a
basic understanding of the approach to the
methodologies (Timans et al. 2016). On
this understanding further experimental
researches can be conducted to test out
each of the approaches and mark their
strengths, weaknesses and factors of
requirements.
4. AIMS, OBJECTIVES AND SUB
GOALS
The objective of the research paper is to
identify an approach that would be able to
successfully combine the lean and six
sigma methodologies and reduce the risks
involved in the process. Companies all
over the world have employed these
methodologies in within their workplace.
However, these methodologies still lack a
uniform framework. Moreover, these
methodologies have only been applied
with success in large scale industries
(Sunder, 2016). Their applicability and the
possibility of success is limited in small
and medium scale enterprises. These
enterprises form a backbone of the
economy and are also present in larger
number. They also hire larger number of
employees when compared to large scale
companies. As a result, it is essential to
innovate the improvement methodologies
with respect to the needs of small and
medium scale companies.
4.1 Aims
 To understand the current approach
of using lean and six sigma
methodologies
 To identify the risks involved in
using the lean and six sigma
methodologies
 To identify the factors that need to
present to ascertain successful
implementation of lean and six
sigma

 To understand the applicability of
lean and six sigma in small and
medium scale enterprises.
4.2 Sub goals
Certain sub goals also have been identified
which would guide the research towards
the right direction.
1. Planning stage
a. Selecting 10 research journal
and articles related to lean and
six sigma implementation and
experiences of various
organisation when using the
combined methodologies.
b. Identifying the gaps present in
understanding
2. Research Development Stage
a. Prepare a literature review that
will provide a holistic
understanding about the lean
and six sigma methodologies
3. Research analysis phase
a. Analysing the literature reviews
to identify the common factors and
approaches to understand the
pattern
5. RESEARCH QUESTIONS
The following research questions have
been formed in order to understand the
research problem:
 What is the current approach
towards using lean and six sigma
methodologies?
 What are the risks involved in
using lean and six sigma
methodologies?
 What are the factors that are
required in order to facilitate the
implementation of lean and six
sigma methodologies?
 What is there suitability in context
to small and medium scale
organisations?
6. LITERATURE REVIEW
6.1 Lean theory
This theory underpins swift and even flow.
They relate to the process of lean as the
swift and smooth the process is the
productive the results are. The theory is
made up of three main principles. The first
principle is central to lean and relates to
value added and non-value-added work
(Yadav et al. 2016). The second principle
identifies that the processes can move
smoothly only if there are no obstacles
involved. Another way of defining the
principle is that in order to ensure that the
process commences smoothly the obstacles
need to be identified and removed. This
principle is central to the theory of
constraints. According to the third
principle, the flow of processes will be
even better if the variations involved are
minimised.
6.2 Six sigma principles
The six sigma is identified by the DMAIC
principle which is generally applied to the
already existing approaches. DMAIC
stands for defining the problem and the
desired outcome to be achieved after
solving the problem, measurement of the
ability of the involved resources, analysis
of data and identification of the variations
and their root causes in order to eliminate
them. “I” stands for improvement in the
process after identification of variations.
After improvement, it is hoped that the
number of variations will be minimalised.
Every step involved in the process should
be under control (Cherrafi, 2016). This
will enable the project managers predict
and correct any possible variations.
Another group of six sigma principle or
approaches exist which need to be used
when designing new work process. The
acronym for these principles is DMADV.
The first goals for planning a work process
one needs to design the operation plans
that is aligned with the goals and desired
quality of outcome. In order to ensure that
the quality is maintained, a way of
measurement needs to be found out that
will be able to assess the characteristics of
the process and assemble data related to
quality. Analysis of data needs to be
performed through which the possible
defects can be easily known. Another
process of verification needs to be carried