Effect of lean six sigma on firm performance: A case of Indian automotive component manufacturing organization

Author(s):  
Vikas Swarnakar ◽  
A.R. Singh ◽  
Anil Kr Tiwari
2016 ◽  
Vol 7 (3) ◽  
pp. 267-293 ◽  
Author(s):  
Vikas Swarnakar ◽  
S. Vinodh

Purpose This paper aims to deploy Lean Six Sigma (LSS) framework to facilitate defect reduction and enhance bottom line results of an automotive component manufacturing organization. Design/methodology/approach LSS is a business process improvement strategy widely used in the manufacturing field for enhancing manufacturing organization performance. The integration of Lean and Six Sigma will enable the attainment of defects reduction by eliminating non-value-adding activities from production line. LSS framework has been developed with the integration of define–measure–analysis–improve–control (DMAIC) tools and techniques. Findings The finding of this study is that the LSS framework has been successfully implemented in automotive component manufacturing organization, and non-value-adding activities and defects from assembly line have been reduced. The proposed LSS framework applies lean tools within Six Sigma DMAIC approach to facilitate waste elimination and defect reduction. The developed framework with linkage of DMAIC tools and techniques reduces defects and non-value-adding activities with enhanced bottom line results. The implementation of proposed LSS framework shows effective improvement in key metrics. Research limitations/implications The developed framework has been test implemented in an automotive component manufacturing organization. In future, more number of studies could be conducted. Further, advanced lean tools and techniques could be included in the framework for increasing the effectiveness of production line. Practical implications The proposed LSS framework with linkage of DMAIC tools and techniques has been successfully implemented in an assembly line of automotive component manufacturing organization. This method is presently applied for an automotive component manufacturing organization; in future, the approach could be applied in different industrial sectors with addition of new tools and techniques for improving its effectiveness. Originality/value LSS framework has been designed and test implemented in an assembly line of an automotive component manufacturing organization. Hence, the inferences are practical and key results of the study.


2015 ◽  
Vol 6 (4) ◽  
pp. 313-338 ◽  
Author(s):  
S Vinodh ◽  
Vikas Swarnakar

Purpose – The purpose of this paper is to select the optimal Lean Six Sigma (LSS) project using hybrid fuzzy-based Multi-Criteria Decision-Making (MCDM) approach for an automotive component manufacturing organization. Design/methodology/approach – The LSS project selection has been formulated as the MCDM problem. Hybrid MCDM method based on Decision-Making Trial and Evaluation Laboratory Model (DEMATEL), Analytical Network Process (ANP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) has been used to select the optimal LSS project. The methodology enabled the practitioners to systematically prioritize LSS projects. Findings – The finding of this study is that, out of five LSS projects, project P3 is the best LSS project. P3 is the optimal LSS project with reduced failure risk, and efforts are being taken to implement the selected project. Research limitations/implications – The problem formulation and methodology has been tested for a single study. In future, more number of studies could be conducted using the hybrid approach. This method is presently applied for an automotive component manufacturing organization; in future, the approach could be applied in different industrial sectors for improving its effectiveness. Practical implications – The case study has been conducted in a real-time industrial problem. The practitioners expressed the usefulness of the methodology for prioritizing LSS projects Hence, the inferences derived are found to possess practical relevance. Originality/value – The original contribution of the study is the selection of optimal LSS project using hybrid MCDM technique.


Author(s):  
Raveen Rathilall ◽  
Shalini Singh

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.


2019 ◽  
Vol 9 (9) ◽  
pp. 1893 ◽  
Author(s):  
Chia-Nan Wang ◽  
Po-Chih Chiu ◽  
I-Fang Cheng ◽  
Ying-Fang Huang

Color filter (CF) and touch panel (or touch sensor (TS)) are important components for optoelectronic materials and component manufacturing. Due to the cut-throat world of market in the manufacturing, the processes of color filters are similar to touch sensors. The case invested in the production of touch panels in 2009. After a long period of quality improvement, the problem of contamination pollution still accounts for ~30% of the total variation. In addition to the external problem, there is also the fail of communication caused by dirt or peeling. Therefore, the case was established to improve the dirt defect by setting up Lean Six Sigma project, and the project goal was to reduce the proportion to 0.18%. After three months of improvement and three months of continuous observation, the abnormal proportion of pollution decreased from 0.35% of the overall average defect loss to 0.13% (the improvement rate reached 63%). It is estimated that the entire product can generate 3 million (USD) of performance for the case in one year. It is also possible to increase the customer’s satisfaction and the company’s technical competitiveness by improving yield and achieving the continuous improvement of objectives.


2020 ◽  
Vol 11 (6) ◽  
pp. 1083-1118 ◽  
Author(s):  
Vikas Swarnakar ◽  
Anil Kr Tiwari ◽  
A.R. Singh

Purpose The purpose of this study is to identify, evaluate and develop a structured model to measure the interrelation between critical failure factors (CFFs) that affects the implementation of the sustainable Lean Six Sigma (SLSS) framework in a manufacturing organization. Further solution approaches have been provided that inhibit those CFFs and help in successful implementation of the framework. Design/methodology/approach To find the interrelation among the selected CFFs and develop a systematic structured model, a total interpretive structural modeling (TISM) approach has been used. A 13-level model for selected CFFs has been formed after the application of the TISM approach. Further classification of CFFs has been performed for a better understanding of their nature through MICMAC analysis. Findings A total of 26 SLSS CFFs have been identified through a detailed study of case organization, various literature reviews and experience of panel experts toward developing a systematic model of CFFs. The solution approach has been provided by panel experts based on their industrial experiences after observing the role of CFFs in the developed model. Based on the analysis, it was found that most dependent and dominant CFFs affect the implementation of the SLSS framework in the case organization. Practical implications This study helps SLSS practitioners, project managers, decision-makers and academicians of manufacturing industries to a better understanding of the failure factors and their interrelations while implementing the SLSS framework in manufacturing organizations. This study also guides the systematic solution approach which helps in tackling such problems that occurred in manufacturing organizations. Originality/value In this study, the TISM-based structural model of CFFs for implementing the SLSS framework in manufacturing organizations has been proposed which is a very new effort in the area of a manufacturing environment.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yousaf Ali ◽  
Ahsan Younus ◽  
Amin Ullah Khan ◽  
Hamza Pervez

PurposeThis paper aims to explore the impact of lean, Six Sigma and environmental sustainability on the performance of small and medium enterprises (SMEs) in Pakistan. The firm performance has been measured in terms of operational, business and environmental performance.Design/methodology/approachA survey-based methodology is adopted for collecting data from the main cities of Punjab, Pakistan. SMEs related to different industries such as service, manufacturing, automotive and retail were targeted. The data gathered were ordinal, and Spearman's correlation test was used as the data analysis technique.FindingsThe findings indicated that the three management styles positively impacted the environmental performance of SMEs. Moreover, no significant relationship was found between the three management styles and the SMEs' business and operational performance.Research limitations/implicationsTo counter the inefficient and wasteful practices of SMEs and their detrimental impact on overall firm performance, SMEs have to refocus and reconfigure their management strategies. It is implied to use lean, Six Sigma and environmental sustainability practices to achieve this goal.Originality/valueThe study empirically investigates the impact of lean, Six Sigma and environmental sustainability on the performance of SMEs in Pakistan, which is the first study to be conducted in the Pakistani context.


Author(s):  
Harsimran Singh Sodhi ◽  
Doordarshi Singh ◽  
Bikram Jit Singh

Purpose The purpose of this paper is to examine and evaluate various Lean, Six Sigma and Lean Six Sigma (LSS) models proposed by various researchers, which have been implemented in manufacturing organizations. Design/methodology/approach The present study has followed three major steps in methodology. In the first step, pooling of various research articles has been done, followed by development of the primary results. At the final step, analysis and development of the LSS model have been performed. Findings This paper evaluated and examined various models of Lean Manufacturing, Six Sigma and LSS and developed an advanced LSS model that can be deployed in any manufacturing organization with the purpose of scrap reduction. Originality/value The findings of this study will assist shop floor managers to implement an LSS model in their organizations, which can effectively reduce the waste and enhance the overall productivity and quality of the manufactured products.


2014 ◽  
Vol 598 ◽  
pp. 647-651
Author(s):  
Ganesh Kumar Nithyanandam ◽  
Manmohanraj Raju ◽  
Gokulraj Srinivasan

Lean Six Sigma is a disciplined data driven approach to improve the quality and the performance of a process or a system with which finally results to the profitability of a firm. Many of the organizations have adopted Six Sigma methodology to improve their quality and their performance to competitive industrial world. This work is concentrated with one of the leading Automotive component manufacturing company in South India. The main objective of this paper was to reduce the product defect with the application of Lean Six Sigma methodology. The paper follows the DMAIC methodology to investigate defects and its root causes and provide a solution to reduce and/or eliminate these defects. This paper also explores how a manufacturing process can use a systematic methodology to move towards world-class quality level.


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