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Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
Barriers and enablers in implementation of lean six sigma in indian manufacturing industries
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Barriers and enablers in implementation of lean six sigma in indian manufacturing industries

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  • 1. INTERNATIONAL JOURNAL in Management (IJARM),RESEARCH International Journal of Advanced Research OF ADVANCED ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012) IN MANAGEMENT (IJARM)ISSN 0976 - 6324 (Print)ISSN 0976 - 6332 (Online) IJARMVolume 3, Issue 1, January- June (2012), pp. 11-19© IAEME: www.iaeme.com/ijarm.html ©IAEMEJournal Impact Factor (2011): 0.5218 (Calculated by GISI)www.jifactor.com BARRIERS AND ENABLERS IN IMPLEMENTATION OF LEAN SIX SIGMA IN INDIAN MANUFACTURING INDUSTRIES Dr Z Mallick¹ Professor in Mechanical Department Jamia Millia Islamia University, New Delhi, India Zmallick2002@yahoo.co.in Mr Shahzad Ahmad² Asstt Prof in Mechanical Department AFSET, Faridabad, India ershahzadjmi@gmail.com Lalit Singh Bisht³ Research Scholar (corresponding author) AFSET, Faridabad, India lsbisht24@gmail.com ABSTRACT In this paper, study examines the barriers and enablers in implementation of lean six sigma (LSS) in Indian manufacturing sector. Indian manufacturing sector would contribute 25% of GDP and increase employability and enhance global competition in near future. In order to achieve the objectives, the various research questions were asked, which are key factors to initiate Implementing LSS tools. Keywords: LSS, chi-square, barriers, enablers, quality, GDP 1. INTRODUCTION Lean Six Sigma (LSS) is a key ingredient of quality management principles, practices, tool and techniques. It is process based improvement methodologies, the combination of both can provide the philosophy and the most powerful tools to solve problems and create rapid transformational improvement at lower cost. Lean Six Sigma have been successfully implement in many manufacturing sector such as General Electric, Toyota, DuPont, Boeing, Honeywell, Dell, Toshiba, HP, Sony, IBM, Seagate, Lenovo( Gang Niu et all., 2010). Due to commercial competition, enterprises must focus on low cost; eliminate waste and workforce effectiveness to get high profit by satisfying end user. 11
  • 2. International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324(Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012)Lean Six Sigma programs, which comprise statistical approaches with a systematic andquantifiable project-based improvement methodology, are proving to be extremelyeffective in tracking down the real causes of variation (Mortimer A L., 2006). Byadopting this new approach, An Indian companies of all sizes, are now establishing a farbetter understanding and gaining much tighter control of their development.1.1 Drawing from Lean Six-Sigma Manufacturing Process Improvement (a) To create solutions for processes. (b) Organization will receive more output of work and progress with less amount of effort. (d) It recognizes inefficiencies. (d)It reduces cycle time. (e) It reduces Non-Value-Added activities. (f) Increase in customer order accuracy.1.2 Indian Manufacturing Sector ScenarioThe report of the Prime Minister’s Group, constituted to look into the measures forensuring growth of the manufacturing sector, submitted in 2008 had recommended theputting in place a well structured manufacturing-sector policy to attain sustained 12-14per cent growth in this sector. The government released the NMP on 4 November2011for bringing about a quantitative and qualitative change with the objectives to (i)increase manufacturing sector growth to 12-14 per cent over the medium term; (ii) enablemanufacturing to contribute at least 25 per cent of GDP by 2022; (iii) create 100 millionadditional jobs in the manufacturing sector by 2022; (iv) create appropriate skill setsamong the rural migrant and urban poor for their easy absorption in manufacturing; (v)increase domestic value addition and technological depth in manufacturing; and (vi)enhance global competitiveness of Indian manufacturing( India budget 2012)2 REVIEW OF LITERATURELean Six Sigma is a new integrated concept that has objectives to improve quality, reduceprocessing time and reduce production cost. However, one needs to be careful whenimplementing Lean Six Sigma concepts into manufacturing sector. There is a need tothink about manufacturing sectors characteristics. Identifying critical success factors forimplementation is useful. But CSFs in themselves do not represent a coherentimplementation framework; they need to be integrated into an implementation plan. Thebroader aim of the research is to develop an implementation framework to implementLean Six Sigma into Indian manufacturing industry. A temporal dimension is animportant feature of an effective implementation plan aimed at introducing an innovationat an industry level. Thought should be given to how different phases of such aninnovation should be conducted. A feasible approach that has been used, is to introducethe innovation into a small number of targeted organizations whose success wouldencourage other organizations to follow their example (Kifayah Amar and Douglas Davis2008). 12
  • 3. International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324(Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012)Barriers and Enablers in implementing a successful Lean Six Sigma [Swee s kuik et all] Barriers EnablersTop Management apathy Top Management involvementInability to change Able to Learn and accept changesImproper Planning Proper planningLack of Training Quality workshop organize regularlyLack of Democratic talk Open talk about all wasteInsulating organization from Cross Understand and implement cross businessbusinessInadequate attention to internal and Internal and external customer satisfactionexternal customer is tracked and reviewedThe implementation of Lean Six Sigma in Indian manufacturing sector is an area ofheightened practitioner and researcher interest. A case study involving the developmentof a Six Sigma implementation framework was undertaken utilizing a coach-centeredIndian manufacturing sector business improvement cluster. The case study employed anovel transfer programme involving Six Sigma DMAIC training, personal developmentworkshops and a ‘live ‘Lean Six Sigma based business improvement project. This workbased learning programme allowed the contextual application of core tools andtechniques with the assistance of an expert coach. Benefits from the program weregenerated on four levels including knowledge and technology transfer between cluster-based manufacturing sector (incidental technology transfer). (Pantano, P. O’Kane and K.Smith.2006)3. NEED AND OBJECTIVES OF THE STUDYIndian Manufacturing sectors needs to become more competitive and producing goodquality with minimum waste by utilizing full man power to satisfy end user. To achievecustomer’s satisfaction, Indian manufacturing sector have an obligation to ascertain thequality of goods as expected by the customer and find ways to meet them. The presentstudy is aimed to find barriers and enablers in implementation of lean six sigma in Indianmanufacturing sectors by knowing concern enterprise employees perception about factorswhich are basic for Lean Six Sigma. The present study finds the relationship of Lean SixSigma factors with personnel view.4. METHODOLOGYA questionnaire was constructed to find the perceptions of the employees of differentmanufacturing sector towards their organization. Total of 7 main statements were askedby 62 respondents, which are Critical success factor for implementation of lean sixsigma. Employees were asked to rate the quality of several attributes using an interval,Likert scale ranging 1 to 5.The study period was from November 2011 to March 2012.Study comprised 62 respondents of 07 manufacturing sectors. The tests of factor analysis,chi-square and averages were used to analyze the data and interpret the results. 13
  • 4. International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324(Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012)5. DATA ANALYSIS AND INTERPRETATION WITH TESTING OFHYPOTHESESTable 1: Respondents experienceExperience Frequency Percentage Valid Cumulative percentage percentageBelow 2 yrs 21 33.87 33.87 33.872-4 yrs 16 25.80 25.80 59.674-6 yrs 09 14.51 14.51 74.186-8 yrs 01 01.61 01.61 75.798-10 yrs 14 22.58 22.58 98.37Above 10 yrs 01 01.61 01.61 100Total 62 100.00 100.00Field Survey, 2011-2012Above Table 1 shows that 33.87% of the respondents have work in the organization forless than 2 yrs while 25.80% of the respondents have work in the organization for 2-4 yrsand 14.51% respondents work for 4-6 yrs, 22.58% for 8-10 yrs and 01.61% respondentswork for 6-8 yrs and above 10 yrs.The respondents were asked Seven question criticalfactors of Lean Six Sigma Implementation in their organization, these Seven question areprerequisite for Lean Six Sigma implementation and to find its Barriers and Enablers.Their responses are shown in given table.Table 2: All new employees are trained in the analysis methodology and problem solvingtoolsOpinion Frequency Percentage Valid Cumulative percentage percentageStrongly 01 01.61 01.61 01.61disagreeDisagree 05 08.06 08.06 9.67Neutral 18 29.03 29.03 38.70Agree 29 46.77 46.77 85.47Strongly 09 14.51 14.51 100agreeTotal 62 100 100Source: Field Survey, 2011-2012Table 2 shows that 46.77% respondents agree and 14.51% strongly agree that newemploys are trained in the analysis methodology and problem solving tools but other side29.03%, 08.06%, 01.61% are either neutral, disagree, and strongly disagree respectively.Chi-square is calculated using formulaχ²= Ʃ (O-E) ²/EWhere: Ʃ=Summation 14
  • 5. International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324(Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012)O= Observed frequency; E= Expected frequencyDecision rule: Reject null hypothesis (H0), where χ² calculated is greater than χ²tabulated, and accept alternative hypothesis (H1)For Table 2 statement, calculated (χ²) = Ʃ (O-E) ²/E =40.61Degree of freedom “d.o.f”= 4Tabulated (χ²) = at 0.05% level of significance, the tabulated value of χ² for 4 degree offreedom is 9.488Since the calculated χ² is greater than tabulated χ² we reject null hypothesis (H0) andaccept alternative hypothesis(H1),this indicate that there is a relation of statement in table2 to Barriers and enablers in implementation of Lean Six Sigma.Table 3: There is no fear of my superior for speaking out about waste (time, materialsetc.)Opinion Frequency Percentage Valid Cumulative percentage percentageStrongly 02 3.22 3.22 3.22disagreeDisagree 04 6.45 6.45 9.67Neutral 17 27.41 27.41 37.08Agree 28 45.16 45.16 82.24Strongly 11 17.74 17.74 100agreeTotal 62 100 100Source: Field Survey, 2011-2012Table 3 disclose that 45.16% respondents agree and 17.74% strongly agree that they haveno fear when to speak about waste to their superior but 27.41% respondents neutral and6.45%, 3.22% respondents disagree and strongly disagree respectively .For Table 3 statement, calculated (χ²) = Ʃ (O-E) ²/E =35.91Degree of freedom “d.o.f”= 4Tabulated (χ²) = at 0.05% level of significance, the tabulated value of χ² for 4 degree offreedom is 9.488Since the calculated χ² is greater than tabulated χ² we reject null hypothesis (H0) andaccept alternative hypothesis (H1), this concluded that there is a relation of statement intable 3 to Barriers and enablers in implementation of Lean Six Sigma. 15
  • 6. International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324(Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012) Table 4: Quality leaders know about Lean Six SigmaOpinion Frequency Percentage Valid Cumulative percentage percentageStrongly 00 00 00 00disagreeDisagree 06 9.67 9.67 9.67Neutral 025 40.32 40.32 49.99Agree 021 33.87 33.87 83.86Strongly agree 10 16.12 16.12 100Total 62 100 100 Source: Field Survey, 2011-2012Above Table 4 shows that 33.87% respondents and 16.12% agree and strongly disagreeand 40.32% of the respondents have neutral view and 9.67% disagree about those qualityleaders know about Lean Six Sigma.For Table 4 statement, calculated (χ²) = Ʃ (O-E) ²/E =34.72Degree of freedom “d.o.f”= 4Tabulated (χ²) = at 0.05% level of significance, the tabulated value of χ² for 4 degree offreedom is 9.488Since the calculated χ² is greater than tabulated χ² we reject null hypothesis (H0) andaccept alternative hypothesis (H1), this concluded that there is a relation of statement intable 4 to Barriers and enablers in implementation of Lean Six Sigma. Table 5 Customer satisfaction is tracked and reviewedOpinion Frequency Percentage Valid Cumulative Percentage percentageStrongly 00 00 00 00DisagreeDisagree 02 3.22 3.22 3.22Neutral 12 19.35 19.35 22.57Agree 33 53.22 53.22 75.79Strongly Agree 15 24.19 24.19 100Total 62 100 100Source: Field Survey, 2011-2012Table 5 shows that 53.22% and 24.19% of respondents agree and strongly agreerespectively when asked that their organization tracked and reviewed customersatisfaction and 19.35% of the respondents neutral and 3.22% disagreeFor Table5 statement, calculated (χ²) = Ʃ (O-E) ²/E =55.90Degree of freedom “d.o.f”= 4 16
  • 7. International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324(Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012)Tabulated (χ²) = at 0.05% level of significance, the tabulated value of χ² for 4 degree offreedom is 9.488Since the calculated χ² is greater than tabulated χ² we reject null hypothesis (H0) andaccept alternative hypothesis (H1), this concluded that there is a relation of statement intable 5 to Barriers and enablers in implementation of Lean Six Sigma.Table 6: Quality workshop organize regularlyOpinion Frequency Percentage Valid Cumulative percentage percentageStrongly 01 1.61 1.61 1.61disagreeDisagree 04 6.45 6.45 8.06Neutral 21 33.87 33.87 41.93Agree 24 38.70 38.70 80.63Strongly agree 12 19.35 19.35 100Total 62 100 100Source: Field Survey, 2011-2012When respondents were asked whether Quality workshop organize regularly in theirorganization then 38.70% and 19.35% respondents agree and strongly disagreerespectively on other side 33.87% were neutral and 6.45% and 1.61% respondentsdisagree and strongly disagreeFor Table 6 statement, calculated (χ²) = Ʃ (O-E) ²/E =33.01Degree of freedom “d.o.f”= 4Tabulated (χ²) = at 0.05% level of significance, the tabulated value of χ² for 4 degree offreedom is 9.488Since the calculated χ² is greater than tabulated χ² we reject null hypothesis (H0) andaccept alternative hypothesis (H1), this concluded that there is a relation of statement intable 6 to Barriers and enablers in implementation of Lean Six Sigma.Table 7: Cross business opportunities linked with customer needsOpinion Frequency Percentage Valid Cumulative percentage percentageStrongly 01 1.61 1.61 1.61disagreeDisagree 04 6.45 6.45 8.06Neutral 13 20.96 20.96 29.02Agree 40 64.51 64.51 93.53Strongly agree 04 6.45 6.45 100Total 62 100 100Source: Field Survey, 2011-2012 17
  • 8. International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324(Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012)From the table above, 64.51% respondents agree, 20.96% of the respondents neutral,6.45% of the respondents disagree and strongly agree and 1.61% of the respondentsstrongly disagree that their organization understand of how cross-business opportunities,linked with customer needs, might offer different ways of approaching the market.For Table 7 statement, calculated (χ²) = Ʃ (O-E) ²/E =83.31Degree of freedom “d.o.f”= 4Tabulated (χ²) = at 0.05% level of significance, the tabulated value of χ² for 4 degree offreedom is 9.488Since the calculated χ² is greater than tabulated χ² we reject null hypothesis (H0) andaccept alternative hypothesis (H1), this concluded that there is a relation of statement intable 7 to Barriers and enablers in implementation of Lean Six Sigma.Table 8: Suppliers capabilities in supporting new technology/requirementsOpinion Frequency Percentage Valid Cumulative percentage percentageStrongly 00 00 00 00disagreeDisagree 03 4.83 4.83 4.83Neutral 18 29.03 29.03 33.86Agree 37 59.67 59.67 93.53Strongly agree 04 6.45 6.45 100Total 62 100 100Source: Field Survey, 2011-2012sThis table shows that 59.67% of the respondents agree and 29.03% of the respondentsneutral about the suppliers’ capabilities in supporting new technology/requirements and6.45% of the respondents strongly agree and 4.83% of the respondents disagree that thesuppliers’ capabilities in supporting new technology/requirements.For Table 8 statement, calculated (χ²) = Ʃ (O-E) ²/E =76.53Degree of freedom “d.o.f”= 4Tabulated (χ²) = at 0.05% level of significance, the tabulated value of χ² for 4 degree offreedom is 9.488Since the calculated χ² is greater than tabulated χ² we reject null hypothesis (H0) andaccept alternative hypothesis (H1), this concluded that there is a relation of statement intable 8 to Barriers and enablers in implementation of Lean Six Sigma.6. RESULTS AND DISCUSSIONThe surveys revealed that majority of the manufacturing sector preferred and have ISOcertification, and implement some tools and technique but relatively very less percentage. 18
  • 9. International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324(Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 1, January- June (2012)Surveys disclose various Barriers and Enablers in implementation of LSS in Indianmanufacturing sectors as in belowBarriers and Enablers in implementation of LSS in Indian manufacturing sectorsBarriers EnablersNew employees are reluctant New employees are trained in analysis methodologyLittle steps initiate to eliminate waste Democratic talk about waste, to seniorQuality leaders implements less tools of Quality leaders know about LSSLSSEmployee follow mind numbing rules Customer satisfaction is tracked and reviewedFew employees implement quality tools Quality workshop organize regularlyQuality of product still lag to world class Cross business linked with customer needsSuppliers not involved in organization Suppliers support newSPC technology/requirements7. LIMITATIONS OF THE STUDYFollowing are some of the limitation of this study:(a). Sample size of 7 manufacturing sectors appears to be small, it can be extended tocompanies located in other parts of India too. More survey needs to make the resultsmore representatives(b). Sample size is limited which is 62 respondents, it can be cover more respondentsfrom top to bottom of organizations.REFERENCES[1] Gang Niu, Daniel Lau, Michael Pecht. (2010) PHM2010 Macau, IEEE[2] Mortimer A L., (2006) “Six Sigma: Effective handling of deep rooted qualityproblems” , Assembly Automation, Vol. 26, No.3, pp.200-204.[3] Duane K Allen, Phil Laure. (2006) “Exploiting Lean Sigma quality tools to improvetest and other process” 1-4244-0052-X/06/$20.00 ©2006 IEEE. Pp 509-514[4] http://indiabudget.nic.in(accessed on April 8, 2012).[5] Kifayah Amar and Douglas Davis. IMECS 2008 A Review of Six SigmaImplementation Frameworks and Related Literature”, Vol II19-21 March, 2008, HongKong[6] Swee S. KUIK, Sev V Nagalingam & Yousef Amer, “Implementation of Six Sigmamethodology to improve supply chain network in the context of Malaysianmanufacturing industries”[7] C V. Pantano, P. O’Kane and K. Smith.2006 cluster-based Six Sigma Deployment inSmall and Medium Sized Enterprises”. IEEE, pp 788-792. 19

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