Empirical analysis of the relationship between Six Sigma management activities and corporate competitiveness

Abstract

PurposeThis study proposes a research model to test whether Six Sigma‐based management activities improve corporate competitiveness in Samsung Group.Design/methodology/approachThe paper's model was validated and its hypotheses tested using structural equation model analysis.FindingsEmpirical results showed that Six Sigma activities do indeed contribute to revitalized process management, improved quality, and, finally, lead to corporate competitiveness.Research limitations/implicationsThe survey data were collected at the individual level, such as GB, BB, MBB, and limited to the affiliated companies of Samsung Group. To obtain more meaningful results, data would be collected at the corporate level and the pool of subjects expanded. However, this paper shows that the four fundamental factors (CEO's will, Communication, Training, and Policy) as well as three substantial factors (Information Utilization, Standardization, and Promotion) are meaningful activities influencing the success of Six Sigma management significantly.Originality/valueThe main contribution of this paper lies in the establishment of a causal relationship among Six Sigma activities, process innovation, quality improvement, and company competitiveness, as well as in the proposed managerial implications for Six Sigma projects.

Investigating the readiness of people in manufacturing SMEs to embark on Lean Six Sigma projects

“…Antony et al (2005) contend that more people orientation and top management physical presence and availability are key strengths in SMEs and this is congruent with later research, which suggests that the main peoplerelated CSFs in manufacturing SMEs for the implementation of Six Sigma are in fact similar to bigger organisations, e.g. top management support, teamwork, leadership, training and cultural change (Choi et al, 2012;Nakhai and Neves, 2009;Kumar and Antony, 2008). In terms of barriers to the successful implementation of LSS in manufacturing SMEs, research has proposed that resistance to change, lack…”

“…Collaboration as a characteristic of corporate organisational culture will support the organisational change and successful implementation of any TQM practice (Lam et al, 2015;Baird et al, 2011;Mosadegh Rad, 2006). Cross-functionality of communication and collaboration have been identified as a key factor for a successful LSS project (Choi et al, 2012). People recognition through empowerment, inspiration and involvement in decision making processes have always been an important and challenging cultural construct of successful implementation of LSS (Kanpp, 2015;Antony, 2014;Hilton and Sohal, 2012;Daily et al, 2012;Baird et al, 2011;Zu and Fredendall, 2009;McAdam and Lafferty, 2004).…”

“…As two key components of LSS, Six Sigma is primarily a systematic and rigorous tool to uncover and reduce defect and variation in breakthrough projects, whilst Lean management focuses on continuous incremental reduction of waste, environmental sustainability, increasing the speed of the operation and delivering the value (Bamford et al, 2015;Piercy and Rich, 2015;Choi et al, 2012;Hilton and Sohal, 2012;Assarlind et al, 2012;Manville et al, 2012;Womack and Jones, 2005). A number of organisations have adopted LSS as the strategy for finding the balance between quality, cost and delivery (Antony, 2014) in a continuous improvement or breakthrough improvement approach (Assarlind et al, 2013).…”

“…Their personal competence, vision and culture influence the readiness for embarking on LSS in manufacturing SMEs and therefore must be related to top management commitment as well as organisational resistance (Antony, 2014;Albliwi et al, 2014). The goal of LSS, similar to Six Sigma, is to focus on low hanging fruits and eliminate waste factors known as defects by accomplishing a near perfect quality level through the systematic removal of causes of the defects (Dora and Gellynck, 2015;Choi et al, 2012). LSS benefits from both Six Sigma and Lean by incorporating a focus on cost, process cycle time, delivery value and efficiency from Lean and Kaizen and sustainable and incremental process improvement and profitability from Six Sigma (Bamford et al, 2015;Holmes et al, 2015;Worley and Doolen, 2015;Atmaca and Girenes, 2013;Sarkar et al, 2013;Womack and Jones, 2005).…”

“…Lean Six Sigma (LSS) is a business improvement strategy that has flourished over the last decade because of its promise of enhanced business performance and market capability. LSS has evolved through the combination of Lean and Six Sigma, both recognised as leading total quality management (TQM) tools for performance improvement in organisations with a proper infrastructure built on leadership and change culture (Dora and Gellynck, 2015;Assarlind et al, 2013;Wang and Chen, 2012;Choi et al, 2012;Hilton and Sohal, 2012;Atmaca and Girenes, 2013;Lee et al, 2011;Delgado et al, 2010;Dahlgaard and Dahlgaard-Park, 2006;McAdam and Lafferty, 2004). LSS is now regarded as one of the most effective and disciplined business transformation initiatives available in strategic operations management as well as an effective top-down methodology for improving quality in both the manufacturing and service small-and medium-sized enterprise (SMEs) and their larger counterparts (Kanpp, 2015;Isa and Usmen, 2015, Bhat et al, 2014, Algassem et al, 2014Biranvand and Khasseh, 2013).…”