Integration of Lean Enterprise System, Total Quality Management and Six Sigma

Abstract

The lean enterprise system, total quality management, six sigma, theory of constraints, agile manufacturing, and business process reengineering have been introduced as universally applicable best methods to improve the performance of enterprise operations through continuous process improvement and systemic planned enterprise change. Generally speaking, they represent practice‐based, rather than theory‐grounded, methods with common roots in manufacturing. Most of the literature on them is descriptive and prescriptive, aimed largely at a practitioner audience. Despite certain differences among them, they potentially complement each other in important ways. The lean enterprise system, total quality management and six sigma, in particular, are tightly interconnected as highly complementary approaches and can be brought together to define a first‐approximation “core” integrated management system, with the lean enterprise system serving as the central organizing framework. Specific elements of the other approaches can be selectively incorporated into the “core” enterprise system to enrich its effectiveness. Concrete theoretical and computational developments in the future through an interdisciplinary research agenda centered on the design and development of networked enterprises as complex adaptive socio‐technical systems, as well as the creation of a readily accessible observatory of evidence‐based management practices, would represent important steps forward.

Lean vs agile in the context of complexity management in organizations

“…The support for this interpretation can be found in a number of papers, e.g. Bozdogan (2010b) writes:Agile manufacturing has thus been advanced as the answer to the imperatives of a new industrial paradigm characterized by an unpredictably changing market environment. The notion of virtual organizations, formed on an as‐needed basis, provides an important organizing vehicle for building agile enterprises … It borrows heavily from lean ideas but lacks an internally consistent set of organizing principles derived from either experience or the extant literature on effective organizational architectures in turbulent environments.…”

“…Nevertheless, agile manufacturing at least makes a case for industrial organization in an environment of rapid change and uncertainty, an environmental contingency generally missing in discussions of the other approaches. Finally, agile manufacturing suggests certain future directions for the further evolution of the lean enterprise system to help enterprises develop capabilities to thrive in fast‐changing and uncertain environmental conditions [emphasis by GP&ZP] (Bozdogan, 2010b). Further, the same author writes on comparison of different approaches (Lean Enterprise System, Total Quality Management (TQM), Six Sigma, Theory of Constraints (TOC), Agile Manufacturing, Business Process Reengineering (BPR)):Whereas the lean enterprise system addresses with full intensity the entire enterprise “space” from the factory floor to the networked enterprise, the other approaches concentrate primarily on improvements at the business unit and factory floor levels and place comparatively little emphasis on improvements at the networked enterprise level .…”

“…Further, the same author writes on comparison of different approaches (Lean Enterprise System, Total Quality Management (TQM), Six Sigma, Theory of Constraints (TOC), Agile Manufacturing, Business Process Reengineering (BPR)):Whereas the lean enterprise system addresses with full intensity the entire enterprise “space” from the factory floor to the networked enterprise, the other approaches concentrate primarily on improvements at the business unit and factory floor levels and place comparatively little emphasis on improvements at the networked enterprise level . [emphasis by GP&ZP] (Bozdogan, 2010b). …”

“…Nevertheless, agile manufacturing at least makes a case for industrial organization in an environment of rapid change and uncertainty, an environmental contingency generally missing in discussions of the other approaches. Finally, agile manufacturing suggests certain future directions for the further evolution of the lean enterprise system to help enterprises develop capabilities to thrive in fast‐changing and uncertain environmental conditions [emphasis by GP&ZP] (Bozdogan, 2010b).…”

Lean-excellence business management for manufacturing SMEs focusing on KRI

“…Thus, both have similar objectives. When LM reduces waste from the production process, it promotes the MBNQA's aim of continuous quality improvement (Bozdogan, 2010).…”