The strategic use of Six Sigma to assess capacity planning in Egyptian water companies as a competitive strategy

Abstract

Increased productivity and cost reduction alongside customer satisfaction have been identified by firms as sources of competitive advantage. Different methodologies such as the Lean principle, pull scheduling, and Six Sigma are used by firms to achieve higher productivity as a competitive advantage. However, firms cannot produce infinitely due to limitations such as resources that is why it is so important to spot the light on capacity planning. This paper seeks to explore the significance of the application of Six Sigma on Companies’ capacity planning to raise production efficiency by reducing defects and maximizing profits. Different companies of water in Egypt are used as study sites. A mix of qualitative and quantitative methods is used for data collection and analysis. A total of 200 participants were sampled for data collection using interviews and questionnaires. It is found that there is a significant correlation between the Utilization of Six Sigma techniques and monitoring of capacity planning in studied companies through improving and controlling quality processes until reaching zero defects products. It is also found that applying Six Sigma techniques could not be achieved appropriately without having a powerful information system and well-trained employees applying Six Sigma techniques efficiently.