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An assessment of the critical success factors for Six Sigma implementation in Indian
industries
Darshak A. Desai Jiju Antony M.B. Patel
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To cite this document:
Darshak A. Desai Jiju Antony M.B. Patel, (2012),"An assessment of the critical success factors for
Six Sigma implementation in Indian industries", International Journal of Productivity and Performance
Management, Vol. 61 Iss 4 pp. 426 - 444
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IJPPM
61,4 An assessment of the critical
success factors for Six Sigma
implementation in Indian
426
industries
Received 1 September 2011
Revised 24 November 2011
Darshak A. Desai
Accepted 30 November 2011 Department of Mechanical Engineering,
G.H. Patel College of Engineering and Technology, Anand, India
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Jiju Antony
Department of Design, Manufacture and Engineering Management,
University of Strathclyde, Glasgow, UK, and
M.B. Patel
Hasmukh Goswami College of Engineering and Management,
Ahmedabad, India
Abstract
Purpose – The purpose of this paper is to present the results from an empirical investigation of Six
Sigma status in Indian industry, especially to highlight critical success factors (CSFs) of Six Sigma
implementation in a developing economy like India.
Design/methodology/approach – The study is based on survey questionnaire suitable for Indian
industries. The results of the study are based on descriptive statistics.
Findings – The results of this exploratory empirical study reflect the impact of different CSFs of Six
Sigma implementation in different sizes and sectors of Indian industries.
Research limitations/implications – The major constraints of the study were the number of
companies surveyed as well as time and budget. Moreover, a detailed impact of different CSFs of Six
Sigma implementation in Indian industry by means of semi-structured interviews could not be
executed due to above constraints.
Originality/value – Very little research has been carried out exploring the status of CSFs of Six
Sigma implementation in Indian industries. This paper will provide value to academics, researchers
and practitioners of Six Sigma by way of providing insight into the CSFs for Six Sigma
implementation, especially in Indian industries.
Keywords Six Sigma, Critical success factors, Implementation, Developing economy,
Industrial performance, India
Paper type Research paper
1. Introduction
International Journal of Productivity Overall operational excellence is one of the most significant key requirements of any
and Performance Management business to have global competence with sustained growth. Indian industries are not
Vol. 61 No. 4, 2012
pp. 426-444 the exception to this. For global competitiveness, Indian industries are trying many
q Emerald Group Publishing Limited improvement measures. The majority of the measures being tried by them are efficient
1741-0401
DOI 10.1108/17410401211212670 enough of producing the desired results but trouble remain with their implementation
and longer time span to realise the benefits. The requirement is for a break through CSF for Six
strategy, which can deliver multidirectional benefits in relatively shorter duration of Sigma
time. Six Sigma is the methodology having statistical base focusing on removing
causes of variations or defects in the product or core business processes. This
quantitative approach aims at improving efficiency and effectiveness of the
organisation. In the existing dynamic industrial scenario, quality alone is not the
wining criteria. Customers can become happy with consistently good quality products, 427
meeting other implicit requirements and committed delivery schedules.
Six Sigma methodology addresses the major root causes and guarantees the
targeted results, both in terms of improvements desired and time span fixed. It is a
disciplined, data-driven approach and methodology for eliminating defects in any
process – from manufacturing to transactional, from products to services. This
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needs. The ultimate goal is not improvement for improvement’s sake, but rather the
creation of economic wealth for the customer and provider alike. They recommend that
Six Sigma be viewed as a strategic business initiative rather than a quality program.
As per Park (2002) Six Sigma implies three things: statistical measurement,
management strategy and quality culture. It tells us how good products, services and
processes really are, through statistical measuring of quality level. Six Sigma is new,
emerging, approach to quality assurance and quality management with emphasis on
continuous quality improvements. The main goal of this approach is reaching level of
quality and reliability that will satisfy and even exceed demands and expectations of
today’s demanding customer (Pyzdek, 1999).
The original problem solving process for Six Sigma developed by Motorola was MAIC.
Later, DMAIC instead of MAIC was advocated by GE where D stands for “definition”. For
DFSS methodology, there are different approaches in use such as DMADV
(define-measure-analyse-design-verify), IDOV (identify-design-optimise-validate) and
DIDES (define-initiate-design-execute-sustain) (Park, 2002).
The Six Sigma methodology DMAIC offers a structured and disciplined process for
solving business problems. Six Sigma uses tools designed to identify root causes for
the defects in processes that keep an organisation from providing its customers with
the consistent quality of products the customers require on time and at the most
reasonable cost.
The Six Sigma work is normally done through cross-function teams that manage
the project (Zucker, 2007). The essence of Six Sigma is found in the reality that
business processes are inherently unpredictable. Six Sigma provides a way of
measuring the variability in a process as it delivers services to an end-user or customer.
When most people talk about Six Sigma, they are thinking about the DMAIC
methodology. This method is used for improving an existing process when it is not
meeting customer needs (Carey, 2007).
Though more success stories are published from manufacturing sector, Six Sigma is
not confined to one particular sector. Services, IT, healthcare and other service oriented
sectors have started reaping benefits from Six Sigma application. Langabeer et al.
(2009) provided the descriptive results from mixed methods research, combining
survey questionnaire with semi-structured interviews that examined implementation
of two quality improvement initiatives (Lean and Six Sigma) in a cross-sectional
Figure 1.
Six Sigma methodologies
IJPPM sample of hospitals. Further, as revealed from the first large-scale Six Sigma initiative
61,4 in Swedish healthcare that Six Sigma is a useful concept when trying to improve
healthcare processes. A success rate of 75 per cent is high compared to results reported
from other healthcare improvement efforts and supports the belief that Six Sigma
should be recommended as an addition to the improvement practices used in
healthcare development initiatives (Lifvergren et al., 2010). Another paper (Kaushik
430 et al., 2007) presents a review and a pilot study on six sigma application for library
services with emphasis on necessary critical success factors and key performance
indicators for a project to be successful. This pilot study identified a number of
important critical-to-quality (CTQs) and key performance indicators (KPIs) unique to
libraries, and that it is entirely possible to tailor a range of six sigma tools for various
library services.
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Although Six Sigma approach to quality and process improvement have been
predominantly used by manufacturing organisations, today the popularity of Six
Sigma in the service organisations is growing exponentially, especially in banks,
hospital sector, financial services, airline industry, utility services and so on. Unlike
manufacturing organisations, in service organisations we do not relate activities in
process terms and therefore the linkage between process metrics and service
performance characteristics is not straight forward (Does et al., 2002). In many service
organisations, the purpose of introducing a Six Sigma program is to establish and map
the key processes which are critical to customer satisfaction. According to Pande et al.
(2000), most service organisations operate at sigma quality levels of between 1.5 and
3.0 (i.e. a defect rate between 455,000 and 66,800). This is not surprising, considering
that service sectors over decades have been neglected in the context of quality
improvement efforts (Does et al., 2002).
3 Cultural change
a Early and effective communication on the why and how of Six Sigma
b Showing the difference between Six Sigma and other quality improvement initiatives
c Demonstrating the need for Six Sigma in terms of benefits to the employees
4 Training
a Application of the belt system throughout the company
b To identify the key roles of the people directly involved in applying Six Sigma
5 Linking Six Sigma to customers
a Identification of customer (internal/external) needs
b To implement projects with high impact on customer satisfaction
c Understanding your market and evaluating it periodically
6 Linking Six Sigma to business strategy
a Financial appraisal of Six Sigma projects
b Target Six Sigma projects on improvements that have a direct impact on the financial and
operational goals of the company
7 Linking Six Sigma to employees
a To use Six Sigma accomplishments as the key measure for management performance and
compensation
b To make Six Sigma training mandatory for promotion consideration
c To award monetary bonuses based on successful implementation of Six Sigma projects
8 Linking Six Sigma to suppliers
a To involve suppliers in Six Sigma projects
b To have suppliers who have implemented Six Sigma
9 Understanding of Six Sigma methodology
a To understand fully ALL steps of the DMAIC/DFSS/DMEDI/IDOV methodology
b To adapt Six Sigma methodology to your organisation
To use simple tools and techniques during Six Sigma implementation
10 Project management skills
a To develop project management skills
b To establish a project score card
11 Project prioritisation and selection
Table II. a Project selection based on financial returns
Critical success factors b Project prioritisation based on customer requirements
for Six Sigma c Project selection focused on poorly performing areas of the company
implementation (continued)
Sr. no. Critical success factor with sub elements
CSF for Six
Sigma
12 Leadership for Six Sigma
a Leadership assuring linkage of six sigma to corporate business strategy
b Leadership actions are supported at all levels of decision making through the use of facts and
data
c Leaders’ participation in Six Sigma projects 435
Leaders to be involved in project review/verification
d Leadership to reflect on best and worst management practices in the implementation of
projects
e Leadership encouraging employee participation in Six Sigma implementation
f Leaders to communicate values and beliefs involved in Six Sigma deployment
g Leaders should make sure Six Sigma projects should begin with the determination of
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Figure 2.
Percentage distribution of
the respondents’ position
each of the 12 major CSFs are made up of many individual variables (refer Table II)
calculating individual percentage responses on each category (1 to 5 scale) may
complicate the analysis leading to ambiguous conclusions. Hence percentage responses
are not considered in the analysis.
To get thorough insight further analysis were made for the different size as well as
sectors of the Indian industries. The data were examined through one-way ANOVA
analysis for similarities or otherwise in these two separate categories, that is scale and
sector of Indian industries.
436
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Figure 3.
Size distribution of Indian
industries where Six
Sigma is operational
Figure 4.
Sector distributions of
Indian industries where
Six Sigma is operational
Figure 5.
Critical success factors of
Six Sigma implementation
in Indian industries
with mean score of 4.2. “linking Six Sigma to customers” (CSF no. 5) and “linking Six CSF for Six
Sigma to business strategy” (CSF no. 6) are the second most important factors with Sigma
mean score of 4.1 and 4.0 respectively. Indian industries also felt importance of
effective leadership in the success of Six Sigma drive, as the factor number 12, that is,
“leadership for Six Sigma”, emerged with a mean score of 3.9. The CSFs such as
“linking six sigma to employees” and “linking six sigma to suppliers” were not ranked
very high. 437
5.3 Analysis on critical success factors of Six Sigma implementation in large and
medium scale industries
At micro level analysis the average ratings of the 12 major CSFs are further bifurcated
based on the responses of large and medium scale industries. This was done to create
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better understanding of critical success factors for Six Sigma implementation with-in
large and medium scale industries individually. Based on the mean ratings on
importance of CSFs by large and medium scale industries, 12 major CSFs are arranged
in their descending order of importance for large and medium scale industries
separately. Tables III and IV indicates these major CSFs in their descending order of
importance as rated by large- and medium-scale industries respectively.
Since out of total 39 variables only in three variables large and medium scale industries
are differing in allocating importance, it can be concluded that by and large,
importance provided by large and medium scale industries to various CSFs for success
of Six Sigma in their organisation, is the same. In other words, the critical success
factors for Six Sigma implementation are the same for large- and medium-scale
industries.
6. Discussions
As revealed from the analysis CSFs for Six Sigma implementation are more or less
same for different sizes of Indian industries. However, different sectors of Indian
industries are differing in their views regarding CSFs for Six Sigma implementation in
their organisations. Large-scale Indian industries have rated all the CSFs above 3,
which means, important and above. While, surprisingly, medium-scale industries have
IJPPM rated one CSF (linking Six Sigma to suppliers) at 1.8, which means, between least and
less important. Following CSFs are the most crucial for both, large and medium scale
61,4 industries as these are rated 4 and above by both the groups:
.
management involvement and participation;
.
organisational infrastructure; and
440 .
linking Six Sigma to business strategy.
The CSF “management involvement and participation” is unanimously rated as the
most crucial one for all the sectors of Indian industries surveyed. The second most
crucial factors and common to almost all the sectors are “organisational infrastructure”
and “linking Six Sigma to customers”.
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Critical success factors for Six Sigma implementation in Indian industries as studied
in this paper are more or less in confirmation with the views on CSFs as presented by
different researchers indicated in Table I. However, as revealed from this study Indian
SMEs are having contradictory views for the factor “linking Six Sigma to supplier”
with the findings of some of the authors (Antony and Banuelas, 2002; Coronado and
Antony, 2002; Deshmukh and Lakhe, 2009). Why Indian small and medium sectors are
not considering supplier linkage as important factor for success Six Sigma is the
matter to be researched and discussed in future.
7. Concluding remarks
The study was aimed at finding out the similarity or otherwise of the CSFs of Six
Sigma implementation among different sizes and sectors of Indian industries. As
revealed from the study that with some exceptions, different sizes as well as different
sectors of the Indian industries have similar voice on the CSFs of Six Sigma
implementation. However, above analysis revealed few CSFs where the experiences of
different sizes and sectors of the Indian industries are not the same. Out of total 39
variables under the major 12 CSFs identified, only in 03 variables large and medium
scale industries are differing in allocating their importance. So it can be concluded that
the critical success factors for Six Sigma implementation are the same for large- and
medium-scale Indian industries. The scenario is somewhat different among different
sectors of Indian industries. Different industrial sectors are differing in allocating
importance to total 19 variables for the success of Six Sigma in their organisations, out
of 39 variables under the major CSFs identified.
Indian industries have already recognised Six Sigma as a breakthrough
improvement strategy for overall operational excellence and started experimenting
with the same. A comprehensive study regarding critical success factors of Six Sigma
implementation in Indian industries was required since Six Sigma is gaining
importance among Indian industries. As a whole, this study provided a comprehensive
picture regarding CSFs of Six Sigma among Indian industries. The study provided an
exhaustive analysis of CSFs of Six Sigma implementation in different sizes and sectors
of Indian industries. This can help other industries, who have yet not experimented
with Six Sigma, to become more focused regarding their implementation programme
and results expected. Based on this analysis, individual industry as per their size and
type of operations can tailor their individual Six Sigma implementation strategy.
Since the study was based on survey analysis, the major limitation was about
getting the required number of responses. To cover the entire cross-section the
questionnaire was sent to the industries across the country. The personal interview CSF for Six
with company executives involved in Six Sigma implementation could not be Sigma
undertaken. However, the CSFs identified were made as comprehensive as possible to
ensure accuracy of the information received. The study analysed the CSFs of Six Sigma
implementation among different sizes and sectors of Indian industries
comprehensively. Further research can be taken up to analyse CSFs based on
individual success stories of Six Sigma implementation among selected industrial 441
sectors and sizes. Similar analysis can be taken up for different countries and then
similarities of success of Six Sigma among different countries can be explored.
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