CHAPTER 2 LITERATURE REVIEW -...

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9 CHAPTER 2 LITERATURE REVIEW 2.1 INTRODUCTION This chapter reports the literature review which was conducted with the primary objective of identifying the contributions of researchers towards linking Lean Six Sigma with ISO 9001 standard based QMS. The results of this literature review indicated the absence of any such specific contribution by the researchers, albeit few researches are progressing in the path to reach this destination. The key information and knowledge derived by conducting this literature review have been utilised to evolve a roadmap for implementing Lean Six Sigma through ISO 9001:2008 standard based QMS. 2.2 LITERATURE REVIEW METHODOLOGY The literature review reported in this chapter was carried out in three phases. In the first phase, the research works reported on Lean Six Sigma were reviewed. During the second phase, the research contributions surmounting ISO 9001 standard based QMS certifications were reviewed. During the third phase, avenues were identified for investigating the implementation of Lean Six Sigma via ISO 9001:2008 standard based QMS. The methodology adopted for carrying out these three phases of the literature review is shown in Figure 2.1. As shown, the first two phases were carried out in parallel to each other.

Transcript of CHAPTER 2 LITERATURE REVIEW -...

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CHAPTER 2

LITERATURE REVIEW

2.1 INTRODUCTION

This chapter reports the literature review which was conducted with

the primary objective of identifying the contributions of researchers towards

linking Lean Six Sigma with ISO 9001 standard based QMS. The results of

this literature review indicated the absence of any such specific contribution

by the researchers, albeit few researches are progressing in the path to reach

this destination. The key information and knowledge derived by conducting

this literature review have been utilised to evolve a roadmap for implementing

Lean Six Sigma through ISO 9001:2008 standard based QMS.

2.2 LITERATURE REVIEW METHODOLOGY

The literature review reported in this chapter was carried out in

three phases. In the first phase, the research works reported on Lean Six Sigma

were reviewed. During the second phase, the research contributions

surmounting ISO 9001 standard based QMS certifications were reviewed.

During the third phase, avenues were identified for investigating the

implementation of Lean Six Sigma via ISO 9001:2008 standard based QMS.

The methodology adopted for carrying out these three phases of the literature

review is shown in Figure 2.1. As shown, the first two phases were carried out

in parallel to each other.

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Drawing of inference to carry out research on implementing Lean Six Sigma through ISO 9001:2008 standard based QMS

Figure 2.1. Methodology adopted for carrying out the literature review

Roadmap for implementing Lean Six Sigma through ISO 9001:2008 standard based QMS

Identification of success ingredients on implementing

Lean Six Sigma

Identification of success ingredients on implementing

ISO 9001 standard based QMS

Identification of precautions to be observed while

implementing Lean Six Sigma

Identification of precautions to be observed while implementing ISO 9001 standard based QMS

Identification of benefits on implementing Lean

Six Sigma

Identification of benefits on implementing ISO 9001

standard based QMS

Study of the case studies on Lean

Six Sigma

Study of the integration of other strategies with ISO

9001 standard based QMS

Gathering of research papers dealing with Lean Six Sigma and ISO 9001 standard based QMS

Origin and early researches on Lean Six Sigma

Tracing the evolution of ISO 9001 standard

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During the third phase, as mentioned in the previous section, the

avenues identified from these two phases were used to evolve a roadmap for

implementing Lean Six Sigma through ISO 9001:2008 standard based QMS.

2.3 STATISTICS

Before beginning the literature review being reported in this

chapter, the research papers dealing with Lean Six Sigma, ISO 9001 standard

based QMS and the integrated works of Six Sigma and ISO 9001 standard

based QMS were gathered from the two internally maintained databases

namely ScienceDirect and EBSCO as well as from the databases maintained

by several renowned international publishers like Taylor and Francis,

Emeraldinsight, Inderscience, Wiley Interscience, and SpringerLink. The

statistics of the research papers thus gathered are shown in Figure 2.2.

Number of

research papers

Lean Six Sigma

ISO 9001:2000/2008 standard based QMS

Integration of ISO 9001:2000 standard based QMS and Six

Sigma

Figure 2.2. Number of research papers reviewed for integrating

Lean Six Sigma and ISO 9001:2000 standard based QMS

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As shown in the Figure 2.2, ISO 9001:2000 standard based QMS

research papers are abundantly available in literature arena. During the

conduct of this literature review, around 200 such papers were reviewed. A

total of 25 research papers dealing with Lean Six Sigma researches could be

accessed. The pace of appearance of these papers indicated that, the research

contributions on Lean Six Sigma have been getting accelerated in the recent

years. Particularly, the increasing publication of the papers in the years 2009,

2010 and 2011 has evidenced the high progress of the Lean Six Sigma related

researches and practices.

During the conduct of the literature review, only four papers

dealing with the integration of ISO 9001:2000 standard based QMS with Six

Sigma could be identified. This small number reveals that the research works

on integrating ISO 9001 standard based QMS with Six Sigma have just begun.

As hinted in Section 2.1, no paper dealing with the integration of Lean Six

Sigma with ISO 9001 standard based QMS could be identified during the

conduct of this literature review.

2.4 RESEARCHES ON LEAN SIX SIGMA

The activities carried out during the first phase of the literature

review being reported here are described in the following sections.

2.4.1 Origin of researches on Lean Six Sigma

At the very end of the twentieth century, researchers and

practitioners sensed that both Lean and Six Sigma concepts have been

providing breakthrough improvements. This has been witnessed by the

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accelerating rate of research papers published in the late 1990s which reported

the success stories of Lean and Six Sigma (Naslund, 2008). Principles

embedded in Lean and Six Sigma originated as a direct or indirect impact of

quality revolution in Japan after World War II (Andersson et al., 2006). Both

the Lean and the Six Sigma concepts have their base on TQM principles

(Dahlgaard and Dahlgaard-Park, 2006). Lean concepts originated in Toyota,

while Six Sigma has its origin at Motorola.

Andersson et al. (2006) have consolidated the vital commonalities

of Lean and Six Sigma. Lean manufacturing aids in the elimination of muda (a

rovides

defect free products and services. Both Lean and Six Sigma approaches

embrace the activities of project management. Despite their objectives being

similar, Lean and Six Sigma have been applied in different directions. Only

from late 1990s, few practitioners began to adopt Lean Six Sigma concept.

The early efforts in practically implementing Lean Six Sigma took place at

BAE Systems Controls, Fort Wayne Indiana in 1997 and at Maytag

Corporation in 1999 (Furterer and Elshennawy, 2005). In parallel to these

efforts, researchers have been examining the pros and cons of integrating Lean

concept (Bendell, 2006).

2.4.2 Early contributions of researches on Lean Six Sigma

The pioneering contribution on Lean Six Sigma was witnessed in

the literature arena in the form of Lean Six Sigma: Combining

Six Sigma with Lean Speed

book, slowly the research works started in the field of Lean Six Sigma and a

momentum has now been gained. These research works, which have been

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published in literature arena, are enumerated in Table 2.1. The salient features

of these researches are briefly described in this subsection.

Table 2.1. Papers reporting the origin of researches on Lean Six Sigma

Serial

number Authors Contributions

1 George (2002) Coined the integrated term Lean Six Sigma

2 Smith (2003) Reported a case study on implementing Lean

Six Sigma

3 Sharma (2003) Reported case studies on integrating Lean

through Six Sigma and implementing Six

Sigma through Lean

4 Hoerl (2004) Consideration of Lean concepts as Critical To

Quality metrics (CTQs) for implementing Six

(stands for Define, Measure,

Analyse, Improve and Control) methodology

5 Arnheiter and

Maleyeff (2005)

Competitive advantage reaped through the

implementation of Lean Six Sigma is superior

than that is gained through the implementation

of Lean or Six Sigma individually

6 Furterer and

Elshennawy

(2005)

Reported early case studies on Lean and Six

Sigma jointly

7 Andersson et al.,

(2006)

Similarities and differences in Lean and Six

Sigma in the contexts of origin, theory, process

view, approach, methodologies, tools, effects

and criticisms

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Table 2.1. (Continued)

8 Dahlgaard and

Dahlgaard-Park

(2006)

Lean and Six Sigma are enhanced roadmaps for

implementing TQM

9 Bendell (2006) The pros and cons of integrating Lean and Six

Sigma

10 Kumar et al.

(2006)

Framework to implement Lean Six Sigma

11 Naslund (2008) Stated that numerous papers have reported the

success of Lean and Six Sigma

12 Gnanaraj et al.

(2010a)

Extension of Lean Six Sigma implementation

in contemporary SMEs

13 Lee and Chang

(2010)

Concepts regarding the implementation of

design for Lean Six Sigma through supply

chain methodology

14 Pepper and

Spedding (2010)

Critical comparisons on Lean and Six Sigma

15 Salah et al. (2010) Lean Six Sigma is the widely accepted and

most modern technique for achieving

continuous improvement

Smith (2003) has discussed the on-going business improvements

that may possibly be sustained through the integration of Lean and Six Sigma.

Sharma (2003) mentioned that the implementation of Lean manufacturing

programmes is yet to taste full success in many parts of the world. In order to

achieve this goal, it is necessary to implement Lean manufacturing programme

through the implementation of Six Sigma. This is due to the reason that the

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Measure, Analyse, Improve and Control (DMAIC) methodology and belt

based training infrastructure strongly influence the successful implementation

of the Lean manufacturing programme. Hoerl (2004) has stated that the core

applications of Lean can be taken as the critical to quality metrics (CTQs) of

the Six Sigma for the implementation of the Lean Six Sigma. Arnheiter and

Maleyeff (2005) reported that an optimised competitive advantage with high

value and low cost may perhaps be achieved with the Lean Six Sigma

approach than that by implementing either Lean or Six Sigma separately.

The compatibility of Lean and Six Sigma has been discussed in

detail by Bendell (2006). This author has highlighted that, in majority of the

organisations implementing Lean Six Sigma, Lean tools are just appended and

taught to Black and Green Belts of the Six Sigma programme. In other words,

this author claims that exact superimposition of Lean and Six Sigma is yet to

occur in both theory and practice. Kumar et al. (2006) have contributed a

framework to implement Lean Six Sigma which encapsulates the tools of Lean

principles with the DMAIC methodology of Six Sigma. For strengthening any

organisation with the TQM principles, it is essential to implement principles

like Six Sigma and Lean either one after another or jointly (Andersson et al.,

2006).

Pepper and Spedding (2010) have critically compared Lean and Six

Sigma approaches. The synergy achieved through the integration of these two

Gnanaraj et al. (2010a) have extended the framework of Lean Six Sigma for

implementing it in contemporary small and medium enterprises (SMEs). Lee

and Chang (2010) have discussed the ideas of design for Lean Six Sigma

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application through the supply chain methodology. Salah et al. (2010) have

recognised Lean Six Sigma as the most modern methodology for achieving

continuous improvement in the 2000s.

One of the main derivations of the literature review reported in this

subsection is that, no logically supported model of Lean Six Sigma is

discernable in the literature arena. Such a Lean Six Sigma model shall be

developed by blending both Lean and Six Sigma approaches in a balanced

manner.

2.4.3 Case studies on Lean Six Sigma

After reviewing the early researches, the case studies reported in

literature arena on implementing Lean Six Sigma were studied. The highlights

of this study are presented in Table 2.2. The contributions of the papers cited

in this table are briefly described in this subsection.

Table 2.2. Highlights of the papers reporting the case studies on Lean

Six Sigma

Serial

Number

Authors Highlights of the case studies

1 Smith (2003) Lean Six Sigma implementation in a

playground equipment manufacturing

company and commercial refrigeration

equipment manufacturing company

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Table 2.2. (Continued)

2 Sharma (2003) Lean Six Sigma implementation in a

battery manufacturing company

prevented its bankruptcy.

3 Furterer and

Elshennawy (2005)

Lean Six Sigma was applied in a Local

Department.

4 Kumar et al., (2006) Significant benefits have been achieved

through Lean Six Sigma implementation

in SMEs.

5 Su et al., (2006) Implementing Lean Six Sigma through

the synchronization of DMAIC

methodology and identify value, value

stream mapping, flow, pull and

perfection IVFPP) methodology.

6 Koning et al.,

(2008)

Lean Six Sigma implementation in

financial services.

7 Chen and Lyu

(2009)

Lean Six Sigma implementation in touch

panels manufacturing sector.

8 Carleysmith et al.,

(2009)

Implementation of Lean Six Sigma in

pharmaceutical research and

development.

9 Thomas et al.,

(2009)

Implementing Lean Six Sigma as ten step

methodology (DMAIC steps followed by

IVFPP steps).

10 Wang and Chen

(2010)

Lean Six Sigma implemented along with

TRIZ.

11 Barnes and Walker

(2010)

Applying Lean Six Sigma in

communication industry.

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Table 2.2. (Continued)

12 Gnanaraj et al.,

(2010b)

Implementing Lean Six Sigma in SMEs

through a model named Deficiencies

Overcoming Lean anchored DMAIC and

Stabilise (DOLADMAICS).

13 Laureani and

Antony (2010)

Application of Lean Six Sigma in human

resources development activities.

Initial case studies conducted on Lean Six Sigma have been

reported by Smith (2003) and Sharma (2003). Smith (2003) reported two case

studies on Lean Six Sigma. The first case study was conducted in a

playground equipment manufacturing company. The second case study was

conducted in a commercial refrigeration equipment manufacturing company.

In the first case, the Lean principles had been in practice for about an year and

a half. By combining Lean and Six Sigma techniques, they narrowed down to

identify the exact problem. In the second case, the Six Sigma programme had

been already in practice and the Lean principles have been adopted when a

problem occurred. The Kaizen team had worked hard to resolve the problem

by yielding a 75% reduction in the quality related failures. The experiences of

conducting these two case studies revealed that the combination of Lean and

Six Sigma facilitates to achieve rapid improvements.

Sharma (2003) has reported a case study in a battery manufacturing

company, which had been nearing towards bankruptcy. This company had a

target to increase cash flow to $200 million in 30 months. After applying Lean

Six Sigma, this company generated $50 million in just seven months. This

author has mentioned that the adoption of Lean solutions in the Six Sigma

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programme increased the velocity of the projects and delivered results at a

faster rate. Furterer and Elshennawy (2005) have mentioned that, Lean Six

Sigma has provided breakthrough results not only in private sectors but also in

public sectors. These authors have narrated the significant achievements

yielded through the implementation of Lean Six Sigma programme in a Local

reconciliation, purchasing, accounts receivable and accounts payable were

reduced by 60%, 90%, 87% and 40%, respectively. In addition, the number of

financial system problems was highly reduced from 13 to 6 per month. These

authors have claimed that the combined efforts of Lean and Six Sigma are

beneficial to enhance productivity and quality.

The successful implementation of Lean Six Sigma programme in a

SME through an organised framework has been reported by Kumar et al.

(2006). This framework encapsulates the Lean principles in the DMAIC steps

of Six Sigma. The savings that have been achieved by the Lean Six Sigma

implementation in this SME is reported as $140,000 per year. Su et al. (2006)

have endeavoured a different methodology for implementing Six Sigma. In

, value stream mapping, flow, pull and

Six Sigma. The implementation of this methodology has been tested for

effectiveness in an information technology help desk service. In this case,

service processing time has been reduced drastically by 47.5% after the

implementation of Lean Six Sigma. These authors have remarked that yearly

121,303$ have been saved as a result of implementing Lean Six Sigma in this

company.

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Koning et al. (2008) have reported the importance of implementing

Lean Six Sigma in financial services. In this research, the Lean Six Sigma

programme has been implemented in two Dutch insurance companies. The

first insurance company yielded 0.26 million Euros as savings through the

reduction of information requests from 5.5 to 2.6 per application and a

reduction of average waiting time from 21.5 to 12.3 days. About 0.18 million

Euros of money has been saved through the reduction of errors produced in

the internal and external checks by 8% and 12%, respectively. The

implementation of Lean Six Sigma in two projects in another insurance

company has also been narrated.

In the case of the first project, the implementation of Lean Six

Sigma has fetched an estimated saving of 0.13 million Euros through the

reduction of throughput time. Lean Six Sigma implementation in the second

project conducted in the same insurance company resulted in the

approximately estimated savings of 0.175 million Euros. An important

contribution of this research paper is the delineation of the constituents of

Lean Six Sigma approach. These constituents are belt-based organisation

consisting of Champion, Master Black Belt, Black Belts and Green Belts,

DMAIC methodology and concepts like takt time, critical path and wastes.

Here, Champion refers to one of the top management personnel who will

spearhead the Lean Six Sigma project. The trained personnel are designated as

Master Black Belt, Black Belts and Green Belts. This team of trained

personnel is collectively regarded as belt personnel.

Chen and Lyu (2009) have reported a case on implementing Lean

Six Sigma in manufacturing touc

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DMAIC improvement methodology has been applied to conduct this case

study. These authors have claimed that, Lean Six Sigma is useful in improving

quality in the cases where different products are manufactured. Lean Six

Sigma is also useful in these cases in achieving optimised production.

Carleysmith et al. (2009) have reported the implementation of Lean Six Sigma

in pharmaceutical research and development. They have claimed that, along

with innovation, Lean Six Sigma could also deliver the requirements of

research and development. Thomas et al. (2009) have reported a case study

involving the application of Lean Six Sigma in a small engineering company.

This implementation has been carried out in ten phases. In the first five

phases, DMAIC has been applied. In the second five phases, Lean tools and

techniques have been applied. Because of this implementation, the company

has gained 55% savings through the reduction of rejection rate. Wang and

Chen (2010) have implemented Lean Six Sigma with TRIZ and have gained

828,000$ as savings in banking services which included the elimination of

waste by waiting for opening an account, sustaining of the performance and

profitability.

Barnes and Walker (2010) have described the method of applying

Lean Six Sigma in communication industry. They have suggested the adoption

of DMAIC approach to a larger extent while applying Lean Six Sigma in

communication industry. Gnanaraj et al. (2010b) have contributed a

managerial model named by them as Deficiencies Overcoming Lean anchored

DMAIC and Stabilise (DOLADMAICS). DOLDMAICS can be used to

implement Lean Six Sigma exclusively in SMEs. The guidelines for

implementing the DOLADMAICS have been enumerated by describing a

hypothetical case study. Laureani and Antony (2010) have applied Lean Six

Sigma in the human resource development activities of an organisation.

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The case studies described in this section have revealed that Lean

Six Sigma can be applied to gain benefits in both manufacturing and service

sectors. The Lean Six Sigma programme has offered both tangible and

intangible benefits to the organisations. One of the information derived from

these case studies is that, there have been several ways of implementing Lean

Six Sigma. This could be evidenced from the variations visible in the literature

arena about the way of implementing Lean Six Sigma in various organisations.

2.4.4 Benefits achieved through the implementation of Lean Six Sigma

Some of the Lean manufacturing tools are value stream mapping,

Kaizen, Kanban, 5S, Poka Yoke and total productive maintenance (TPM).

Most of the researchers have appended the Lean manufacturing tools with

DMAIC of Six Sigma to evolve the Lean Six Sigma framework (Kumar et al.,

2006; Natarajan et al., 2011). This has formed the foundation to derive a

synergy out of both the Lean and the Six Sigma principles. Because of this

foundation, the benefits of implementing Lean Six Sigma programme have

increased when compared to the implementation of Lean and Six Sigma

separately. These benefits have benefited the organisations which have

implemented Lean Six Sigma and also their business. These benefits are

enumerated in this subsection.

The organisational benefits of implementing Lean Six Sigma

programme have been listed below (Bendell, 2006; Lee et al., 2009; Snee,

2010; Su et al., 2006):

Tangible and intangible end results

Customer satisfaction

Market share growth.

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The business benefits achieved through the implementation of the

Lean Six Sigma programme have been listed below (Carleysmith et al., 2009;

Kumar et al., 2006; Laureani and Antony, 2010; Su et al., 2006):

Reduction of variations, defects, cost and number of accidents

Matching takt time through the reduction of cycle time, throughput

time and set-up time

Lead time, work-in-process, machine downtime and delivery time

Elimination of wastes namely defects, overproduction, transportation,

waiting, inventory, motion, overProcessing (DOTWIMP)

Setting up of procedures for carrying out housekeeping

Development of products and services

Productivity improvement.

The above benefits are indicative of the superiority of Lean Six

Sigma towards enabling the organisations in acquiring competitive strengths.

2.4.5 Success ingredients of Lean Six Sigma

Time and again, the success of Lean Six Sigma has been reported in

literature arena. This is evidenced while reviewing the research papers

discussed in the previous sections. However, the Lean Six Sigma programme

needs to be fed by certain success ingredients to make it successful. From this

perception, the literature arena was reviewed to bring into notice the essential

critical success ingredients of Lean Six Sigma. These success ingredients of

Lean Six Sigma are listed below (Byrne et al., 2007; Delgado et al., 2010;

Naslund, 2008; Nonthaleerak and Hendry, 2008; Snee, 2010):

Management commitment and involvement

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Organisational infrastructure for implementing the Lean Six Sigma belt

system

Well organised DMAIC methodology embedded with Lean and Six

Sigma tools

Training the organisational personnel to facilitate them for becoming

belt holders through class room coaching and execution of pilot

projects

High level of communication throughout the organisation about the

benefits, projects and returns achievable through the implementation of

Lean Six Sigma projects

Swift way of project execution to yield sustained benefits

Promotion of cultural change for achieving continuous implementation

of Lean Six Sigma projects

Prioritisation and selection to implement the extremely successful

projects

Inculcation of creative thinking and entrepreneurship skill to enhance

innovation and achieve continuous organisational improvement through

the implementation of the Lean Six Sigma programme.

The above success ingredients indicate that, Lean Six Sigma will be

highly successful only if an organisation is incorporated with a system

facilitating continuous improvement.

2.4.6 Precautions to be taken while implementing Lean Six Sigma

In spite of feeding the essential success ingredients, the Lean Six

Sigma programmes have failed in some cases. This has been due to the

improper path followed by the organisation or the deviation from the path of

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implementing the Lean Six Sigma programme. In order to avoid such failures,

certain precautions need to be taken while implementing Lean Six Sigma in

organisations. These precautions revealed by the researchers are enumerated in

this section (Carleysmith et al., 2009; Delgado et al., 2010; Snee, 2010).

2.4.6.1 Constant involvement of the champion in the Lean Six Sigma projects

The champion of the organisation has to show intense interest in the

implementation and progress of Lean Six Sigma programme. The champion or

the sponsor has to communicate with the belt team about the outcomes of the

Lean Six Sigma projects.

2.4.6.2 Orientation of the Lean Six Sigma programme with the organisational

strategies

The Lean Six Sigma programme has to be coordinated with

strategies of the organisation. Any deviation in this regard would lead to

malfunctioning of the whole Lean Six Sigma programme. Instead of yielding

savings and profits, the organisations may get collapsed because of the

implementation of Lean Six Sigma programme. So, the organisation has to be

precautious in ensuring that Lean Six Sigma programme is aligned with the

organisational strategies.

2.4.6.3 Defining responsibility of the belt personnel and evaluating their

performance

The belt personnel have to shoulder the responsibilities

continuously for achieving the benefits from the implementation of Lean Six

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Sigma programme. In other words, if the personnel involved in the Lean Six

Sigma programme do not perform well, the programme may eventually fail. In

order to avoid this kind of failure, the responsibilities to the belt personnel

should be defined. Besides, their performance should be assessed.

2.4.6.4 Focusing the projects to achieve end results such as savings, matching

with takt time and waste elimination

The Lean Six Sigma projects are required to be focused towards

achieving end results. If the project is focused on the Lean missions, there has

muda

mission, there has to be improvement in the quality which shall yield financial

benefits. If the projects do not yield the end results, the Lean Six Sigma

programme would fail in the organisation wasting the time and money hitherto

invested.

2.4.6.5 Providing necessary human resources for the implementation of Lean

Six Sigma programme

The organisation has to train their employees who are aspiring to

associate with the Lean Six Sigma programme. The organisation has to

provide the mandatory human resources in accordance with the requirements

of implementing Lean Six Sigma programme. The belt holders have

significant responsibilities and the organisation has to bring the cultural

change required for the implementation of the Lean Six Sigma programme.

Besides the organisation has to employ full-timers rather than part-timers as

the belt holders.

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2.4.6.6 Appropriate formulation of methodology and selection of technical

tools

The belt holders have to be trained thoroughly on the methodology

and consolidated tools required for the implementation of the Lean Six Sigma

programme. Among the available tools and techniques, the exact one with

respect to the different phases has to be chosen by the belt team. Also, the

Lean Six Sigma projects should be focused to achieve the benefits rather than

be over-stressed on the methodology and tools.

An outlook of the precautions enumerated above would indicate

that it is also essential to check the readiness of the organisation in

implementing the Lean Six Sigma programme. Particularly, the

preconceptions and existing beliefs among the employees have to be clarified

before implementing the Lean Six Sigma programme.

2.5 RESEARCHES ON ISO 9001 STANDARD BASED QMS

Significant researches have been reported on ISO 9001 standard

based QMS certifications. The information and knowledge gathered from

these researches, which are reported in literature arena, are described in the

following subsections.

2.5.1 Evolution of ISO 9001 series based QMS standards

The papers reviewed during this literature review to track the

evolution of the ISO 9001 series based QMS standards are listed in Table 2.3.

The findings from these papers are highlighted in this section.

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Table 2.3. Papers reporting the evolution of the ISO 9001 series based

QMS standards

Serial

Number Authors Reported information

1 To et al., (2011) ISO 9001:2008 standard has been

released in November, 2008.

2 Kong et al., (2010) Date of establishment of ISO 9001:2008

standard.

3 Laux and Hurburgh

Jr. (2010)

Adoption of BS 5750 as ISO 9000:1987

standard.

4 Psomas and

Fotopoulos (2009) Evolution of ISO 9001:2008 standard.

5 Shalij et al., (2009) Origin of ISO 9000:1987 standard.

6 Hiyassat (2000) Origin of BS 5750 standard.

7 Buttle (1997) Origin of BS 5750 standard.

The first international series of standards on QMS namely ISO

9000:1987 (encompassing ISO 9001:1987, ISO 9002:1987 and ISO

9003:1987 standards) were adopted from the British Standard BS 5750 (Laux

and Hurburgh, 2010; Psomas and Fotopoulos, 2009; Shalij et al., 2009). BS

5750 was the first common QMS standard that was brought into practice in

1979. BS 5750 was evolved from BS 4891 and BS 5179 standards (Buttle,

1997; Hiyassat, 2000). The contents of the ISO 9000:1987 standard did not

differ in any means from its patron standard BS 5750. ISO 9000 series based

QMS standards were subjected to revisions in the years 1994, 2000 and 2008.

When the revision was carried out in the year 2000, the three standards ISO

9001, 9002 and 9003 were abridged into only one standard namely ISO

9001:2000.

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The recent version of ISO 9001:2008 standard based QMS has been

in practice, since its arrival on 14 November 2008 (Kong et al., 2010; Rusjan

and Alic 2010; To et al., 2011). The organisations certified to ISO 9001:2000

version of QMS standard are required to upgrade to the ISO 9001:2008

version of QMS standard before the end of the year 2010. This recent version

did not have major variations from its prevision version. However, minor

clarifications and amendments have been made in ISO 9001:2008 standard

based QMS (Psomas and Fotopoulos, 2009; To et al., 2011). For example,

information system is newly included as one of the supporting services under

of ISO 9001:2008 standard. Likewise,

of ISO 9001:2008 standard.

2.5.2 Integration of other strategies with ISO 9001 series based QMS

standards

In the recent past, researchers have made endeavours to integrate

the ISO 9001:2000 standard based QMS with few of the other management

systems and strategies like TQM, Six Sigma, 5S, TPM, information systems,

research and development and human resource requirements. Some of these

researches are summarised in Table 2.4. As shown, some researchers have

endeavoured to integrate ISO 9001 with ISO 14001 based environmental

management system (EMS). For example, Zeng et al. (2005) have illustrated

their efforts on implementing the integrated model of ISO 9001 and ISO

14001 management system in construction industry. This integrated model of

ISO 9001 and ISO 14001 management system has also been discussed by

Pheng and Tan (2005).

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Table 2.4. Summary of the research contributions on integrating ISO

9001 standard based QMS with other strategies

Serial

Number Authors

Contributions on integrating ISO

9001 with other strategies

1 Bewoor and Pawar

(2010)

Mapped the macro and micro links

existing QMS.

2 Micklewright

(2010)

ISO 9001 and Lean thinking

complements each other in

developing an organisation.

3 Shalij et al., (2009)

Integrated the Supply Chain

Management concepts with ISO

9001:2000 based QMS.

4 Sakthivel et al.,

(2007)

Contributed an integrated quality

information system developed from

ISO 9001 based QMS.

5 Zeng et al., (2005)

Integration of ISO 9001 and ISO

14001 based management systems

applicable to construction industry.

6 Pheng and Tan

(2005)

Issues on integrating of ISO 9001

and ISO 14001 based management

models.

7 Heuvel et al.,

(2005)

A case study reporting the

integration of Six Sigma with the

existing ISO 9001:2000 standard

based QMS.

8 Lupan et la.,

(2005)

Conceptual ideas on integrating ISO

9001 standard based QMS with Six

Sigma.

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Table 2.4. (Continued)

9 Pfeifer et al.,

(2004)

Benefits of integrating Six Sigma

with ISO 9001 standard based QMS.

10 Tan et al., (2003)

Encapsulation of documentation as

well as e-mail in quality information

system integrated with ISO

9001:2000 standard based QMS

11 Pheng and Pong

(2003)

Integration of ISO 9001 and OHSAS

18001 standards.

12 Wilkinson and

Dale (2002)

Integration of ISO 9001, ISO 14001

and OHSAS 18001 standards.

13 Pheng (2001) Integration of 5S concepts with ISO

9001 standard based QMS.

The efforts on integrating ISO 9001 and OHSAS 18001

(occupational health and safety managements system) have also been

discussed by Pheng and Pong (2003). Wilkinson and Dale (2002) have

elaborated about the issues involved in the integration of ISO 9001:2000

standard based QMS with ISO 14001 and OHSAS 18001 standards. Despite

few common features, these QMS, EMS and OHSAS standards differ

significantly among them. Hence, implementing them by adopting an

integrated approach is difficult. This approach can be successful only if the

culture of the organisation is supportive to achieve this goal.

Sakthivel et al. (2007) and Tan et al. (2003) have shown the method

of integrating quality information system with ISO 9001 standard.

Particularly, Tan et al. (2003) have established that documentation as well as

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e-mail can be encapsulated in quality information system integrated ISO

9001:2000 standard based QMS. Pheng (2001) has presented a theoretical

work dealing with the integration of 5S with ISO 9001:2000 standard based

QMS. The major contribution of this research paper is a table that acts as the

checklist to integrate 5S principles with ISO 9001:2000 standard based QMS.

In this checklist, the potential of integrating the fives phases of 5S in all the

clauses and sub-clauses of ISO 9001:2000 standard based QMS is indicated.

Shalij et al. (2009) have proposed a model in which supply chain

management (SCM) elements are incorporated in ISO 9001:2000 standard.

The constructs identified in SCM arena are tactfully amended and integrated

in the majority of the clauses of ISO 9001:2000 standard based QMS. Few

subclauses of ISO 9001:2000 standard have also been added to delineate the

elements of SCM. Micklewright (2010) has stated in his book that the

implementation of integrated Lean thinking and ISO 9001 standard would

complement each other in the continual improvement of the organisation.

As mentioned in Section 2.2, during the literature review being

reported here, four research papers reporting the integrated works of Six

Sigma and ISO 9001 based QMS were identified. The conceptual ideas of

integrating ISO 9001 standard based QMS with Six Sigma to achieve synergy

out of them have been contributed in Lupan et al. (2005) and Pfeifer et al.

(2004). These authors have contributed frameworks for integrating Six Sigma

and ISO 9001:2000 standard based QMS. However, these authors have not

evolved any practical guidelines to achieve this integration in practice. The

integration of Six Sigma with the ISO 9001 standard based QMS has also been

reported with respect to hospital industry (Heuvel et al., 2005). However, steps

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followed to achieve the synergy out of this integration have not been

enumerated.

A significant research in the direction of integrating ISO 9001:2000

standard based QMS and Six Sigma has been reported by Bewoor and Pawar

(2010). In the research reported in this paper, mapping of macro and micro

level critical links of DMAIC methodology with the ISO 9001 standard based

QMS has been narrated. According to this research, the subclauses 3.2, 7.1

and 8.4 have been linked with the define phase of Six Sigma. The measure,

analyse and improve phases have been directly linked with the eighth clause

standard based QMS. The subclauses 4.1.c), 4.1.d), 4.2, 7.5.1, 7.5.4 and 7.6 of

the ISO 9001:2000 standard have been encapsulated under the control phase

of Six Sigma. These authors have also conducted a case study in an Indian

SME for validating this framework.

2.5.3 Benefits of implementing ISO 9001:2000 standard based QMS

Numerous researchers have reported the benefits of implementing

ISO 9001:2000 standard based QMS. The gist of these benefits is presented in

this section.

Casadesus and Karapetrovic (2005) have empirically analysed the

benefits of implementing ISO 9001 standard based QMS. The benefits and

reasons of adopting the ISO 9001 standard based QMS have been elaborated

by Bhuiyan and Alam (2005). The improvements of the organisational

performances and benefits achieved through the ISO 9001 standard based

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QMS have been discussed by Padma et al. (2006). The benefits obtained from

the ISO 9001 standard based QMS certifications have been enumerated by

Karapetrovic et al. (2010). These benefits have been consolidated and listed

below:

Continual improvement

Improved customer loyalty, confidence and satisfaction

Retaining customers

Enhanced customer service

Improvement in total productivity

Improvement in overall financial and operational performances

Reduction of logistics cost

Improved turnover in inventories

On time delivery

Lead time reduction

Enhancement in sales, profitability and earnings

Yield of return on investments

Gaining competence and expertise in quality control

Increased market share

Reduced quality cost

Reduced wastes

Ensuring employee health and safety

Reduction in absenteeism

Worker satisfaction and participation

Gained international recognition and confidence of the organisation

Enhanced relation with suppliers.

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The above internal and external benefits could be achieved through

the effective implementation and maintenance of an ISO 9001:2000 standard

based QMS in any organisation.

2.5.4 Success ingredients of the ISO 9001 standard based QMS

Researchers have reported the ingredients that make the

implementation of ISO 9001 standard based QMS in organisations successful.

Such ingredients are enumerated below:

The commitment and involvement of the top management play a

prominent role in the successful implementation of the ISO 9001

standard based QMS (Sampaio et al., 2009)

based QMS as a strategy to bring organisational control (Park et al.,

2007)

The personnel at all levels are required to involve for creating an

organisational culture and discipline to implement the necessary

corrective and preventive actions swiftly (Wahid and Corner, 2009)

The contributions of the external persons like consultants have also

been vital in reaping the benefits of implementing ISO 9001 standard

based QMS in organisations (Lundmark and Westelius, 2006)

The internalisation of ISO 9001 standard based QMS has been an

essential element for realising the expected benefits through its

implementation (Nair and Prajogo, 2009)

The readiness to change has been a trivial factor in the implementation

of the ISO 9001 standard based QMS in any organisation (Prajogo,

2008)

The existence of an expert team has benefited the organisations with

ISO 9001 standard based QMS certification (Ntungo, 2007).

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These critical success ingredients have substantial influence on the

accomplishment of the paybacks achievable through ISO 9001 standard based

QMS certifications.

2.5.5 Precautions to be taken while implementing ISO 9001 standard

based QMS

Not all the organisations that have implemented the ISO 9001

standard based QMS have reaped high benefits (Nair and Prajogo, 2009). Only

the organisations that have been precautious on certain aspects have gained the

benefits from the ISO 9001 standard based QMS certifications. These

precautions are enumerated below:

The management has to support cross-functional communication in the

organisation. Also, the management has to make substantial efforts for

removing the barrier of resistance to change (Gotzamani, 2010).

Poksinska et al. (2006a) have reported the significant differences

between the various certification bodies. The reputed certification

bodies expect and insist for the high level implementation of the ISO

9001 standard based QMS. If unrecognised certification bodies are

chosen, then there will be every chance of not getting the benefits from

the ISO 9001 standard based QMS certifications.

The ISO 9001 standard based QMS implementation and certification

require continuous improvement efforts. Therefore, the sustainability of

the ISO 9001 standard based QMS certification is vital to nourish its

authentic benefits (Prajogo, 2008).

In case of special product industries like healthcare and testing, making

the choice of consultants has been an important factor. In such cases,

self-implementation of ISO 9001 standard based QMS may facilitate

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the organisation to proceed in the preferred path rather than opting for

consultants (Llorens-Montes and Ruiz-Moreno, 2005).

The organisation has to be precautious in creating adequate awareness

on the ISO 9001 standard based QMS and providing sufficient

resources for the implementation of the same (Poksinska et al., 2006b).

The organisation has to exert efforts to take the ISO 9001 standard

based QMS certification to a higher level by synergising the principles

of TQM (Sampaio et al., 2009).

The organisation may fail if the intention of implementing ISO 9001

standard based QMS is purely based on external forces. Therefore, the

organisations are required to implement the ISO 9001 standard based

QMS from the perception of achieving long term internal benefits (Nair

and Prajogo, 2009).

The above precautions have to be taken by the organisation for

ensuring the fruitful implementation of the ISO 9001 standard based QMS.

2.6 FINDINGS AND INFERENCE

One of the findings of the literature review being reported here is

that, despite existence over a decade, Lean Six Sigma is yet to be contained in

a definite frame (Pepper and Spedding, 2010). Hence, studying of the Lean

Six Sigma essentials is necessary before attempting to integrate it with ISO

9001 standard based QMS in any organisation. Those essentials of Lean Six

Sigma concept which were derived from the literature arena are given below:

1. Belt-based training infrastructure

2. DMAIC methodology, tools and techniques (Koning et al., 2008).

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The belt holders are required to be trained on Lean Six Sigma

concepts. DMAIC methodology is adopted with the implementation of Lean

and Six Sigma steps encapsulated in it. The Lean Six Sigma toolkit comprises

the tools of Lean manufacturing appended with the conventional Six Sigma

tools. During the implementation of Lean Six Sigma programme, along with

s, the Lean concepts such as waste elimination, takt time

achievement and one-piece flow are executed as projects for achieving

continual improvement.

Another finding of the literature review being reported here is that,

modern organisations are required to implement ISO 9001:2008 standard

based QMS. Even those organisations certified to ISO 9001:2000 standard

based QMS are required to amend their QMS to get certified to ISO

9001:2008 standard based QMS. In this scenario, there have been few

attempts made to integrate Six Sigma with ISO 9001:2000 standard based

QMS. Hitherto, there has been a research gap in integrating Lean Six Sigma

with ISO 9001 standard based QMS. As ISO 9001:2008 standard based QMS

has become a contemporary QMS standard, the Lean Six

steps and belt-based training infrastructure could be amalgamated with it.

Thus, the principles of Lean Six Sigma can be appended in the ISO 9001:2008

standard based QMS. After drawing this inference through the conduct of the

literature review reported so far, a roadmap for implementing Lean Six Sigma

through ISO 9001:2008 standard based QMS has been developed. This

roadmap is presented and discussed in the next section.

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2.7 ROADMAP

This section illustrates the steps of the roadmap developed for

implementing Lean Six Sigma programme through ISO 9001:2008 standard

based QMS. This roadmap is shown in Figure 2.3. As shown, the first step in

and its belt-based training infrastructure into the ISO 9001:2008 standard

based QMS.

DMAIC steps and belt based training infrastructure with ISO 9001:2008 standard based QMS

Recognise the vital processes and key customers, identify customer aspirations,

imaginations and requirements

Assess the current performance levels and the

readiness of the organisation

Implement Lean Six Sigma projects through ISO 9001:2008

standard based QMS

Achieve continual improvement to match with

world class performance

Figure 2.3. Roadmap to implement Lean Six Sigma programme

through ISO 9001:2008 standard based QMS

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and practical guidelines to carry out the Lean Six Sigma projects. The first

step of the roadmap is explained conceptually in Figure 2.4. The second step

in the roadmap emphasises the recognition of the vital processes and key

customers of the organisation. These vital processes and key customers are

targeted to provide very high benefits from Lean Six Si

D Define, M Measure

A Analyse, I Improve

C Control

BB Black Belt

GB Green Belt

MBB Master Black Belt

LSS Lean Six Sigma

Figure 2.4. Amalgamating the steps of DMAIC and

belt based training infrastructure of Lean Six Sigma with

ISO 9001:2008 standard based QMS

facilitates amalgamation

Eight Clauses of ISO 9001:2008 standard based QMS

LSS

steps

LSS Belt training system

Champion

MBB

BBs GBs

D

M A

I C

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imaginations and requirements are the hallmarks of this step. The third step in

the roadmap focuses on assessment of the current status of the processes and

the deviation from the world class standards. This would indicate the

necessary improvements to be made through the conduct of Lean Six Sigma

projects. During this step, the readiness of the organisation in implementing

Lean Six Sigma projects is also examined. The fourth step directs the

implementation of the Lean Six Sigma projects through ISO 9001:2008

standard based QMS in the organisation. The final step emphasises

acceleration of the continual improvement journey of the organisation to attain

world class performance through the execution of Lean Six Sigma projects.

2.8 CONCLUSION

ISO 9001:2008 has become a mandatory QMS standard to hold and

run business in the current global scenario. Hence, it is high time that models

like Lean Six Sigma which support the organisation in acquiring competitive

strength are required to be impregnated with ISO 9001:2008 standard based

QMS. In this context, the literature review reported in this chapter was carried

out. The first finding of this literature review is that, a few research works

have been undertaken to integrate Six Sigma concepts with ISO 9001:2000

standard based QMS. This is evidenced on encountering a research reported

by Bewoor and Pawar (2010). These authors have mapped the DMAIC steps

with the clauses of ISO 9001:2000 standard based QMS. A case study has also

been described in this paper to narrate the practicality of Six Sigma integrated

ISO 9001:2000 standard based model.

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The second finding of this literature review is that, no research

work on integrating Lean Six Sigma with ISO 9001 standard based QMS has

so far been reported. Hence, it is high time to evolve a methodology for

enabling modern researchers to work on integrating Lean Six Sigma with ISO

9001:2008 standard based QMS. In the context of this finding, the results of

conducting the literature review reported in this chapter were utilised to

propose a roadmap to fulfill this need. By referring to this roadmap,

investigations reported in the following chapters of this thesis work were

carried out.