CHAPTER 2 LITERATURE REVIEW -...
Transcript of CHAPTER 2 LITERATURE REVIEW -...
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.
10
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
11
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
12
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
13
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
14
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
15
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
16
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
17
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
18
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.
19
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
20
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.
21
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
22
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.
23
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.
24
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
25
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
26
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
27
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.
28
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.
29
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.
30
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).
31
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.
32
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
33
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
34
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
35
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.
36
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).
37
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
38
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).
39
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.
40
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
41
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
42
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.
43
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.