Impact of TQM/Six Sigma practices on company’s performance: Tunisian context

Lean Six Sigma Impact Analysis on Sustainability Using Partial Least Squares Structural Equation Modeling (PLS-SEM): A Literature Review

The Lean Six Sigma (LSS) philosophy and sustainability have become topics of interest since the 1990s; they have generally been analyzed together since 2012. Numerous professionals, managers, and researchers have sought methodologies by which to assess their impact and know their effectiveness within companies. During the past decade, the application of partial least squares structural equation modeling (PLS-SEM) has been widely accepted in various modeling, prediction, or multivariate analyses as a way to measure the impact of LSS on sustainability. This study conducts a literature review to identify the use of PLS-SEM in measuring the impact of LSS on sustainability. A systematic review methodology has been employed, applying five search criteria to three scientific database platforms. This approach has been helpful to identify PLS-SEM as a valuable methodology for measuring the impact of LSS on sustainability. One of the research findings is that LSS practices positively impact 83% of economic indicators, 78% of environmental indicators, and 70% of social indicators. This article creates a theoretical foundation for future research on these issues, outlining research opportunities to generate future studies. It also allows researchers and managers who are interested in improving sustainability indicators to access valuable knowledge regarding what types of LSS tools could be used.

Effect of Quality Lean Manufacturing Tools on Commercial Benefits Gained by Mexican Maquiladoras

Companies implement lean manufacturing (LM) tools in their production processes to reduce waste; however, it is difficult to quantify the effect on benefits gained after their implementation. This article proposes a structural equations model (SEM) that relates three LM tools associated with quality as total quality management (TQM), waste, and right first time (RFT) as independent variables associated with commercial benefits gained as a dependent variable. Those four variables were related by six hypotheses that were validated with information from 169 responses to a survey applied to the Mexican maquiladora industry. Partial least squared was used to validate the hypotheses as direct effects. The sum of indirect and total effects was also estimated, and a sensitivity analysis was developed for relationships between variables. Findings indicate that TQM directly affects waste reduction, drives doing RFT, and directly and indirectly affects the commercial benefits gained.

Impact of Lean, Six Sigma and environmental sustainability on the performance of SMEs

Purpose

This paper aims to explore the impact of lean, Six Sigma and environmental sustainability on the performance of small and medium enterprises (SMEs) in Pakistan. The firm performance has been measured in terms of operational, business and environmental performance.

Design/methodology/approach

A survey-based methodology is adopted for collecting data from the main cities of Punjab, Pakistan. SMEs related to different industries such as service, manufacturing, automotive and retail were targeted. The data gathered were ordinal, and Spearman's correlation test was used as the data analysis technique.

Findings

The findings indicated that the three management styles positively impacted the environmental performance of SMEs. Moreover, no significant relationship was found between the three management styles and the SMEs' business and operational performance.

Research limitations/implications

To counter the inefficient and wasteful practices of SMEs and their detrimental impact on overall firm performance, SMEs have to refocus and reconfigure their management strategies. It is implied to use lean, Six Sigma and environmental sustainability practices to achieve this goal.

Originality/value

The study empirically investigates the impact of lean, Six Sigma and environmental sustainability on the performance of SMEs in Pakistan, which is the first study to be conducted in the Pakistani context.

Analyzing the Lean Six Sigma enabled organizational performance to enhance operational efficiency

Purpose

The aim of this analysis is to review the Indian manufacturing organizations practicing Lean Six Sigma (LSS) tools/techniques with an objective of monitoring the performance of an organization and to develop recommendation for strategies to benchmark organizational operational efficiency.

Design/methodology/approach

This study offers insights of the LSS performance measurement aspects of the Indian manufacturing organizations based on Data envelopment analysis (DEA) approach. The five inputs and two outputs are considered on the basis of literature review and discussed with the practitioners.

Findings

In this analysis, the relative efficiency score of 18 Indian manufacturing organizations has been determined in order to assist evaluation of the impact of monetary investment on the outputs. The present analysis not only investigates the optimum level of input variables but also lays down a significant observation that an organization having higher profit and inventory turnover ratio is not necessarily an efficient organization.

Practical implications

The results assist to determine the best practice units, potential source of inefficiency and deliver beneficial data for the consistent enhancement of the operational efficiency. The DEA results assist managers and decision makers to derive appropriate strategies to enhance their performance with reference to the efficient organization and to regard it as their role model.

Originality/value

This analysis renders a DEA based framework of LSS practicing Indian manufacturing organizations. The framework is unique in terms of its input-outputs variable selection and measurement procedure.

The impact of lean manufacturing practices on operational and financial performance: the mediating role of agile manufacturing

Purpose

This empirical study aims to explore the link between lean manufacturing practices (total quality management, just-in-time production, just-in-time purchasing, total productive/preventive maintenance), agile manufacturing, and operational and financial performance.

Design/methodology/approach

Data were collected from 205 Tunisian manufacturing firms, and the results were analyzed using structural equation modeling.

Findings

The results indicate that (1) lean manufacturing practices have a direct positive relationship with agile manufacturing except for just-in-time production, (2) agile manufacturing has a positive impact on operational performance and (3) lean manufacturing practices did not seem to contribute directly to operational performance. However, this relationship is significant when it is mediated through agile manufacturing.

Research limitations/implications

This paper shows practitioners the importance of lean manufacturing practices to support agile manufacturing and the key role of agile manufacturing to ensure operational performance.

Originality/value

This paper presents an innovative approach since it studies simultaneously the three dimensions of lean manufacturing and their relationship with agile manufacturing and organizational performance.