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International Journal of Lean Six Sigma
Critical success factors for the effective implementation of Lean Sigma: Results from an
empirical study and agenda for future research
Alessandro Laureani Jiju Antony
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Alessandro Laureani Jiju Antony, (2012),"Critical success factors for the effective implementation of Lean
Sigma", International Journal of Lean Six Sigma, Vol. 3 Iss 4 pp. 274 - 283
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Critical success factors for the
effective implementation
of Lean Sigma
Results from an empirical study and agenda
for future research
Alessandro Laureani and Jiju Antony
Department of Design, Manufacture & Engineering Management,
University of Strathclyde, Glasgow, UK
Abstract
Purpose – Identification of critical success factors (CSFs) for any continuous improvement initiative is
important as it allowsorganisations to focus their efforts on these factors to ensure a success.The purpose
of this paper is to present the CSFs for the effective implementation of Lean Six Sigma and to analyze the
implementation of Lean Six Sigma, focusing on the CSFs identified in the literature, through a survey of
companies, geographically dispersed, from both the manufacturing and service industry.
Design/methodology/approach – The approach taken by authors in this study has two
fundamental parts. The first part was to analyse the current literature on CSFs for all continuous
improvement initiatives such as TQM, Lean, Six Sigma and Lean Six Sigma. The second part was to
design a survey questionnaire based on the literature. The questionnaire was sent to 600 companies
(both manufacturing and service) and the response rate is approximately 17 per cent.
Findings – Analysis of key findings highlighted that the most important factors are: management
commitment, cultural change, linking Lean Six Sigma to business strategy and leadership styles.
The results also revealed that the least important factors are linking Six Sigma to HR rewards and
extending Lean Six Sigma to supply chain.
Research limitations/implications – A sample size of 101 companies is not sufficient to generalise
our key findings. This will be rectified by carrying out further surveys in the forthcoming months and
making this investigation a longitudinal study. Moreover, the authors have to execute semi-structured
interviews to obtain a better understanding of the current practice of Lean Six Sigma in participating
organisations. An online survey was administered for this study; however future semi-structured
interviews with employees in those companies would enable one to have a better understanding of their
practice of Lean Six Sigma programmes.
Originality/value – Although there are a number of papers published on CSFs of Lean and Six Sigma,
it was found that there is a dearth of literature on CSFs of Lean Six Sigma implementation. The authors
also compare and contrast the CSFs in both manufacturing and service organisations. The results
showed what the most and least important factors are for a successful implementation of Lean
Six Sigma, providing valuable insights for organizations which will be embarking on this journey.
Keywords Six Sigma, Critical success factors, Continuous improvement, Lean, Implementation
Paper type Research paper
Introduction
This paper presents the results of a research focused on the implementation of Lean
Six Sigma, with the objective of analyzing what the critical success factors (CSFs) are.
After an introduction to Lean Six Sigma and its origin, followed by a review of the
literature highlighting the CSFs identified, the results of a survey among practitioners
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/2040-4166.htm
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International Journal of Lean Six
Sigma
Vol. 3 No. 4, 2012
pp. 274-283
qEmerald Group Publishing Limited
2040-4166
DOI 10.1108/20401461211284743
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are discussed, to show what CSFs are deemed more important from the practitioners that
answered the survey.
Consistencies and discrepancies between survey’s results and literature review are
then discussed. It is hoped this study may bring out important considerations for both
companies that are currently implementing Lean Six Sigma and want to improve, and
for companies thinking to implement Lean Six Sigma: reviewing the CSFs for
deployment may point out areas for improvement.
Finally, in the conclusion section, further opportunities for research are identified,
particularly in the areas deemed important in the research, but under-developed in the
current Lean Six Sigma literature.
Lean Six Sigma
Lean Six Sigma is a business improvement methodology that aims to maximize
shareholder value by improving quality, speed, customer satisfaction, and costs: it
achieves this by merging tools and principles from both Lean and Six Sigma. It has been
widely adopted in manufacturing and service industries and its success in some famous
organizations (e.g. GE, and Motorola) has created a copycat phenomenon with many
organizations across the world willing to replicate the success.
Lean and Six Sigma have followed independent paths since the 1980s, when the terms
were first hard coded and defined: the first applications of lean were recorded in the
Michigan plants of Ford in 1913, and were then developed to mastery in Japan (within
the Toyota Production System), while Six Sigma saw the light in the USA (within the
Motorola Research Centre). Lean is a process improvement methodology used to deliver
products andservices better, faster, and at a lower cost. Womack and Jones (1996) defined
it as:
[...] a way to specify value, line up value-creating actions in the best sequence, conduct
those activities without interruption whenever someone requests them, and perform them
more and more effectively. In short, lean thinking is lean because it provides a way to do more
and more with less and less – less human effort, less human equipment, less time, and less
space – while coming closer and closer to providing customers with exactly what they want.
Six Sigma is a data driven process improvement methodology used to achieve stable
and predictable process results, reducing process variation and defects. Snee (1999)
defined it as:
[...] a business strategy that seeks to identify and eliminate causes of errors or defects or
failures in business processes by focusing on outputs that are critical to customers.
While both Lean and Six Sigma have been used for many years, they were not
integrated until the late 1990s and early 2000s (George, 2002, 2003), and today Lean
Six Sigma is recognized as: “a business strategy and methodology that increases
process performance resulting in enhanced customer satisfaction and improved bottom
line results” (Snee, 2010). Lean Six Sigma uses tools from both toolboxes, in order to
get the best from the two methodologies, increasing speed while also increasing
accuracy.
Overview of CSFs for Lean Six Sigma identified in the literature
Rockart (1979) illustrated the concept of CSF and how they can be used to determine
the information needs for managers: according to Rungasamy et al. (2002), CSFs are
CSFs for
implementation
of Lean Sigma
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those factors essential to the success of any program or technique, in the sense that,
if objectives associated with the factors are not achieved, the application of the technique
will perhaps fail catastrophically. CSFs include vital issues to an organization’s current
activities and future success (Boynlon and Zmud, 1984).
In the vast Lean Six Sigma literature, we have identified 31 sources discussing CSFs
for its implementation: 22 articles and nine books, from whom the resulting list of
19 CSFs is summarized in Table I.
Antony and Banuelas (2002) analyzed the “key ingredients for the effective
implementation of a Six Sigma program” UK companies, with Coronado and Antony
(2002) further refining them as:
.management commitment and involvement;
.understanding of Six Sigma methodology, tools, and techniques;
.linking Six Sigma to business strategy;
.linking Six Sigma to customers;
.project selection, reviews and tracking;
.organizational infrastructure;
.cultural change;
.project management skills;
.linking Six Sigma to suppliers; and
.training.
The importance of organizational infrastructure and culture was highlighted from
Zu et al. (2010), while Pande et al. (2000) included leadership commitment as one the
CSFs. Johnson and Swisher (2003) identified CSFs in:
.sustained and visible management commitment;
.continuing education and training of managers and participants;
.setting clear expectations and selecting projects leaders carefully for leadership
skills; and
.picking and selecting strategically important projects.
While Kwak and Anbari (2006) summarized the CSFs in four main areas: management
involvement and organizational commitment; project selection, management
and control skills; encouraging and accepting cultural change; continuous education
and training. Similarly, Achanga et al. (2006) identified four CSFs: leadership and
management, finance, skills and expertise, and organizational culture; while Kumar
(2007) identified 13 CSFs for Six Sigma implementation in SMEs. The importance of
organizational culture as CSF was identified from Erwin (2000), while Dale
(2000) highlighted the importance of linking Lean Six Sigma to the overall business
strategy.
The need of a process management system, particularly the tracking and review of
projects, was highlighted from Martens (2001), while Ingle and Roe (2001) went deeper in
the subject, identifying the prioritization of projects as a CSF. Antony (2006) add other
CSFs to the literature, identifying selection of team members, understanding of the tools,
linking Six Sigma to customers and accountability to the existing list of CSFs.
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CSF (R...) 12345678910111213141516171819202122232425262728293031
Cultural change XX XXXXXXX XXXX
Leadership style XX X X
Management commitment X XX X XXXXXXXXX X XXXXX
LSS training XX XXXXXXX XXXXXXXXX
Organization infrastructure X X XXXX X X X
Communication XX X
Linking LSS to business
strategy
XX X X X X X X X
Linking LSS to customer XXXX X
Linking LSS to HR rewards XXXX XXX
Extending LSS to supply chain XXX XX
LSS projects prioritization X XX XXXXXX XX X XX X
LSS projects tracking and
review
XX X XXXX X
Project management skills XXXXXXX X
Tools and techniques XXXXX X X
LSS financial accountability XXX
Data based approach XX
Communication and awareness XXX X
Selection of staff for LSS XX X
Resources to LSS team XX X X
Notes: R1: Henderson and Evans (2000); R2: Halliday (2001); R3: Pande et al. (2000); R4: Eckes (2000); R5: Erwin (2000); R6: Dale (2000); R7: Hendricks and
Kelbaugh (1998); R8: Ingle and Roe (2001); R9: Harry and Schroeder (2000); R10: Pande (2007); R11: Snee and Hoerl (2002); R12: Coronado and Antony
(2002); R13: Antony et al. (2007); R14: Antony and Banuelas (2002); R15: Antony (2006); R16: Breyfogle et al. (2001); R17: Burton and Sams (2005); R18:
Hayes (2002); R19: Sivakumar and Muthusamy (2011); R20: Revere et al. (2006); R21: Hahn et al. (1999); R22: Martens (2001); R23: Keller (2001); R24: Brue
(2002); R25: Kwak and Anbari (2006); R26: Zu et al. (2010); R27: Kumar (2007); R28: Brun (2011); R29: Goldstein (2001); R30: Achanga et al. (2006); R31:
Johnson and Swisher (2003)
Table I.
Summary of CSFs
from the literature
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implementation
of Lean Sigma
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Goldstein (2001) identified 13 CSFs:
(1) deployment plan;
(2) active participation of the senior executives;
(3) project reviews;
(4) technical support (master black belts);
(5) full-time vs part-time resources;
(6) training;
(7) communications;
(8) project selection;
(9) project tracking;
(10) incentive program;
(11) safe environment;
(12) supplier plan; and
(13) customer “WOWS.”
While Halliday (2001) put his focus on the training of Six Sigma resources. Henderson
and Evans (2000) identified the following CSFs for Six Sigma: management support,
organizational infrastructure, training, tools, and linking Six Sigma to human
resources based actions (promotions, bonuses, etc.); while, in an appeal to statisticians,
Hahn et al. (1999) identified leadership, training and projects involvement as CSFs.
Antony et al. (2007) identified 13 CSFs:
(1) management commitment and involvement;
(2) company-wide commitment;
(3) cultural change;
(4) linking Six Sigma to business strategy;
(5) integrating Six Sigma with the financial infrastructure;
(6) organisational infrastructure;
(7) training and education;
(8) incentive program;
(9) customer focus;
(10) understanding the DMAIC methodology;
(11) project management skills;
(12) project prioritization and selection; and
(13) project tracking and reviews.
Research methodology and data collection
The study’s purpose was to verify whether companies that implemented Lean
Six Sigma still recognize the same set of CSFs individuated in the literature and which
ones they would consider as more important.
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To answer this question, a structure questionnaire was developed, which was
structured as:
.background of respondent and the organization;
.criteria for successful implementation of Lean Six Sigma in the organization; and
.CSFs for Lean Six Sigma implementation.
The questionnaire was distributed electronically to 600 Lean Six Sigma professionals,
from various industries and countries: the list of companies was obtained from the
database of the Department of Design, Manufacturing and Engineering Management
of Strathclyde University, plus a network of professional contacts of the research team.
The response rate was 17 per cent, with 101 responses received.
The questionnaire was targeted to those organizations, irrespective of industry’s
sector, that have already implemented either Lean or Six Sigma, or Lean Six Sigma.
In the last part of the questionnaire, related to CSFs, the 19 CSFs from the literature
were operationalized on a five-point Likert scale (1 – not very important; 2 – not
important; 3 – important; 4 – very important; 5 – critical), and the respondents were
also asked to rank each factor from 1 to 19 (1 – most important, 2 – second most
important, etc.), in order to identify the importance of the 19 CSFs.
The data collected was then analyzed using Microsoft Excel data analysis tool-pack
and JMP software.
Analysis of survey results
Demographics
The analysis of the first part of the questionnaire provided a better understanding
and context of the key findings of the study.
Number of employees and position of respondents
The majority of the respondents were either master black belts (24 per cent), black belts
(21 per cent) or function lead/manager (15 per cent), with mostly Companies with more
than 1,000 employees (63 per cent) responding to the survey.
Areas of industry
Of the 20 areas of industry selected for this survey, industrial goods and services,
financial services and automotive accounted for a third of total responses.
Reasons for using Lean Six Sigma
Almost half (46 per cent) of the companies have implemented Lean Six Sigma for cost
savings or cost avoidance (e.g. less waste, inventory levels): this was by far the more
mentioned reason for implementation, followed at a distance from customers’
satisfaction (11 per cent) and profit/bottom-line (11 per cent).
Status of Lean Six Sigma implementation
A third of respondents’ companies applied Lean Six Sigma to all their business units,
with half applying it to more than one business unit. More than half of the companies
use Lean and Six Sigma together in tandem, a quarter of them use Lean on its own, and
only 9 per cent of the companies use Six Sigma on its own.
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Reliability test
In order to measure the consistency of the survey, a reliability test was conducted,
being reliability “an indication of consistency between two measure of the same thing”
(Black, 1999). According to Cramer (1998), “reliability is particular important in
connection with multiple item scales”, and he indicates three main types of tests for
assessing data reliability: Cohen’s kappa coefficient, Ebel’s intraclass correlation and
Cronbach’s
a
coefficient.
Being the Cronbach’s
a
coefficient the most widely used (Black, 1999), it was
calculated using JMP software: an alpha coefficient of 0.6 or higher is considered an
acceptable level of internal consistency.
The results indicate the reliability coefficients vary from 0.76 to 0.80, with an overall
Cronbach’s coefficient for the entire data set of 0.79. Hence, we can infer the data
collected is reliable for analysis.
Performance of Lean Six Sigma
Two thirds (66 per cent) of the respondents consider the implementation of Lean Six
Sigma either successful or extremely successful; about 31 per cent consider it either
unsuccessful or extremely unsuccessful, with the reaming 3 per cent thinks it did not
have a significant impact, either way.
Analysis of CSFs
The respondents to the survey were asked to score on a Likert scale their perceived
importance of each CSF, with 1 – not very important; 2 – not important; 3 – important;
4 – very important; 5 – critical: analyzing the responses, a factor with the highest
mean score is considered as the most important factor.
The results are showed in Table II and Figure 1, where the CSFs have been ranked
accordingly to their assessed importance: “management commitment” is considered
the most important, followed by “cultural change”, “linking Lean Six Sigma to
business strategy” and “leadership style”.
Furthermore, respondents do not consider “organization infrastructure”, “extending
Lean Six Sigma to supply chain” and “linking Lean Six Sigma to HR rewards” as
important for a successful implementation of Lean Six Sigma.
Discussion and key findings
Management commitment is crucial for the introduction of Lean Six Sigma in
organization, and the results of the survey confirm the thinking process of many Lean
Six Sigma experts and researchers behind this, with most of the literature review
highlighting its criticality (Table I).
Organizational culture and linking Lean Six Sigma to business strategy have also
been widely identified as CSFs in the literature (Antony and Banuelas, 2002), while the
role of leadership styles in relation to Lean Six Sigma deployment appears to be more
important to practitioners in the field than it was in the literature, where a relatively
small number of sources identified it (Table I).
It is not a surprise the low score of “extending Lean Six Sigma to supply chain”: one
company should first master the methodology before attempting to transfer it to
suppliers.
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However, it is surprising to see the low score of “organization infrastructure”, as this
was often mentioned in the literature as a key differentiator of Lean Six Sigma from
previous quality initiatives (Snee, 2004; Pande et al., 2000; Harry and Schroeder, 2000).
Conclusions and directions for future research
Out of the CSFs for Lean Six Sigma implementation that were identified in the literature,
“management commitment”, “organizational culture”, “linking Lean Six Sigma to
business strategy” and “leadership styles” were deemed the most important from the
respondents to the survey.
CSFs Average score
Management commitment 4.63
Organizational culture 4.35
Linking LSS to business strategy 4.26
Leadership styles 4.14
Communication 4.11
Linking LSS to customers 4.07
Awareness 4.03
Selection of LSS staff 3.93
Data based approach 3.88
LSS projects selection/prioritization 3.88
LSS projects tracking and review 3.80
Resources for LSS staff 3.77
LSS training 3.71
LSS tools and techniques 3.65
Project management skills 3.54
LSS financial accountability 3.51
Organization infrastructure 3.24
Extending LSS to supply chain 3.19
Linking LSS to HR rewards 3.04
Others 1.99
Table II.
Average importance
scores for CSFs
Figure 1.
Average importance
scores for CSFs
CSFs for
implementation
of Lean Sigma
281
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The identification of leadership styles as one of the more important CSFs for the
implementation of Lean Six Sigma, and its relatively smaller coverage in the Lean
Six Sigma literature, leaves the field open to further research on which leadership
styles are more conducive to a successful implementation.
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