Impact of lean six sigma strategy on operational performance: a study of Zimco Group Pty (Ltd) manufacturing companies.

Abstract

ABSTRACT The current study evaluated the benefits of the implementation of the Lean Six Sigma strategy on the operational performance in the Associated Additives (AA); an operations division of the ZIMCO. The aim of the study was to recommend an operations strategy that is predicated on the Lean Six Sigma (LSS). This strategy provides a view by which operations within a manufacturing organisation may be improved. As a manufacturing base, South Africa is considered as 20% more expensive than other countries including those in Europe and China. This disparity has been largely linked to factors such as the unavailability of skilled workforce, inadequate knowledge of rivals as well as operational inefficiencies linked to internal process challenges. Several scholars have argued that South African organisations should consider the adoption of more robust business models in order to be able to adjust to the evolving environment. The study was triggered by the researcher’s commitment to analyse and understand the impact of the LSS strategy in the business operational performance and how customers could benefit from the approach. In the face of limited studies focusing on these issues, a study was required in order to increase knowledge on the diagnostic potential of the application of the LSS in improving operational performance in organisations. The study employed the quantitative research methodology. The population of the study was 62 employees. Thus, all the employees were considered for the study. However, a total of 48 managed to complete the questionnaire. Data was analysed using SPSS in order to generate accurate results. The Spearman rank correlation test was used to assess the level of link between variables. Kolmogorov-Smirnov test was used for analysis trying to determine if two datasets differ significantly. The study found that the implementation of the LSS could reduce the organisation’s operation costs; reduce waste; improve work and product quality; and reduction operation costs. The study also established the reasons for failure in the implementation of the LSS. These included; the lack of competency by managers; inappropriate LSS implementation; and lack of proper employee training. It is recommended that more training be provided for both employees and managers. Communication between employees and managers also need to improve. Future research needs to concentrate on the content and nature of the training that should be provided to employees in the AA. Future studies should also focus on how employee income can influence the implementation of LSS in organisations.