Millions of people all around the world owe their jobs to SMEs, which are the backbone of the global economy. However, due to limited resources and inefficient processes, they typically struggle to compete with larger firms. In cases like this, the application of Lean Six Sigma (LSS) is essential.
Lean Six Six Sigma (LSS) is a management strategy that combines the Lean tenets of decreasing waste and increasing efficiency with the Six Sigma tenets of minimizing variation and maximizing quality. LSS projects have been proven to benefit businesses, especially those in the industrial sector. Can, nevertheless, it be effective for small and medium-sized enterprises?
Based on the research conducted, it was found that 46 percent of European businesses have already adopted LSS, and that small and medium-sized enterprises (SMEs) are the ones who profit the most from LSS adoption in the manufacturing sector. These advantages include less stock on hand, lower prices, happier customers, faster turnaround times, error-free operations, and higher output rates. Costs are decreased, quality is raised, output is increased, downtime is reduced, and productivity has increased all thanks to LSS deployment in SMEs.
The success of LSS deployment in SMEs, however, is contingent on a number of crucial success factors (CSFs). Formal procedures for management involvement, proper project selection, review, goal-setting, training, cultural shift, familiarity with tools and methodology, product/process design, alignment of LSS with corporate strategy, and enhanced customer satisfaction all play a role. On the other hand, the primary factors that influence LSS implementation in SMEs are a lack of employee training, a lack of resources, poor management engagement and dedication, weak project prioritization, resistance to cultural change, an inability to comprehend LSS methodology, and a failure to align LSS with business strategy.
As a result, small and medium-sized enterprises (SMEs) need to think very carefully about the resources they have at their disposal before deciding to undertake LSS initiatives. Organizations need to devote resources to training and cultural shifts, as well as give projects high priority during the selection process. In this way, SMEs can improve their operations and processes with the help of LSS.
As a result, LSS is a potential approach for SMEs that aims to compete with larger enterprises. It may lead to savings in money, enhanced product quality, and more output. Yet, a company’s dedication to CSFs—such as project prioritisation, alignment with business strategy, employee training, and cultural change—is crucial to the success of implementation. In order to succeed in today’s global economy, small and medium-sized enterprises (SMEs) need to implement LSS efforts to streamline their internal processes.
