Lean Six Sigma Initiative: Business Engineering Practices and Performance in Malaysian Automotive Industry

The automotive industry in various countries struggle to sustain a high degree of lean practice due to competitive market and customer pressure. Recently, Integration between lean and six sigma initiatives are increasingly implemented in the industry. The importance and relationship between lean practices and organizational performance has been highlighted in many studied. The purpose of this paper is to examine the relationship of Lean Six Sigma (LSS) practices and organizational performance in Malaysian automotive industries. A Conceptual model using Structural Equation Modeling (SEM) has been proposed. This model will be used to study the relationship between LSS practices and organizational performance in Malaysian automotive industries. Based on the proposed conceptual model and reviewed, research hypotheses are being developed. The paper concludes with suggest future research work.

[1]  Yoshiki Matsui,et al.  An empirical analysis of just-in-time production in Japanese manufacturing companies , 2007 .

[2]  Peter T. Ward,et al.  Lean manufacturing: context, practice bundles, and performance , 2003 .

[3]  Rachna Shah,et al.  Use of structural equation modeling in operations management research: Looking back and forward ☆ , 2006 .

[4]  Barbara B. Flynn,et al.  Relationship Between JIT and TQM: Practices and Performance , 1995 .

[5]  Winanda G Geerman.  The Balanced Scorecard: Translating Strategy into Action , 2014 .

[6]  S S Mahapatra,et al.  Lean manufacturing in continuous process industry : An empirical study , 2007 .

[7]  Xenophon Koufteros,et al.  The Impact of Organizational Culture on Time-Based Manufacturing and Performance , 2004, Decis. Sci..

[8]  Jayanth Jayaram,et al.  Supply-Based Strategies, Human Resource Initiatives, Procurement Leadtime, and Firm Performance , 1998 .

[9]  Jack C. Hayya,et al.  The impact of just-in-time production on food quality , 2002 .

[10]  R. Kaplan,et al.  Using the balanced scorecard as a strategic management system , 1996 .

[11]  Kim B. Clark,et al.  Explaining Observed Productivity Differentials Between Plants: Implications for Operations Research , 1985 .

[12]  R. Schroeder,et al.  Relationships between implementation of TQM, JIT, and TPM and manufacturing performance , 2001 .

[13]  Kenneth K. Boyer.  An assessment of managerial commitment to lean production , 1996 .

[14]  D. Challis,et al.  Impact of technological, organizational and human resource investments on employee and manufacturing performance: Australian and New Zealand evidence , 2005 .

[15]  Ruzita Jusoh,et al.  Competitive strategy and performance measurement in the Malaysian context , 2008 .

[16]  Edward D. Arnheiter,et al.  The integration of lean management and Six Sigma , 2005 .

[17]  Rosemary R. Fullerton,et al.  Lean Manufacturing, Non-Financial Performance Measures, and Financial Performance , 2009 .

[18]  K. Tan,et al.  Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance , 2005 .

[19]  D. Larcker,et al.  Innovations in Performance Measurement: Trends and Research Implications , 1998 .

[20]  Bhanu S. Ragu-Nathan,et al.  Development and validation of a measurement instrument for studying supply chain management practices , 2005 .

[21]  R. Dorf,et al.  The Balanced Scorecard: Translating Strategy Into Action , 1997, Proceedings of the IEEE.

[22]  Udit Sharma,et al.  Implementing Lean principles with the Six Sigma advantage: How a battery company realized significant improvements , 2003 .

[23]  Zahirul Hoque,et al.  Linking Balanced Scorecard Measures to Size and Market Factors: Impact on Organizational Performance , 2000 .

[24]  Rosemary R. Fullerton,et al.  The production performance benefits from JIT implementation , 2001 .

[25]  Xingxing Zu,et al.  The evolving theory of quality management: The role of Six Sigma , 2008 .

[26]  Melek Eker,et al.  The Effect of Competition, Just In Time Production and Total Quality Management on the Use of Multiple Performance Measures: An Empirical Study , 2008 .

[27]  Kit Seen Chong.  Critical success factor of six sigma implementation , 2009 .

[28]  Roger G. Schroeder,et al.  A FRAMEWORK AND MEASUREMENT INSTRUMENT FOR JUST‐IN‐TIME MANUFACTURING , 1993 .

[29]  Andrea Vinelli,et al.  Interrelationships among lean bundles and their effects on operational performance , 2008 .

[30]  J. Nevan Wright,et al.  Quality Beyond Six Sigma , 2002 .

[31]  William J. Doll,et al.  Developing measures of time-based manufacturing , 1998 .

[32]  Rachna Shah,et al.  In pursuit of implementation patterns: the context of Lean and Six Sigma , 2008 .

[33]  Chi On Chan.  The development and application of six sigma implementation model for HK/China manufacturing companies , 2006 .

[34]  Zahirul Hoque,et al.  MARKET COMPETITION, COMPUTER-AIDED MANUFACTURING AND USE OF MULTIPLE PERFORMANCE MEASURES: AN EMPIRICAL STUDY , 2001 .

[35]  Sanjay Bhasin,et al.  Lean and performance measurement , 2008 .

[36]  Soo Wook Kim,et al.  Disentangling leanness and agility: An empirical investigation , 2006 .

[37]  Trevor A Spedding,et al.  The evolution of lean Six Sigma , 2010 .

[38]  Roger G. Schroeder,et al.  Six Sigma: Definition and underlying theory , 2008 .

[39]  R. Schroeder,et al.  The impact of total productive maintenance practices on manufacturing performance , 2001 .