The factors behind discontinuing Lean Six Sigma deployment in the New Zealand manufacturing sector : A thesis submitted in partial fulfilment of the requirements of the Degree of Master of Commerce and Management at Lincoln University

Abstract

The global competition and rapid growth of technology have impacted tremendously to organisations around the world to produce better quality products at reduced cost to address customer expectations and grab competitive advantages. Lean Six Sigma has been one of the main quality improvement approaches since Motorola developed and pioneered Six Sigma in 1987. Lean methodologies were invented with Toyota production systems and are especially appropriate in the New Zealand manufacturing context due to its top-down and bottom-up approach. Many companies have adopted Lean and Six Sigma methodologies and Lean Six Sigma integration methodologies during the last 20 years and benefited greatly. Although there are many tangible and intangible benefits of applying Lean Six Sigma methodologies, there are some scenarios of discontinuing Lean Six Sigma practices in New Zealand manufacturing organisations due to several causes. This research examined the factors behind discontinuing Lean Six Sigma deployments in the New Zealand manufacturing sector. A thorough literature review was performed by the researcher to identify the reasons behind the failures and challenges to continue Lean Six Sigma practices in the long run. The data were collected through thirteen in-depth semi-structured interviews with managers and supervisors who actively participated in Lean Six Sigma programs and subsequently discontinued, and the external Six Sigma consultants who have experience with Six Sigma implementations and discontinuations in the New Zealand manufacturing sector. The collected data was analysed by following the thematic analysis method under qualitative methodologies, and the inductive approach was applied to identify the factors or the causes of Lean Six Sigma suspension in the New Zealand manufacturing sector. The fishbone diagram was developed by the researcher with their own definitions under seven main clusters and presented with findings in the final part of the analysis. The factors such as, • Lack of solid leadership skills • Lack of employee awareness and recognition • Lack of capabilities and performance development • Lack of continuous support from the government • The traditional way of applying Six Sigma methodologies • Poor organisational culture • Inability to identify the real need and purpose • Poor communication and act as silos • Literacy and numeracy problems with data integrity • Lack of prioritization and inability to identify and improve weak links • Lack of critical position thinking and skilled labour and the final most important factor of inability to lead the change by “being changed” which drives all the other factors in this Lean Six Sigma journey, are the most vital factors impacted for Lean Six Sigma cessations in the long term. Lean methodologies with simplicity and the involvement of even the shopfloor people by improving the invisible factors, such as soft skills and performance development, will provide more gains with a sustainable future rather than applying the most complex procedures with tools and techniques without any change journey. The results of the research project will be beneficial for the manufacturing sector in New Zealand to identify the major factors that influence Six Sigma discontinuance and mitigate those causes to achieve near-perfection and a productivity boost in the long run of businesses. Since little research has been carried out relating to the discontinuation of Lean Six Sigma implementation in the manufacturing sector, this paper provides direction to academics and practitioners of Lean Six Sigma and those researchers who are involved in Six Sigma research.