Lean Six Sigma and Performance Metrics

*Kaouthar Lamine*

### **Abstract**

The intensification of competitiveness and the fluctuation of industrial market were pushing the companies to ameliorate their product's quality and services in order to maintain their place in the market. They have a tendency to integrate various methods such as total quality management (TQM), Six Sigma (6-σ), and Lean Six Sigma (LSS). The Lean Six Sigma method became the focus of academic researches. Hence, huge empirical studies have been raised in this field which enhances the visibility of this quality method. Some focused to identify its particular aspects, tools, and concepts. Others reveal its positive repercussions on reducing the defects, waste of time, and reworks. Others attempt to develop specific model related to Lean Six Sigma to facilitate its implementation. Regarding the literature gap reviewing and highlighting the specific features of Lean Six Sigma, the requirement of recognizing its particular aspects is needed. The focus of this chapter firstly is to identify the performance metrics then to underline the Lean Six Sigma metrics in order to seek its link with business performance. Also a guideline for the best integration of Lean Six Sigma is also offered.

**Keywords:** Lean Six Sigma, performance, metrics, process improvement, efficiency, customer requirement, profits

### **1. Introduction**

The Lean Six Sigma (LSS) quality enhancement approach has obtained recognition in the previous few years as more and more corporations affirm its effectiveness in developing their bottom lines and shareholders (i.e., [1]). Companies need to focus on creating Lean Six Sigma projects that are aligned to the business needs (i.e., process improvement, efficiency, profits, customer loyalty, and reliability). Customers increasingly require on the quality of the supplied product which leads companies to strive excellence or at least to strive for perfection in order to satisfy more customers [2].

Lean Six Sigma is recognized as a combination of Lean and Six Sigma. It is "a business strategy and methodology that increases process performance resulting in enhanced customer satisfaction and improved bottom line results" [3]. It is considered as a strategic issue of quality improvement based on the increase of process capability and the development of company performance [2].

As we have just seen, many important questions have recently been raised in the Lean Six Sigma field and performance. Thus, the purpose of this Chapter is to investigate in the second Section the multidimensional aspect of performance and measurement dimensions. The Section 3 provides more details concerning Lean Six Sigma metrics and key steps for its best implementation. Section 4 represents discussion and conclusions. Section 5 stresses the managerial implications and future direction of Lean Six Sigma.

### **2. Performance concept**

The performance concept has been the focus of abundant studies, investigations, and articles and is extensively renowned. Thus, various definitions and explanations have been addressed in this issue (i.e., [4]). The next subsection provides extra details concerning the multidimensional performance concept.

#### **2.1 The multidimensional performance concept**

Much confusion exists on the performance concept as [4] attempt to explain. The first explanation would be is that the performance is a construct, not a concept. The identification of all the variables related to the performance field allows the first clarification of construct (i.e., [5]). Performance is defined as "the art of doing the right things right" [6]. Briefly, it means the act of drawing the best of the available resources of the company to achieve its goal.

The performance concept is distinctly assimilated to efficacy, competitive capacity, efficiency, performance, and productivity. Venkatraman and Ramanujam [7] propose to represent the performance in three levels (financial, operational, and organizational performance). In this proposal they stress the idea of intermediate measurement of performance and distinct measures used according to the objectives pursued (see [7]).

#### *2.1.1 Performance definition*

An important number of researches converge in the notion that the performance has a global sense and implies efficiency and effectiveness (i.e., [8]). An organization is successful if it accomplishes its goals (effectiveness) using a minimum of resources (efficiency). Seashore and Yutchman entirely define organizational effectiveness from this perspective as "the ability to exploit its environment in the acquisition of scarce and valued resources to sustain its functioning" (see [9]).

From a strategic point of view, performance can be defined as the ability of an organization to implement its strategy. The purpose of the performance is to improve the torque value—cost [10].

#### **2.2 Performance measurement dimensions and indicators**

Given the rising interest accorded to study the performance measurement systems as tools for successful strategy integration, this part offers definitions of performance measurements, dimensions, and indicators. The performance measurement is defined as "the process of quantifying the efficiency and effectiveness of past actions" [11]. However, Moullin considers it as "the process of evaluating how well organizations are managed and the value they deliver for customers and other stakeholders" [12].

Neely et al. provided an important distinction between these three terms: a performance measurement, a performance measure, and a performance measurement system (see [11]). More clarifications are offered in **Table 1**.

**111**

**Table 1.**

*Performance aspects.*

*Lean Six Sigma and Performance Metrics DOI: http://dx.doi.org/10.5772/intechopen.85815*

for performance evaluation.

performance:

replacement.

ing effectiveness.

performance measurement systems (in [13]).

*2.2.1 Organizational performance dimensions*

performance relative to industry norms (see [14]).

Grafton et al. provide a constructive work assessing the role of performance measurement and evaluation in building organizational capabilities and performance. The results suggest to encourage managers to employ both the multiple financial and nonfinancial performance indicators increasingly included in current

Therefore, the performance measurement refers to the use of a multidimensional set of performance measures which include financial measures and nonfinancial measures. Financial performance is generally defined as the use of outcome-based financial indicators that are assumed to reflect the fulfillment of the economic goals of the firm, and nonfinancial performance measures are often used

The manner on which the authors perceived and measured the organizational performance is different. Arumugam et al. measured organizational performance based on quality performance specifically the quality of product and service, customer relations, customer satisfaction with product quality, and level of quality

Deshpande focused on supply chain performance and organizational performance, outlining the financial and market components and customer satisfaction dimensions. The financial and market performance is determined by reference to

Several works have treated the organizational performance dimensions; for example, Venkatraman and Ramanujam [7] identify three dimensions of firm

• The financial performance: it contains criteria such as sales, turnover growth, profitability (return on investment, return on sales, and return on equity capital), profit by shares, the market value of the company, or the cost of asset

• The economic performance: it incorporates chiefly marketing measurements such as market shares, new products introduction, products quality, or market-

• The organizational effectiveness: it consists of internal criteria having an

The link between quality management practices and organizational performance is the focus of various studies (i.e., [16]). The results of these studies

**Performance** Performance measurement Defined as the process of quantifying the efficiency and

Performance measure "Defined as a metric used to quantify the efficiency and/or effectiveness of action" Performance measurement system "Defined as the set of metrics used to quantify both the efficiency and effectiveness of actions"

nonfinancial measures [1]

effectiveness of action. It refers to the use of a multidimensional set of performance measures. It includes both financial and

overall image of organizational performance (see [7]).

market share, return of total assets, and annuals sales growth (see [15]).

### *Lean Six Sigma and Performance Metrics DOI: http://dx.doi.org/10.5772/intechopen.85815*

*Lean Manufacturing and Six Sigma - Behind the Mask*

future direction of Lean Six Sigma.

**2. Performance concept**

tives pursued (see [7]).

functioning" (see [9]).

other stakeholders" [12].

improve the torque value—cost [10].

**2.2 Performance measurement dimensions and indicators**

ment system (see [11]). More clarifications are offered in **Table 1**.

*2.1.1 Performance definition*

measurement dimensions. The Section 3 provides more details concerning Lean Six Sigma metrics and key steps for its best implementation. Section 4 represents discussion and conclusions. Section 5 stresses the managerial implications and

The performance concept has been the focus of abundant studies, investigations,

and articles and is extensively renowned. Thus, various definitions and explanations have been addressed in this issue (i.e., [4]). The next subsection provides extra

Much confusion exists on the performance concept as [4] attempt to explain. The first explanation would be is that the performance is a construct, not a concept. The identification of all the variables related to the performance field allows the first clarification of construct (i.e., [5]). Performance is defined as "the art of doing the right things right" [6]. Briefly, it means the act of drawing the best of the avail-

The performance concept is distinctly assimilated to efficacy, competitive capacity, efficiency, performance, and productivity. Venkatraman and Ramanujam [7] propose to represent the performance in three levels (financial, operational, and organizational performance). In this proposal they stress the idea of intermediate measurement of performance and distinct measures used according to the objec-

An important number of researches converge in the notion that the performance has a global sense and implies efficiency and effectiveness (i.e., [8]). An organization is successful if it accomplishes its goals (effectiveness) using a minimum of resources (efficiency). Seashore and Yutchman entirely define organizational effectiveness from this perspective as "the ability to exploit its environment in the acquisition of scarce and valued resources to sustain its

From a strategic point of view, performance can be defined as the ability of an organization to implement its strategy. The purpose of the performance is to

Given the rising interest accorded to study the performance measurement systems as tools for successful strategy integration, this part offers definitions of performance measurements, dimensions, and indicators. The performance measurement is defined as "the process of quantifying the efficiency and effectiveness of past actions" [11]. However, Moullin considers it as "the process of evaluating how well organizations are managed and the value they deliver for customers and

Neely et al. provided an important distinction between these three terms: a performance measurement, a performance measure, and a performance measure-

details concerning the multidimensional performance concept.

**2.1 The multidimensional performance concept**

able resources of the company to achieve its goal.

**110**

Grafton et al. provide a constructive work assessing the role of performance measurement and evaluation in building organizational capabilities and performance. The results suggest to encourage managers to employ both the multiple financial and nonfinancial performance indicators increasingly included in current performance measurement systems (in [13]).

Therefore, the performance measurement refers to the use of a multidimensional set of performance measures which include financial measures and nonfinancial measures. Financial performance is generally defined as the use of outcome-based financial indicators that are assumed to reflect the fulfillment of the economic goals of the firm, and nonfinancial performance measures are often used for performance evaluation.

#### *2.2.1 Organizational performance dimensions*

The manner on which the authors perceived and measured the organizational performance is different. Arumugam et al. measured organizational performance based on quality performance specifically the quality of product and service, customer relations, customer satisfaction with product quality, and level of quality performance relative to industry norms (see [14]).

Deshpande focused on supply chain performance and organizational performance, outlining the financial and market components and customer satisfaction dimensions. The financial and market performance is determined by reference to market share, return of total assets, and annuals sales growth (see [15]).

Several works have treated the organizational performance dimensions; for example, Venkatraman and Ramanujam [7] identify three dimensions of firm performance:


The link between quality management practices and organizational performance is the focus of various studies (i.e., [16]). The results of these studies


**Table 1.** *Performance aspects.* designated that there are a variety of measures (i.e., organizational performance, corporate performance, business performance, operational performance, financial and nonfinancial performance, innovation performance, and quality performance).

Based on the work of Scodanibbio, the key components of company's performance are highlighted in six elements which are commercial performance, operational performance, innovation performance, financial performance, economical performance, and cultural performance (see [17]). More explanations are provided in **Table 2**.

### *2.2.2 Performance indicators*

The performance indicator has been the subject of numerous researches. Based on this literature review, the performance indicators acquired various definitions.


**113**

*Lean Six Sigma and Performance Metrics DOI: http://dx.doi.org/10.5772/intechopen.85815*

a system (in [18]).

**Table 3.**

strategic objectives

identified in **Table 3**.

literature.

**3. Performance metrics**

**3.1 Lean Six Sigma focus on metrics**

(Lean) for customer requirement [23].

of Lean and Six Sigma.

process (see [24]).

Berrah et al. offered a performance indicator a quantitative aspect. It is considered as a quantitative data expressing the effectiveness and/or efficiency of all or part of

**Author(s) Measure Indicators**

Organizational performance

[21] Organization performance Financial performance

Return on assets Share of deposits

measures

Operational performance Product quality

Internal operation performance Productivity improvement Financial and nonfinancial

[20] Organizational efficiency Organizational effectiveness

[22] Operational performance

*The main components of company's performance.*

Performance indicators synthesize in qualitative or quantitative terms, some

• Indicator of objectives (or lagging [19]) that control the best achievement of

• Indicators on the stock variables and action plans (or leading [19]), which provide information on the means used to achieve these strategic objectives

Through there is an extensive literature review of performance measures, different indicators used for measuring organizational performance some of these are

Performance metrics has been the focus of diverse studies in different fields. The present section highlighted the key Lean Six Sigma metrics presented in the

Lean Six Sigma focuses on metrics; it is a combination of set of statistical tools as DMAIC of Six Sigma employed in order to define, analyze, measure, improve, and control process variability as presented in **Table 4** and critical-to-quality (CTQ )

The basic objective of Lean Six Sigma method is the implementation of measurement strategy focused on reducing the process variability and improving the projects to meet the customer requirement. This is realized through the combining

The main concepts of Lean Six Sigma are highlighted by Devane in these principal points: (1) the voice of the customer and "CTQ," (2) Six Sigma metric, (3) elimination of waste and nonvalue added activities, (4) process, (5) unintended variation which is the enemy, (6) value streams, and (7) "DMAIC" improvement

information to sit judgment on the performance evaluation:

#### **Table 2.**

*Performance measures and indicators studied by different authors.*


**Table 3.**

*Lean Manufacturing and Six Sigma - Behind the Mask*

performance).

in **Table 2**.

*2.2.2 Performance indicators*

designated that there are a variety of measures (i.e., organizational performance,

Based on the work of Scodanibbio, the key components of company's performance are highlighted in six elements which are commercial performance, operational performance, innovation performance, financial performance, economical performance, and cultural performance (see [17]). More explanations are provided

The performance indicator has been the subject of numerous researches. Based on this literature review, the performance indicators acquired various definitions.

**Key performance components (KPC)**

• Effectiveness of marketing activities

Commercial performance Market penetration—market share/expansion

• Sales force effectiveness • Customer loyalty

• Brand identity level

• Reputation—image

• Productivity

• Value added

• Time to market

• Profitability

Cultural performance • Industrial culture level/modernity

*Performance measures and indicators studied by different authors.*

• ROE: return on equity • ROTA: return on total assets

Innovation performance • Reactivity—ability to innovate

Financial performance • ROI: return on investment

Economic performance • Turnover

• Acquisition of new customers • Dealers/wholesalers performance

• Communication effectiveness

• Quality of product and service

• Plant/equipment performance • Personnel performance

• Level of acceptance of new products/services

• Effectiveness of change management

Operational performance • Operational efficiency (labor, machines, materials, indirect areas) • Economic efficiency (labor, materials, etc.)

corporate performance, business performance, operational performance, financial and nonfinancial performance, innovation performance, and quality

**112**

*Source: [17].*

**Table 2.**

*The main components of company's performance.*

Berrah et al. offered a performance indicator a quantitative aspect. It is considered as a quantitative data expressing the effectiveness and/or efficiency of all or part of a system (in [18]).

Performance indicators synthesize in qualitative or quantitative terms, some information to sit judgment on the performance evaluation:


Through there is an extensive literature review of performance measures, different indicators used for measuring organizational performance some of these are identified in **Table 3**.

### **3. Performance metrics**

Performance metrics has been the focus of diverse studies in different fields. The present section highlighted the key Lean Six Sigma metrics presented in the literature.

### **3.1 Lean Six Sigma focus on metrics**

Lean Six Sigma focuses on metrics; it is a combination of set of statistical tools as DMAIC of Six Sigma employed in order to define, analyze, measure, improve, and control process variability as presented in **Table 4** and critical-to-quality (CTQ ) (Lean) for customer requirement [23].

The basic objective of Lean Six Sigma method is the implementation of measurement strategy focused on reducing the process variability and improving the projects to meet the customer requirement. This is realized through the combining of Lean and Six Sigma.

The main concepts of Lean Six Sigma are highlighted by Devane in these principal points: (1) the voice of the customer and "CTQ," (2) Six Sigma metric, (3) elimination of waste and nonvalue added activities, (4) process, (5) unintended variation which is the enemy, (6) value streams, and (7) "DMAIC" improvement process (see [24]).


#### **Table 4.**

*The DMAIC steps and tools.*

The DMAIC structure with five modalities for intervention (define, measure, analyze, improve, control) is used to specify the problem of process variability to put the suitable solution in order to achieve a company performance.

We can give the example of some techniques related to Lean Six Sigma tools: "CTQ" companies focus on what the customer want by reducing wastes and nonvalue added activities in production process. Failure mode and effect analysis (FMEA) necessitates a step-by-step approach to identify all the possible failures in the design, manufacturing, product, or services. The aim of the FMEA is to adopt actions of removing or diminishing failures, beginning with the highest-priority ones, the suppliers, inputs, process, outputs, and customers (SIPOC), which is normally used throughout the defined stages of a process improvement project, as it helps to obviously understand the purpose and the scope of a process; a Pareto chart is defined as a series of bars whose heights reflect the frequency or impact of problems which are classified in descending order.

Based on diverse researches studies as [25], we have selected these principal tools of Lean Six Sigma illustrated in **Table 5**.

#### **3.2 Guideline for the best implementation of Lean Six Sigma project**

Before starting the Six Sigma implementation, it will be important to know these precious aspects mentioned as the antecedents of its implementation. It is necessary to create an encouraging environment and platform to succeed in its implementation.

**115**

management.

*Source: [25–27].*

*Lean six sigma focus on metrics.*

**Table 5.**

*Lean Six Sigma and Performance Metrics DOI: http://dx.doi.org/10.5772/intechopen.85815*

**Lean Six Sigma main tools Literature review**

CTQ [25, 26] FMEA [26] Control charts [25, 26] DoE [27] Pareto analysis/charts [25, 26] Taguchi methods [27] Measure capability [26] Regression analysis [27] Correlation studies [25] Process mapping, flow chart, SIPOC model [26, 27] Brainstorming [25] Root cause analysis [26] SPC [25] Capability index [25, 26] Probability plot [25, 27] Cause and effect matrix [26, 27] Descriptive statistics [27] Project selection and assessment matrix [27]

The visions and point of view of authors concerning the success in implementing Lean Six Sigma are varied and valuable [28]. Jones et al. stressed the importance of strategy adopted, and the success of any organization is directly related to the

The implementation of project should meet the objectives of firms and their ability to execute it. The project succeeds when it is able to achieve its goals. The objective of the Lean Six Sigma programs in any organization is the "project."

Regarding the specificity of the project and its requirement, the focus is to answer these questions: "what," "who," "how," "when," and "how much." "What" refers to the customer needs. The higher the requirements are identified, the higher the probability of success will be. "Who" designs the allocation of the resources to achieve the project. "How" is the technological need that will convene to the "what" of the customer. "How" is very decisive to the project because if a connection between the project and the customer's expectations does not exist, there will be a gap in anticipations. "When" identifies "the schedule" and the tools of project

The importance of roadmap of project, process mapping, and team responsibilities explains the success of integrating such method. Indeed, the project charter identification, planning, and integrating steps, tasks, and recurrent milestones help to maintain track of progress and adjustment as required. Also, it creates a sort of

effectiveness in implementation of Lean Six Sigma (in [29]).

dynamism for the project team.



#### **Table 5.**

*Lean Manufacturing and Six Sigma - Behind the Mask*

Define • The need of the customer

Measure • Define the measuring means

Analyze • Studying the relationships

Control • Put the solution selected under control • Formalize the process

Improve • Put the solutions

• The expected gain • The scope of the project • Responsibilities

• Measuring variables • Collect data

between input and output variables of the process

• Select promising path for improvement

**Steps Objectives/tasks Expected result Main tools**

• The project chart • Planning and allocation of the resources

• Detailed mapping process

process

• Capability means and

• Understanding the process

• Drafting of procedures • Control charts • Performance index

• Pilot process • Determination of the characteristics to sustain under control • 5W1H • SIPOC

• Pareto

• Process analysis

• Normality tests • Study of capability • Statistical process matrix

• Ishikawa diagram • Cause–effect matrix • Statistical tests

• Design of experiments • FMEA, weighted voting

• SPC

The DMAIC structure with five modalities for intervention (define, measure, analyze, improve, control) is used to specify the problem of process variability to

We can give the example of some techniques related to Lean Six Sigma tools: "CTQ" companies focus on what the customer want by reducing wastes and nonvalue added activities in production process. Failure mode and effect analysis (FMEA) necessitates a step-by-step approach to identify all the possible failures in the design, manufacturing, product, or services. The aim of the FMEA is to adopt actions of removing or diminishing failures, beginning with the highest-priority ones, the suppliers, inputs, process, outputs, and customers (SIPOC), which is normally used throughout the defined stages of a process improvement project, as it helps to obviously understand the purpose and the scope of a process; a Pareto chart is defined as a series of bars whose heights reflect the frequency or impact of

Based on diverse researches studies as [25], we have selected these principal tools

Before starting the Six Sigma implementation, it will be important to know these precious aspects mentioned as the antecedents of its implementation. It is necessary to create an encouraging environment and platform to succeed in its

put the suitable solution in order to achieve a company performance.

**3.2 Guideline for the best implementation of Lean Six Sigma project**

problems which are classified in descending order.

of Lean Six Sigma illustrated in **Table 5**.

**114**

**Table 4.**

*The DMAIC steps and tools.*

implementation.

*Lean six sigma focus on metrics.*

The visions and point of view of authors concerning the success in implementing Lean Six Sigma are varied and valuable [28]. Jones et al. stressed the importance of strategy adopted, and the success of any organization is directly related to the effectiveness in implementation of Lean Six Sigma (in [29]).

The implementation of project should meet the objectives of firms and their ability to execute it. The project succeeds when it is able to achieve its goals. The objective of the Lean Six Sigma programs in any organization is the "project."

The importance of roadmap of project, process mapping, and team responsibilities explains the success of integrating such method. Indeed, the project charter identification, planning, and integrating steps, tasks, and recurrent milestones help to maintain track of progress and adjustment as required. Also, it creates a sort of dynamism for the project team.

Regarding the specificity of the project and its requirement, the focus is to answer these questions: "what," "who," "how," "when," and "how much." "What" refers to the customer needs. The higher the requirements are identified, the higher the probability of success will be. "Who" designs the allocation of the resources to achieve the project. "How" is the technological need that will convene to the "what" of the customer. "How" is very decisive to the project because if a connection between the project and the customer's expectations does not exist, there will be a gap in anticipations. "When" identifies "the schedule" and the tools of project management.

Montgomery and Woodall affirm that in "Aligning projects with both businessunit goals and corporate-level metrics helps ensure that the best projects are considered for selection strategic business objectives" (see [30]).

Tenera and Pinto's work provides a project management improvement of Lean Six Sigma in order to facilitate its development by reducing the potential problems (see [31]). One of the chief challenges of Lean Six Sigma implementation program is to succeed in the selection of the organization project, insuring the suitable identification of the critical-to-quality characteristics.

### **4. Discussion and conclusions**

#### **4.1 Discussion**

It is important to know that Lean Six Sigma is not only a quality method for improving process and reducing costs. It is also an approach for engaging and implicating all the employees to achieve business goals, as well as to learn how to improve the effectiveness and efficiency of the company. Thus, this quality method develops the empowerment of employees and the share of responsibilities.

The Lean Six Sigma has positive repercussions in different levels, as social (company social responsibilities) and financial (boost of returns and profits) impact, employee empowerment (continuous training and culture), process improvement (reduce of process variability, wastes, defects), amelioration of product quality and efficiency, enhancement of customer satisfaction, and amelioration of competitiveness and brand image.

Furthermore, the assessment of Lean and Six Sigma link is important and has been the focus of diverse studies. Indeed, Lean Six Sigma or just-in-time goal aims to reduce as maximum as possible the stocks and outstandings. However, the Six Sigma objective is to eliminate variations and have as output coherent finished products without defects. It seeks to identify the defects, determine the causes, and eliminate them. Thus, we can state that both methods are complementary and independent. Undeniably, a process can be Lean, but it has a rate of change at the output, or it can have a rate of change at the output under control and is not Lean. Consequently, the Lean Six Sigma crosses simultaneously the Lean and Six Sigma advantages which give it a major substance.

#### **4.2 Conclusion**

This chapter is a prerequisite to understand the Lean Six Sigma specificities. It started by a brief explanation of performance concept, dimensions, and indicators in order to facilitate the second section, the assessment of the link between performance and Lean Six Sigma metrics.

Section 3 outlines the main Lean Six Sigma tools, objectives, and impact. It allows the improvement of the process capability by reducing defects and wastes which consequently impact positively on the company performance, outcomes, customer satisfaction, and loyalty. Also, it offers a highlight of the success steps for Lean Six Sigma project integration.

Studying the link between Lean Six Sigma and performance is precious. In terms of assessing the impact of Lean Six Sigma on organizational performance or in order to assess the factors that affect the company business performance, it is not advised to presume these factors on the financial evidence but to focus in the other factors that can have a relevant impact on Lean Six Sigma outcomes.

**117**

*Lean Six Sigma and Performance Metrics DOI: http://dx.doi.org/10.5772/intechopen.85815*

**5. Research implications and future direction**

image, and bringing new stakeholders and investment.

or complementarity.

**Author details**

Kaouthar Lamine

The originality of this chapter resides on its focus on the surroundings of Lean Six Sigma. Hence, regarding the lack of academics and empirical studies investigating in depth the real features of Lean Six Sigma, this chapter offers the chance of stressing the advantages and illuminating the Lean Six Sigma-specific concepts and tools. From a managerial point of view, revealing a brief distinction between Six Sigma, Lean, and Lean Six Sigma can facilitate the decision for professionals hesitating to implement such methods within their quality management system. Also, the LSS is an available quality method in both manufacturing and service companies (as healthcare, financial, engineering) which attract the interest of the executives in the

The implications of Lean Six Sigma are varied and touch diverse stages and area as well as the internal and external environment. Generally, it has positive repercussions on the product quality, enhancing customer satisfaction, faithfulness, and consistency, improving the business incomes, competitiveness, ameliorating its

This chapter can be a useful support for future researches interested in this filed. Therefore, future studies can focus in the assessment of LSS challenges and weakness in diverse sectors or develop comparative studies between LSS and other quality methods as Six Sigma, in order to seek out their similarities, dissimilarities,

Department of Management, Higher Institute of Management of Sousse, Tunisia

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

\*Address all correspondence to: kaouthar.elamine@gmail.com

provided the original work is properly cited.

effectiveness way of Lean Six Sigma project integration in diverse sectors.

*Lean Manufacturing and Six Sigma - Behind the Mask*

Montgomery and Woodall affirm that in "Aligning projects with both business-

Tenera and Pinto's work provides a project management improvement of Lean Six Sigma in order to facilitate its development by reducing the potential problems (see [31]). One of the chief challenges of Lean Six Sigma implementation program is to succeed in the selection of the organization project, insuring the suitable

It is important to know that Lean Six Sigma is not only a quality method for improving process and reducing costs. It is also an approach for engaging and implicating all the employees to achieve business goals, as well as to learn how to improve the effectiveness and efficiency of the company. Thus, this quality method develops the empowerment of employees and the share of

The Lean Six Sigma has positive repercussions in different levels, as social (company social responsibilities) and financial (boost of returns and profits) impact, employee empowerment (continuous training and culture), process improvement (reduce of process variability, wastes, defects), amelioration of product quality and efficiency, enhancement of customer satisfaction, and amelioration of competitive-

Furthermore, the assessment of Lean and Six Sigma link is important and has been the focus of diverse studies. Indeed, Lean Six Sigma or just-in-time goal aims to reduce as maximum as possible the stocks and outstandings. However, the Six Sigma objective is to eliminate variations and have as output coherent finished products without defects. It seeks to identify the defects, determine the causes, and eliminate them. Thus, we can state that both methods are complementary and independent. Undeniably, a process can be Lean, but it has a rate of change at the output, or it can have a rate of change at the output under control and is not Lean. Consequently, the Lean Six Sigma crosses simultaneously the Lean and Six Sigma

This chapter is a prerequisite to understand the Lean Six Sigma specificities. It started by a brief explanation of performance concept, dimensions, and indicators in order to facilitate the second section, the assessment of the link between perfor-

Section 3 outlines the main Lean Six Sigma tools, objectives, and impact. It allows the improvement of the process capability by reducing defects and wastes which consequently impact positively on the company performance, outcomes, customer satisfaction, and loyalty. Also, it offers a highlight of the success steps for

of assessing the impact of Lean Six Sigma on organizational performance or in order to assess the factors that affect the company business performance, it is not advised to presume these factors on the financial evidence but to focus in the other

factors that can have a relevant impact on Lean Six Sigma outcomes.

Studying the link between Lean Six Sigma and performance is precious. In terms

unit goals and corporate-level metrics helps ensure that the best projects are

considered for selection strategic business objectives" (see [30]).

identification of the critical-to-quality characteristics.

**4. Discussion and conclusions**

**4.1 Discussion**

responsibilities.

ness and brand image.

**4.2 Conclusion**

advantages which give it a major substance.

mance and Lean Six Sigma metrics.

Lean Six Sigma project integration.

**116**

## **5. Research implications and future direction**

The originality of this chapter resides on its focus on the surroundings of Lean Six Sigma. Hence, regarding the lack of academics and empirical studies investigating in depth the real features of Lean Six Sigma, this chapter offers the chance of stressing the advantages and illuminating the Lean Six Sigma-specific concepts and tools.

From a managerial point of view, revealing a brief distinction between Six Sigma, Lean, and Lean Six Sigma can facilitate the decision for professionals hesitating to implement such methods within their quality management system. Also, the LSS is an available quality method in both manufacturing and service companies (as healthcare, financial, engineering) which attract the interest of the executives in the effectiveness way of Lean Six Sigma project integration in diverse sectors.

The implications of Lean Six Sigma are varied and touch diverse stages and area as well as the internal and external environment. Generally, it has positive repercussions on the product quality, enhancing customer satisfaction, faithfulness, and consistency, improving the business incomes, competitiveness, ameliorating its image, and bringing new stakeholders and investment.

This chapter can be a useful support for future researches interested in this filed. Therefore, future studies can focus in the assessment of LSS challenges and weakness in diverse sectors or develop comparative studies between LSS and other quality methods as Six Sigma, in order to seek out their similarities, dissimilarities, or complementarity.

## **Author details**

Kaouthar Lamine Department of Management, Higher Institute of Management of Sousse, Tunisia

\*Address all correspondence to: kaouthar.elamine@gmail.com

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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[2] Snee RD. Lean six sigma-getting better all the time. International Journal of Lean Six Sigma. 2010;**1**(1):9-29

[3] Ping Yi T, Jeng Feng C, Prakash J, Wei Ping L. Reducing electronic component losses in lean electronics assembly with six sigma approach. International Journal of Lean Six Sigma. 2012;**3**(3):206-230

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[6] Debiens J. Comment augmenter la productivité dans le secteur public. Revue de gestion; 1988

[7] Venkatraman N, Ramanujam V. Measurements of business performance in strategy research: A comparison of approaches. Academy of Management Review. 1986;**11**(4):801-814

[8] Abdi AM, Ali AYS. Innovation and business performance in telecommunication industry in sub-Saharan African context: Case of Somalia. Asian Journal of Management Sciences and Education. 2013;**2**(4):1-17

[9] Seashore SE, Yutchman E. Assessing organizational effectiveness with reference to member needs. In: Meetings of the Academy of Management. Atlanta, GA; 1967

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*Lean Six Sigma and Performance Metrics DOI: http://dx.doi.org/10.5772/intechopen.85815*

[18] Berrah L, Mauris G, Haurat A, Foulloy L. Global vision and

[19] Kaplan R, Norton D. Using the balanced scorecard as a strategic management system. Harvard Business

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[21] Lakhal L, Pasin F, Limam M. Quality management practices and their impact on performance. International Journal of Quality & Reliability Management.

[22] Salaheldin IS. Critical success factors for TQM implementation and their impact on performance of SMEs. International Journal of Productivity and Performance Management.

[23] Marques PAA, Matthé R. Six sigma DMAIC project to improve the performance of an aluminum die casting operation in Portugal. International Journal of Quality & Reliability Management. 2017;**34**(2):307-330

[24] Devane T. Integrating Lean Six Sigma and High-Performance Organizations: Leading the Charge toward Dramatic, Rapid and Sustainable Improvement, Pfeiffe;

[25] George M, Rowlands D, Price M, Maxey J. The Lean Six Sigma Pocket Toolbook: A Quick Reference Guide to 100 Tools for Improving Quality and Speed. New York: McGraw-Hill; 2005

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[27] Raisinghani MS, Ette H, Pierce R, Cannon G, Daripaly P. Six sigma: Concepts, tools, and applications. Industrial Management & Data Systems.

[28] Jayaraman K, Kee TL, Soh KL. The perceptions and perspectives of lean six sigma (LSS) practitioners: An empirical study in Malaysia. The TQM Journal.

[29] Jones EC, Parast ML, Adams SG. A framework for effective six sigma implementation. Total Quality

Management and Business Excellence.

[30] Montgomery DC, Woodall WH. An overview of six sigma. International Statistical Review. 2008;**76**(3):329-346

[31] Tenera A, Pinto C. A lean six sigma (LSS) Project Management improvement model. Procedia-Social and Behavioral Sciences.

2005;**105**(3/4):491-505

2012;**24**(5):433-446

2010;**21**(4):415-424

2014;**119**:912-920

*Lean Six Sigma and Performance Metrics DOI: http://dx.doi.org/10.5772/intechopen.85815*

[18] Berrah L, Mauris G, Haurat A, Foulloy L. Global vision and performance indicators for an industrial improvement approach. Computers in Industry. 2000;**43**(3):211-225

[19] Kaplan R, Norton D. Using the balanced scorecard as a strategic management system. Harvard Business Review. 1996;**1**(7):75-85

[20] Subramanian A, Nilakanta S. Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance, omega. International Journal of Management Science. 1996;**24**(6):631-647

[21] Lakhal L, Pasin F, Limam M. Quality management practices and their impact on performance. International Journal of Quality & Reliability Management. 2006;**23**:625-646

[22] Salaheldin IS. Critical success factors for TQM implementation and their impact on performance of SMEs. International Journal of Productivity and Performance Management. 2009;**58**(3):215-237

[23] Marques PAA, Matthé R. Six sigma DMAIC project to improve the performance of an aluminum die casting operation in Portugal. International Journal of Quality & Reliability Management. 2017;**34**(2):307-330

[24] Devane T. Integrating Lean Six Sigma and High-Performance Organizations: Leading the Charge toward Dramatic, Rapid and Sustainable Improvement, Pfeiffe; 2004

[25] George M, Rowlands D, Price M, Maxey J. The Lean Six Sigma Pocket Toolbook: A Quick Reference Guide to 100 Tools for Improving Quality and Speed. New York: McGraw-Hill; 2005

[26] Brook Q. Lean Six Sigma and Minitab: The Complete Toolbox Guide for all Lean Six Sigma Practitioners. 3rd ed. Hampshire: Opex Resources; 2010

[27] Raisinghani MS, Ette H, Pierce R, Cannon G, Daripaly P. Six sigma: Concepts, tools, and applications. Industrial Management & Data Systems. 2005;**105**(3/4):491-505

[28] Jayaraman K, Kee TL, Soh KL. The perceptions and perspectives of lean six sigma (LSS) practitioners: An empirical study in Malaysia. The TQM Journal. 2012;**24**(5):433-446

[29] Jones EC, Parast ML, Adams SG. A framework for effective six sigma implementation. Total Quality Management and Business Excellence. 2010;**21**(4):415-424

[30] Montgomery DC, Woodall WH. An overview of six sigma. International Statistical Review. 2008;**76**(3):329-346

[31] Tenera A, Pinto C. A lean six sigma (LSS) Project Management improvement model. Procedia-Social and Behavioral Sciences. 2014;**119**:912-920

**118**

*Lean Manufacturing and Six Sigma - Behind the Mask*

[10] Lorino P. Méthodes et Pratiques de la Performance. Edition d'organisation

[11] Neely A, Gregory M, Platts K. Performance measurement system design: A literature review and research

agenda. International Journal of

[12] Moullin M. Performance measurement definitions: Linking performance measurement and

Journal of Health Care Quality Assurance. 2007;**20**(3):181-183

The role of performance measurement and evaluation in building organizational capabilities and performance. Accounting, Organizations and Society.

2010;**35**(7):689-706

Operations & Production Management.

organizational excellence. International

[13] Grafton J, Lillis AM, Widener SK.

[14] Arumugam V, Ooi KB, Fong TC. TQM practices and quality management performance an investigation of their relationship using data from ISO 9001: 2000 firms on Malaysia. The TQM Magazine. 2008;**20**(6):636-650

[15] Deshpande A. Supply chain management dimensions, supply chain performance and organizational performance: An integrated framework. International Journal of Business and

[16] Feng J, Prajogo D, Tan K, Sohal A. The impact of TQM practices on performance: A comparative study between Australian and Singaporean organizations. European Journal of Innovation Management.

[17] Scodanibbio C. The Essential Toolbox for Performance Measurement and Monitoring in the ME. WCP

Management. 2012;**7**(8)

2006;**9**(3):269-278

2008. pp. 1-23

Paris; 2003. p. 552

1995;**15**(4):80-116

[1] Albliwi SA, Antony J, Limhalim SA. A systematic review of lean six sigma for the manufacturing industry. Business Process Management Journal.

[2] Snee RD. Lean six sigma-getting better all the time. International Journal of Lean Six Sigma. 2010;**1**(1):9-29

[3] Ping Yi T, Jeng Feng C, Prakash J, Wei Ping L. Reducing electronic component losses in lean electronics assembly with six sigma approach. International Journal of Lean Six Sigma.

Organizational life cycles and shifting

[5] Cameron KS. Measuring organization effectiveness in institutions of higher education. Administrative Science

[6] Debiens J. Comment augmenter la productivité dans le secteur public.

[7] Venkatraman N, Ramanujam V. Measurements of business performance in strategy research: A comparison of approaches. Academy of Management

[8] Abdi AM, Ali AYS. Innovation and business performance in telecommunication industry in sub-Saharan African context: Case of Somalia. Asian Journal of Management Sciences and Education. 2013;**2**(4):1-17

[9] Seashore SE, Yutchman E. Assessing organizational effectiveness with reference to member needs. In: Meetings

of the Academy of Management.

Atlanta, GA; 1967

2015;**21**(3):665-691

**References**

2012;**3**(3):206-230

[4] Quinn RE, Cameron KS.

Science. 1983;**29**(1):33-51

Quarterly. 1978;**23**:604-632

Revue de gestion; 1988

Review. 1986;**11**(4):801-814

criteria of effectiveness: Some preliminary evidence. Management

**121**

**Chapter 9**

**Abstract**

*Marcio B. Santos*

cesses and achieve the results.

innovation, reliability, strategies

**1. Why integrate?**

of processes and products.

The Integration of Six Sigma and

The Lean Manufacturing and Six Sigma methodologies are increasingly being executed together and what we have today is the united work of both, and companies have come to understand that their integration makes it possible to take advantage of the strengths of both strategies, becoming a comprehensive and effective, suitable for solving various types of problems related to the improvement of processes and products. Routine management, process standardization and the study of times and movements to eliminate waste are key features of Lean Manufacturing, while finding the root cause for problem solving requires further deepening and analysis in Six Sigma. The Lean and Six Sigma can be viewed as useful tools for the operation of the systems of improvement, innovation and routine management that integrate the system of business management. The companies have implemented Lean Manufacturing with the aim of improving the elimination of waste in the processes. Companies using Six Sigma have found that by selecting projects and assigning them to teams, after a monitoring, the results would appear. Companies that implement Lean Six Sigma often awareness of the teams, seeking projects from different scopes with the focus of improving the structure of pro-

**Keywords:** lean manufacturing, reference models, measurement systems evaluation,

The Lean Manufacturing and Six Sigma methodologies are increasingly being executed together and what we have today is the united work of both, and companies have come to understand that their integration makes it possible to take advantage of the strengths of both strategies, becoming a comprehensive and effective, suitable for solving various types of problems related to the improvement

Routine management, process standardization and the study of times and movements to eliminate waste are key features of Lean Manufacturing, while finding the root cause for problem solving requires further deepening and analysis in Six Sigma. The Lean and Six Sigma can be viewed as useful tools for the operation of the systems of improvement, innovation and routine management that integrate the system of business management. For this reason, they are considered reference models. Santos et al. [1] points out that based on evidence about the potential of best practice approaches, different actors worldwide have been proposing and promoting different reference models. In general, these models serve as references

Lean Manufacturing

### **Chapter 9**
