A framework for the impact of lean six sigma on supply chain performance in manufacturing companies

Abstract

Abstract The use of lean six sigma in manufacturing industry has been more intense in the past decade. This method comprises two concepts: lean and six sigma, each with its own objectives. Lean is a concept that aims to optimize the value stream process by eliminating all kind of waste. Meanwhile, the goal of six sigma is to increase process capability in the value stream by aiming for zero defects and reduced process variation. The supply chain performance of manufacturing companies is determined by the ongoing internal activities reflected in the value stream, therefore both lean and six sigma applications are hypothesized to have an impact on the performance. Based on the reviewed literature, this study aims to produce a framework that can be used to explain the impact of lean and six sigma on supply chain performance. In the proposed framework, lean indicators are reflected in just-in-time, quality management and employee involvement, whereas six sigma indicators are characterized by the six sigma variables. At the other end of the equation, supply chain performance is defined by four constructs which are supplier selection, production, delivery and logistic performance, and warehouse.