Evaluation of the Implementation of Lean Six Sigma: The Case of Shama PLC

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Date

2008-04

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A.A.U

Abstract

The prevailing assumption is that most private businesses in Ethiopia are being run with the use of few, if any, measurement and assessment tools. Therefore, it is almost impossible for any business to measure its effectiveness, since there are no benchmarks for comparison. Creating mechanisms for measurements and analysis is becoming necessary to improve the performance of an organization . The objective of this project is to evaluate the impact of the application of Lean Six Sigma principles to Shamanic, thereby proving that Six Sigma is actually applicable and, indeed, necessary for the growth of private businesses in Ethiopia. The paper evaluated the implementation of Lean six sigma (LSS) with regard to the company's processes by analyzing the company's activities using DMAIC ( Define, Measure, Analyze, improve and Control) tools of Lean Six Sigma . It mainly focused on the processes related to products and customers. The questionnaire responses and the documents of the company were analyzed to see the impacts of LSS application . Questionnaires, Data analysis tools like figures, tables, Ratios and percentages have been used to arrive at the standardized sigma level of the company. Analysis of the results show that Shame’s Sigma level is "2" Six Sigma with a yield of 70% performance level. The result of the report suggests that there is room for Shame to improve and reach "3" or "4" Six Sigma Level, which is the level of most of internationally standardized companies. If Shama undertakes market research to asses its market share & segments of customers, and brings books as per the specification of customer demand it can increase its Sigma Level since not knowing its market Share and target market is one of the drawbacks of the company. To increase its performance Shama should also have proper follow up of its policies and procedures, which were used in the application of LSS. Employee related issues has not yet been addressed properly which has also resulted in the low level of Six Sigma .

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Keywords

Implementation, Lean Six Sigma

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