Evaluation of the Implementation of Lean Six Sigma: The Case of Shama PLC
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Date
2008-04
Authors
AbduljeIiI Neima
Journal Title
Journal ISSN
Volume Title
Publisher
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