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