Critical Success Factors of Lean Six Sigma Implementation in Malaysian Manufacturing SMEs

Abstract

The manufacturing industry identifies Lean Six Sigma as the most effective quality management method attempt to provide products with a better value and lowest cost as well as improving the organization performance. Yet, its implementation in small and medium sized organizations is still at an early stage. Recognizing the severe global competition encountering Malaysian market and the influential role of SMEs in enhancing Malaysian economy, there is a need to emphasize the ability of manufacturing SMEs in achieving perfection and excellence in all operational dimension including Quality Management. There are various factors impact directly the successful implementation of Lean Six Sigma in Malaysian manufacturing SMEs in order to meet the customers satisfaction and the SMEs profitability and growth. The purpose of this paper is to explore the critical success factors for implementing Lean Six Sigma successfully in Malaysian manufacturing SMEs and identify its direct impact on Malaysian SMEs growth and profitability. Hence, this research is used both exploratory (interviews) and empirical (questionnaire) methods to identify the significant critical success factors for adopting Lean Six Sigma in Malaysian manufacturing SMEs. The research outcome stated six critical Success Factors and one moderator (adoption readiness) as the significant factors which impact the Malaysian manufacturing SMEs’ performance.