Critical Success Factors (CSFs) for Lean Six Sigma (LSS) implementation and its impact on the performance of Electronic Manufacturing Services (EMS) industries
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Date
2010
Authors
Teoh, Leam Kee
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Abstract
Many multinational EMS industries such as Flextronics, Jabil, Celestica, Plexus,
Venture and SCI Sanima have set up their site operation plants in Asia, America and
Europe. These EMS industries have provided outsourcing platform for the OEM
industries to outsource their products for cost reduction. LSS is among the programs
recognized by the EMS industries for cost reduction. Anyhow, there are a lot of
factors are affecting the success of LSS program. The objective of this study is to
analyze the critical success factors (CSFs) for LSS implementation and its impact
towards company performance of EMS industries. This study employed quantitative
survey with structured questionnaires. The population of this study will be six
multinational EMS companies (Flextronics, Jabil, Celestica, Plexus, Venture and SCI
Sanmina), which are implementing LSS program and having multiple sites operating
in Malaysia and across worldwide. Each site will be sending out four questionnaires
in softcopy through email and targeted to site LSS practitioners such as MBBs, BBs
and LSS Champions. This research studies the role of nine CSFs for LSS
implementation success. Of these CSFs, management engagement and commitment,
effective LSS training program, established LSS dashboard, frequent communication
and assessment on LSS result are found to be statistically significant and affecting
LSS implementation success. The moderating effect of organization belief and culture
is also being found insignificant. This research model serve as a practical guide,
managerial implication and limitations of the study are highlighted and further
research directions are also suggested.
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Keywords
Business Administration , Critical Success Factors (CSFs) , Lean Six Sigma (LSS) , Electronic Manufacturing Services (EMS)