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1 Towards an Integrated Framework for Lean Six Sigma Application: Lessons from the Airline Industry December 2010 Alexandros G. Psychogios* Senior Lecturer on Management & HR – Academic Research Coordinator City College, International Faculty of the University of Sheffield The University of Sheffield E-mail: [email protected] Loukas K. Tsironis Lecturer in Management Systems Technical University of Crete E-mail: [email protected] Alexandros Galiatatos, Quality Systems Expert City College, International Faculty of the University of Sheffield The University of Sheffield E-mail: [email protected] *Corresponding Author

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Page 1: Towards an Integrated Framework for Lean Six Sigma ... · Towards an Integrated Framework for Lean Six Sigma Application: Lessons from Airline Industry Abstract By following a qualitative

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Towards an Integrated Framework for Lean Six Sigma Application:

Lessons from the Airline Industry

December 2010

Alexandros G. Psychogios*

Senior Lecturer on Management & HR – Academic Research Coordinator

City College, International Faculty of the University of Sheffield

The University of Sheffield

E-mail: [email protected]

Loukas K. Tsironis

Lecturer in Management Systems

Technical University of Crete

E-mail: [email protected]

Alexandros Galiatatos,

Quality Systems Expert

City College, International Faculty of the University of Sheffield

The University of Sheffield

E-mail: [email protected]

*Corresponding Author

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Towards an Integrated Framework for Lean Six Sigma Application:

Lessons from Airline Industry

Abstract

By following a qualitative methodological approach, this article aims to investigate the

critical factors influence the application of Lean Six Sigma (L6σ) in an airline company.

Secondary data were collected through an analysis of company’s written procedures

and quality assurance policies. In addition, primary data were collected through a

number of interviews with managers. Findings suggest that there are particular factors

that influence the implementation of L6σ like Leadership & Strategic Orientation,

Quality-Driven Organizational Culture, Continuous Training, Teamwork, Customer

Satisfaction, and Technical Systems. This study supports the view that the above factors

are not only significant for L6σ application but, also, can be seen as a useful

investigation tool in potential application of it. This article has four major contributions.

Firstly, it expands our understanding regarding the implementation of L6σ in service

industry, by exploring the interrelationship of both positive and negative factors

affecting its application. Secondly, it focuses on the responses of managers, who always

play the most significant role in the adoption sophisticated management practices.

Thirdly, it explores L6σ application in an airline service industry, which seems to be

neglected by the current literature. Finally, it provides future studies with an integrated

framework of L6σ application that can be further tested and developed.

Type of Article: Research Paper

Key words: Lean Six Sigma, Organizational Factors, Managers, Quality Assurance, Airline

Industry

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Introduction

It is argued that traditional management tools and mentalities cannot cope effectively

and efficiently with current business demands (Itkin, 2008; Chee, 2008). This is the

reason that large industrial entites continuously develop and implement management

tools and systems (Saravanan, 2006; Chang, 2006). However, whether organizations in

different sectors and different places with different cultures can really adopt promising

quality management practices is still under investigation. A prime example of such

promisng practices is Six Sigma (6σ) and Lean Manufacturing/Management (LM). After

its first application and success in Motorola during the 1990s, 6σ seems to be

considered as one of the most well-recongnized and successful management tools

(Industrial Engineer, 2008). In addition LM was adopted by many companies as it

focused on eliminating waste in production for a better flow of the manufacturing

process (McManus, 2008).

6σ and LM have different orientations and practices and for many years were

seen apart. Nevertheless, during the last decade the Lean Six Sigma (L6σ) concept

appeared as a synthesis of the two. According to Vince (2008) L6σ is a nessesity in order

to cope with globalization demands and modern market needs. It can be considered

another evolution of management tools in order to face increased competition and

market shifts (Caldwell, 2006). However, similarly to other management tools, the main

question for L6σ is related to its liabilities and/or constrains regarding its

implementation in different organizational and sector contexts. It has been confirmed

that the application of operations management techniques is not only based on

technical factors, but it is mainly associated with organisational factors such as culture,

previous polices and procedures, etc (Tata and Prassad, 1998; Hope and Mϋhlemman,

2001; Noronha, 2002 and 2003; Psychogios & Wilkinson, 2007). Therefore, this article

seeks to investigate issues related to the application of L6σ. In particular, this paper

analytically explores the factors that seem to influence L6σ implementation in an airline

company. In this respect, the article is structured in five sections. The first section,

reviews the current literature related to L6σ emergence and application while the

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second one focuses on the airline industry. The third section, explains the research

methodology applied while the fourth one analyses the main findings. A discussion of

results is occurred in the fifth section.

Lean Six Sigma: from emergence to application

Emergence

LM involves the speed of the process and how products can be delivered quicker to

customers by eliminating waste involved in manufacturing and also by using fewer

materials in the actual assembly of the products (Cooper, 2008; Lane, 2008). LM focuses

primarily on speed and diminishing the materials used in the process of manufacturing

(Ferguson, 2007). It provides a set of tools in order to distinguish which part of the

production process creates value and which does not. Afterwards, it attempts to

eliminate the non-value adding parts or to reduce waste in all of the production

processes (Lane, 2008; Ferguson, 2007). On the other hand, 6σ is a quality assurance

programme that seeks to eliminate variations in the production process and, thus

delivering better outcomes. The method implies that the manufacturing process can be

measured, controlled and improved also by applying statistical process control. The

involvement of the whole company is extremely important in 6σ especially from the top

of the organization (Chang-Tseh, 2007). 6σ focuses on eliminating defects as defined by

the customers and creating a significant infrastructure in the company, based on

decision making, for efficient problem solving. It also creates a strong cultural

infrastructure as people are involved in the process of obtaining sustainable results

(Martin, 2007; Nash et al, 2006).

Beyond the positive results that can be achieved in each case, LM cannot bring a

process under statistical control, while 6σ alone cannot dramatically improve the speed

of the production process and reduce invested capital (Carreira, 2005). A combination

between the two methods is required, as by adopting them separately does not

response entirely effective to the problems that today’s companies (Kumar et al, 2006).

The two concepts are complementary since a company cannot be focused just on the

speed or on quality assurance (Ferguson, 2007). In this respect, L6σ concept emerged as

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a balanced approach between the two concepts, attempting to create a synergy

between their functionalities (Arnheiter et al, 2005; Ferguson, 2007) and create extra

value to organizations. In other words, L6σ integrates 6σ and LM processes, where lean

aims on cycle time and waste elimination while 6σ seeks to eliminate defects and

reduce variation (Thompson, 2005 and Lubowe and Blitz, 2008). As figure 1 shows while

6σ and LM use different methodologies and principles, at the same time they have

complementary effects. In other words, both can be integrated under the notion of L6σ,

which emphasises the production/service delivery improvement as well as the

transactional processes of an organization.

Take in Figure 1

Moreover, L6σ seems to directly related to TQM rhetoric, since suggests an

ongoing management of quality process in order to achieve continuous improvement

(Ulrich and Smallwood, 2007; Schonberger, 2008). As George (2002) argues L6σ is a

continuous business improvement methodology that maximizes shareholder value by

achieving the fastest rate of improvement in customer satisfaction, cost, quality, process

speed, and invested capital. It is a very rigorous and strict process that needs to be

followed and it has a strong influence on the people using it. Similarly, Brett and Queen

(2005) support the view that L6σ takes the most while operating with less.

Characteristics of this methodology are taking full advantage of value added essence

(Arnheiter and Maleyeff, 2005), boosting rapidity, diminishing waste, developing

eminence and executing changes (Brett and Queen, 2005). Finally, according to Arthur

(2006), the main goals of the model is: to double the speed without working harder; to

double quality by reducing defects and variation by 50% and more; and to cut cost and

boost profits. Beyond these views though, what is more interesting is the application of

such a practice.

Application

L6σ methodology is not a standardized procedure so it can be used in various sectors.

Also, according to the literature (Pande, et al. 2000; Cross, 2007; Dreachslin, 2007;

Froehling, 2008) there are variety of methods used in order to apply the L6σ, but the

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most characteristic is the DMAIC (Define, Measure, Analyze, Improve, Control) model.

There are several sectors and industries where L6σ has been applied. Most of the

examples are coming from the private sector, but there are some benchmarking cases in

the public one as well (Naslund, 2008; Byrne et al, 2007; Brett and Queen, 2005; Welty,

2004).

The pioneer of the application of L6σ was General Electic (GE). Firstly through

different departments and after through the whole company making it a way of thinking

(Kamensky, 2008), GE achieved a high success rate in applied such a synthesised

approach. Another company implementing the system is Xerox, which has made

tremendous cost and waste cuts increasing profits (Xerox, 2008). Same resluts can be

seen in Solectron, since the waste from 16% reduced to 9% (Solectron, 2008). Also,

according to Lubowe and Blitz, (2008) through the adoption of L6σ, Catepillar Inc

created a strategic vision for transformations based on fact-analysis; BOSCO, a Korean

steel maker, placed itself into the global market providing improved steel goods and

services; and Scottish Power discovered its problems and reorganized the customer

service process. Moreover, Celestica, a company in Mexico has applied L6σ in the

equipment selection process making, which affected possitvelly its operations overall

(Harbert, 2006).

Furthrmore, there are few examples from the application of L6σ in service

industry, both public and private. For example, there are evidence of the succesfull

application of L6σ in military organizations, like the US Army (Cross, 2007; Furterer and

Elshennawy, 2005). Also, there are examples of health-care services (Al-Aomar, 2007) as

well as local government organisations that applied L6σ (Furterer and Elshennawy

2005). In airline services while there are many examples of companies applying 6σ (Us

Airways Group, Air Canada, British Airways, Japan Airlines, Emirate Airlines, etc), there

less of L6σ implementation. According to Hamilton (2007) in airline industry 6σ which is

oriented on statistcs and data analysis fits better in mainntenance and baggage handling

wile LM is a more focused on actually improving processes. However, there are some

examples of airline companies that applied L6σ, like Southwest Airlines (Hamilton,

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2007). However, there are not enough evidence form this industry. Beyond the above

cases, where L6σ have been applied, few authors explored the critical factros (CFs) that

influence L6σ implemetnation.

Critical Factors in L6σ Application

Cfs of L6σ application could be categorized as facilitators or inhibitors, according to their

impact on the implementation process itself. While facilitators have positive impact and

enhance the process, the inhibitors are considered as barriers to successful

implementation. Also, CFs could be grouped as institutional or contextual, according to

their structure and characteristics. Though institutional factors are very important and

usually applied in all types of organizations and sectors, this study will focus on

contextual factors, which are organization-oriented (culture, procedures, other

management practices applied) and industry-specific (services or manufacturing).

Moreover, in exploring the literature of CFs influence L6σ implemetnation, two major

aspects can be distinguished. The management-oriented aspect and the HR-orineted

one. The former is associated with factors like organisation strategy, customer

satisfaction and selection and management of projects. The latter is related to issues

like leadership, quality-driven culture, training and teamwork.

Management-oriented CFs

Lubowe and Blitz (2008) state that L6σ must be integrated as part of the corporate

strategy development in order the process of making long-term change to be treated

seriously and to be accepted by the organization. Therefore, L6σ application should be

strategically-driven. The scope of the L6σ application needs to be strong and widely

adopted since L6σ system can align separate business units and influence relationships

between customers and suppliers (Lubowe and Blitz, 2008). The need of binding L6σ

with corporate strategy will be reflected on the adoption of significant changes.

Incorporating the principles of the continuous improvement into the business strategy

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links the success of the entire organization and initiative together (Fornari and Maszle,

2004). Antony et al (2007) link L6σ with business strategy as the most important factor

for successful deployment in service organizations. In order organization’s strategic

goals to be supported by the selected projects, L6σ should be aligned with the

organization’s strategic programs. Moreover, according to Kamensky (2008) a successful

application of L6σ system based on three major principles: creating an infrastructure;

implementing the technical approaches on separate projects; and ensuring application.

By developing a L6σ infrastructure, managers must understand the importance of the

initiatives and include the staff in the procedure. They must concentrate on being more

data-driven and outcomes-oriented and empower the whole company involvement with

trained leaders for each business unit.

Also, in order L6σ to be recognized and accepted within the organization in the

early stages and the immediate effects from successful implementation to be felt, the

process of selection and management of the right project is considered to be very

important (Antony et al, 2004; Laosirihongthong et al, 2006). Breyfogle (2008)

emphasized the importance of this factor using failure cases where L6σ led to process

sub-optimization and poorer outcomes due to not adequate selection of L6σ projects

that did not take into account overall enterprise constraints, usually done by an entity

separate from involved operation and business units. In addition, significance is

supported by the fact that business customers needs must be in the focus of the project

selection process conducted by a rigorous approach if the company is about to achieve

short- and long-term results (Ladhar, 2007).

The third management-oriented CF of L6σ is customer satisfaction. The increase

of the responsiveness to customer’s needs and faster delivery of customer’s demands

(Antony et al, 2003), are the real reasons behind customer’s dissatisfaction and

defection (Lubowe and Blitz, 2008). These are also reported as the most important

benefits from L6σ application in service organizations (Antony et al, 2007). In addition,

Andel (2007) supports the view that organizations in order to implement into their

systems the L6σ approaches must change their way of thinking and pay more attention

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in any customer related issues. In particular, he supports the view that there is a need,

firstly, to analyze the data according to customers’ opinion; secondly, to concentrate on

incomes and not on costs; and thirdly, instead of looking for outside solutions, they

should try to their own problem-solving abilities.

HR-oriented CFs

Committed leadership is considered to be one of the most important factor for

successful implementation of a TQM-oriented holistic framework (Psychogios, 2010;

Psychogios and Priporas, 2007; Wali et al, 2003), 6σ approach (Laosirihongthong et al,

2006; Antony and Fergusson, 2004), and L6σ integrated concept (Lubowe and Blitz,

2008; Anthony et al, 2003; Carleysmith, 2009). For instatnce, Lubowe and Blitz (2008)

claim that companies by aiming to apply L6σ into their systems should emphasise

leadership by the top-management of the organization, which needs to be highly

engaged and committed in the L6σ change process. This factor could be defined as a

core element, as it is directly and indirectly connected to all other factors, categorized as

facilitator and institutional factor, recognized as a basic ‘driving force’. Strong leadership

towards L6σ application could successfully initiate and manage the inevitable long-term

cultural changes (Laosirihongthong et al, 2006; Maleyeff, 2007; Stuenkel and Faulkner,

2009; Carleysmith et al, 2009; Ladhar, 2007), through providing and ensuring

organization-wide perception of the initiative importance and keeping ‘the energy’

(Anthony et al, 2003), bringing recognition and motivation of the employees to apply

procedures and techniques that guarantee high level of quality (Psychogios et al, 2009),

and supporting more effective and much faster transformation towards higher degree

of innovation (Lubowe and Blitz, 2008; De Koning et al, 2006). Committed leadership

should be introduced through company-wide deployment (Kamensky, 2008),

accompanied by building trust and communication of the vision to all stakeholders

(Maleyeff, 2007; Carleysmith et al, 2009; Ladhar, 2007; Kumar et al, 2006).

Committed leadership is also related to Quality-driven Organizational Culture,

which is a prerequisite for implementation of any quality philosophy, approach or

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methodology as a quality systems implementation success is directly dependable on the

level of integration of all employees in all organizational aspects (Psychogios et al,

2009). Furthermore, quality systems require cultural change that emphasizes

continuous improvement and customer satisfaction (Furterer and Elshennawy, 2005;

Maleyeff, 2007). Moreover, it inclines the changes of the system towards innovation

(Lubowe and Blitz, 2008; De Koning et al, 2006; De Koning et al, 2008) and supports the

ability of the organization to overcome the barriers and challenges they face during the

deployment and implementation phases (O’Rourke, 2005).

Other group of authors emphasised the need for HR practices in implementing

L6σ, such as training and teamwork. Anthony et al (2003) state that advanced level of

education and training is required for implementing L6σ. Moreover, L6σ training has to

be provided in several stages in order everything to be understood properly (Ladhar,

2007; Caldwell, 2006). These kind of specific training programs require allocation of

major budgets (Antony et al, 2004; Delgado et al, 2009).Moreover, education and

training is related to peoples’ involvement as well. According to Neuhaus and Guarraia,

(2007) companies by putting strong players, on the L6σ application process, that are

trustworthy and reliable can have more proper outcome. Also, by implementing simple

metrics and checking often the progress, any issues or opportunities can be identified

faster and easier. Finally, according to the same authors in order organizations to ensure

that the high-value opportunities are taking into account should promote teamwork in

their boundaries.

In conclusion, there is some literature that suggests factors like leadership,

strategic orientation, teamwork, technical approaches (metrics-systems), and training

will probably affect L6σ application. All the above are complemented by a strong

organizational culture which emphasises on quality improvement and customer

satisfaction. However, the in-depth exploration of the interrelationship of these CFs

seems to be neglected by the literature. In other words, there is not yet an attempt to

develop an integrated framework that can contribute to our understanding regarding

the implementation phase of L6σ. Therefore, there is a need to remove the blinkers, and

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to explore the existence of such a framework in an organizational context. In this

respect, the present study attempts to expand our understanding regarding the CFs

influence the application of L6σ in a particular organization. Its major purpose is to

develop an integrated framework that can be used as initial guide for L6σ application.

Research Methodology

Previous studies have demonstrated that the exploration of the impact of soft

management issues like leadership and organizational culture on operations

management tools and techniques can be better achieved through qualitative

approaches (Christy and Wood, 1999; Goodman, 1999; Psychogios and Priporas, 2007)

in relation to quantitative ones that cannot easily capture people’s opinion over the

adoption of management practices (Silverman, 1997). In addition, as Gilmore and

Carson (1996) point out qualitative research methods are well suited for the nature of

services. Finally, managers are more likely to participate in a qualitative process of

investigation (e.g. interview) rather than response to questionnaires (Coldwell, 2007).

Therefore, since the aim of the article was to explore a list of CFs potentially affect the

adoption of L6σ, a qualitative approach was more appropriate (Creswell, 2003).

For the purpose of this study, a case-study approach was adopted. The particular

case under investigation was an airline company that recently adopted L6σ. The

particular case is interesting for three main reasons. Firstly, it belongs to the service

sector where our knowledge regarding L6σ is limited in relation to manufacturing where

such practices can be widely applied. Secondly, in the specific industry both competition

and market demands are high, requiring the application of sophisticated management

practices. Thirdly, company’s headquarters are in South Eastern European periphery,

which a rather unexplored business environment in terms of application of promising

international management concepts.

Since the airline industry is highly based on procedures and safety plans, some of

the specific concepts in avionics were investigated. Secondary data were provided by

the company in the form of documents related to adopted programs in quality

assurance and the management of quality of services that company delivers. However,

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these documents cannot be presented as appendixes due to company’s regulations, but

data has been extracted from them as it is permitted. Also, there is specific airline

software that has been examined for the purposes of this study, but again company’s

regulations are against its presentation as well. Secondary data has been properly

analysed and contributed in the interviews’ design.

The primary data has been collected through in-depth interviews with

company’s managers. The target was to thoroughly understand the full process of

quality assurance and management (Coldwell, 2007; Bell, 2003) in the particular case.

The interviews were semi-structured, examining two major issues: the actual knowledge

of the L6σ concept and its application process. In particular, the first part of the

interview process was aiming to explore the extent interviewees were aware and

familiar with L6σ. In the second part of the interview the factors affecting L6σ

implementation process were discussed. The main target was to discuss with them both

management-oriented and HR-oriented CFs, as they have been identified by previous

research that either constrain or facilitate the adoption of L6σ. The ‘free’ and open

discussion with the interviewees on these issues resulted two things: First, each

interviewee had the opportunity to express his/her opinion in any way he/she wished.

Second, this discussion provided researchers a better understanding of the subjects’

attitudes towards issues under investigation.

The sample of participants that has been chosen based on their position in the

hierarchy as well as their involvement in main functions of the organization. According

both to Ladhar (2007) and Caldwell (2006) implementation of L6σ starts from training

managers and then spreads around the all other company levels. Therefore, with

regards to other levels of hierarchy (first line managers and employees), a thorough

investigation of managers’ responses to the adoption of L6σ, would show what kind CFs

occurred. More specifically, 21 interviews were conducted with managers from variety

of different fields like operations, IT, logistics, HR, marketing, and Finance. The

researchers contacted the managers via scheduled appointments. All interviews were

face-to-face and took place at their offices. Each interview lasted approximately 1,5

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hours. Throughout the discussions a tape recorder was used after the approval of the

respondents in order to avoid any ethical concerns and dilemmas (Malhotra and

Peterson, 2001). The researchers also took hand written notes during the sessions.

Afterwards, the interviews discussions were transcribed, responses were coded, and

then forwarded to the respective respondents for review and approval. For the purpose

of data analysis, open–ended answers were subjected to content analysis.

Although, the researchers attempted to organize and develop an appropriate

empirical article, some limitations occurred that need to be mentioned. First, although

classified documents were taking into consideration for serving the final outcome of the

research topic, these documents cannot be copied or reproduced. Second, the fact that

this article was focused only on managers and not on middle and front line employees

raises an issue of whether we can have a clear view on issues related to the impact of

factors like leadership and culture on the application of L6σ. The response to these

limitations comes from the main argument that the implementation of L6σ starts from

training managers and then spreads around the all other company levels Ladhar, 2007;

Caldwell, 2006). Therefore, the major strength of this article which is related to the

development of a framework regarding the implementation of L6σ in service industry,

comes from the responses of managers, who always play the most significant role in the

adoption of such techniques, especially in South Eastern European periphery

(Psychogios and Wilkinson, 2007; Psychogios et al., 2009, Psychogios, 2010).

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Research Findings

Research findings are organised in two sections. The first section briefly presents

company’s profile and mainly focuses on its current quality assurance system

(secondary data). The second one analyses the in-depth interviews with the company’s

top-managers attempting to explore the CFs of L6σ application (primary data).

The Case-Study

The airline company is a medium one based in South-Eastern European country and it

considered, according to their management, as one of the strictest companies on issues

concern quality assurance and safety. The company flights into several European

countries, on over 24 airports, with 17 aircrafts. They are also the world’s largest owners

of SAAB airplanes as they have 14 of these. They are involved into handling, catering,

and maintenance. Recently the company decided to apply L6σ, by adopting a series of

practices through which management targeted to achieve high standard of quality

outcome by eliminating waste and useless processes. This decision made the particular

case as an interesting one in terms of exploring the CFs affecting L6σ application in

service sector. Therefore, it is important to briefly present some of the main L6σ

practices and policies applied.

First of all, according to quality standards adopted the company needs to follow

specific rules as well as to nominate a department responsible for coordinating and

monitoring the correct implementation of the quality system. Also, a specific quality

plan (quality assurance program) was developed, which continuously monitored. They,

also, have an internal audit process which occurs every month and verifies whether the

procedures are correctly followed and documented. The important issue is that this

internal audit implies a direct control of quality assurance of the company itself. The

company itself has the direct responsibility to organize, coordinate and apply the audit

process. Moreover, sine every year the company is assessed by the abbreviation body’s

assessors, they need to take the internal audit plans and they choose one particular case

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that should be investigated in terms of appropriate documentation and implementation

of rules and regulations. The audit and the spot check can be applied to different

operations such as pilots flying time tables, maintenance checkups, security check ups,

etc. This method is extremely time efficiency and it reduces the authority costs to a

minimum. On the other hand, implies that the company has a significant responsibility

in meeting these requirements. Moreover, since one of the most important issues in

aviation is maintenance assurance, which is directly related to the safety of flights, it

receives high importance and priority. Therefore, the company itself assures

maintenance in 75% while the rest 25% is outsourced. However, outsourcing of

maintenance has to be continuously monitored by the company as well.

The above internal audit process of the company is coordinated and controlled

by the quality manager. However, each of the different departments and functions are

also involved. This implies a decentralized process, which reduces unnecessary

procedures and create more lean operations. The combination between lean operations

and high quality assurance can be also observed in stock management. The company

has adopted Just in Time methods. For example, a contract is made between the

company and the aircraft manufacturer, against a monthly fee, to have every broken

part, in no more than 24-hours, in all over the world. Also, they have a series of other

practices that guarantee quality outcome such as 30-days payment credit (up to 60

days); the ability to rent some parts (The Pool Method); technical assistance; and total

care agreement for the engines as well as 24-hours assistance for the aircraft engines.

The maintenance department has also a consumable inventory which is updated every

time that a critical point is passed. This system applies for lights, breaking parts, etc.

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All the above L6σ policies and practices adopted and developed recently by the

company can be reflected in its strategic vision that is highly oriented into customer’s

expectations, dependability and professionalism. In addition, as it is argued below, a

strong and committed leadership as well as a supportive organizational culture seem to

play a significant role in the company’s attempt to introduce promising quality

management models. Nevertheless, it seems that still the company needs to deal with a

series of issues constraining the full integration of L6σ.

Understanding L6σ in Context

The following table (table 1) shows indicative statements from interviews with

managers of the airline company, which are linked to particular CFs emerged from the

literature. According to the managers of our sample all of them played a significant role

in the application of L6σ.

Take in Table 1

The first factor identified is related to the quality-driven culture. There is a wider

recognition of the necessity of total quality programmes from the top-management. The

generic quality awareness has been observed in all managers, who supported the view

that quality assurance is critical for air line services. As expected the most informed

manager about L6σ was the quality assurance one. He claimed that one of the most

important organizational-cultural aspects of the company is the well-trained personnel.

Therefore, as the majority of the managers claimed, it is critical a quality-oriented

system to be integrated in all the organizational aspects, from the top to the bottom of

the organization, involving all the people employed in every single position. This attitude

confirms, at least, a top-down quality driven culture within the case under examination,

which is also substantial toL6σ adoption.

A quality-driven culture can be also confirmed through the emphasis on

continuous training. The quality assurance manager, for example, has been trained on

management models in order to enhance his knowledge and to be aware of the new

trends in quality assurance techniques. This seems to be a general practice within the

organization, since a lot of other managers responded positively when they have been

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asked about their involvement in training programmes. Although, according to a lot of

our interviewees’ opinion, training always is an expensive and difficult procedure for the

company, there is a strong belief that it is absolutely necessary for airline services,

especially when this training are directly linked with passengers safety.

Training is also important when there is a need for application of technical aspects

of L6σ. For example, the use of statistical tools is closely related to the operation of

many functions in the organization. Moreover, the company’s operations department is

directly responsible for the airplane operations and the whole infrastructure. Also, this

department is responsible for flight safety as well as for the correct applications of all

safety measures. There is a wide number of rules and procedures, beyond these applied

by the international flights standards, that seem to guarantee a high level of safety. It is

characteristic that the majority of our research participants emphasise the importance

of such systems and additional techniques for the company. Furthermore, statistical

measurement is analysed with the use of variety of methods like prioritization matrix,

which can be observed in some parts of the marketing function as well. An interesting

finding, related to the human side of technical systems, is the generic belief identified

among managers that people tend to be more careful when they are monitored. This

has been realized when they implemented the software system in operations. All pilots,

for instance, need to follow specific rules and regulations and they are not allowed to

overcome the set targets. This system of monitoring resolved a critical issue of high

differences between flights. Flying is not that much depended on talent and skills but of

numbers and data. This resembles partially the levelling tool adopted by L6σ in the

production process in order not to stress the whole chain. The emphasis on technical

approaches and application of systems confirms once again a quality-driven culture that

is based on the rationale that actual quality improvement will come through a given

attention to details.

The attention to detail can be also concluded from the frequency of the meetings

taking place in order to solve potential problems and/or to take decisions regarding

operations. These meetings support the view that decision making is mainly team-

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oriented. For instance, since safety is an important element of quality assurance within

the company, a specific team has been established. This team is called the Flight Safety

Committee, which is responsible for the airplanes’ and passengers’ safety. The

application of very strict safety regulations requests the continuous gathering of data

that will provide the additional valuable information. The committee is responsible for

the analysis of the data through the use of specific software that focuses on every

mistake that has occurred in every single flight in every single airplane. The most

important of the data gathered are presented at the board of directors and the middle

managers involved in the process. Moreover, there is a lot of teamwork observed in

other operations as well such as the marketing one. The emphasis on teamwork and

collective decision-making process, has sort of resemblance to the DMAIC diagram of

L6σ. For instance, in the define phase the proposed route is taken into consideration

based on tools like customer demands analysis and brainstorming. Techniques like these

are used by the marketing department in a regular basis.

The application of team-oriented behaviour within the organization needs a

strong leadership that links the human with the operations’ side of the company. The

leadership aspect can widely be observed in all of interviewees’ responses. Indicative of

a committed leadership is the fact that the majority of functions are coordinated by the

Chief Operations Officer who directly reports to the CEO of the company. The second

person in charge is the President of Operations who is directly linked with the CEO as

well. He is dedicated in safety assurance. The direct involvement of the CEO seems to

support the DMAIC model, which argues that top management is directly involved in the

implication of L6σ. Moreover, the same person is responsible to decide upon immediate

actions in case of crisis. However, this is occurred after the additional advises from other

specialists involved in the process. This responds to the Improvement phase of L6σ

(DMAIC methodology), in which managers can be involved and set the aspects under

consideration.

The importance of leadership can be further supported by the fact that the there

is a strong effort by employees and managers to correct the majority of mistakes

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occurred and are related to human behaviour. For instance, there are incidents related

to harsh landing, which applies pressure to the breaks or the hydraulics of the plane.

Pilots are enhanced to undertake a training programme every time that these incidents

happen three times. A strong leadership from the middle and top of the organization

attempts to reduce the possibility of waste which is basic on similar to the notion of L6σ,

since it tries to convince them apply procedures and techniques in order to guarantee a

level of quality.

The research evidence also demonstrates a quality-driven organizational strategy

that aims to bind quality improvement initiatives with strategic efforts. For example, the

whole strategy of human resources and operations departments is not designed to

negative reinforce, but to improve and to avoid other unnecessary mistakes and costs

provoked by employees. This is strongly related to an organizational culture of

continuous improvement that is also reflected in L6σ rhetoric. In addition, a strategic

oriented aspect adopted with L6σ concept, can be observed in the performance

evaluation of employees. This system is designed to handle human mistakes with

confidentiality. According, to our interviewees’ view this is necessary in order to

maintain employees’ morale. The only person directly responsible for human mistakes is

the Flight Safety Officer. The information that provided to him/her is directly coming

from the software programme directly linked with the airplanes.

The strategic emphasis on quality improvement can also be seen by company’s

effort to satisfy customers. It is indicative that for the majority of the interviewees the

most important staff members are those directly involved in customers’ satisfaction like

pilots, stewards and front desk employees. Also, one of the main responsibilities that

the Marketing department has is to analyse customers’ demand regarding specific

routes. Therefore, as L6σ methodology requires, the marketing tries to define quality

outcome according to what customers need. Furthermore, the decisions associated with

customers’ satisfaction are highly related to marketing research. The resemblance with

L6σ represents the actual statistical analysis driven from demand where consumers

drive the need and then the processes involved provide the solution.

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Beyond the above positive CFs, there is a group of negative ones have been

emerged from the analysis of interviews. These factors are shown in table 2.

Take in Table 2

The first negative factor is related to the lack of clear awareness of L6σ with the

additional belief that is just another statistical tool. Although, there was a wider

familiarity and recognition of the necessity of total quality programmes, at the same

time there is a limited awareness and familiarity with the use of L6σ from the

management of the organization. For example, although the Fleet manager, who is the

vice-president of the company as well, was quite sure of the usefulness of quality

assurance systems, he has a poor understanding of L6σ applied in the company.

Moreover, a lot of managers claim that the implementation of new management

methods has requirements like training of employees. Nevertheless, although all

managers recognise the strong necessity of training, they also support the view that the

cost of it is a major issue. According to their opinion, the company although has the

necessary infrastructure that helped to the adoption of L6σ, there is also human

“infrastructure” that the organization cannot ignore. For the fully application of such a

system people need training and this implies a lot of cost that may be forbidden for

company’s budgets.

The limited awareness and the high implementation cost seem to support

management’s scepticism whether L6σ is appropriate in service industry in general and

for their company in particular. According to the respondents, the situation in services is

even more demanding in comparison to manufacturing. For instance, a lot of them

although recognize that there are positive cultural aspects in the company that well-

come L6σ application, at the same time they think that there are other that seem to

inhibit its implementation. According to their opinion, manufacturing companies may

find the procedures very useful but in airline service industry the situation is not so clear

whether these kind of systems would bring valuable results.

Another CF negatively-related to L6σ is that of resistance of employees. This study

offers two evidences toward this argument. The first comes from a group of particular

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managers that seems to be aware about L6σ, but at the same time they argue against its

application in the particular organization. According to their view, the traditional quality

assurance system was very important at this moment for the company and therefore, it

is quite risky the staff to be trained again into another quality programme. In addition,

managers seem to concern employees’ morale and motivation since they claim that

they are highly subjective, especially when it comes to standardization that L6σ

attempts to implement. According to their view, this system depends on statistics and

standardized procedures that some people may find non-motivating.

Conclusions

The present paper attempts to address the CFs that integrated in the application of L6σ

in organizations. Analysing current L6σ literature and investigating the particular

organization, we can support the view that these factors can be classified in two main

categories: The L6σ facilitators and inhibitors. Table 3 shows the major factors included

in each category. The major argument regarding the case under examination is that

managers seem to recognize both aspects. In other words, it seems that there is a

general scepticism about L6σ application, which mainly influenced from major

inhibitors, but at the same there are strong evidence of L6σ facilitators as well.

Take in Table 3

Current investigation confirmed that the CFs above are not consist only a

significant framework of L6σ application, but also a good investigation tool in potential

application of such a system. In particular, an integrated framework can be emerged

from the synthesis of these factors integrated with the concept of 6σ and LM. Figure 2

depicts a proposed L6σ framework.

Take in Figure 2

The above framework presents the main CFs affected L6σ application in the

specific organization. In particular, the framework consists of three major parts. The

WHAT part includes the main goals of the organization in order to produce competitive

and acceptable results. The WHO part is related to the quality-driven culture supported

by a committed leadership, which is responsible of the management of change within

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the organization. Finally, the HOW part is related to the specific areas that include

appropriate tools the use of which can guarantee quality outcomes. Just like Deming

cycle, this framework encircled, in a spiral fashion, from the DMAIC cycle. The

foundations of the framework consist of the two synergetic methodologies. The central

idea is to organize and work with lean philosophy and to standardize our actions within

the 6σ boundaries.

There is no doubt that more research is needed in order to examine the

application of such a framework. Future research should focus on the potential

exploration of the application of the above framework in other industries and sectors.

Also, a critical point on the future research agenda would be the quantification of each

of the dimensions of the framework. This would enhance a wider survey that could

provide rich quantitative data towards the support of such a model.

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Appendix

Figure 1 : Lean six sigma dimensions

Table 1: Evidence Towards the Positive Factors Affecting L6σ

Qualitative Evidence Factors Identified

“In order to fly we need to adopt very concrete and specific flight standards. We do not

have any other choice” [Fleet Manager]

“All modern management tools are strongly related to culture and in our case it may

be an over involvement of our company into this concept” [Quality assurance

manager]

Quality-Driven

Organizational

Culture

“I am trying to be informed all the time about the new trends in quality management

either by participating in training seminars or by reading related sources of

information” [Quality Assurance Manager]

“The costs of implementing training programmes for our employees may be high, but I

wonder who will claim against the need of training in our industry?” [Fleet manager]

Training

“Statistics and other management tools and systems play a significant role in the

decision whether to fly on a route or not” [Marketing Manager]

“Operations and procedures are extremely significant for us. We try to do anything

needed in order to guarantee a level of effective operations. For example, we currently

operate under Flight Data Monitoring (FDM) based on Flightscape software that is

currently used by the world’s leading flight data analysts and accident investigators.”

[Chief Operations Officer]

Technical Systems

(Tools & Techniques)

“We have regular meetings and also spontaneous ones when we observe that some

things go wrong” [Logistics Officer]

“Whenever the software shows us that there are irregularities that need to be

examined and analysed we confront a meeting to resolve this issue.” [Chief Operations

Officer]

“If the flight safety officer decides whether an incident is important for the board or

not, he confronts the meeting. An incident like a hard landing may be of no importance

at the first instance but, a further analysis is made and necessary actions are

undertaken” [Flight Safety Officer]

Teamwork

Process &

Problem solving

“We try to be as much committed as we can in all the procedures that need to be

followed in order to demonstrate to our people, first of all, that these are very serious

and important things to be left alone” [Marketing Manager]

“There is a resemblance with L6σ when talking about reducing waste as we try to

Committed Leadership

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eliminate it with fewer mistakes from the employees. We also know that employees

need to be motivated in order to actually be involved in elimination of errors ” [Human

Resource Manager]

“Our goal is to resolve all the issues that rose. For example, if a pilot lands an airplane

in the wrong way, implies cost for the company. We try to see why he landed like that;

if there were natural reasons involved like weather, we analyze the conditions. If it is

his fault we send him to training and will not penalize him as this would bring negative

results to his motivation. ” [Chief Operations Officer]

“At the core of our strategic vision is the customer satisfaction and safety. We do know

that quality management programmes contribute a lot in achieving this goal” [Chief

Operations Officer]

Quality-Driven

Organizational

Strategic

“Customers are the only ones that decide whether the quality and the route where

accordingly to their needs. There is constant feedback from them and we are trying to

respond to all of them” [Logistics Officer]

“We highly rely on statistics and data when we decide to fly on a route or not. If there

is a demand, we try to mobilize the fleet manager to make the necessary

preparations” [Marketing Manager]

Customer Satisfaction

Table 2: Evidence towards the Negative Factors Affecting L6σ

Qualitative Evidence Factors Identified

“Six-Sigma is a concept much more oriented in tangible products, not service

industries” [Fleet Manager]

“If a person has a bad day he perceives quality differently and we cannot apply

his/her feelings as being objective and translate them simply in statistics” [Chief

Operations Officer]

Lack of awareness -

Yet another

statistical tool

“The costs of implementing training programmes for our employees is very high, and

some times a serious obstacle in applying new methods” [Human Resource Manager]

“We know that procedures is of high importance into Six Sigma and Lean

Management and we may not implement it that easily” [Fleet Manager]

High Cost of

implementation

“In order to fly we need to adopt very concrete and specific flight standards. We do

not have any other choice” [Quality assurance manager]

“Mostly are human errors. The company has a strict policy over flight safety and

through this software we can control better the real life mistakes or happenings.”

[Chief Operations Officer]

“L6σ is a new management fad especially in western companies. I think that we

implement a quite similar quality management programme with great success so far”

[Marketing Manager]

Appropriateness of

L6σ in Service

Industry

“L6σ is a new trend in business schools but in order for a company to operate under a

specific standard and under strict regulations it needs to implement an E.U. standard”

[Quality assurance manager]

Employee

Resistance Aspects

“Our core employees are pilots and stewards. They are the ones in direct contact with

the customers and they are the ones responsible for the quality of the service”

[Marketing Manager]

Industry-Specific

Issues

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Table 3: Classification of Major Factors

L6σ Facilitators L6σ Inhibitors

Quality-Driven Organizational Culture

Committed Leadership

Training

Teamwork Process & Problem Solving

Tools & Techniques

Quality-Driven Strategy

Customer Satisfaction,

Lack of awareness - Yet another statistical tool

High Cost of implementation

Appropriateness of L6σ in Service Industry

Employee Resistance Aspect s (Management

Change)

Industry-Specific Issues

Figure 2: The Lean Six Sigma Integrated Framework