Six sigma implementation model based on critical success factors (CSFs) for indonesian small and medium industries

Abstract

This study aims to build a model of critical success factors in the application of Six Sigma for Indonesian small and medium industries and their relation to the industry performance. The critical success factors, successful Six Sigma implementation and the impact on industry performance are validated and analyzed. The method used in this study is Structural Equation Modeling (SEM) based on Partial Least Square (PLS) by using SmartPLS software. This study uses 54 data from Indonesian small and medium industries that have implemented Six Sigma. The results of this study indicate that a critical success factors that has a positive impact on the successful Six Sigma implementation is the involvement and commitment top management, training and education, cultural change and industrial infrastructure. It is surprising that teamwork has a negative impact on the successful Six Sigma implementation. In addition, the successful Six Sigma implementation has a positive impact on the performance of Indonesian small and medium industries. Then, the model is valid to shows the relationship between critical success factors in the successful Six Sigma implementation on the performance of small and medium industries in Indonesia.