Lean Six Sigma Methodologies and Organizational Profitability: A Review of Manufacturing SMEs in Nigeria

Abstract

Manufacturing small-and medium-size enterprises (MSMEs) are reluctant to the implementation Lean and Six sigma methodologies (LSS) all the over world. This is traced to the impeding factors which seem stronger than motivating factors coupled with lack of proper documented evidence of LSS’s successful implementation in many MSMEs. This paper investigated the influence of LSS on the profitability of MSMEs in Nigeria. The population of the study consists of 450 manufacturing SMEs with 2250 employees. The sample frame is made up of 225 MSMEs with 1026 staff selected at random upon which copies of structured questionnaire were administered. 1002 valid responses received were analyzed. Pearson product moment correction (PPMC) confirmed the formulated propositions with negative association between awareness, achievement CSFs and LSS implementation and the profitability level of MSMEs. The result obtained shows that LSS implementation among MSMEs in Nigeria is almost none existing and has no influence on the profit level. The study recommended that CEOs of MSMEs should undertake training on LSS to enable them to provide a strong leadership and support the initiative, LSS consultants should be engaged to help drive the quality improvement approach and MSMEs should focus on the impeding factors to reduce the effect on the LSS implementation and achieve continual quality improvement, customers’ satisfaction, increase sales volume at a minimized cost to attain targeted market share and profit level.