AN ANALYSIS OF SIX SIGMA AT SMALL VS. LARGE MANUFACTURNING COMPANIES

Six Sigma, is a business strategy using quality improvement tool, began in the 1980s. An important problem in business has been how to implement Six Sigma at small sized companies. Many large companies are beginning to mandate Six Sigma to their supply base (smaller manufacturing companies) as a condition of future business. This is a problem because Six Sigma implementation can require millions of dollars in investment, dedication of the best resources and training of many employees in a business. Many small manufacturing companies do not have this time or the financial resources to invest in the long-term benefits of Six Sigma. Yet, there still exists a need to implement Six Sigma in these smaller companiesThis study will analyze the performance of large and small manufacturing companies deploying Six Sigma. The objective is to determine whether the long-term benefits of Six Sigma programs are really worth the cost investment for smaller manufacturing companies. Quantitative and qualitative measurements are used as variables for comparison. The reported revenue, costs and savings of five Fortune 500 companies who have implemented and managed successful Six Sigma programs are examined. A data collection instrument is developed to study the small manufacturing companies.Results show that there were apparent challenges in Six Sigma deployment regardless of company size. However, the benefits of Six Sigma deployment at small manufacturing companies were very apparent. Through the research it was found that small manufacturing companies have the capacity to implement successful Six Sigma programs. Recommendations for further study and an increased research population is also suggested for future research.