Cluster-based six sigma deployment in small and medium sized enterprises

While Six Sigma programs have delivered many millions of dollars in savings to large multinationals, application of the philosophy in Small and Medium-sized Enterprises (SMEs) remains rare. As a consequence of relative resource disparities, these smaller organizations find it difficult to adopt traditional means of Six Sigma delivery (which were primarily developed for larger organizations such as Motorola). This paper documents a case study designed to test the application of a novel Six Sigma deployment programme specifically for SMEs. The case study involved the development of a 4 stage framework based around the creation of a coach-centered business improvement cluster. Consisting of 8 regional automotive SMEs, the cluster produced benefits on 4 different levels including the transfer of knowledge and technology between cluster companies. Implications for the content and structure of SME Six Sigma training and characteristics associated with personnel selection for SME Six Sigma deployment are also discussed. Of importance is the work-based learning aspect of the programme and emphasis of core Six Sigma elements as opposed to more sophisticated tools (such as DOE) which have limited application in a SME at the initial stages of Six Sigma implementation. This is thought to be the first documented case of SME cluster based Six Sigma deployment which may have possible implications for organizations in developing economies.