Influence Of Lean Six Sigma Methodology On Performance Of Service Organizations In Kenya: A Case Of The Kenya Institute Of Management

Abstract

Lean Six Sigma is one of the many process improvement methodologies. It is a set of powerful tools and techniques employed by an organization to help it improve its efficiency, effectiveness and productivity. Although they originated from the manufacturing environment their principles can be applied to businesses operating in any sector. The study aimed to assess the influence of lean six sigma methodology on performance of organizations, a case of the Kenya institute of Management. More specifically, it aimed at examining how quality, cost, lead time and waste influence performance of the Kenya Institute of Management. The study adopted a descriptive survey design. The target population of the study was 145 employees based at the head office of the Kenya Institute of Management. Using Cochran’s 1977 formula the desired sample size of 106 respondents and stratified random sampling method were used to achieve the desired representation from the various sub groups. Pilot testing of the data collection instrument was performed by administering the questionnaires to 10% of the sample size. To establish the validity of the research instrument content validity was used; to check reliability of the instrument, Cronbach’s alpha methodology based on internal consistency of the research instruments was used. An alpha value of 0.8 was obtained, thus the research instrument used was reliable.Primary data was collected using self-designed questionnaires and secondary data from e-journals, books and publications by the Kenya Institute of Management. After data collection, the questionnaires were cleaned, coded organized and analysed. Descriptive statistics and Correlation (using Karl Pearson’s product moment coefficient of correlation) were used to analyse the data and establish the relationship between the dependent variables and the set of independent variables using SPSS software. The study established that cost had the strongest influence on performance of an organization with a correlation coefficient of (- 0.743). Lead time and Wastes also had significant influence on performance of an organization with correlation coefficients of (- 0.628) and (- 0.318) respectively lastly was quality of services which had a minimal influence on performance of an organization with a correlation coefficient of (0.23). This means that the three variables of cost, lead time and waste had significant negative relationships with the dependent variable, performance of organization while the variable quality had a positive relationship with the independent variable performance of an organization. It was therefore concluded that the Lean Six Sigma methodology positively influences the performance of an organization. This however is only possible if an organization is willing to invest adequate resources, make goals very clear and actively monitor these goals. Equally there should be management commitment and support, internal process ownership, metrics, staff involvement staff training to make them experienced staff, providing enhanced understanding and tailoring improvement training. Future studies could evaluate the influence of Lean Six Sigma in other service sector organizations like banks, hospitals etc. and equally its impact on organization culture.