Integration of Lean Six Sigma and Green Productivity for
Manufacturing SMEs
O. A. W. Riyanto
1
, M. B. Setiawan
1
, K. Hariyanto
1
, A. J. Suwondo
1
, A. Hindratmo
1
, C. W. Oktavia
1
,
O. Purnamayudhia
1
, Subaderi
1
, F. G. Dewi
1
, M. H. Abdullah
1
, B. Endarto
2
and N. Widhiyanta
3
1
Industrial Engineering, Faculty of Engineering, Universitas Wijaya Putra, Surabaya, Indonesia
2
Faculty of Law, Universitas Wijaya Putra, Surabaya, Indonesia
3
Informatic Engineering, Faculty of Engineering, Universitas Wijaya Putra, Surabaya, Indonesia
Keywords: Lean Six Sigma, Manufacturing, SMEs, Green Productivity
Abstract: A small manufacturing company is a small entity that functions like a business. In the current era of industrial
revolution, SMEs need to remain competitive in order to improve production efficiency and reduce operating
costs. Continuous operations improvement efforts have motivated researchers to find a method that is suitable
for SMEs. In this context, Green Lean has emerged as an integral part. The Green Lean debate in midsize
manufacturing is still in its infancy and needs attention. Therefore, the main objective of this study is to use
systematic data to identify and analyze the success factors, framework conditions and advantages of Green
Lean in medium-sized manufacturing industry. A systematic model shows the relationships between the
determinants of implementing green and lean initiatives for SME manufacturing. Lack and performance
measurement are the main challenges in implementing Green-Lean. Additionally, most frameworks are
designed for specific industries rather than general frameworks to reduce and eliminate various wastes.
However, this framework has lost its social dimension. The main contribution of this paper is the integration
framework lean six sigma - green productivity for SMEs in manufacturing. These results will help institutions,
owners, and small businesses take action for improvement.
1 INTRODUCTION
Organizations are under constant pressure to improve
their performance in today's competitive environment
(Hang et al., 2022). One way to improve
organizational performance is to implement an
improvement strategy (Rehman Khan et al., 2022).
Existing resources can mobilize operational problems
through continuous improvement strategies (Bernal
Torres et al., 2021). Moreover, the development
method considers that all companies are not
homogeneous. SMEs have their very own demanding
situations because of a loss of size and sources
compared to large companies (Albats et al., 2021).
However, SMEs are dynamic and growing businesses
have unique characteristics and fitures(Miller et al.,
2021). It is widely recognized that SMEs generally
differ from large companies in that they have less
debt, and scale and resource constraints (both human
and financial) impact core competencies and
skills(Miller et al., 2021).
One of the most popular approaches to improving
operational performance in manufacturing
organizations is lean six sigma. Continuous
improvement is believed to be a method for
identifying and eliminating waste and optimizing the
use of resources (Gaikwad & Sunnapwar, 2020).
Current concerns about the environmental impact that
has occurred in the company, changing the
company`s operational approach to complying with
environmental regulations and responding to growth
in customer demands for sustainable products and
services (Siegel et al., 2019). Thus, the "green"
paradigm emerged, as an operational philosophy and
approach that improves an operation's ecological
efficiency, reducing the negative impact of services
or products on the environment while maintaining or
improving financial performance (Bhattacharya et al.,
2019).
Many studies have examined the natural
alignment of lean and green through similar
operational management approaches. Therefore,
researchers suggest compatibility between lean and
Riyanto, O., Setiawan, M., Hariyanto, K., Suwondo, A., Hindratmo, A., Oktavia, C., Purnamayudhia, O., Subaderi, ., Dewi, F., Abdullah, M., Endarto, B. and Widhiyanta, N.
Integration of Lean Six Sigma and Green Productivity for Manufacturing SMEs.
DOI: 10.5220/0012117500003680
In Proceedings of the 4th International Conference on Advanced Engineering and Technology (ICATECH 2023), pages 273-280
ISBN: 978-989-758-663-7; ISSN: 2975-948X
Copyright
c
2023 by SCITEPRESS Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)
273
green and that the two can work together effectively
to positively impact the environment and operational
performance (Teixeira et al., 2022). As such,
researchers have proposed compatibility between
lean and green so that they can work together
effectively to positively impact the environment and
operational performance (Inman & Green, 2018).
According to (Siegel et al., 2019), both lean and green
will sustainably increase the competitiveness of
SMEs. Available survey data show that SMEs are
responsible for most of the industrial pollution and
contribute significantly to environmental degradation
(Hasan et al., 2020). To achieve this, SMEs should
consider economic, environmental and social issues
by starting green and lean adoption. The literature
extensively shows that lean practices positively
impact green performance (Touriki et al., 2022).
However, little research has been done on SMEs
(Touriki et al., 2022). Moreover, implementation in
the SME context remains challenging as it requires
substantial financial resources, skills, and time
(Alexander et al. 2021). Moreover, according to
various experts, no clear research definition of lean
green in SMEs has been established. The literature on
this topic is still incomplete and needs to be
reconstructed. SMEs face many obstacles in
mobilizing the resources required to implement lean
green strategies (Yadav and Gahlot 2022). SMEs
need multiple guidelines, including identifying
challenges, benefits, frameworks, and critical success
factors to encourage SMEs to implement lean and
green projects to improve sustainable performance.
The lack of research to develop a lean-green
implementation framework for SMEs is an important
motivation to take up this research area (Siegel et al.,
2022). This study aims to develop a conceptual
framework for the application of lean green in SME
manufacturing. Therefore, starting from this lack of
knowledge, we propose strategies for sustainable
approaches in the context of SMEs through a
theoretical framework, systematically collecting and
analyzing relevant lean and green areas. A literature
search was conducted. Against this background, the
research objectives are formulated as follows:
(1) Identify and explore the characteristics and
relationships of Lean Six Sigma with Green
Productivity;
(2) Identify operational practice gaps and
opportunities to integrate Lean Six Sigma linkages
with Green Productivity, focusing on SME operations
in the manufacturing sector;
(3) Propose an integrated strategy for Lean Six Sigma
- green productivity in the context of SMEs through a
theoretical framework.
The rest of the paper is organized as follows. Section
2 presents the research methodology. Section 3
provides detailed findings and considerations.
Finally, Section 4 contains the study conclusions.
2 METHODOLOGY
This research framework uses systematic literature
reviews (SLR) compiled to categorize common data
and information sources examined in this study. A
systematic literature review (SLR) is about lean green
conducted through a structured process by reviewing
selected articles from various databases and sources.
SLR provides a comprehensive, transparent and
explicit approach to rigorously enforcing the process
(Thomé et al., 2016). SLR is a method of identifying,
discovering, and synthesizing research results
completed and produced by researchers and
practitioners (Lima et al., 2020).
Search engines, Elsevier
(www.sciencedirect.com), Emerald
(http://www.emeraldinsight.com), Springer
(http://www.springerlink.com), Taylor & Francis
(http://www.taylorandfrancis.com) and online
libraries Google Scholar database or library services
such as Wiley (www.wiley.com), Ebsco
(www.ebsco.com), Scopus (www.scopus.com),
where relevant find Journal article for this study.
Strings include (Lean), (Green), (Green and Lean),
(Lean Green), (SME), (Small and Medium Business),
(Manufacturing), and (Sustainability). As a result,
these search terms are combined with Boolean
operators (AND and OR) when searching keywords,
titles, abstracts, and full article text. This approach is
very important for a complete and thorough literature
investigation. The search is considered complete
when the same article continues to appear.
All article summaries in your search string are
manually checked for maximum consistency. A final
sample of 35 items was identified. As research in this
area is still in its infancy, the amount of referenced
literature is relatively limited, especially when
compared to the vast amount of research in the lean
environment field. It can therefore be argued that the
literature lacks a clear and structured research
definition of Greenlean. Articles with irrelevant
abstracts were not used in this research report due to
a strict search for terms used to identify relevant
articles.
The SLR approach is shown as in figure 1. While
the literature review process is shown in table 1.
Photovoltaic is a technological innovation
designed to capture solar energy to convert it into
ICATECH 2023 - International Conference on Advanced Engineering and Technology
274
electrical energy that is greater than battery energy.
Although the SCC regulates the power that comes out
of the PV, the SCC is to control the voltage that will
enter the battery (Setyono et al., 2022). In this
research, a 100WP capacity solar panel will be
explored. The PV specification data used is in table 1.
When testing PV, several parameters are taken,
including temperature, solar radiation, voltage, and
electric current.
Table 1: Systematic literature review process.
Process Defintion
Number
of
articles
Research
purposes
Identify the intent and
purpose of the review
Develop
research
protocol
Asking research questions
in advance, including
evaluation scope, criteria,
quality and data
extraction.
Determine
the relevant
criteria
Establish research criteria
that are only relevant
articles
Search and
collect
literature
Search for relevant articles
from indexed journal
sources
Total
220
articles
Selection
and study
The definition of criteria
does not include articles
that are irrelevant
95
relevant
articles
Evaluate
the quality
of relevant
studies
Depending on the research
method used, rate the
quality of each article.
Articles that are not
qualified should be
remove
d
Data
extraction
Extract data systematically
from each study in the
overview. This stage can
be divided into several
steps, starting from
finding the title of the
article, abstracting it to
then reviewing the article
in full to analyze the
content of the article topic
Analyze
(synthesize)
data.
Using quantitative and/or
qualitative techniques,
combining the facts
obtained and illustrating
the main conclusions of
the anal
y
sis
35
articles
were
analyzed
Write a
review
result
A detailed report on the
process and results of a
systematic literature
search
Process Defintion
Number
of
articles
Discuss and
conclude
Contribute to knowledge
by publishing the results
of a systematic literature
review in academic
scientific
j
ournals.
In this sense, only articles published between 2002
and 2020 are included. Finally, all books, websites,
conference papers, and grey literature, such as
reports and working papers, were excluded from the
research review, and only papers published in high-
quality journals were considered
Figure 1: Research process.
3 RESULT AND DISCUSSION
Lean and Green have become very popular in recent
years (Leong et al., 2019). Lean and Green are two
approaches to develop in different contexts. Both are
synergistic and compatible strategies as they share a
common focus on waste reduction and efficient use
of resources (Gaikwad and Sunnapwar 2020). As a
result, the principles and tools of both approaches
have been combined into an improvement approach
known as “lean green” to achieve operational
excellence and sustainability (Gaikwad and
Sunnapwar 2020).
Green Lean is an integrated approach to achieving
environmental, financial and operational
improvements (Gholami et al., 2021). Integrating
green and lean can be seen as a new way for
companies to improve their sustainability
performance. According to (Lim et al., 2022), an
Integration of Lean Six Sigma and Green Productivity for Manufacturing SMEs
275
organization that has implemented lean and green
practices simultaneously achieves better results than
an organization that focuses on just one of these
initiatives.
After demonstrating the limitations of the lack of
a complete and structured lean and green framework
in the context of SMEs, we apply two approaches
based on a combination of theoretical elements from
the literature review. We propose a specific
integration framework for a framework for
Integrating lean six sigma - green productivity
methods to increase the productivity of small and
medium enterprises (SMEs) in manufacturing. The
framework illustrated in Figure 2 describes the
critical elements needed for SMEs to be
environmentally friendly, socially conscious and
ensure sustainable profitability through cost savings.
Figure 2: Lean Six Sigma - Green Productivity Integration
Framework for Manufacturing SMEs
Green Lean integration is a critical phenomenon in
the the framework. Success factors act as inputs to
critical phenomena, and SME performance is viewed
as output. Green Lean integration challenges in the
context of SMEs are guided, and efforts to improve
organizational performance are guided. Below is a
discussion of the theoretical elements that emerge
from the literature.
We describe the success factors for some areas
that organizations need to pay more attention to
effectively implement and sustain their Green Lean
efforts (see Table 2). Small business owners or
managers should encourage industry policymakers to
focus on key factors for implementing integrated lean
and green production in resource-constrained small
businesses.
We support. SME managers can prioritize
resources for the successful implementation of Lean
Green initiatives. Every article, without exception,
involves SME owner/manager commitment as an
essential factor for success (Baumer-Cardoso et al.
2020; Gandhi et al., 2018; Khana et al., 2020; Thanki
et al., 2019; Yadav et al., 2018; Fatoki 2019;
Aboelmaged & Hashem, 2019 ; Yuik et al., 2020;
Aboelmaged et al., 2018).
Employee motivation is involved in integration,
company goals and strategies, reviews and audits,
vision and guidance by a lean, green and sustainable
framework. Every article, without exception,
involves employee engagement as an essential factor
for success (Thanki and Thakkar 2018; Khana et al.,
2020; Gandhi et al., 2018; Siegel et al., 2022; Caldera
et al., 2019).
Within this group, various development processes
have been identified that enable current technologies
to address the unmet needs of new customers.
Managers must enable cross-functional teams to
discover new technologies with numerous pioneering
partners.
The ideal sequence suggested to them is to
achieve this by organizing the project learnings and
structuring the development process to meet the
changing market needs. Every article, without
exception, involves market adaptation as an essential
factor for success (Kasalı, Ö. 2010; Mosey, S. 2005;
Kumar, K. et al., 2012; Sui, S. et al., 2014;
Bourletidis, K et al., 2013; Hussain et al., 2015;
Fuchs et al., 2016; Neirotti et al., 2017).
The most straightforward approach is to think of
lean as the activity of identifying and eliminating
waste to add value to the organization and customers.
Six sigma is a robust statistical methodology for
reducing variation and improving quality and
customer satisfaction. When lean, green, and safe are
aligned, the organization, its customers and the
environment all benefit. Every article, without
exception, involves focus on customer as an essential
factor for success (Nabhani & Shokri, 2009;
Alhuraish et al., 2014; McAdam et al., 2019; Sharma
et al., 2015; Amar & Davis, 2008; Nallusamy, 2016;
Mustapha et al., 2018).
ICATECH 2023 - International Conference on Advanced Engineering and Technology
276
Table 2: Success factors for green-lean
Article Success factor
(Baumer-Cardoso
et al. 2020;
Gandhi et al.,
2018; Khana et
al., 2020; Thanki
et al., 2019;
Yadav et al.,
2018; Fatoki
2019;
Aboelmaged &
Hashem, 2019 ;
Yuik et al., 2020;
Aboelmaged et
al., 2018)
SME owner/manager
commitment. Small
business owners or
managers should encourage
industry policymakers to
focus on some key factors
for implementing integrated
lean and green production in
resource-constrained small
businesses. We support.
SME managers can
prioritize resources for the
successful implementation
of Lean Green initiatives.
(Thanki and
Thakkar 2018;
Khana et al.,
2020; Gandhi et
al., 2018; Siegel
et al., 2022;
Caldera et al.,
2019)
SME employee engagement.
Employee motivation is
involved in integration,
company goals and
strategies, reviews and
audits, vision and guidance
by a lean, green and
sustainable framework.
(Kasalı, Ö. 2010;
Mosey, S. 2005;
Kumar, K. et al.,
2012; Sui, S. et
al., 2014;
Bourletidis, K et
al., 2013; Hussain
et al., 2015; Fuchs
et al., 2016;
Neirotti et al.,
2017)
To adapt to the market,
managers should empower
cross-functional teams to
discover new technologies
and systematize project
learning to meet changing
market needs.
(Nabhani &
Shokri, 2009;
Alhuraish et al.,
2014; McAdam et
al., 2019; Sharma
et al., 2015; Amar
& Davis, 2008;
Nallusamy, 2016;
Mustapha et al.,
2018)
Focus on customer. The
simplest approach is to
identify and eliminate waste
and think of lean as an
activity that creates value for
your business and your
customers. Six sigma is a
robust statistical
methodology for reducing
variation and improving
quality and customer
satisfaction. When lean,
green, and safe are aligned,
the organization, its
customers and the
environment all benefit.
4 CONCLUSIONS
The details of the results of the proposed integration
framework for the Lean Six Sigma Green
Productivity method for SMEs are as follows:
1. Provide a positive influence on people (leaders
and employees such as motivating, empowering,
energizing, compensating, and educating. It will
have a positive impact on the level of satisfaction
and commitment of leaders/managers and
employees.
2. Save time and flexibility in the production process
flow, improve process management
improvements, and increase customer loyalty and
satisfaction.
3. Cost savings, productivity gains, increased market
share, customer retention (maintaining long-term
sustainable business relationships with
customers), reduced cycle times, reduced errors,
cultural change, and product/ Development of
services.
4. The strong positive influence of SME
owners/managers on employees will create an
adaptive management hierarchy layer so that
internal organizational communication becomes
faster and more effective. It will promote more
substantial and better relationships with
customers.
5. Identify and reduce waste and hidden costs and
eliminate the level of defective products, thereby
reducing operational costs. It positively impacts
profit margins, SME business
growth/development, and customer value.
ACKNOWLEDGEMENTS
The author would also like to thank the LPPM-UWP,
Faculty of Engineering, Universitas Wijaya Putra, for
the support and facilities for conducting this research.
We hope this research to emplemented on SMEs.
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