Empirical analysis of key operational characteristics of lean six sigma and Industry 4.0 integration

Purpose: To achieve changing customer demands, organizations are striving hard to embrace cutting-edge technologies facilitating a high level of customization. Industry 4.0 (I4.0) implementation aids in handling big data that could help generate customized products. Lean six sigma (LSS) depends on data analysis to execute complex problems. Hence, the present study aims to empirically examine the key operational characteristics of LSS and I4.0 integration such as principles, workforce skills, critical success factors, challenges, LSS tools, I4.0 technologies and performance measures. Design/methodology/approach: To stay competitive in the market and quickly respond to market demands, industries need to go ahead with digital transformation. I4.0 enables building intelligent factories by creating smart manufacturing systems comprising machines, operators and information and communication technologies through the complete value chain. This study utilizes an online survey on Operational Excellence professionals (Lean/Six Sigma), Managers/Consultants, Managing Directors/Executive Directors, Specialists/Analysts/Engineers, CEO/COO/CIO, SVP/VP/AVP, Industry 4.0 professionals and others working in the field of I4.0 and LSS. In total, 83 respondents participated in the study. Findings: Based on the responses received, reliability, exploratory factor analysis and non-response bias analysis were carried out to understand the biasness of the responses. Further, the top five operational characteristics were reported for LSS and I4.0 integration. Research limitations/implications: One of the limitations of the study is the sample size. Since I4.0 is a new concept and its integration with LSS is not yet explored; it was difficult to achieve a large sample size. Practical implications: Organizations can utilize the study findings to realize the top principles, workforce skills, critical success factors, challenges, LSS tools, I4.0 tools and performance measures with respect to LSS and I4.0 integration. Moreover, these operational characteristics will help to assess the organization's readiness before and after the implementation of this integration. Originality/value: The authors' original contribution is the empirical investigation of operational characteristics responsible for I4.0 and LSS integration.