The Impact of Operational Excellence Methodologies on Sustainable Performance in the Service Sector

Abstract

Lean, Six Sigma, and Lean Six Sigma are operational excellence methodologies that primarily focus on improving operational performance. Nevertheless, in today's dynamic and competitive marketplace, in addition to this improvement, organizations also consider the importance of sustainable performance across social, financial, and environmental dimensions. This project aims to empirically study the impact of operational excellence methodologies on sustainable performance in the service sector. Studying the service sector is vital, as it plays a significant role in the global economy, constituting about 51.6% of GDP in 168 countries. This project aims to conduct a systematic literature review, where 99 relevant papers published in top-ranked journals over the last decade (2013-2023) were collected and analyzed. Subsequently, a qualitative research approach was employed by conducting one-to-one semi-structured interviews with 18 quality management experts in the service sector. The findings of this study reveal a scarcity of research explicitly on the combination of Lean Six Sigma and sustainable performance in the service sector. The results indicate a tendency among authors to report immediate and tangible operational benefits, while potentially overlooking the holistic impact on sustainable performance. Through quantitative analysis of benefits in the collected papers, it was found that the three approaches account for an average of 79% of benefits related to operational measures, 15% to financial measures, 3% to social measures, and 2.6% to environmental measures. Similarly, the qualitative findings reveal a significant impact on financial outcomes, with Lean Six Sigma implementations predominantly emphasizing financial performance suggesting a high impact. However, opinions vary regarding sustainability and recognition of such impact. As for social performance, some participants noted consistent positive impact while others suggest a dual impact—both positive and negative. In terms of environmental impact, findings reveal an overall moderate impact with perspectives ranging from limited to significant positive impact.

Date of Award	6 May 2024
Original language	American English
Supervisor	Maher Maalouf (Supervisor)