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2015 International Conference on Technologies for Sustainable Development (ICTSD-2015), Feb.

04 – 06, 2015, Mumbai, India

Implementation of Six Sigma with ISO in the Indian


Textile Industry for Improvement in Performance
Sachidanand S. More1 Dr. Maruti S. Pawar2
1 2
Research Student, Principal
BMIT, Solapur, India BMIT, Solapur, India
ssmore81@gmail.com drmspbmit@gmail.com

Abstract— This paper discusses the implementation of quality about 65 percent of fabric consumption in the country being
management systems (Six Sigma) along with ISO in the textile accounted for by cotton [4].
industry of India. The literature indicates that Indian companies
are falling far behind in comparison to their international TABLE I. INDIAN TEXTILE INDUSTRY
competitors in the area of competitiveness like timely delivery,
consistency, reliability, innovation and quality. Adoption of 1200 medium to large scale
Size of the Industry
quality management systems with ISO can help the organisations textile mills in India
to improve competitiveness and performance. In this study data Geographical TamilNadu, AndhraPradesh,
is collected from twenty six textile companies which are member distribution Punjab, Karnataka, Maharashtra
of The Textile Association India (TAI), located in Solapur 16% per annum growth rate and
district, Maharashtra. The findings indicate that only ISO 9000 Output per annum
1000 Million kg per annum
Quality Management System is widely adopted by the sample
companies whereas the other model like Six Sigma is not given Percentage in world
7% share in the global market
importance. market

Keywords—Six Sigma; ISO; QMS. The industry is highly localised in Ahmedabad and Bombay
in the western part of the country though other canters exist
I. INTRODUCTION including Kanpur, Calcutta, Indore, Coimbatore, and Solapur.
The Textile industry in India occupies an important place A. Importance of Textile Industry in India
in the economy. After the World Trade Organisation (WTO) Like the other developing countries, the Textile industry in
regime it has to face cut throat competition in the international India also occupies an important place in the economy as
market due to decentralized sector and also has the opportunity shown below [3], [4].
in the world market. This industry is not performing up to the
mark in comparison to their competitors in the dimensions of • It contributes 4% to the Gross Domestic Product
competitiveness like timely delivery, consistency, reliability, (GDP),
innovation and quality [1].
• It accounts for 17% of total Exports,
N. Kavitha (2010) after research concluded that Indian
• It is the largest employment provider after Agriculture
textile industry enjoys a rich heritage and the origin of textiles
(82 million people direct & indirect),
in India traces back to the Indus valley Civilizations where
people used homespun cotton for weaving their clothes. • The market size of the Textile industry (exports &
Rigveda, the earliest of the Veda contains the literary domestic) is US$ 52 billion,
information about textiles and it refers to weaving. Ramayana • It is expected to reach US$ 120 billion by 2014.
and Mahabharata, the eminent Indian epics depict the existence
of wide variety of fabrics in ancient India. The contemporary Globalisation is an inevitable phenomenon. It is no longer
Indian textile not only reflects the splendid past but also cater an option, but a fact whether one likes it or not. Countries like
to the requirements of the modern times [2]. India have to manage their economies skilfully, to face the
Annual Report of Ministry of Textiles, Government of India global crosscurrents. Due to the World Trade Organisation
(2009–10), indicated that the textile industry occupies a unique (WTO) regime, quota restrictions have been abolished and now
place in our country. One of the earliest to come into existence trade is governed by General Agreement on Trade and Tariff
in India, it accounts for 14% of the total Industrial production (GATT) principles. Before the enforcement of the WTO
and is the second largest employment generator after regime, quotas for the developing countries restricted the
agriculture [3]. textile trade. This was one of the reasons that countries like
Vikram Utamsingh (2003) conducted a survey, and based on India were unable to access larger markets. The results of the
results it can be said that India’s textile industry since its dismantling of the quota regime have initiated open and stiff
beginning continues to be predominantly cotton based with competition in the international market.

978-1-4799-8187-8/15/$31.00 ©2015 IEEE


2015 International Conference on Technologies for Sustainable Development (ICTSD-2015), Feb. 04 – 06, 2015, Mumbai, India

provide independent confirmation that organizations meet the


Fig. 1. The world market share (Annual Report (2009–10)) requirements of ISO 9001. Over one million organizations
worldwide are independently certified, making ISO 9001 one
of the most widely used management tools in the world today.
Despite widespread use, the ISO certification process has been
criticized as being wasteful and not being useful for all
organizations.
C. Six Sigma
Six Sigma is a business performance improvement strategy
that aims to reduce the number of mistakes/defects to as low as
3.4 occasions per million opportunities by reducing variation.
Sigma (σ) is a measure of “variation about the average” in a
process which could be in manufacturing or service industry.
Six-sigma is a data-driven approach to process improvement.
Six-sigma was first time developed & introduced by Sir Bill
Smith in Motorola in 1987.
TABLE II. EXPORTS OF APPARELS IN 2012 The fundamental principle of Six Sigma is to ‘take an
organization to an improved level of sigma capability through
Country US $ Billion the rigorous application of statistical tools and techniques’. In
China 8,260.921 process improvement the goal of a Six Sigma project is to
Hong Kong 1,723.210 reduce the number of defects.
Italy 1,353.586 II. LITURETURE RIVIEW
Malaysia 1,255.069 This section is about the generic overview of Indian textile
Germany 669.130 industry, its competitiveness in the international market
Pakistan 618.830 followed by the discussion on the relationship of performance
with the implementation of quality concepts.
Thailand 597.758 Deming, Crosby and Juran who are the proponent of Total
USA 595.171 Quality Management (TQM) approach, advocated that the
India 522.463 companies could achieve higher levels of quality and
Annual Report (2009–10), Ministry of Textiles, Government of India
performance by implementation of quality management
philosophy [5]. For example, Deming (1986, p.1) asserts,
TABLE III. TABLE STYLES INDIA’S C OMPETITIVE POSITION IN STAGES OF “Productivity increases with improvement of quality. Low
TEXTILE MANUFACTURE quality means high cost and loss of competitive position”.
Similarly, Crosby (1980, p.1) states, “if you concentrate on
making quality certain, you can probably increase your profit
by an amount equal to 5% to 10% of your sales”. Hendricks
and Singhal (1999) provide empirical evidence from six
hundred quality award winning companies located in the USA
that TQM implementation has a positive effect on
organisational performance [5]. They indicate that the award
winning companies have a much better performance compared
to non-award winning companies, in terms of operating
income, total sales, total assets, return on sales and return on
assets. Similarly, Masakure, Henson and Cranfield (2009)
conducted research in the textile sector of developing
B. ISO countries; they claim that export performance is positively
associated with certification of ISO 9000. Martinez-Costa,
The ISO 9000 family of quality management systems Choi and Martinez (2009), Terziovski and Power (2007), and
standards is designed to help organizations ensure that they Curkovic and Pagell (1999) also reported that certification to
meet the needs of customers and other stakeholders while quality management systems enhances the organisational
meeting statutory and regulatory requirements related to a performance and competitiveness of the organisations [6].
product. ISO 9000 deals with the fundamentals of quality On the other hand, the review of literature indicates that very
management systems, including the eight management little effort has been made to investigate the implementation of
principles upon which the family of standards is based. ISO quality and excellence initiatives in the Indian textile sector.
9001 deals with the requirements that organizations wishing to Only a few studies like Mr. R.R. Gorakhia, (Director, TQM
meet the standard must fulfill. Third-party certification bodies Division, Textiles Committee, Ministry of Textiles;
2015 International Conference on Technologies for Sustainable Development (ICTSD-2015), Feb. 04 – 06, 2015, Mumbai, India

Government of India) at Goski Industries, Banda Industries & assurance managers were the respondents for this study. The
Venkataranga Textiles (2009) are available which give limited respondents from all the companies were asked whether they
information about the adoption of quality and excellence had implemented or trying to implement any quality
concepts in textile industries of India[7], [8]. Furthermore, the management systems and models.
existing literature does not give any comprehensive Based on the results obtained from the survey, decision is to
information about the use of quality and excellence be taken whether ISO certification alone is sufficient for
frameworks in India. Therefore, this article will investigate the improvement in productivity or not? If not then apply Six
level of adoption of quality management and business Sigma strategy along with organisations existing ISO system.
excellence systems and models in the Indian textile companies. The next step will be formulating an integrated system
This will indirectly highlight the level of implementation of compatible with existing ISO system that will be carried out for
quality and excellence concepts in the sample companies. harmony in implementation of Six Sigma strategy without
disturbing daily routines of production.
IV. REASERCH METHODOLOGY
In this study the use of Six Sigma which is a quality and
excellence tool considered as the proxy for the implementation
of quality and excellence along with organisations existing ISO
system.
Population and Sample Size
According to Berenson, Levine and Krehbiel (2009), when
the population of a study is located across a wide geographical
region, then cluster probability sampling is the best option to
get a representative sample, because it is cost effective in
comparison to simple random sampling. Thus as per results of
study carried out by M. Shafiq (2012), it is decided that all the
textile companies located in the province of Solapur City will
be considered as the sample for this study [6].
Fig. 2. Comparison of the Characteristics of Indian Textile Sector to the
According to Saunders et al. (2009, p.219) if the population
other competitors in South Asia and China (M. Shafiq (2012)) size is 400, then the minimum sample size for confidence level
of 95% with margin of error ±5%, should be 196. In the current
Asian Development Bank conducted a survey conducted by study, the population size is 375 and the sample size is 210,
with the help of the Indian Council for Research International which is more than sufficient to achieve a confidence level of
Economic Relations (ICRIER) (2006 – 2007), for this study the 95% with margin of error 5% [10]. The self completion
data was collected from interviews with buyers, representatives questionnaires were sent to the sample companies. The quality
of departmental stores, giant discount chains, branded assurance managers were the respondents for this study. The
merchandisers and buying houses and intermediaries from all respondents from all the companies were asked whether they
over the world. They were asked to rate the textile products of had implemented or were trying to implement any quality
India, Pakistan, Bangladesh and Sri Lanka on ten key management systems and models like Six Sigma.
dimensions of competitiveness. The findings of this study
indicate that Indian textile companies have an advantage over V. RESULT
their competitors in terms of price and scale. However, they are The graph in Figure 3 indicates the level of the
not competitive enough on product dimensions like product implementation of different management systems and models
design, innovation, quality, and consistency and reliability [9]. in the sampled textile companies based on survey. This table
Tari (2005) and M. Shafiq (2012) described that many firms shows that seventy percent (70%) of the respondents have
use models and frameworks of different quality and excellence replied that their companies have implemented or tried to
tools as a guide for the implementation of TQM or to carryout implement ISO 9001, eleven percent (11%) ISO 14000, six
self assessment of their quality management system [6]. percent (6%) SA 8000 (Social Accountability standard), six
Among these models and frameworks the Malcolm Baldrige percent (6%) the EFQM excellence model, one percent (1%)
National Quality Award model, EFQM excellence model, MBNQA and Deming Prize and five percent (5%) Six Sigma.
Deming Application Prize, and ISO 9000 are the most
significant frameworks.
III. PROPOSED WORK
This study will be conducted in the context of textile
companies of India. The companies as population of this study
were taken from Maharashtra State of India. A self completion
questionnaire was sent to the sample companies. The quality
2015 International Conference on Technologies for Sustainable Development (ICTSD-2015), Feb. 04 – 06, 2015, Mumbai, India

The graph in Figure 4 indicates the increasing trend of


certified companies since December 2004, systems (Martinez-
Costa, Choi and Martinez, 2009; Terziovski and Power, 2007;
and Curkovic and Pagell, 1999) and excellence models like Six
Sigma (Hendricks and Singhal, 1999) helps the organisations
to achieve higher levels of performance and competitiveness
[8].
VI. discussion
Many other empirical studies in India and other parts of
the world indicate that implementation of quality management
Challenges involved in the implementation of Six Sigma in
Fig. 3. Extent of Implementation of Different Management Systems and technical textile sector are:
Standards • Lack of knowledge about Six Sigma,
• Internal resistance from functional personnel to change,
A much lower percentage of respondents mentioned that • Cultural Barrier,
their companies were interested in the implementation of • Poor Six Sigma project selection,
excellence or other advanced frameworks of improvement. • Lack of Resources.
After ISO 9001, the sample companies seem interested in the The results of survey and literature studied indicate that if
implementation of the environmental management standard the textile industry in India wants to improve their performance
(ISO 14000) and the social accountability standard (SA 8000). and competitiveness in the international market, they need to
According to the perception of respondents, other models and adopt the concepts of quality and excellence like Six Sigma.
frameworks such as MBNQA, the EFQM excellence model
and Six Sigma were given the least importance by the sampled REFERENCES
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Fig. 4. Extent Growth of ISO 9000 Certification in India

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