CHAPTER 2

REVIEW OF LITERATURE

A review of literature is done from sources like research papers, books, journals, reports and
various websites. However major sources were reputed journals and research papers. Mixed
approach has been used in this research by selectively doing Systematic literature review.
Systematic literature review is mainly used for Six Sigma methodology. For Lean and Theory of
Constraints, traditional literature review has been done.

2.1 Objectives of literature review:

The main objectives of literature review are:

i) To find out the research carried out till date on the area related to the topic of this
research. This is also to ensure that there should not be replication of the topic under
study.
ii) To gather maximum knowledge about the area related to topic i.e. Lean, Six Sigma
and Theory of Constraints.
iii) The methods applied by other authors for the study of the area related to topic and its
relevance to the present study.
iv) To study evolution of Lean, Six Sigma and Theory of Constraints
v) To find out definitions for Lean, Six Sigma and Theory of Constrains
vi) To find out success factors for implementation on Lean, Six Sigma and Theory of
Constraints as mentioned in various research papers and to list critical success factors
after ranking them. To find out relation between various success factors and the
successful implementation to construct theoretical model.
vii) The differences and Similarities among Lean, Six Sigma and Theory of constraints
viii) Role and contribution of Lean, Six Sigma and Theory of Constraints in Indian
Manufacturing organizations
ix) To identify research gaps in implementation of Lean, Six Sigma and Theory of
Constraints
x) To ensure that research work is contributing to the field of knowledge.

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2.2 Lean Manufacturing

Hines et al. (2004) widely communicates that lean ideology has made its mark across, and
has proven to be result oriented not only in automobile industry but also in all other industries.
Lack of human integration or its applicability in high volume repetitive manufacturing
environment is one of the major criticized factors as it leads to turmoil environment with other
managerial concepts. (Hines et al., 2004)

Achanga et al.(2006) has discussed a successful implementation of lean manufacturing

within manufacturing SMEs and presented the critical factors in their paper. The study comprises
combinations of comprehensive literature review along with visits to 10 SMEs based in the East
of UK. Manufacturer’s practices were observed to highlight the degree of lean manufacturing
utilization in their process. This was supported by interview with concern employees involved in
lean implementation. Various techniques like analysis and validation of outcomes through
workshops, case studies and Delphi techniques were used to determine the success of
implementation of lean manufacturing within SMEs. Leadership, management, finance
organizational culture and skills and expertise were the top critical factors for the successful
implantation of lean manufacturing within SMEs environment (Achanga et al., 2006).

Taj (2008) analyzed the implementation of lean production and assessed its “as is” state of
practice in selective domains of industry including Computers, FMCG, Retail, Pharmacy,
Chemical, Electronics & few more in China. An evaluation is done through assessment tool of
actual manufacturing related to key areas of inventory, team approach, processes, maintenance,
layout/ handling, suppliers, setups, quality & scheduling and control. The study was done by
questionnaire to important manufacturing executives at manufacturing plants were answered and
the mean of the score for each plant was recorded. The response to the lean production system
design-related questions indicated low scores in Layout design, Volume/mix flexibility, set-up,
visual factory & point-of-use delivery. However, plants scored high in materials flow,
scheduling/control, on-time delivery of finished goods, and overall defect rate. Findings in the
research have resemblance with recent studies about Chinese manufacturing firm’s performance
and competitiveness (Taj, 2008).

23
 Shah and Ward (2003) have examined the effects of factors age of the plant, size of the plant
and unionization status. This he has done to check the possibility of implementing 22
manufacturing practices that are key facets of lean production systems. Study included groups of
practices, Just in Time (JIT) where raw material arrives exactly when required, Total Quality
Management (TQM) which covers all functional area, Total Preventive Maintenance (TPM)
which emphasizes on visual management and Human Resource Management (HRM). The
output of the study shows that size of plant is having more effect on lean implementation
compare to other factors (Shah and Ward 2003).

Melton (2005) had made an extensive study about the awareness of employees about lean
manufacturing. He also studied various factors influencing lean implementation. The study is
more focused on process industry.

Abdulmalek and Rajgopal (2007) have explained that managers in process industries are
more reluctant to implement lean due to the perceived barriers in process industry. Lean is more
popular in discrete manufacturing.

Motwani (2003) discussed the relation between the strategies followed by the organizations
for implementing lean and the improvement observed in manufacturing operations. Critical
factors in the implementation of LM are explained utilizing a business process change
framework in this paper.

The study of the researcher (Taj and Berro, 2006) is an automobile manufacturing plant,
where a combination of lean manufacturing and constrained management was used to increase
the output. Constraint management was used to identify the bottleneck in process and lean was
applied to remove waste (muda). The combination has showed a good result. (Taj and Berro,
2006).

Grewal (2008) stated how Value stream mapping can be used to support lean
implementation. In value stream mapping current state map gives the status of as is process and
future state map is used to visualize the process where all types of waste in the process is
removed to improve the cycle time.

24
 Gurumurthy and Koadali (2009) stated that in recent times, many companies are
implementing or have already implemented lean manufacturing. As per author, few companies
have implemented some tools of LM, and others have implemented entire tool set of LM. Author
further studies the status of benchmarking in lean manufacturing. Author also compares few
organizations for lean practice implementation. Author fails to cover all aspects of benchmarking
in this paper.

Herron and Hicks (2008) has stated in their study that how organizations in England
gained from lean implementation. The major gain was improvement in productivity and cost
saving. The author has also revealed that the top management commitment and change agents
are important factors for lean implementation.

Baker (1994) has developed and discussed the time-based restructuring and
benchmarking frameworks. The study indicates contribution of the benchmarking framework in
continuous improvements. The study has identified inventory, process complexity and
bottlenecks are negative factors which affects competitiveness of organizations.

Parez et al. (2004) discusses about integration of human and technological factors and
proposes a frame of socio technological system for lean manufacturing. Author’s views are very
important as we can’t neglect human dimensions in process excellence methodology
implementation.

Forrester (1995) noted that lean practitioners shall see that there is not a clash between
the lean implementation and people policies of an organization.

Pattanaik and Sharma (2009) has illustrated Lean manufacturing as scientific technique to
remove non value added activities in process to reduce inventory, waiting, unnecessary
movement. The study refers to the cellular manufacturing system, in which each cell is an
independent unit responsible for particular product family. The study shows that after making
groups of products or parts, each cell can manufacture entire product inside cell. The author
emphasizes that cellular manufacturing can eliminate all non-value added activities. Author also
gives guidelines for designing of manufacturing cells.

25
 Ivezic et al. (1999) developed the manufacturing agent-based emulation system or
MABES which was exclusively for design and analysis of discrete manufacturing systems.

Singh and Sharma (2009) illustrated role of value stream mapping (VMS) in Lean
implementation with help of case study. Author describes that value stream mapping is very
effective in reducing inventory and lead time. The case study shows how future state map is
constructed based on current state map and modifications suggested to improve current state.
After comparing current state map and future state map in an organization, the author has found
impressive reduction in lead time, processing time and inventory. Author further states that value
stream mapping is a powerful tool to get benefits of lean implementation.

Brown and O'rourke (2007) has illustrated that in Lean manufacturing small cells are
used to manufacture entire product and all steps of assembly line are integrated in one cell. A
worker in cell is supposed to assemble the entire product by performing all steps of assembly
line. Thus the worker is also getting exposed to previously separated risk in assembly line. To
reduce hazards at cell author has suggested proper safety training of worker working at cell.

Levitt (1972) has suggested that service operation shall take logic and practices from
manufacturing. Bowen and Youngdahl (1998) defended this “production-line approach to
service” by giving examples from various service industries and how lean practices benefitted
service operations.

Bunce and Gould (1996) has stated that, the main challenges faced by manufacturing
companies, both now and in the future are: increasing competition, mainly through overcapacity;
changing relationships with business stakeholders; increasingly demanding customers; growth in
new technology; global distribution of design and production; environmental legislation; and
political and economic factors. In this article (Bunce and Gould, 1996) argued that in order to
address these issues and remain successful, manufacturing companies need to respond in the
following ways: be more responsive to changing markets; be more customer focused; be
adaptable to new situations; form alliances and partnerships; manage the strategic supply chain;
minimize the time-to-market of new products; and utilize the developing technologies for global
communication (Bunce and Gould, 1996).

26
 James-Moore and Gibbons (1997) observed that though lean practices are successful for
high volume production like automobiles, it has still to be demonstrating its usefulness for low
volume production.

Miller et al. (2010) in their article has given a case study of small furniture Production
Company and demonstrated how integrated lean tools and sustainability can make a positive
impact on the environment, society and its own financial success. He has further stated that lean
and green manufacturing can go hand in hand. Lean advocates to use minimum resource and to
avoid all forms of waste. Thus it will have effects like preserving environment, less pollution,
less usage of valuable natural resources like energy and water.

Andersson et. al., (2006) described the similarities and differences between the concepts
(TQM, six sigma and lean), including an evaluation and criticism of each concept. The author
emphasizes on implementation of combination of these concepts as they are complementary, and
will result in efficiency and high throughput. The study states that Six Sigma and lean are
complementary to each other and can add value by combining with TQM.

Sohal and Egglestone (1994) presented the findings of a study where they surveyed
Australian companies and found that most of the companies are implementing lean. Lean has
also leads to organizational changes in these organizations.

Mo (2009) found that Australian furnishing industry is facing tremendous competition.

Few of the companies adopted IT based system along with lean manufacturing. The result is 30%
increase in productivity of these companies.

Mejabi (2003) has presented a planning system for lean manufacturing through a
framework for performance and bench marking. The framework establishes a lean scorecard
which compares present status with post lean implementation status.

Lee-Mortimer (2006) studied the ongoing implementation of lean manufacturing at a

UK-based electronic product-manufacturing operation. Author describes how as a survival
strategy a manufacturing organization is adopting lean. Implementation of lean has resulted in to
improved productivity for this organization.

27
 Ghosh (2013) in his study had examined the lean implementation in Indian
manufacturing organizations and impact on operational performance. Author has conducted a
survey of organizations and concluded that about 80% respondents have adopted lean in one or
other form like total productive maintenance, value stream mapping etc.

Krafcik (1988) has stated about the principles of Henry Ford in their purest forms which
are still valid and make up the very basis of what is now known as the Toyota Production
System. Plants with lean production policies are able to manufacture a wide range of models but
maintain high degrees of quality and productivity. Author has articulated the differences between
the production system of Toyota and most producers in west before and after the World War II
and how the differences have reduced as Western Producers have adapted Toyota’s interpretation
of pure Fordism and how others plants were implementing Lean operations exemplified by
Toyota.

Bamber and Dale (2000) stated that the findings of a research study into the application
of lean manufacturing in aerospace manufacturing unit. Author has further explained which part
of lean methodology worked and which part has not worked. This case study has given example
that transition from traditional manufacturing in to lean manufacturing was not easy to happen.

Bhasin and Burcher (2006) has illustrated the factors for the success of lean
implementation with a conceptual literature study which states the organizations implementing
lean can only be if it views lean as philosophy rather than a strategy.

Singh et al. (2010) discussed with help of Value Stream Mapping the process of lean
implementation and post implementation benefits for the production industry. Author has
compared current and future state maps and the percentage benefit achieved. As the paper was
based on actual facts in a real scenario it will be very useful for the academicians and industries
for understanding lean implementations and its derived benefits.

Antony (2012) in his paper presented the results of an empirical study on Lean Practices
and its impact on Scottish SMEs. The data was gathered using semi-structure interviews from 5
Scottish companies and 3 people from each organization (top management level, middle level
and shop floor level) were chosen for the study. Author further stated that implementation of

28
Lean in the participating companies impacted upon flexibility and employee involvement and the
key benefits from Lean implementation were cost reduction, productivity, organization and
resource utilization. The analysis of the study also showed that ISO is not a pre-requisite for
Lean implementation. However the participating companies felt that it would provide a good
framework with regards to documenting the procedures in the business. The results also
indicated that size of the company does not have a direct impact on lean implementation (Antony
2012).

2.3 Six Sigma

2.3.1 Systematic Literature Review
Systematic review can help researcher in accumulating knowledge from the range of studies.
Systematic literature review can enhance methodological rigor and also shows opportunities for
further research. A systematic review addresses a specific question, utilizes explicit and
transparent methods to perform a through literature search and critical appraisal of individual
studies from which we can conclude what presently we know and we do not know ( Briner and
Denyer, 2012 ).
Systematic reviews adopt replicable, scientific and transparent process, thus differ from
traditional narrative reviews. This minimizes bias through exhaustive literature searches
( Tranfield et al., 2003 ).
A data extraction form specially designed to extract data from various research papers is given in
appendix.
I have searched Research Journals, EBESCO, Proquest and Google Scholar for peer reviewed
research papers. For evolution of Six Sigma a narrative literature review has been used. For
definitions, Critical Success Factors and barriers for implementation of six sigma, Systematic
literature review has been used. A data extraction form is used to extract data from literature
reviewed. Extracted data is tabulated to draw conclusions which go in too many pages (Only
summary presented in this thesis).

2.3.2 Evolution of Six Sigma

The seed of six sigma can be found in the normal curve, a concept introduced by Carl Frederick
Gauss (1777-1855). In 1920’s Walter Shewhart used sigma level to show variation in product.

29
In early twentieth century industrial world started shifting from craftsman industry to assembly
line production. There was a need to control variation in process due to which few products were
having variation.
Folaron (2003) describes how six sigma evolved in automobile industries by use of statistical
process control. Sorting of parts was done in automobile industry to separate defective parts from
production lot.
The word “Six Sigma” was first used by Bill Smith, an engineer with Motorola. Bill Smith made
a set of various statistical methods and analysis tools and termed it as Six Sigma.
Kwak and Anbari (2004) has explained how in 1980’s organizations benefitted by using “Six
Sigma” and integrating “statistics, engineering and project management”

2.3.3 Overview of Research in Six Sigma

Delsanter (1992) has explained that by implementing six sigma Motorola has saved $2.2 billion
from 1987 to 1992. As per Chief Executive Officer George Fisher top management commitment,
education and training is the major contributor for effective implementation of Six Sigma.
Motorola’s commitment for Six Sigma reflects in investment in Research and development and
starting of Motorola University for training on quality.

Belohlav (1993) describes that Due to stiff competition to maintain quality American companies
started redrafting strategies based on the goal of quality. The changed business environment
forced American companies the way they produce products and to look at customer’s
requirements.

Behara et al (1995) have presented a case study on application of concept of zero defects, based
on six sigma for measuring customer’s satisfaction. He has conducted a study for this in a high
tech manufacturing company at USA.

Hendricks and Kelbaugh (1998) studied performance of General Electric for 15 years and
showed that how GE has reduced manpower and increased profit by application of Six sigma.
Author explained how the six sigma helped in gaining process understanding.

Caulcutt, R. (2001) Studied annual report of American manufacturing companies and shown that
these annual reports document the success of six sigma.

30
Hong and Goh (2003) describes that success of six sigma in manufacturing organizations
motivated other sectors like service, software to deploy six sigma to improve their processes.

Smith (1993) derived conclusion from various studies, first product can be built at minimum
time if there are no mistakes in process and second if defects are not observed during process
then customer also doesn’t find any defect.

Klefsjö et al. (2001) explained that though there are supporters and opponents to the concept of
six sigma and few finding nothing new in it and others finding it revolutionary, six sigma a blend
of old and new has a right tool set for improvement.

Hunter and Schmitt (1999) have discussed how chemical manufacturing industries benefitted
from Six Sigma.

Kumar et al. (2008) describes that for sustaining the merit of six sigma in 21 st century, it shall be
integrated with other process excellence methodologies. Author emphasizes that six sigma is not
a fad and it is purely data driven methodology.

Knowles et al. (2004) presented a case study on how six sigma is successfully implemented at
food manufacturing plant at UK. Mentoring, guidance, training and team work were major
factors responsible for success of six sigma.

Ackermann (1993) has explained how to bring suppliers to six sigma level by imparting class
room training specially designed for suppliers.

Sohal and Hilton (2012) have examined the successful implementation of Lean Six Sigma and
the competence of company, deployment facilitator and project teams.

Wang, H. (2009) in his paper explained the major factors responsible for successful
implementation of six sigma.

Some selected definitions of six sigma by various authors are given below:

Author, Year Definition

Antony and Banuelas (2002) Organizations can get breakthrough results by using Six
sigma, which is a “systematic methodology” and a

31
 “business strategy”.
Antony and Coronado (2002) “Six Sigma is a methodology made by statistical tools
and techniques to remove variability from process”
Anbari and Kwak (2004) “Six Sigma is a project driven methodology used to gain
sustainable business performance improvement”
Montogomery and Woodall “Six Sigma is statistically based systematic approach
(2008) used to decrease variability, reduce defects and to
remove waste”
Wang (2009) “Six Sigma is a statistical approach used to analyses data
to improve the quality”
Antony and Desai (2009) “A disciplined and systematic, customer oriented and
profit focused initiative is called six sigma which is
depends on a process centered and data driven
technology”
Table 2.1: Literature Review of Definitions

Sr.No. Success factors most frequently observed in Systematic Literature review

1 Top management commitment

2 Knowledge of Six Sigma methodology, tools, and techniques

3 Business strategy in context with Six Sigma

4 Customer relation

5 Selection of projects

6 Organization culture

7 Infrastructure

8 Supplier involvement

9 Employee communication

10 Training

11 Leadership

12 Supplier relation

13 Appraisal system

32
 14 Recognition of employees

15 Sharing of best practices

16 Success story presentation

17 Financial capability

18 Process management effectiveness

19 Technical support

20 Resource management

21 Product Design

22 Importance of metrics

23 Resource allocation to project teams

24 Use of data in decision making.

25 Linking Six Sigma to Employees

26 Linking Six Sigma to corporate Business Objectives

Table2.2: Success Factors most frequently observed in literature

Key benefits and impacts of Six Sigma implementation observed in literature

Sr.No. Key benefits and impacts of Six sigma implementation

observed in literature

1 Increase in profit
2 Improvement in product quality
3 Improvement in cycle time
4 Lead time reduction
5 Manufacturing cost reduction
6 Better resource utilization
7 Increase in customer satisfaction
8 Reduction in process variation
9 Reduction in defects in process
10 Improved work performance
11 Improved sales
12 Improved employee moral

33
13 Reduction in equipment downtime
14 Improved market share
15 Improved return on investment
16 Reduction in inventory
17 Reduction in scrap
18 Reduction of rework
Faster delivery
19
20 Improved employee moral
Table 2.3: Literature Review of Key Benefits or Impact of Six Sigma

Top 10 success factors groups (similar factors grouped together) obtained from the above:

1. Management commitment and involvement

2. Training, Education, learning and Growth

3. Project prioritization, selection, reviews and tracking.

4. Linking Six Sigma to business strategy

5. Linking Six Sigma to customers,

6. Organizational infrastructure and

7. Cultural change

8. Liking Six Sigma to suppliers

9. Understanding of Six Sigma methodology, tools, and techniques

10. Factors related to the human resource management

2.4 Theory of Constraints

Aryanezhad et al. (2010) have discussed that each system has minimum one constraint
that restrict a system to perform at its best level. Author has proved that additional capacity of
non-constraint resource can be used to elevate constraint resource.

Atwater and Chakravorty (1995) in their study of implementation of quality improvement

initiatives including TOC at medium and large size companies have concluded that only about
one-fifth of all QI programs achieve visible results. He also analyzed the reasons for this of being
not result oriented.

34
 Balakrishnan and Cheng (2005) while discussing TOC has illustrated “Gardiner and
Blackstone methodology based on spreadsheet LP” which provides improved solutions in
complex industrial environments where multiple products are manufactured and many bottleneck
situations are present in process.

Belvedere and Grando (2005) have presented a case study which describes the
application of TOC in an organization which was having a batch-mix process business. The
author has discussed about the organizations concerns about the production and inventory
management for various process industries and how it transits towards a pull approach. The
author has made a brief review of the mainstreams of study on TOC, and has identified the key
academic and managerial issues of the process industries.

Birkin et al. (2009) have discussed various issues that are unavoidable obstructions in the
contemporary business model, issue relating to consumption without limits, and queries relating
what the business processes can do about it. An exploratory study was undertaken by author to
develop a new business model for sustainable development. The theory of constraints (TOC) was
adapted to provide the project's methodology that made use of semi-structured interviews and
secondary material.

Blackstone et al. (2009) has stated that project management is a task which is more
complex. Most of the projects are not completed in time or in allotted budget or as per given
specifications. There are many reasons for this failure like lack of leadership qualities of project
manager, non-involvement of top management, insufficient resource allocation. Author has
suggested application of TOC to improve success rate of projects. He has also suggested an
application of critical chain methodology for this.

Blackstone (2001) has mentioned in his article the development in TOC application in
the recent years from production scheduling to performance measures, supply chains, marketing,
sales and managing people.

Jones and Dugdale (1998) have made comparison of TOC with other management
‘philosophies’, and evaluated the treatment of measurement, behavior and goals in organizations
and assessed TOC’s promised performance in delivering the transformation in UK

35
manufacturing. However the result depends on whether a ‘paradigmatic’ or ‘pragmatic’ mode of
change is adopted.

Coman and Ronen (1995) have applied principles of Theory of Constraints to the
management of Information Technology in the organization and formed a model having four
layers for applying TOC to Information Technology. TOC’s throughput-driven business policy
and seven step resource management methodology is used here through the cost and utilization
capital investment technique which concludes with the drum-buffer-rope production activity
procedure.

Coman and Ronen (2000) have analyzed the outsourcing problem as a linear
programming problem. He has used Theory of Constraints for this.

Dass and Steyn (2006) have mentioned theory of constraints (TOC) can be used as
methodology for executing projects. Theory of Constraints provides a technique for allocating
constrained resources to projects. Literature that is relevant to the allocation of resources to
multiple projects is first reviewed in this paper followed by usage of TOC method for allocating
resources to multiple projects is explained. Author also explains how project duration is reduced
after using resource allocation with help of Theory of Constraints.

Davies et al. (2005) have illustrated a case to demonstrate the usage of TOC techniques,
tools to complement the use of traditional systems approaches with the involvement of Systems
Dynamics (SD) such as Causal Loop Diagramming (CLD) and to develop a better understanding
of operational and strategic decision-making.

Ehie and Sheu (2005), with the help of case study explained how organizations
worldwide are benefitted by Theory of Constraints. Author has also proved that how
combination of Six Sigma and Theory of Constraints is used for improvement projects to
improve bottom line performance. TOC is used to identify and elevate the constraint and Six
sigma is used to apply statistical techniques and tools.

Geri and Ahituv (2008) have introduced the notion of maximal infeasibility, to check
which of the factors: organizational infeasibility, economic infeasibility, technological

36
infeasibility, lack of financial resources and risks is highest. The author has developed a model
of IOS feasibility based on TOC. The author has also discussed the benefits of IOS.

Gupta and Boyd (2008) described how operations management and theory of constraint is
interconnected. He suggested that theory of constraints can be treated as “general theory in
operations management”.

Hilmola (2001) has compared activity based costing with theory of constraints. Goal,
operating expense and throughput investment is used by TOC as performance measures in
throughput accounting as opposite to the traditional accounting system.

Ioannou and Papadoyiannis (2004) have overlooked the reasoning behind long
implementation times and organizational thunderstorms that tantalize the deployment of ERP
system and stated that TOC is a coherent methodology for handling bottlenecks and effectively
planning the code development effort. Author has emphasize on code development within ERP
systems to adhere to key and unique requirements of a business environment, localization and
reporting needs that companies want to achieve. It focuses on two aspects of most
implementation projects that generate the majority of technical and functional problems and
constitute the projects’ bottleneck.

JIA and FANG (2006) have suggested Theory of Constraints to improve and reengineer
the constraints and then the competitive edge of organization can be enhanced. Business process
reengineering BPR is an effective measure for organization to enhance the competencies. By
means of using Petri net to model the critical process, the business process could be analyzed and
controlled dynamically to find the constraining links.

Goldratt and Fox (1986) have given a case study of wafer fab operating and examined
considering Drum Buffer Rope release policy, the effects of downtime at non-constraint
machines and different dispatching rules and showed relation between down time of non-
constraint machine and fab performance.

Kee (1995) has advised combination of theory of constraints and Activity-based Costing
(ABC). Author has described advantages of such combination which enables the interaction of
physical resources, cost and capacity of production activities. ABC and TOC are complementary

37
to each other.

Kee and Schmidt (2000) have advised that short term goals can be achieved by theory of
constraints but for long term goals Activity based costing is more appropriate. While taking
optimal product mix decision with help of TOC and ABC management can use its power in
decisions related to labour and overhead resources.

Kim et al. (2008) have done overview of theory of constraint through extensive literature
review on Thinking Process, evolution of theory of constraints, TOC tools and TOC methods.
Author has identified research gaps and suggested some future area of research.

Klein and Harowitz (1996) presented in their paper TOC is useful not only for
manufacturing organizations but also for service and not-for-profit organizations.

Lacerda et al. (2010) describes combination of process engineering and the thinking
process of the theory of constraints. The two theories analyzed and compared to find out benefits
from combination. In the study a case study has been presented to show current problems and the
proposed approach after implementation of thinking process and process engineering.

Luebbe and Finch (1992) have inferred that TOC approach offers nothing in addition to
what can be accomplished through linear programming (LP). With the help of an example, this
paper compares TOC to LP and gives explanation to the differences surrounding the TOC
philosophy and the LP technique.

Mabin and Balderstone (2003) have used systematic literature review to analyze TOC
applications as explained in literature. They have done meta-analysis of over 80 TOC
implementation cases.

Motwani and Vogelsang (1996) have described the case study of US engineering firm
which used theory of constraint’s five steps to improve their productivity. Author has also shown
that how application of five focusing step can be used to remove constraints and ultimately to
improve productivity.

Polito et al. (2006) has described a specific TOC technique “The Thinking Processes”
used to improve competitiveness of an airline industry. The paper states competitive advantage

38
as an objective of the discipline of Operations Management and how TOC has found greater
acceptance.

Raimona Zadry and Mohd Yusof, (2006) has conducted a survey with 250 automotive
suppliers in Malaysia to determine the extent of TQM and TOC implementation in Malaysian
automotive suppliers. The analysis of collected data is done by using SPSS. The analysis shows
that even at the early stage of implementation of TQM, the respondents got very good benefits.
But compare to TQM, theory of constraints is still not popular in Malaysian industry.

Rhee et al., (2010) has explained that TOC can be effective by using Drum-Buffer-Rope
(DBR) scheduling method for Business Process Management (BPM). Author gives more
emphasis on the efficiency of Business process using TOC based method.

Rippenhagen and Krishnaswamy, (1998) have described in his research a direct method
to avoid deprivation of possible constraint equipment and is capable of responding to changes in
product mix and can act to rectify line imbalances because it is based on real time data from the
floor control system.

Schragenheim, et al., (1994) have discussed the applicability of the TOC in the process
flow industry and compares TOC to the current practice. The modified Drum-Buffer-Rope
methodology is used so it can match the requirement of process. Guidelines for the strategic
location and determination for the WIP inventory level reduction are provided.

Sheremetov et al., (2003) has stated that Holonic Manufacturing Systems have emerged
over the last decade as strategy for manufacturing control system design to face the challenges of
changing manufacturing environment. Resources and component agents combined and are
proposed to dynamically perform co-operative job routing using a distributed algorithm based on
the theory of constraints.

Spencer (1994) examined the conflict between traditional cost accounting and TOC
accounting, presents a description of how the TOC method operates at The Trane Company
(Macon, GA) and how the cost accounting aspect of TOC was used to evaluate the addition of a
new product line proposed by marketing.

39
 Spencer (2000) presented a case study where all three concepts of the theory of
constraints (TOC) are implemented. This is a part of continuous improvement process of this
organization. The organization is a service provider for food sector companies. The major focus
of the study is to see how effectively TOC is applied for production planning and control of a
service provider.

Watson et. al. (2007), in his study has focused on impact and acceptance of Theory of
Constraints, by both practitioners and academicians. The outcome of the research has described
its development, and how it became widely accepted concept. To improve further acceptance of
theory of constraints both positive and negative aspects are discussed in this paper

Xiao-yao (2005) briefly and systematically introduced a management method based upon
Theory of Constraints (TOC). In the aspect of continuous improvement on enterprises
management, the method is more general than others in administrative philosophy and
technology, which is demonstrated with many cases.

Yao and Zhou (2009) have proposed a production scheduling model of the processing
program of paper-making system, starting with pulp and paper balancing as entry point. In order
to preserve the good characteristics of the previous generation and reduce the disruptive effects
of genetic operator, this paper uses the niche genetic algorithm for solutions. According to
simulation proof, this method was proved by the case to have high efficiency for scheduling
problems and practical values.

2.5 Comparison between Lean, Six Sigma and Theory of Constraints as found in
Literature:

Jacob et al. (2009) in their business novel “Velocity: Combining Lean, Six Sigma and the
Theory of Constraints to achieve breakthrough performance”, by combining the concepts of Lean, Six

Sigma and the Theory of Constraints within the organizational program follow a “best of breed”
approach. The author suggests taking the best of each school of thought has to offer and
combining them to maximize the performance. Thus the weakness of one approach can be
overcome by the strength of other and particularly by inclusion of Theory of Constraints in the
mix.

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 Nave D. ( 2002) has compared Lean, Six Sigma and Theory of Constraints and described
essence of these methodologies in following table.

Methodology Six Sigma Lean Manufacturing Theory of constraints

Theory Reduce Variation Remove waste Manage constraints
Phases 1. Define. 1. Identify value. 1. Identify constraint.
2. Measure. 2. Identify value stream. 2. Exploit constraint.
3. Analyze. 3. Flow. 3. Subordinate processes.
4. Improve. 4. Pull. 4. Elevate constraint.
5. Control. 5. Perfection. 5. Repeat cycle.
Orientation Problem oriented Flow oriented Systems oriented
Table 2.4 Comparison between Lean, Six Sigma and Theory of Constraints

Ehie and Sheu, (2005) have suggested in their case study, combination of six sigma and
theory of constraints for process excellence. The outcome of the case study shows that the
company gained by the implementation of TOC concept. Bottom line performance was the
priority for selection of projects. This was done through the help of theory of constraints. On the
other hand Six Sigma provided statistical tool set for defining the problem, measuring and
analyzing data, analyzing root causes.

Hyder et.al. (2009) in their research defines an integrated model of six sigma and
constraint management that shows a step-by-step guide using the original methodologies from
each discipline and is evaluated in a case study from the production line.

As the Theory of Constraints has grown, so has its acceptance by both practitioners and
academicians. At this point in its development, as it transitions from niche to mainstream, it is
important to review what has been accomplished and what deficiencies remain so that both the
promise and problems impeding greater acceptance can be examined (Watson et. al., 2007).

The main objective of the study by Pacheco (2014) is to analyze some points of
convergence and divergence between the Theory of Constraints and Six Sigma when used in an
integrated manner for the continuous improvement of operating manufacturing systems. His
research also aims to advance a better understanding of the fundamental principles of such
methodologies by performing a comparative analysis of critical issues.

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 Husby (2007) has discussed the theory of Constraint, lean Sigma and Six Sigma with
illustration of its statistical tools and methodology. Authors have stated Six Sigma’s five-step
improvement methodology called DMAIC, which uses statistical tools for reducing variability
and eliminating defects. DMAIC is a powerful tool set, which is best, applied when a problem's
root cause is unknown or not easily identifiable and Six Sigma also identifies projects that
eliminate operating plan improvement barriers and resolve known process defects. Further, they
have presented TOC to view a business as a system with resources linked together to meet its
goals. Its thinking process is based on the scientific method, identifies the root cause(s) of a
problem and develops effective solutions.

Navarro et al. (2014) have examined the three most applied approaches into Operations
Continuous Improvement viz. Lean Manufacturing, Theory of Constraints and Six Sigma and
stated that in 2006, Russ Pirasteh developed a model that integrates and harmonizes concepts,
techniques, tools and methodologies of TOC, Lean Manufacturing and Six Sigma called
iTLS(TM). The objective of the paper is to study the model from a literature review that analyzes
the approaches as well as the related points and develop a real case study. In this sense, this study
examined the use of iTLS(TM) through a method that identified the constraints, then eliminated
wastes of the constraint, and as a final point, reduced the process variability. This was made
through an application of Russ Pirasteh's model in seven steps to a problem of Value Chain
management of Home Appliances Multinational Subsidiary located in Brazil. Corresponding to
preliminary results, it was observed the model strength and its applicability to the problem
studied. Finally, the study discusses the findings implications and presents some directions for
future research.

Aghili and Shaun (2011) has illustrated the concept of Six Sigma and TOC. The purpose
of this article is to provide management accountants with dual conceptual framework-merging
elements from Goldratt's Theory of Constraints with Six Sigma’s DMAIC methodology and
tools-that can be used to tackle organizational system constraints. The author has also
contemplated the benefits of incorporating Six Sigma accounting metrics within the control
phase of Six Sigma.

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 Alsmadi et al. (2014) has presented the design methodology and approaches of Lean
production and TOC. Based on their literature, the paper suggests implementation of an
integrated activity based costing (ABC) and TOC to enhance product mix decision making in a
Lean Company. The findings includes case study, which reflects the difference in results
concerning the optimal product mix and the associated bottlenecks with the proposed integrated
approach. The paper contributes to lean and management accounting literature by demonstrating
the value of a method of integrating ABC and TOC.

Creasy (2014) has focused on improving operational results while reducing inputs or
keeping them the same is what led one organization to embark on a multiyear quest resulting in a
method called 6TOC and results worthy of examination. 6TOC is the unique combination of Six
Sigma, Lean and theory of Constraints (TOC) which focuses on quality improvement with
reduction in variation, eliminating waste and lean focus on bottleneck makes a potent
combination for immediately finding root causes and producing solutions with a direct bottom-
line impact.

Stephen (2009) has presented in the paper a green approach with the implementation of
combination of Lean Sigma, Six Sigma and Theory of Constraints. Author has stated its
implementation in plastic processing company which has turned out to be leaner than before.
Further, in their illustration have highlighted the results derived by implementation of lean, six
sigma and TOC in efficient production with less variation.

Sproull (2009) have presented his perception that Lean Sigma and Six Sigma are
essential ingredients for the success of TOC. Author has discussed various literatures in the
study which states that lean and Six Sigma philosophies are odd or contradictory to TOC. Author
has reflected these philosophies as complimentary to the theory of Constraints.

Pirasteh et al. (2014) have discussed that many proactive and pragmatic organizations
have embraced the fact that they do not have the luxury of resting. Continuous process
improvement methodologies such as lean, Six Sigma and TOC have been put into practice to
improve efficiency and profitability. The study made was integrated TOC and lean Six Sigma
(ITLS), this model is implemented in three stages or seven steps. Initially ITLS model applies

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TOC to bring focus and Symantec view to the issues at hand. The next stage uses lean tools to
identify the true value in the processes' value stream and highlights the non-value-added
activities. Third, ITLS applies Six Sigma tools and techniques in order to control the process
stability, sustainability and level of required perfection.

Reid and Cormier (2003) have illustrated in their research paper the managerial approach
to take decisions while implementing TOC with three basic questions 1. What to change? 2.
What to change to? 3. How to cause the change? This paper demonstrates the logic tools to apply
TOC. The study uses relatively new procedure called the “three cloud approach” to determine
the core problem or cause for the major issues currently faced by management. The author has
suggested this approach to the manager in regard to the first approach; the manager creates a
current reality tree (CRT) that uses sufficiency logic to document the cause-effect relationships
responsible for a system's current state. In regard to the second query develops another TOC
logic tool, a future reality tree (FRT), to help construct and evaluate planned interventions for
resolving the core conflict and improving effectiveness. The paper concludes by stating that
feasibility and utility of using TOC TP logic tools helps managers of service organizations to
improve their overall system performance.

Kim et al. (2008) stated by drawing conclusions relative to the feasibility and utility of
using TOC TP logic tools to help managers of service organizations improve their overall
system performance.

Brown et al. (2008) have examined in his paper the major elements of the Goldratt's
framework - the Theory of Constraints (TOC) - in the banking sector, and examines the factors
involved in the decision to adopt the TOC by companies in this sector. Author has done a deep
literature review, analyzing similar cases that apply the Goldratt's framework in services and in
manufacturing and the several views of its components; Author has focused in formulating a
framework specifically for the banking system. The approach of the study is qualitative and
Quantitative; the study infers that the main factors that influence the decision to adopt the TOC
are the nature and the characteristics of the banking service, the attitude towards change, the
leadership and the commitment of the entire institution. They have highlighted in this article,
through the location of the constraints and development of practical measurement to facilitate the

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banking process improvements, banks can improve resource utilization, revenues and employee
satisfaction.

Havlícek et al. (2005) in their study focused on improving productivity and how the
sense of ownership can be used for this. Author also describes how a dream of human beings of
building bigger aircraft is used to build C-130 Hercules. Author explained how inspection and
repair requirement is fulfilled and still the demand also fulfilled. The study methodology used is
combination of TOC and lean six sigma.

Kai Jin et al. (2009) in their article described that how change management is difficult to
deploy in small organizations compare to big organizations. The study is focused on innovation
management in small and medium organizations. In study innovation management is described
in context with process management. The mixed methodology is used here which consists of Six
Sigma and Theory of constraints. This is one of the examples which show how combination of
different methodologies can be used for different types of applications and need.

2.6 Research Gap:

Outcome of literature review is used to find out definitions by various researchers,

success factors as per various literatures and the recent status of research on Process Excellence
methodologies in general and Six Sigma, Lean Manufacturing and Theory of Constraints in
particular.

Though most of the studies focuses on critical success factors, very few have studied
obstacles or barriers faced by organizations during implementation of Process Excellence
methodologies.

Each methodology is having unique tool set and organization deploy these tools
selectively. It has been observed during review of literature that very few literature studies tool
set usage in PEM implementation.

Compare to literature on Lean Manufacturing and Theory of Constraints, literature on Six

Sigma gives more emphasis on success factors. Literature on Six Sigma also systematically
studied success factors and its effect on organization’s performance.

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 In the outcome of review we found that limited research has been conducted on
implementation of Process Excellence Methodologies in India compare to developed countries.
Also limited research is carried out on comparison of Six Sigma, Lean manufacturing and
Theory of constraints.

Few authors conducted research on Six Sigma and Lean implementation in specific
industrial sector like Cement in India, but very little literature found on Six Sigma and Lean
implementation in overall manufacturing sector and comparing sector wise pattern of
implementation. Similar thing observed for literature on Theory of Constraints, limited research
has been conducted on the implementation on Theory of Constraints in India and this author has
not came across any study on Theory of Constraints implementation in Indian Manufacturing
sector.

A search has been conducted for the literature where implementation of Lean, Six Sigma
and Theory of Constraints and their effect on organization performance, studied together for
Indian manufacturing industries and this author has not found any literature which includes such
study.

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