American Journal of Industrial and Business Management, 2013, 3, 573-582
http://dx.doi.org/10.4236/ajibm.2013.36066 Published Online October 2013 (http://www.scirp.org/journal/ajibm)
573
Lean Six Sigma Methodologies and Organizational
Profitability: A Review of Manufacturing SMEs in Nigeria
Okpala Kenneth Enoch
Department of Financial Studies (Accounting), Redeemer’s University, Redemption City, Nigeria.
Received August 3rd, 2013; revised September 3rd, 2013; accepted September 13th, 2013
Copyright © 2013 Okpala Kenneth Enoch. This is an open access article distributed under the Creative Commons Attribution Li-
cense, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
ABSTRACT
Manufacturing small- and medium-size enterprises (MSMEs) are reluctant to the implementation Lean and Six sigma
methodologies (LSS) all the over world. This is traced to the impeding factors which seem stronger than motivating
factors coupled with lack of proper documented evidence of LSS’s successful implementation in many MSMEs. This
paper investigated the influence of LSS on the profitability of MSMEs in Nigeria. The population of the study consists
of 450 manufacturing SMEs with 2250 employees. The sample frame is made up of 225 MSMEs with 1026 staff se-
lected at random upon which copies of structured questionnaire were administered. 1002 valid responses received were
analyzed. Pearson product moment correction (PPMC) confirmed the formulated propositions with negative association
between awareness, achievement CSFs and LSS implementation and the profitability level of MSMEs. The result ob-
tained shows that LSS implementation among MSMEs in Nigeria is almost none existing and has no influence on the
profit level. The study recommended that CEOs of MSMEs should undertake training on LSS to enable them to provide
a strong leadership and support the initiative, LSS consultants should be engaged to help drive the quality improvement
approach and MSMEs should focus on the impeding factors to reduce the effect on the LSS implementation and achieve
continual quality improvement, customers’ satisfaction, increase sales volume at a minimized cost to attain targeted
market share and profit level.
Keywords: Lean Six Sigma; Critical Success Factors; Manufacturing SMEs; Impeding Factors; Profitability
1. Introduction
Profitability is the key motive behind every economic
investment. Most financiers invest in business to address
the issue of wealth maximization and shareholders’ eco-
nomic welfare [1]. Due to the complexity and the level of
financial outlay involved in the establishment of large
company, some investors resort to small or medium size
firms (SMEs) which grow over time into medium or
large organizations as the case may be [2]. The definition
of SMEs varies globally with key criteria being number
of employees and turnover of company [3]. In the UK
and Europe, SMEs are firms with less than 250 employ-
ees according to European Commission in 2003 while
Australian Bureau of Statistics in 2001 restricted SMEs
to those firms having 200 employees or less. The Central
Bank of Nigeria in its monetary policies circular No. 22
of 1988 described SMEs as those enterprises which has
annual turnover not exceeding = N = 500,000. Experts
maintained that no matter the definitional problem of
SMEs, the concept and its contributions remained the
same all over the world [4]. SME is a vital force in any
nation and it is regarded as the engine of economic
growth and development [5]. The sector has made sig-
nificant contributions to Nigeria economy through help-
ing the government to achieve some of its macro-eco-
nomic objectives and enhancing growth and development
[6,3]. Their significance is obvious in creating new com-
petition, reducing poverty, generating gainful employ-
ments for employable citizens and boosting national
turnover and GDP development [7,8]. Though the aware-
ness of the contribution of SMEs is becoming prevalent
among nations, their importance is greatly undervalued
[9]. Today, most governments are focusing on SMEs as a
means of providing solutions to some economic prob-
lems. Application of Lean Six Sigma (LSS) for estab-
lishing continuous quality improvement especially in the
manufacturing subsector, is recently on the increase in
the advanced countries and to a large extent seems to
have become a permanent approach adopted by organi-
zations that want compete globally and have financial

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
574
stability. LSS represents an amalgamation of two im-
provement concepts that have been used by large or-
ganizations with standing success story such as Motorola,
General Electric, Honeywell and many others [10]. Lean
manufacturing was initiated in Japan at a time when SSM
has been successfully tested and benefits established. The
initial concern was that since both programmes operate at
different aspect of a manufacturing organization with the
similar goals, how could both approaches be merged to-
wards one improvement methodology? [11]. Snee sug-
gested that LSS experts should rather focus on the inte-
gration of the approach to ensure that both the production
line and management achieves total quality improve-
ments rather than unfruitful debate. Studies conducted on
LSS methodologies were particularly designed for large
organizations [11] but this research is carried out to study
the relevance and the direct application of LSS to SMEs.
This triggered off the need to probe the underlying prin-
ciples behind the approach to establish how quality ma-
nagement affects profitability in manufacturing SMEs’
context.
1.1. Statement of Problem and Research
Hypotheses
Poor profitability of SMEs has been traced to derisory
human capital in production and management units, ob-
solete technologies, lack of adequate finance and inabil-
ity to apply modern management techniques [5]. The
issues of modern management techniques limitation such
as the implementation of Lean and Six Sigma pro-
grammes in many ways affected the quality of products
and management services which in turn have reduced
SMEs organizational share of market through customers’
dissatisfaction [12] and influenced the resulting profit [11].
Previous studies on LSS implementation in manufactur-
ing SMEs in UK, The Netherland, Australia, and Bel-
gium are well documented in the literature [11,13,14]
however to the best this researcher‘s knowledge, there is
little or no study conducted to link LSS implementation
to organizational profitability which prompted this re-
search work to enable harmonization and proper docu-
mentation. The major objective of this paper is to assess
the effect of LSS implementation on profitability of
manufacturing SMEs in Nigeria. Subsidiary objectives to
be investigated include: 1) to establish the level of
awareness and understanding of LSS implementation in
manufacturing SMEs in Nigeria and 2) to examine the
critical success and impeding factors from a manufactur-
ing SMEs standpoint in Nigeria. In order to accomplish
the objectives set for the study, the research questions
raised to be addressed are: RQ1: what is the degree of
awareness and understanding of LSS implementation in
Nigeria manufacturing SMEs? RQ2: how does the
achievement of critical success factors (CSF) motivate
the LSS implementation in manufacturing SMEs in Ni-
geria? RQ3: to what extent has LSS implementation in-
fluenced the profit level of manufacturing SMEs in Ni-
geria? The formulated hypotheses are H01: There is no
significant association between awareness and LSS im-
plementation in Nigeria MSMEs H02: critical success
factors have not significantly motivated LSS implement-
tation in Nigeria manufacturing SMEs H03: LSS imple-
mentation has not significantly influenced profitability of
manufacturing SMEs in Nigeria.
1.2. Model Specifications
There are two key criterion variables upon which this
study needs to focus. They are of LSS implementation
and profitability of manufacturing SMEs in Nigeria. The
predictor variable—Quality Improvement referred to as a
Lean Six Sigma—LSS is (Y), while Profitability is (X).
In order to test the hypotheses, the Regression analysis
model below is developed by the researcher. The moder-
ating variables are listed as equation below:




1234 5
0123 45
YfX;XfX,X,X,X,andX
YX XCBSXMCXSRXWPXCS

 
(1)
11
YXCBS

(2)
22
YXMC

(3)
33
YXSR

(4)
44
YXWP

(5)
55
YXCS

(6)
In order to test the hypotheses H03, which is the sub-
ject matter of the research, a multiple regression model
for this study is given as:
123
4
YCBSMC
WP CS5
ss
ss
qiqi qi
qi qi




SR
s
(7)
where: Y = Lean Six Sigma Methodologies; CBS = Cur-
rent Business System; MC = management commitment;
SR = size of resources; WP = workers participation; and
CS = Customers’ satisfaction. Y = 1, if LSS positively
influence profitability in Nigeria and If not Y= 0
1.3. Basis of the Study
The basis of this study is to evaluate the association be-
tween LSS implementation of manufacturing SMEs and
the resulting profitability. The effect of the moderating
factors such as the CSFs is also considered an explana-
tory variable predicting profitability of manufacturing
SMEs. In addition, LSS implementation result is directly
related to impeding factors which limit the achieve-

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
575
changes towards better quality products and services,
more rapid result as well as more productive workers and
higher profit margin which will benefit all stakeholders
[16]. Lean manufacturing was a Japanese invention, in-
spired by a plant tour of Ford Motors in the 1950s. After
watching an American assembly plant build cars in a
more efficient way, two Japanese executives developed
the Toyota Production System (TPS). This approach pro-
pelled Toyota from a modest domestic firm to a global
car giant. While most of the car industry suffered from
dwindling economy, Toyota recorded a net income in-
crease of 23.2% in the interim account of September
2003 in comparison with the same period of the previous
financial year from 8% increase in turnover [17]. Lean
manufacturing became popular after the publication of
the books “The Toyota Production System” [17,18]. Lean
ideologies expanded beyond Japanese car making to
other industries and around the world. Today, most ma-
nufacturing multinational organizations in Europe,
ments. If a company focuses on the improvement of the
quality of products and work flow through management,
there will be customers’ satisfaction leading to increase
in turnover, cost minimization and a higher level of prof-
itability attainment. It is therefore assumed that if manu-
facturing SMEs make quality improvement a priority,
desired profit level would be achieved.
2. Review of Related Literature
2.1. Theoretical Framework
The theoretical foundation of this study is based on the
work of Snee [11] which states that the Lean six sigma is
a well structured theory based methodology implemented
to improve performances, develop effective leadership,
achieve customer satisfaction and bottom line results.
Lean manufacturing and six sigma together became very
powerful and eliminates waste in each aspect of produc-
tion and management procedures. It applies tools and
techniques of both Lean manufacturing and six sigma
(DMAIC and DMADV) in manufacturing business en-
vironment to achieve quality and bottom line results. The
major reason for implementation of LSS is to provide a
foundation for quality improvement, competitive pricing
and increase profit margins. Lean Six Sigma is a business
strategy and methodology that increases process per-
formance resulting in enhanced customer satisfaction and
improved bottom-line results [15]. The conceptual model
for LSS and profitability is shown in Figure 1 below.
Asia and other continents are using lean programs es-
pecially U.S. carmakers taking a lead. Other industries
are waking up to the new opportunity [11,5]. Six sigma is
a logical and methodical approach designed to achieving
disciplined quality improvements in areas critical to the
success of any service-oriented organization—manage-
ment procedures [13]. It was originally developed by
Motorola in 1986 and used to win the 1988 Malcolm
Baldrige National Quality Award and within the first five
years, achieved profit level of $US2.2 billion [19]. SSM
became well known after Jack Welch made it a central
focus of his business strategy at General Electric in 1995
and the approach became a leading procedural quality
improvement programme [20]. SSM is used to achieve
total quality management (TQM) when added to the cur-
rent business system (CBS). This can be expressed ma-
thematically as:
2.2. Lean Six Sigma Methodologies
Lean manufacturing (LM) and six sigma methodology
(SSM) are separate and unique programmes that have
similar goals and end results. The combination of LM
and SSM into a batch gave birth to single methodology
referred to as Lean Six Sigma (LSS) which yields maxi-
mum result [10]. Adopting and implementing LSS is akin
to the implementation of change management process in
manufacturing environment. The manufacturing side
(Lean) and procedural side (Six Sigma) will bring about
a methodology capable of infusing positive significant
CBS + SSM=TQM (8)
The combination of Lean and Six Sigma principles in
manufacturing efforts is to ensure flawless product qual-
ity and repeatable execution which will help producers to
deliver value to customers in a repeatable manner. This
Current Business
System ( CSM)
Six Sigma
Methodolo
g
ies
(
SSM
)
Lean manufacturing
(LM)
Lean Six
Sigma (LSS)
Profitability
Total Quality
Management.
(TQM)
Figure 1. Conceptual framework of LSS and profitability. Source: Author’s conceptualization 2013.

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
576
technical marriage of two quality management appro-
aches—Lean manufacturing (LM) and Six sigma me-
thodology (SSM) can be expressed mathematically as:
LM + TQM=LSS (9)
If the two are actually implemented in isolation, the
outcome can result in either being ineffectiveness or con-
strained by one another’s needs and could also create two
subcultures within the organisation competing for the
same resources [21]. Any attempt to implement only one
of the processes, will drag the manufacturing organiza-
tion into grievous production and management dilemma
in the sense that when production is streamlined, man-
agement may not understand the reason behind additional
costs and when management is restructured, production
area does not understand the changes. Therefore a com-
bination and simultaneous implementation of both pro-
grammes is essential so that LM targets changes in pro-
duction line while SSM works on process flow through
management [10]
2.3. Critical Success Factors and Challenges to
Implementation of LSS in Manufacturing
SMEs
Critical Success Factors (CSFs) are those factors which
are critical to the success of any organisation in the sense
that if objectives associated with the factors are not
achieved, the organisation will fail woefully [7,22]. Stu-
dies conducted in the UK and Australian shows that there
is a huge gap between the perceived CSFs and practice
which has resulted in the poor organizational perform-
ance of SMEs. The factors identified as critical in the
success of manufacturing SMEs LSS implementation are:
1) Strong leadership; 2) management commitment; 3)
adequate skilled workforce; 4) awareness and under-
standing of LSS; 5) Customer satisfaction; 6) financial
viability & infrastructure. Lastly collaboration with gov-
ernment bodies and local universities or research outfits
to learn more about the development in the field of qual-
ity management [3,23]. The barriers impeding the im-
plementation of LSS include: 1) Lack of resources; 2)
Lack of training; 3 internal resistance [12,14,24,25]; 4)
lack of knowledge and poor employee participation and 5)
lack of top management commitment [23,26].
2.4. Manufacturing SMEs and Product
Improvement
Standing on the definition of SMEs in Nigeria context
according to Central Bank of Nigeria’s monetary policies
circular No. 22 of 1988, it means that manufacturing
SMEs are those enterprises producing goods within
various sectors and whose turnover is not more than = N
= 500,000. They are found mostly in food, cloth making,
plastic manufacturing, woodwork and iron fabrication
industry. In manufacturing sector, consideration of prod-
uct design is essential before adopting any improvement
process because the design may create some problems if
not well handled. 70% of the costs of a product are
locked up at the design stage. The opportunity for manu-
facturing cost savings through better technology, genuine
materials, and processes is tremendous and should be
captured before process improvements [27]. Product im-
provements can come about through standardization of
the product, common subassemblies and parts, utilization
of the principles of design for manufacturing (DFM),
design for assembly (DFA), flattening of bills of materi-
als, and seeking advantages for the product line through
the theory of inventive problem-solving (TRIZ). Imple-
mentation of all the above is within the content of lean
which reducing waste in inventory and production [3].
2.5. The Impact of Lean Six Sigma on
Profitability
The benefits of LSS initiatives to the implementing SME
organizations is based on the elimination of waste and
errors in production line and procedural workflow; en-
sure flawless product quality, improvement on the exist-
ing system; delivery of value to customers in a repeatable
manner leading to satisfaction. These benefits have direct
association with profit maximization. Elimination of
waste will reduce production cost in terms of materials,
time saving in workflow while improved quality encour-
ages consumption, enhances sales volume and organiza-
tional share of market. Profit is a function of costs mini-
mization and sale volume and this can be expressed as
equation below:


P=f CQM+SV (10)
where cost minimization embodies flattering cost materi-
als, labour and direct expense and sales volume is in re-
sponse to customers’ satisfaction and market price. Four
major studies conducted were done in Belgium, Australia,
UK and The Nederlands. All of them showed a high key
performance metrics after the implementation of the LSS
by manufacturing SMEs. However, the realization of
benefits in the Netherland SMEs is slight less compared
to their Australian and UK counterpart [12]. One of the
challenges reported by SMEs in Europe was difficult to
quantify benefits from LSS. According to Kumar [3], it
was suggested that manufacturing SMEs should involve
Accounting and Finance Department staff in carry out
the cost-benefit analysis (CBA) before and after the LSS
implementation to track the level of improvement in their
established performance metrics. The competitive ad-
vantage is a source for sustainable success of the organi-
zations. Sustainable success of an organization is
achieved through its ability to meet the needs and expec-

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
577
tations of its customers and other stakeholders in the long
term [28].
3. Methodology
Research Design: This research adopted a mix method
of literature review approach and a across sectional sur-
vey of manufacturing SMEs in Nigeria as used in An-
dreea, Sorin & Mihai [15]. A structured approach was
adopted to investigate the published literature regarding
lean six sigma from the well established research data-
bases which include: Emerald, Google scholar, Science
direct and EBSCO host as adaptation of the method used
by Qun, Xiaoning and Mahmood [29]. A total of 62 re-
search papers were reviewed and the criteria for the lit-
erature selected for investigation are: 1) articles pub-
lished in English language only; 2) lean manufacturing,
six sigma methodology or combination of both; 3) They
are either theories and case studies and 4) the content
scope of the study involved 10 years between 2003 to
2012. Survey research method which is a classical me-
thods for researchers to statistically validates research
questions and hypothesis the field of Quality Manage-
ment [8,27,30], was used for data gathering from re-
spondents through a structured questionnaire [31,32].
Population: The total population of this study is made
up of 450 SMEs as shown in Table 1 that meets the fol-
lowing criteria: 1) should be a manufacturing organiza-
tion; 2) have employees of 200,000 or less; 3) have turn-
over not exceeding = N = 500,000; 4) have established a
system with common infrastructure; 5) must have normal
departments with management team comprising five key
officers as follows: Management Director, General man-
ager, Accountants, Production Manager, and Administra-
tive Manager. Giving a total population of 2250 employ-
ees purposively selected to represent their organization as
stated in Table 1. These firms were extracted from the
database, directories of manufacturing SMEs associa-
tions and register of Manufacturing Association of Nige-
ria (MAN)
Participants: The sample frame consists of 1026 staff
representing 50% located in three major zones North,
East and Western part of Nigeria. Two industrial cities
from each zone of the country are: Lagos (Lg) and
Ibadan (Ib) from West, Abuja (Ab) and Kaduna (Kd)
from the North and Anambra (An) and Port Harcourt (Ph)
from the East. The employment of sample population of
50% is to have excellent result according to Comfrey &
Less [33] and the total valid responses of 1002 shown in
Table 2 were received representing 98% which is con-
sidered excellent.
Table 1. Population of the study (Manufacturing SMEs) by Zone.
Zone PMC Ab Kd An Ph Lg Ib Total Percent. (%)
1 Northern Zone 34 16 50 11%
2 Eastern Zone 146 25 171 38%
3 Western Zone 165 64 229 51%
Total 34 16 146 25 165 64 450 100%
Source: Field work, 2013.
Table 2. Summary of response from the sample frame distributed by Zone.
Zone PMC Ab Kd An Ph Lg Ib Total Percent. (%)
1 Northern Zone 71 32 103 10%
2 Eastern Zone 322 58 171 38%
3 Western Zone 383 136 229 52%
Total 71 32 322 58 383 136 1,002 100%
Source: Field work, 2013.

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
578
4. Results and Discussion
4.1. Test of Statistical Hypotheses
Table 3. Summary of test results.
Test Results
Hypo. NO Statement of Hypothese RQ
Cal “r” LS (x)Infer.
Degree of Corr. Decisions
1
There is no significant association
between awareness and LSS imple-
mentation in Nigeria MSMEs
1, 2 & 3 −0.16 0.5 r < x Negative Accept H0 Do not accept H1
2
Critical success factors have no
t
significantly motivated LSS mple-
mentation in Nigeria SMEs
4, 5 & 6 −0.15 0.5 r < x Negative Accept H0 Do not accept H1
3
LSS implementation has not signifi-
cantly influenced profitability o
f
manufacturing SMEs in Nigeria
7, 8, 9, 10,
11 & 12 −0.14 0.5 r < x Negative Accept H0 Do not accept H1
Source: Field work, 2013.
4.2. Discussion of Result in Table 3
Hypothesis 1: hypothesis 1 tested the relationship be-
tween awareness of LSS and its implementation and was
tracked by question 1, 2 and 3 of questionnaire adminis-
tered: What is the level of awareness and understanding
of LSS methodology in Nigeria manufacturing SMEs?
What is the degree of LSS implementation in your or-
ganization? And how many years experience do you
have gain in LSS implementation? Table 4 shows a total
of 1002 valid responses received and analyzed with 898
low and 71 slightly low to rank 1st and 2nd. In Table 5,
the calculated “r” of −0.16 at 5% level of significance
shows an absolute lack of awareness and understanding
of LSS among manufacturing SMEs in Nigeria. There-
fore the null hypothesis which states that there is no sig-
nificant association between awareness and LSS imple-
mentation in Nigeria MSMEs is accepted and alternate
rejected. This total ignorance of the concept is responsi-
ble for the little or no implementation of the programme
and this was confirmed by question 3 of questionnaire
which asked the respondents to state the number of years
experience gain in the LSS programme implementation
process. Apart from three respondents, none had any
experience on approach. The three respondents that voted
high and slightly high were staff of manufacturing SME
that is a subsidiary of large parent companies in USA and
Europe. From the data collected and analyzed, the corre-
lation between LSS awareness and implementation in
MSMEs in Nigeria is negative. It means that only few
MSMEs representing 1.2% of the source list have actu-
ally implemented LSS. Some of the reasons apart from
lack of awareness and understanding are: managements
are afraid of the unknown, staff resistance to change
management, lack of skill workers with knowledge of
LSS and no expert to drive the initiative. This result is in
agreement with the opinion of Kumar and Antony;
Kumar, Khurshid, Manoj, Timans, et al.; Qun et al.
[12,26,29].
Hypothesis 2: This linked CSFs to the implementation
of LSS and was tracked by Questions 4, 5 and 6 of ques-
tionnaire administered. Out of 1002 valid responses re-
ceived and analyzed, 860 were low and 78 slightly low to
rank 1st and 2nd as shown in Table 6 which signified the
presence of demotivation. From the questionnaire ad-
ministered and responses received, all the CSFs are con-
sidered important but because management failed to
achieve them, the implementation of LSS failed woefully.
This is evident by the calculated “r” of −0.15 at 5% level
of significance shown in Table 7. Null hypothesis 2
which says that critical success factors have not signifi-
cantly motivated LSS implementation in Nigeria manu-
facturing SMEs is accepted and alternate not accepted.
This result confirmed the opinion of Rockart, Yusof and
Aspinwall [7,22]. In Nigeria, manufacturing SMEs were
unable to provide strong leadership, management were
not committed due to fear, adequate skilled workforce
with understanding of LSS concept are not available, in-
adequate resources and infrastructure to achieve the pro-
gramme prevailed. All these militated against LSS qual-
ity improvement approach and as a result, customers’
satisfaction was not achieved leading to market failure
and poor profitability level. Few MSMEs attempted im-
plementation but were constrained by few workers doing
multiple tasks and were afraid of transformation hence
resisted and frustrated the change management. The re-
sult obtained is in accordance with studies conducted in
the UK and Australian which shows that there is a huge
gap between the perceived CSF and practice leading to
MSMEs poor organizational performance [23,25].
Hypothesis 3: This is captured using multiple ques-
tions 7 to 12 with average response computed to achieve
the result in Table 8. Questions 12 was used to track the
proposition and out of total of 1002 valid responses re-

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
579
ceived 408 were average slightly low and 225 average
low to rank 1st and 2nd Table 9 shows the calculated “r”
of −0.14 at 5% level of significance which confirms that
non LSS implementation was responsible for the 14%
negative variation in profitability level—losses of MSMEs.
The null hypothesis which says that there is has no sig-
nificant association between LSS implementation and
profitability of manufacturing SMEs in Nigeria is hereby
accepted and the alternate not accepted.
4.3. Contribution to Knowledge
To the best of the researcher’s knowledge no study has
been able to link LSS implementation to profitability in
manufacturing SMEs in Nigeria. Therefore, this explora-
tory research result has contributed to knowledge in this
direction. It is obvious that Nigeria MSMEs are neither
aware nor had understanding of LSS implementation,
CSFs achievement failed woefully and the envisaged
profitability level from the programme is not achieved.
5. Findings
Based on the result in the above section, the following
findings were obtained: 1) there is no awareness and un-
derstanding of LSS among manufacturing SMEs which is
one of the factors responsible for no implementation; 2)
CSFs such as adequate resources, expertise, management
support, and committed workers were not achieved; 3) In
Nigeria, most manufacturing SMEs’ quality management
experience is limited to ISO 9000 certification which
should have been the beginning of quality improvement
journey. These findings are in agreement with research
conducted in UK, The Nederlands and Australia [6,7,26];
4) The study also revealed that the contribution of quality
management is not in any way significant due to little or
no implementation of LSS; 5) most firms stated that Ni-
geria have no expert to drive continuous improvement
effort. This is in agreement with the opinion of Thomas
and Webb [34]; 6) ISO standards facilitates basic under-
standing towards quality management and encourage the
continual improvement leading to adoption of advanced
Q M methodologies such as LSS [12]; 7) The study also
revealed that customer complaints which is the most ac-
tive feedback mechanism in the advance countries are
ineffective in Nigeria environment. The findings reported
in this study are in agreement with academic literature
and the opinion of Antony et al.; Kumar and Antony and
Achanga et al. [14,26,35]
6. Conclusion
The study concluded that since the LSS manufacturing
SMEs have not been implementation in MSMEs in Nige-
ria, the approach could not moderate profitability. The
study therefore recommends that: 1) CEOs of MSMEs
should undertake training on quality improvement to
enable them to provide a strong leadership and support
the initiative; 2) LSS consultants should be employed to
help them drive the quality improvement; 3) MSMEs
should focus on the impeding factors to reduce the ef-
fect on the LSS implementation. This will help achieve
continual quality improvement, cost minimization, cus-
tomers’ satisfaction, increase in sales volume and achieve-
ment targeted profit.
7. Limitations and Directions for Further
Studies
One of the challenges reported by SMEs in Europe was
the difficulty experienced in measuring and quantifying
the benefits flowing from LSS implementation [3]. The
author did not cover lean accounting therefore suggested
that further study be conducted on it. This will enable the
determination of the benefits of Lean activity by ap-
praising the value stream and establishing the level of
improvement and their performance metrics [3]
REFERENCES
[1] O. Akinsulire, “Financial Management,” 4th Edition,
EL-Toda Venture Press, Lagos, 2010.
[2] I. M. Pandey and K. L. W. Parera, “Determinants of Ef-
fective Working Capital Management: A Discriminated
Analysis Approach,” Research and Publication Depart-
ment Indian Institute of Management, Iima Working Pa-
per No. 1349, 1997.
[3] M. Kumar, “Six Sigma Implementation in UK Manufac-
turing SMEs: An Exploratory Research,” Ph.D. Thesis,
University of Strathclyde, Glasgow, 2010.
[4] K. E. Okpala, “Venture Capital and the Emergence and
Development of Entrepreneurship: A Focus on Employ-
ment Generation and Poverty Alleviation in Lagos State,”
CS Canada, International Business and Management,
Vol. 5, No. 2, 2012, pp. 134-141.
[5] K. E. Okpala, “Total Quality Management and SMPS
Performance Effects in Nigeria: A Review of Six Sigma
Methodology,” Asian Journal of Finance & Accounting.
Vol. 4, No. 2, 2012, pp. 363-378.
http://dx.doi.org/10.5296/ajfa.v4i2.2641
[6] A. Ghobadian and D. N. Gallear, “Total Quality Manage-
ment in SMEs,” Omega: International Journal of Man-
agement Science, Vol. 24, No. 1, 1996, pp. 83-106.
[7] S. M. Yusof and E. Aspinwall, “Critical Success Factors
in Small and Medium Enterprises, Survey Results,” Total
Quality Management, Vol. 11, No. 4-6, 2000, pp. S448-
S462.
[8] J. Antony, M. Kumar and A. Labib, “Gearing Six Sigma
into UK Manufacturing SMEs: Empirical Assessment of
Critical Success Factors, Impediments, and Viewpoints
of Six Sigma implementation in SMEs,” Journal of Op-

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
580
eration, Research Society, Vol. 59, No. 4, 2008, pp. 482-
493. http://dx.doi.org/10.1057/palgrave.jors.2602437
[9] J. North, R. Blackburn and J. Curran, “The Quality Busi-
ness Quality Issues in the Smaller Firm,” Routledge, Lon-
don, 1998.
[10] W. Timans, J. Antony, K. Ahaus and R. Van Solingen,
“Implementation of Lean Six Sigma in Manufacturing
SME Enterprises in the Nether Lands,” Journal of the
Operational Research Society, Vol. 63, 2012, pp. 339-353.
http://dx.doi.org/10.1057/jors.2011.47
[11] R. D. Snee, “Lean Six Sigma—Getting Better All the
Time,” International Journal of Lean SixSigma, Vol. 1,
No. 1, 2010, pp. 9-29.
http://dx.doi.org/10.1108/20401461011033130
[12] M. Kumar and J. Antony, “Multiple Case Study Analysis
of Quality Management Practice within UK Six Sigma
and Non-Six Sigma Manufacturing Small- and Medium-
Sized,” Journal of Engineering Manufacture, Vol. 223,
No. 7, 2009, pp. 333-351.
http://dx.doi.org/10.1243/09544054JEM1288
[13] B. Wyper and A. Harrison, “Deployment of Six Sigma
Methodology on Human Resources Function: A Case
Study,” Total Quality Management, Vol. 11, No. 495, pp.
720-727. http://dx.doi.org/10.1080/09544120050008129
[14] M. Kumar and J. Antony, “Comparing the Quality Man-
agement Practices in UK SMEs,” Industrial Management
and Data Systems, Vol. 108, No. 9, 2008, pp. 1153-1166.
http://dx.doi.org/10.1108/02635570810914865
[15] J. P. Andreea, A. Sorin and D. Mihai, “Lean Six Sigma-
A Challenge for Organizations Focused on Business Ex-
cellence,” The Romanian Economic Journal. Vol. 14, No.
41, 2011, pp. 147-158.
[16] M. K. Tiwari, J. Antony and D. C. Montgomery, “Edito-
rial Note for the Special Issue on Effective Decision
Support to Implement Lean and Six Sigma Methodolo-
gies in the Manufacturing and Service Sectors”, Interna-
tional Journal of Production Research, Vol. 46, No. 23,
2008, pp. 6563-6566.
http://dx.doi.org/10.1080/00207540802230041
[17] T. Ohno, “The Toyota Production System: Beyond Large-
Scale Production,” Portland, Productivity Press 1998.
[18] S. Shingo, “A Study of the Toyota Production System,”
Productivity Press, New York, 1989.
[19] T. Lucey, “Quantitative Techniques,” 6th Edition,” Book
Power, London, 2002
[20] K. M. Henderson and J. R. Evans, “Successful Imple-
mentation of Six Sigma,” Benchmarking General Electric
Company,” Benchmarking, An International Journal, Vol.
7, No. 4, 2000, pp. 260-282.
[21] M. P. J. Pepper and T. A. Spedding, “The Evolution of
Lean Six Sigma,” International Journal of Quality & Re-
liability Management, Vol. 27, No. 2, 2010, pp. 138-155.
http://dx.doi.org/10.1108/02656711011014276
[22] J. Rockart, “Chief Executives Define Their Own Data
Needs,” Harvard Business Review, Vol. 57, No. 2, 1979,
pp. 238-241.
[23] M. Kumar, “Critical Success Factors and Hurdles to Six
Sigma Implementation: The Case of a UK Manufacturing
SME,” International Journal of Six Sigma and Competi-
tive Advantage, Vol. 3, No. 4, 2007, pp. 333-351.
http://dx.doi.org/10.1504/IJSSCA.2007.017176
[24] A. Thomas, R. Barton and C. Chuke-Okafor, “Applying
Lean Six Sigma in a Small Engineering Company—A
Model for Change,” Journal of Manufacturing Technol-
ogy Management, Vol. 20, No. 1, 2009, pp. 113-129.
http://dx.doi.org/10.1108/17410380910925433
[25] D. Van Goubergen, M. Dora, M. Kumar, A. Molnar and
X. Gellynck, “Lean Application among European Food
SMEs: Findings from Empirical Research,” Industrial
Engineering Research Conference. IIE, Reno, 2011.
[26] J. Antony, M. Kumar and C. N. Madu, “Six Sigma in
Small- and Medium-Sized UK Manufacturing Enterprises:
Some Empirical Observations,” International Journal of
Quality & Reliability Management, Vol. 22, No. 8, 2005,
pp. 860-874.
http://dx.doi.org/10.1108/02656710510617265
[27] M. Kumar, K. K. Khurshid, K. D. Manoj, W. Timas, and
J. Anton, “Lean/Six Sigma Implementation in SMEs: Key
Findings from International Research,” 4th Joint World
Conference on Production & Operations Management/
19th International Annual European OMA Conference,
Amsterdam, 1-5 July 2012.
[28] T. Sava, C. Rizea (Pirnea) and I. Flood, “Benefits of the
Implementation and Certification for Environmental
Management System SMEs in Romania,” Quality—Ac-
cess to Success Journal, Vol. 2, 2010, pp. 248-254.
[29] Z. Qun, Z. Xiaoning and H. Mahmood, “Lean Six Sigma:
A Literature Review,” Interdisciplinary Journal of Con-
temporary Research in Business. Vol. 3, No. 10, 2012, pp.
599-605.
[30] M. G. Aboelmaged, “Six Sigma Quality: A Structured
Review and Implications for Future Research”, Interna-
tional Journal of Quality & Reliability Management, Vol.
27, No. 3, 2010, pp. 269-318.
http://dx.doi.org/10.1108/02656711011023294
[31] M. Saunders, P. Lewis and A. Thornhill, “Research
Methods for Business Students,” 5th Edition, Prentice
Hall, Essex, 2010.
[32] F. J. Fowler, “Survey Research Methods,” 3rd Edition,
London,” Sage Publication, New York, 2002.
[33] A. L. Comfrey and H. B. Lee, “A First Course in Factor
Analysis,” Lawrence Erlbaum Associates, Hillsdale, 1992.
[34] A. J. Thomas and D. Webb, “Quality Systems Implemen-
tation in Welsh Small-to Medium-Sized Enterprises: A
Global Comparison and a Model for Change,” Journal of
Engineering Manufacture, Vol. 217, No. 4, 2003, pp.
573-579. http://dx.doi.org/10.1243/095440503321628251
[35] P. Achanga, E. Shehab, R. Roy and G. Nelder, “Critical
Success Factors for Lean Implementation within SMEs,”
Journal of Manufacturing Technology Management, Vol.
17, No. 4, 2006, pp. 460-471.
http://dx.doi.org/10.1108/17410380610662889

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
581
Appendix 1
Hypothesis 1
H0: There is no significant association between awareness
and LSS implementation in Nigeria M SMEs
H1: There is significant association between awareness
and LSS implementation in Nigeria M SMEs
Table 4. Summary of responses on key issue linking awareness and LSS implementation in MSMEs in Nigeria.
Sample Strata High (6) Slightly High (5) Medium (4)Slightly Low (3)Low (2)No Influ. (1) No Opin. (0)Total
Zone - North 0 0 2 9 58 2 1 72
Zone 2 - East 1 1 4 24 377 7 4 418
Zone 3 - West 0 1 3 38 463 5 2 512
Total 1 2 9 71 898 14 7 1002
Percentage (%) 0.1% 0.2% 0.9% 7.1% 89.6% 1.4% 0.7% 100%
Ranking 7th 6
th 4 th 2 nd 1 st 3 rd 5 th
Source: Field work (2013). Question 1, 2, and 3 of the questionnaire administered.
Table 5. Calculation of correlation.
Options High (6) Slightly High (5) Medium (4)Slightly Low (3)Low (2)No Influ. (1) No Opin. (0)Total
Points (x) 6 5 4 3 2 1 0 21
Response (y) 1 2 9 71 898 14 7 1002
xy 6 10 36 213 1796 14 0 2075
x2 36 25 16 9 4 14 0 104
y2 1 4 81 5,041 806,404 196 49 811,776
Source: Field work (2013).

 




 
 
22 22
22
7 2075211002
7 104217811776104
14525 21042651765170.1615 16%
40345
7284415682432 108162875671616
Nxyx y
rNxx Nyy
r









Hypothesis 2
H0: Critical success factors has not significantly moti-
vated LSS implementation in Nigeria manufacturing
SMEs
H1: Critical success factors have significantly moti-
vated LSS implementation in Nigeria manufacturing
SMEs
Table 6. Summary of responses on key issue linking CSF to LSS implementation in MSMEs in Nigeria.
Sample Strata High (6) Slightly High (5) Medium (4)Slightly Low (3)Low (2)No Influ. (1) No Opin. (0)Total
Zone - North 2 2 4 10 50 2 2 72
Zone 2 - East 5 8 2 23 369 5 6 418
Zone 3 - West 7 3 4 45 441 9 3 512
Total 14 13 10 78 860 16 11 1002
Percentage (%) 1.4% 1.3% 1.0% 7.8% 85.8% 1.6% 1.1% 100%
Ranking 4th 5
th 7 th 2 nd 1 st 3 rd 6 th
Source: Field work, (2013). Question 4, 5 and 6 of the questionnaire administered.

Lean Six Sigma Methodologies and Organizational Profitability:
A Review of Manufacturing Smes in Nigeria
582
Table 7. Calculation of correlation.
Options High (6) Slightly High (5) Medium (4)Slightly Low (3)Low (2)No Influ. (1) No Opin. (0)Total
Points (x) 6 5 4 3 2 1 0 21
Response (y) 14 13 10 78 860 16 11 1002
xy 84 65 40 234 1720 16 0 2,159
x2 36 25 16 9 4 14 0 104
y2 196 169 100 6,084 739,600 256 121 746,526
Source: Field work, (2013).

 





  
22 22
22
7 2159211002
7 104217746526104
15113 21042592959290.1533 15%
38687
7284415225682 108162875214866
Nxyx y
rNxx Nyy
r









Hypothesis 3
H0: There is no significant association between LSS implementation and profitability of MSMEs in Nigeria.
H1: There is significant association between LSS implementation and profitability of MSMEs in Nigeria.
Table 8. Summary of responses of questions 7 to 12.
QN Questionnaire H SLH M NO SL L NI
7 My management is committed to LSS implementation 15 25 67 324 556 10 5
8 Workers participation on LSS implementation is high 9 8 41 411 509 9 15
9 Size of resources is adequate to implement LSS 1 2 5 325 626 32 12
10 LSS has improved MSMEs customer satisfaction 6 5 100 279 566 12 34
11 LSS is responsible for high sales volume achieved 2 2 5 6 105 869 13
12 LSS is responsible for MSMEs high profitability 1 2 4 3 87 802 103
Total 34 44 222 1,348 2448 1,734 182
Average 6 7 37 225 408 289 30
Ranking 7th 6th 4
th 3 th 1 st 2 nd 5 th
Source: Field work, (2013).
Table 9. Calculatio n of correlation.
Options High (6) Slightly High (5) Medium (4)Slightly Low (3)Low (2)No Influ. (1) No Opin. (0) Total
Points (x) 6 5 4 3 2 1 0 21
Response (y) 6 7 37 225 408 289 30 1002
xy 34 37 148 674 816 289 0 1,998
x2 36 25 16 9 4 14 0 104
y2 1,156 1,369 21,904 454,276 665,856 83,521 0
1,228,082
Source: Field work, (2013).

 




 
  
22 22
22
7 1988211002
7 1042171228082104
13986 21042705670560.1421 14%
49640
7284418596574 108162878585758
Nxyx y
rNxx Nyy
r








