An Empirical Study on the Indicators and Factors for Successful Six Sigma Deployment in the Mining Industry: A South African Case

The Six Sigma continuous improvement methodology has been successfully deployed in many organizations on a global basis. This has resulted in significant reductions in cost and increases in revenue as a result of the improvement in operational excellence associated with improved business practices, the removal of variance in systems and processes and the reduction in waste generation and poor product quality. A series of Indicators that determine the level of a Six Sigma deployment and a set of key success factors have been identified within the operational context of a specific deployment undertaken by Lonmin PLC, one of the largest mining houses, which operates within the South African Mining Environment. Two deployment models exist, these being the integration of Six Sigma into the organizational strategy and operational philosophy with the second approach being operating the program as an independent decentralized system which provides Six Sigma technical support, Six Sigma training, coaching and mentoring to the business and its operational departments. Data was collected using semi-structured interviews and questionnaires. Factor analysis and OLS regression were used to explore the relationship between the factors and the indicators. The empirical result has confirmed that the factors are equally applicable to the South African mining industry and that their absence will impact negatively on the success and sustainability of a deployment. Practical recommendations are made regarding the approach to be followed during a Six Sigma deployment and an integrated model is suggested which integrates the concepts of Six Sigma, Change Management, Balanced Score Card and Strategy into a single deployment plan should an integrated deployment approach be contemplated.