SMEs in Automotive Supply Chains: A Survey on Six Sigma Performance Perceptions of Czech Supply Chain Members

TLDR: In this paper , the authors analyse the perception of six sigma process capabilities in automotive supply chains assuming differences in company size, supply chain rank and 6 sigma duration, and find that mainly small companies inhibit a risk for the supply chain.

Abstract: Six sigma is understood as a technique for the continuous improvement in process quality; however, it has been rarely scientifically analysed in small- and medium-sized enterprises (SMEs). SMEs representthe vast majority of enterprises throughout economies and contribute to automotive supply chains in various tier ranks. As SMEs are known to lack resources and skills while focusing on short-term benefits rather than on long-term gradual improvements, the aim of of this paper is to analyse the perception of six sigma process capabilities in automotive supply chains assuming differences in company size, supply chain rank and six sigma duration. This was tested with Fisher’s exact test. Companies with less than 1000 employees, subsuppliers and companies with a six sigma implementation in the last 3 years struggled to meet six sigma principles, suggesting that mainly small companies inhibit a risk for the supply chain. These findings contribute to the existing theoretical body of knowledge by identifying a three-to-five-year period for six sigma implementations until six sigma maturity. Practically, the findings contribute to the research by explaining the need for a continuous supplier development over a three-to-five-year period until the company meets its performance requirements, with a supply chain risk incorporated in lower-tier ranks and with small companies.