Measuring efficiency of lean six sigma project implementation using data envelopment analysis at Nasa
Abstract: This study aims to
review the implementation of the Lean Six Sigma project methodology in the
Johnson Space Center (JSC) business environment of National Aeronautics and
Space Administration (NASA) with an objective of evaluating performance of
individual projects and to develop recommendation for strategies to improve
operational efficiencies based on Data Envelopment Analysis (DEA).
Design/methodology/approach: In this study, authors propose the Lean Six
Sigma project performance evaluation model (LSS-PPEM) based on Data DEA where
Critical Success Factors (CSFs) and Total Team Hours serve as inputs while
Process Sigma and Cost avoidance are used as outputs. The CSFs are factors that
critically affect the performance of LSS at JSC. Six of those are identified by
the Black Belts through Analytical Hierarchical Process, and the values of
those are decided by project leaders and Green Belts through survey. Eighteen
LSS projects are evaluated, and their results are analyzed.
Findings and Originality/value: Eventually, four out of the six CSFs are
adopted for this study based upon Pearson correlation analysis, and those four
include Project execution and follow up of results; Top management’s commitment
and participation; The use of data analysis with easily obtainable data;
Attention given to both long and short term targets. Using data between the
years 2009 and 2011, seven of the eighteen projects are found to be efficient.
The benchmark analysis and slack analysis are conducted to provide further
recommendation for JSC managers. Three out of those seven efficient projects
are most frequently used as an efficient peer.
Practical implications: Traditionally, DEA has been considered as a
data-driven approach. In this study, authors incorporate the survey-based CSFs
into the DEA frame. Since many organizations may have different CSFs, the
framework presented in this study can be easily applied to other organizations.
Originality/value: This study provides a DEA-based framework and case
study of LSS project evaluation in the government sector, which is very unique
application to author’s best knowledge. The framework is unique in terms of its
input factor selection and quantification procedures.
Author: David Meza, Ki-Young
Jeong
Journal Code: jptindustrigg130040
