The effect of Lean Six Sigma practices on food industry performance: Implications of the Sector's experience and typical characteristics

Lean, Six Sigma and Lean Six Sigma initiatives (L&SSi) have been adopted by different industry and service sectors to improve companies' performance and competitiveness; however, adoption in the food industry is still very low. The sector lacks familiarity with the L&SSi initiatives; it views quality as a safety and hygiene factor, which is one characteristic that differentiates it from other sectors. The purpose of this paper is to examine how the food industry sector's characteristics affects its adoption of Lean Six Sigma (LSS) practices and performance improvement. A survey of 145 food industry firms was conducted and then analyzed using structural equation modeling to test the research framework. Our findings suggest that LSS is relevant and effective in this sector. Food industry performance is positively affected by the adoption of ISS practices. Moreover the adoption of LSS practices in the food industry is greatly affected by the level of experience of the individual company. The level of experience moderates two performance indicators very valued by the sector (financial gains and product quality). The food industry is to a certain extent affected by the sector's characteristics. The compulsory cleaning practices restrict adoption of LSS practices such as set-up time reduction. Six Sigma role structure and Statistical Process Control dimensions are among the sector's least adopted practices. These practices require financial resources for training, which can be a challenge in a sector with low margins that primarily focuses on cost reduction, and they require statistical techniques and knowledge that is generally considered complex and too advanced in the food industry. These findings suggest that as managerial awareness of the relevance of LSS practices to food industry performance improvement increases, that managers will encourage employees to gain experience using the tools.