Impact of implementing lean six sigma on profitability - a case study of BJC’s glass packaging division

Abstract

The objective of this paper is to assess the impact of implementing LSS in manufacturing glass packaging on profitability in BJC’s glass packaging division, and to explore the CSFs for implementation of LSS in BJC context. Also, described the industry trend of implementing LSS in the future. Line chart and pie chart is used to display and analyze the company's relevant data from 2006-2019 and the operating profit ratio, ratio of profits to cost and expense (RPCE), and return on total assets ratio (ROA) are will be calculated and analyzed to assess the impact of implementing LSS on profitability of BJC’s glass packaging division. The literature review of CSFs is combined with the actual situation of BJC’s glass packaging division to explore the CSFs for implementation of LSS in BJC context. The expert viewpoints are be used to describe the industry trend of implementing LSS in the future. Implementation of LSS by the BJC's glass packaging division has achieved huge returns in the first year, but due to the lack of sustainability, the long-term impact of the project on the company is not sustained. Long-term involvement and commitment of management are critical to the implementation of the LSS program. During the financial crisis LSS helps the leader's job easier. Due to the coming era of big data, how to obtain value from big data is a major challenge to LSS. At the same time, the unique advantages of LSS in informatization and intelligence will make LSS have more and more application space in the future. The results of this research will have implications for BJC considering further improvements in profitability through the implementation of LSS. The findings will provide guidance for BJC to implement LSS more effectively in the future. And this research will provide future development direction for BJC’s glass packaging division.