Lean Six Sigma in the power sector: frog into prince

Abstract

Purpose

Lean Six Sigma is a most widely used technique in quality management. In manufacturing and service industries, this technique is used for process excellence. In the power sector, there has been hardly any study on the usage of LSS. Can LSS transform the ailing power sector organization from frog into princes? The purpose of this paper is to explore LSS impact on the power sector.

Design/methodology/approach

A multiple case study approach is followed. Five cases, one each from the generation, the transmission and three from distribution companies are studied based on the rationale of theoretical sampling.

Findings

LSS is an important methodology that can be used in generation, transmission and distribution of electricity energy to drive out inefficiency and improve customer satisfaction, profits, etc. In addition, the success stories of all five cases suggest the sustainable economic benefit to the organization due to the implementation of LSS.

Research limitations/implications

This study intends to make an academic contribution to the pertinence of LSS in the power sector. The multiple case study approach is used on a theoretical sample of power utilities in India. This study will provide the theoretical contribution for LSS. In addition, this study will help the practitioner and managers to effectively implement LSS, especially in the power sector.

Practical implications

This study can be used by power sector organizations to implement LSS. A special section on implication for practice is added so that organization can make use of it while implementing LSS in the power sector.

Originality/value

Power is one of the most important infrastructures for the development of a country. In a developing country, the power sector is ailing; the application of LSS can transform the power sector by driving out inefficiency, waste and variation. It will not only prove to be a boon to utilities, but it will also help the customer and society at large. Consequently, it will help in reducing the power tariff, which in turn will make power financially accessible to all categories of consumers. In addition, the private investment in this sector will also improve, if power sectors appeal, to financiers as an efficient organization, compared to loss-making one organization, at present.

Citation

Sony, M. (2019), "Lean Six Sigma in the power sector: frog into prince", Benchmarking: An International Journal, Vol. 26 No. 2, pp. 356-370. https://doi.org/10.1108/BIJ-10-2017-0276