BBrriigghhaamm YYoouunngg UUnniivveerrssiittyy BBYYUU SScchhoollaarrssAArrcchhiivvee Theses and Dissertations 2008-11-14 LLeeaann SSiixx SSiiggmmaa aass aa SSoouurrccee ooff CCoommppeettiittiivvee AAddvvaannttaaggee Alessandro Giorgio Cavallini Brigham Young University - Provo Follow this and additional works at: https://scholarsarchive.byu.edu/etd Part of the Business Commons, and the Manufacturing Commons BBYYUU SScchhoollaarrssAArrcchhiivvee CCiittaattiioonn Cavallini, Alessandro Giorgio, "Lean Six Sigma as a Source of Competitive Advantage" (2008). Theses and Dissertations. 1597. https://scholarsarchive.byu.edu/etd/1597 This Thesis is brought to you for free and open access by BYU ScholarsArchive. It has been accepted for inclusion in Theses and Dissertations by an authorized administrator of BYU ScholarsArchive. For more information, please contact [email protected], [email protected]. LEAN SIX SIGMA AS A SOURCE OF COMPETITIVE ADVANTAGE by Alessandro Giorgio Cavallini A thesis submitted to the faculty of Brigham Young University in partial fulfillment of the requirements for the degree of Master of Science School of Technology Brigham Young University December 2008 Copyright © 2008 Alessandro Giorgio Cavallini All Rights Reserved BRIGHAM YOUNG UNIVERSITY GRADUATE COMMITTEE APPROVAL of a thesis submitted by Alessandro Giorgio Cavallini This thesis has been read by each member of the following graduate committee and by majority vote has been found to be satisfactory. Date Michael P. Miles, Chair Date Nile W. Hatch Date Charles R. Harrell BRIGHAM YOUNG UNIVERSITY As chair of the candidate’s graduate committee, I have read the thesis of Alessandro Giorgio Cavallini in its final form and have found that (1) its format, citations, and bibliographical style are consistent and acceptable and fulfill university and department style requirements; (2) its illustrative materials including figures, tables, and charts are in place; and (3) the final manuscript is satisfactory to the graduate committee and is ready for submission to the university library. Date Michael P. Miles Chair, Graduate Committee Accepted for the Department Barry M. Lunt Graduate Coordinator, School of Technology Accepted for the College Alan R. Parkinson Dean, Ira A. Fulton College of Engineering and Technology ABSTRACT LEAN SIX SIGMA AS A SOURCE OF COMPETITIVE ADVANTAGE Alessandro Giorgio Cavallini School of Technology Master of Science Anecdotal data affirms that companies applying Lean Six Sigma in their operations not only deliver higher quality products and services, but also obtain superior financial results. The goal of this research was to empirically verify anecdotal data. The study proposed to analyze a group of publicly traded manufacturing companies with the intent of verifying if a correlation exists between companies being lean and the attainment of superior returns on investments. The researcher performed a series of statistical tests comparing key Financial Performance Indicators (FPI) extracted from annual reports (10-K) from a large pool of companies. The outcome of this study showed that superior financial rewards result from a systematic application of lean and quality tools. At the conclusion of this thesis we verified that companies having a business model that stimulates a high level of communication between them and their markets – because they are lean – obtained substantially higher financial advantages when
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