Deploying Lean Six Sigma to Improve Assembly Precision of NEV Component: Evidence from Chinese SME

Unsatisfactory assembly precision has been a persisting quality problem in auto industry. This paper aimed to deploy Lean Six Sigma (LSS) methodology to facilitate the improvement on assembly precision of a component manufacturer in new energy vehicle industry from Chinese small and medium-sized enterprise’s perspective. Case study method was chosen. Six Sigma-based framework of Define-Measure-Analyse-Improve-Control (DMAIC) methodology was adopted. Critical steps and significant factors were identified to detect the quality problem, to improve the low assembly precision. The results provided solid evidence that how LSS can be successfully applied as the first step in a small and medium-sized enterprise (SME). Our finding showed that heating temperature, preservation time, and install time were significant factors hampering assembly precision. Our results pointed that establishing quality team with qualified employees was required to sustain continuous improvement. Our case study enriches the literature with empirical insights on how LSS implementation in NEV component manufacture with unique perspective of Chinese SME. These insights could be implied to demonstrate how SMEs response to new technologies/practices when quality improvement is needed.