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For one six sigma integration often requires logistics integration which historically has been one of the more prevalent challenges SMEs face in managing processes (Bigras & Gelinas, 2004: p. 263). SMEs must often change operational and organizational styles to conform to six sigma strategies and replace traditional ways of doing business with more integrated systems to help synchronize transactions (Bigras & Gelinas, 2004: p. 263). This is particularly challenging for small industries where replacement of management methods or integrated practices is not feasible in most situations.
Why Cost Likely to Big Deterrent for SME's When Financial and HR Resources Limited
Cost is often a large deterrent for SMEs desiring six-sigma implementation. Large enterprises often have no trouble delegating the resources necessary to promote successful implementation. For years human resource management and financial resources have often been highlighted as primary concerns for SMEs (Aragon-Sanchez & Sanchez-Martin, 2005). A positive relationship however is often correlated between HR and financial resources and business performance, thus many SMEs have to work extra diligently to adopt adequate HR and financial practices within the organization (Aragon-Sanchez & Sanchez-Martin, 2005).
HR and financial resources...
Large enterprises often have ample resources in this respect, providing them a decided advantages when implementing any quality control processes. SMEs face much tighter financial constraints and can often not delegate the resources necessary to implement six sigma without inflating overhead expenses at the cost of business efficiency and in many cases production (Aragon-Sanchez & Sanchez-Marin, 2005).
If more HR and financial resources were readily available however even in the SME environment, then the likelihood that strategic controls and quality controls could be implemented is much greater and much less likely to result in excessive financial burden to the organization.
References
Aragon-Sanchez, A. & Sanchez-Marin, G. (2005). "Strategic orientation, management characteristics and performance: A study of Spanish SMEs." Journal of Small Business Management, 43(3): 287.
Bigras, Y. & Gelina, R. (2004). "The characteristics and features of SMEs: Favorable or unfavorable to logistics integration?" Journal of Small Business Management, 42(3): 263.
Filion, L.-J. (1991). Vision relations: success keys for the entrepreneur. Montreal,
Canada: Les Editions de l'Entreprise.
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