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Purpose – The purpose of this paper is to develop a risk management framework, combined with Six Sigma tool and techniques, to help handle the undesired effects that can occur during the project execution. There exist various risk management methodologies but none of them provide an efficient framework and tools to handle undesired effects. In this paper, the goal is to assist practitioners in management of risks. Design/methodology/approach – The author defines a new risk management framework on the basis of critical review of previous research applied in the industry related to different manufacturing, construction, HR, Marketing, IT and other domains. The strengths and weaknesses of these methods have been compared through empirical analysis based on real‐life case studies. Findings – An enhanced framework is developed for handling, management and analysis of risk associated with the projects. An extended model is presented by combining the previous risk management methodologies with Six Sigma methodologies, in order to achieve both improvement and minimization of risks simultaneously. The risk management framework defined in project management lacks compatibility and enhancement with the handling in real‐time projects. By combining a number of methodologies, after critical study of related frameworks, it has been possible to devise a framework which has proved to be beneficial. Research limitations/implications – The model defined in the paper is based on implementation and approvals from the management and takes time for implementation of Six Sigma. Currently the enhanced model is implemented in a single process in a real‐time industry to validate the model. A through study and knowledge of processes with data is required in order to implement the model. Social implications – The proposed model achieves higher organizational performance by motivation and training of its employees handling large‐scale projects. This has increased the knowledge of persons by minimizing the barrier to change management; hence, achieving organizational excellence and project management with ease. Originality/value – The methodology will help organizations, especially in the manufacturing industry, to minimize the risks in both pre‐execution and post‐execution of projects. It enables overall improvement of organization with total product management, root cause analysis, project management knowledge areas and combination of Six Sigma tools. It also makes the knowledge management concept possible within the framework, to maintain the flow of knowledge throughout the organization. It has decreased dependency on a single person and promotes team management concepts with shared work values.
International Journal of Lean Six Sigma – Emerald Publishing
Published: Aug 2, 2013
Keywords: Manufacturing industries; Project management; Risk management; Six Sigma; Quality control; Process improvement
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