|
Original research USING SIX SIGMA TO IMPROVE CUSTOMER LIFETIME VALUE: A CASE STUDYPages 123-132
Abstract:
This research examines the potential role of Six Sigma methodology as a strategic tool for enhancing Customer Lifetime Value (CLV) through cost optimization. A case study was conducted at El Nourasi Corporation, a ceramic tile manufacturer in Algeria, the study employs the DMAIC framework along with Failure Mode and Effects Analysis (FMEA) to identify production inefficiencies that inflate unit costs. Based on twelve months of production data from 2021, the analysis revealed that low average daily output led to a high per-unit fixed cost, negatively impacting profit margins and, consequently, CLV. Root causes were identified using Fishbone Diagrams and prioritized via Risk Priority Numbers (RPNs). The company significantly improved production efficiency and reduced fixed costs through targeted process improvements. These findings underscore the performance-enhancing nature of Six Sigma and emphasise its potential to enhance CLV through internal operational improvements rather than customer-side strategies alone.
Keywords: sustainable innovation, corporate strategy, challenges, drivers, institutional theory.
|
Salah Eddine Kout, 
PDF 