Operational excellence as a platform for ESG integration: A case study of integrated Hoshin Kanri and six sigma in the pulp and paper industry

Achieving the United Nations 2030 Sustainable Development Goals poses a considerable challenge for a multitude of stakeholders. In addition to national governments, the private and industrial sectors are crucial in promoting a sustainable global economy. This study builds on the Operational Excellence (OPEX) paradigm to explore how structured methodologies such as Hoshin Kanri and Six Sigma can be integrated to support ESG goals in industrial contexts. To address these challenges while driving OPEX, this study introduces an innovative and integrated approach that leverages the strengths of both Hoshin Kanri and Six Sigma principles. Despite their recognised merits in practical applications, the synergy of these approaches in industrial problem-solving their integrated application to Environmental, Social, and Governance (ESG) or Pulp and Paper (P&P) industries has not been investigated. We present a comprehensive framework bridging the gap between strategic objectives and operational improvement activities in a global P&P company. This integrated framework offers a dynamic and effective pathway for cascading top-level objectives throughout an organisation into actionable steps at the frontline of company operations. It encompasses a structured methodology for process enhancement and variation reduction, while fostering communication and a continuous improvement culture. The case study demonstrates the framework's effectiveness in guiding improvement efforts through strategic goals, resulting in measurable outcomes and robust performance metrics such as specific greenhouse gas emissions and specific natural gas consumption. Over a five-month initiative, the implementation of this cutting-edge approach resulted in a 7% decrease in greenhouse gas emissions and a 23% decrease in natural gas consumption. The study also addressed limitations and provided recommendations for future research, including applying the framework across various sectors. These insights should be used to develop more robust models that integrate HK and Six Sigma, potentially incorporating advanced technological solutions. Further validation across diverse industries is necessary to refine and enhance the proposed framework.