Abstract

Lean Six Sigma (LSS) is now treated as a business model in service and manufacturing sector. LSS is the aim of removing waste and decreasing the defects and variations in organization's processes. The aim of this paper is to describe a theoretical foundation for LSS with innovation and define a process to resolve the crises which produced as results of malfunctioning of system. It has been anticipated that Six Sigma projects improve technological innovation of the organizations but only where while steady environments with in the firm. Since Six Sigma programs are focused on variance reduction and efficiency, these initiatives are not very effective in dynamic environments, where the rate of technological change is dramatic. In addition, due to the focus of Six Sigma projects on existing customers, they may inhibit innovation for new customers. Accordingly, implementation of lean in Six Sigma projects in dynamic environments the level of innovation  often have to face some challenges, therefore could not give an effective outcome. We have developed a theoretical frame work for lean six sigma in business world regarding innovation and discusses all challenges and difficulties during implementation of lean six sigma in all types of sectors either dynamic or stable technology changes. The developed framework comprises of innovation, six sigma and crises management can handle these challenges effectively.