Title: An investigation into the comprehensive effects of Lean Six Sigma and Industry 4.0 on creating a circular economy

Authors: Ashish Shrivastava; Rajesh Prasad Mishra

Addresses: Mechanical Engineering Department, Birla Institute of Technology and Science, Pilani, Rajasthan, 333031, India ' Mechanical Engineering Department, Birla Institute of Technology and Science, Pilani, Rajasthan, 333031, India

Abstract: This study investigates the synergistic effects of Lean Six Sigma (LSS) and Industry 4.0 (I4.0) on enabling circular economy (CE) practices in the Indian manufacturing sector. By integrating operational excellence methodologies (LSS) with advanced digital technologies (I4.0), this research explores how organisations can optimise resource efficiency, reduce waste, and enhance sustainability. A structured questionnaire was administered to 250 respondents across the Indian automotive sector. Exploratory factor analysis (EFA) and structural equation modelling (SEM) were employed to validate constructs and test hypothesised relationships. The findings confirm that both LSS and I4.0 significantly influence CE outcomes, with Industry 4.0 demonstrating a stronger direct effect. The study contributes to the existing literature by developing and validating a framework that combines LSS and I4.0 to support CE transitions, offering both theoretical and managerial insights. Implications for proactive integration strategies and future research directions are discussed.

Keywords: Lean Six Sigma; LSS; Industry 4.0; I4.0; circular economy; CE; structural equation modelling; SEM; automotive manufacturing; sustainability.

DOI: 10.1504/IJAOM.2025.150029

International Journal of Advanced Operations Management, 2025 Vol.16 No.4, pp.483 - 517

Accepted: 08 Aug 2025
Published online: 21 Nov 2025 *

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