Six Sigma 3M: Development and Huge Profits – Case Study Example
Six Sigma 3M Case Study affiliation Introduction James McNerndy saw a great business opportunity of making drastic development and huge profits if the six-sigma initiative was used in the 3M Company. The company was dragging behind in terms of profit making. The way forward was to train both senior and middle level executives to realize the benefits of the quality control program. According to analysis, six sigma seeks to improve quality of services and products upon effective implementation. In addition, this initiative greatly promotes consistency, uniformity, and control in any form of business. The overall goals for employing six sigma are to attain transferable skills as well as to improve and speed up business (Pires de Souza et al., 2013).
Benefits of six-sigma initiative
Six Sigma enhances customer satisfaction since it is customer centered, when the customers realize that the 3M Company has a good response, quick serviceability and production of more competitive products they tend to build their trust being long life consumers of products. Customer stability is crucial in determining growth and survival of a business enterprise in a competitive market. This initiative also seeks to minimize transactional errors making it easier to deal with customers.
The organization is strong and vibrant through new skills of quality control that involve both the employees and the managers. Roles and functions for each individual working in the company are clearly defined and guidelines to achieve high quality services and products are vividly made known to all. Employees are impressed and motivated by learning of new processes, gaining leadership experience and recognition of their ideas works to the benefit of 3M. There is improvement in the quality of products and services, the need to actively compete and win customers trust is the driving force that sustains the urge to observe quality in all aspects (Pires de Souza et al., 2013). This also means that the entire production and service process is stepped up to meet the required standards of quality.
3M largely benefits from the six-sigma program through use of advanced technology that speeds up not only production and serviceability but also the whole process of marketing and customer interaction. Reliable information system is key to a successful business especially to large business companies that rely on customer’s feedback and communication for self-evaluation. 3m company also enjoys the benefit of improved revenues and well knowledgeable management team that stirs up the success of the company.
Drastic increment in the stock value is noted once the customers and investors are satisfied with the products of this company, the number of orders rise prompting the company to make more produce. The financial sector also experiences significant improvement as increase in stock value directly influences the circulation of money.
The cost and risk of the six-sigma program
Training of all managers and employees is costly and a well-planned criterion must be used to efficiently use the available finances without interfering with financial stability of the company. As an initial step in checking the cost, it is mandatory that the management team approve all projects after a careful analysis. Multiple projects must undergo monitoring to assess progress and effectiveness to the company while the savings are calculated and possible deficits noted. In six-sigma program, the large costs and complexity are the main risks that are likely to pin down the progress of a company if not appropriately addressed. Furthermore, the service process and all transactional procedures are troublesome to measure since no one specific method of measurement is established by the financial department (Pires de Souza et al., 2013). Without accurate measurement, it is difficult to establish if the company is making a great leap ahead or falling apart. Senior and middle level managers shoulder the responsibility of manning the program; they oversee the use of required skills and knowledge by employees as well as train them to acquire skills.
Functional areas of the organization are included in the six-sigma program using various approaches centered more on product and service quality. All sectors of the company are strengthened with this approach. The focus is to ensure that the company remains competitive as the senior and middle level managers taking full responsibility of training their workers on the recent six-sigma approach while on job
Effects of six sigma project on innovative culture
Six-sigma program employs a four-way methodology of improving quality ant aesthetic components of products. The improvement model Define, Measure, Analyze, Improve and Control (DMAIC) greatly encourages the innovative culture of the 3M Company(Pires de Souza et al., 2013). The existing processes are polished and advanced to suit customer satisfaction while saving on costs incurred. New products in the market undergo promotion and marketing by finding out customers’ needs then transforming them into specific products that best define their needs. However, the company cannot entirely rely on the six sigma for an impressive out come and easy working system. There is need to incorporate diverse human resources for effective implementation. Furthermore, apart from deriving innovation power from customer needs they require a worldwide market trend not just in terms of business opportunities but also in areas where nothing new has been established. The idea of building on what already exists is reasonable but it is equally important to try to come up with different products not based on customer needs.
Pires de Souza, R., Hékis, H. R., Oliveira, L. A. B., Queiroz, J. V., Queiroz, F. C. B. P., & Valentim, R. A. de M. (2013). Implementation of a Six Sigma project in a 3M division of Brazil. The International Journal of Quality & Reliability Management, 30, 129–141. doi:http://dx.doi.org/10.1108/02656711311293553