Six Sigma at 3m, Inc.

Six Sigma at 3M, Inc.

1. What will be the benefits, costs, and risks of the Six Sigma program, and how will they be tracked and reported?

Benefits for 3M include:

Overall cost savings

Time savings

Improved internal and external customer satisfaction

Increased cost reduction

Manager development

Improved supply chain management leading to better cash flow

A standard approach so there is a common understanding

Accountability

Customer requirement driven

Costs:

Training

Hiring consultants or "black belts" in Six Sigma

Having the "Right People" could increase hiring costs

Risks:

Selecting inappropriate projects

Not having the "right people, tools and support to get the results.

No buy-in from management

Lack of analysis to effectively improve processes

Costs too high before payback is seen

Tracking and reporting

3M said they would measure success in terms of the impact Six Sigma projects have on growth, cost and cash. They expect to see operating income improve with a generation of more cash. To start they are tracking their progress by measuring the training data, the effectiveness of the training and the number of projects in process and completed. This is data that is specific, measureable and will tell them if they are on track.

2. How should the various functional areas in the organization be included in the Six Sigma Initiative, and what role should senior and middle management play in the change initiative?

All areas have to be involved for Six Sigma to be successful. Sales & marketing will be intimately involved with customer needs and customer satisfaction. Manufacturing and operations will be involved with meeting manufacturing deadlines, production capacities and supply chain management. Operations along with Finance will need to monitor cash flow and accounts payable and receivables.

Senior Management needs to lead the change initiative with the middle management engaging front line workers for the change to be successful and long lasting. Senior management should become the first Black Belts in Six Sigma. Middle management will need to model the new processes to bring everyone on board and encourage employees during the change.

3. What role should Six Sigma play in corporate strategy?

Ms. O'Oconnel explained that the