Introduction to 3M
3M is the world’s 3rd most innovative technology company that strives to create groundbreaking products. The goal of 3M is simple – create products that make positive differences in everyone’s lives. Six Sigma specializes management strategy method that has evolved and modernized since its origin in 1986. It focuses on proactively deterring issues that will arise in production and corporate operations. Like many companies have begun to do, 3M acquired the Six Sigma management strategy and has revolutionized its infrastructure. The “World’s Most Ethical Company” is now a leading innovator in technology, energy, and more due to the success of the method. Now, 3M offers an in-depth case study to show exactly how Six Sigma transformed their company.
Implementing Six Sigma
Gaining control of 3M in 2001, James McNerney placed the Six Sigma methodology into the backbone of the company. McNerney’s unique, considerate approach led to a four-year overhaul of the manufacturing and production processes. From eliminating waste to improving productivity, this methodology grew revenue faster than ever and continues to lead innovative technologies.
McNerney grew 3M other enterprises such as Global Souring, 3m Acceleration, eProductivity, and Indirect Cost Control. As a result, 3M began 2005 with over 30,000 employees Six Sigma certified, with a minimum Green Belt training for all technical and sales staff. Combining the Six Sigma methodology with a strong leadership, 3M consistently practices an ever-improving production process with increasing profits to match.
In addition to substantial revenue growth, this methodology continues to bring out massive savings and benefits. The 2003 Annual Report states that operating income was amplified by more than $500,000 in 2002 alone as a result of the Six Sigma initiatives. This figure is substantially larger than earlier predictions, and the forecast continues to remain high for the following year, sitting at $400,000, an estimate which was successfully met as reported by the Prudential Financial Conference in September 2004.
Alongside considerable financial growth, 3M enjoys significant corporate network growth. 3M’s network continues to expand by collaborating with numerous companies on over 250 projects such as Ford, Estee Lauder, Motorola, Wal-Mart, and Procter & Gamble. Mature, effective Six Sigma programs are easily spotted, sharing their knowledge with customers, suppliers, and other important personnel. Only Six Sigma has the tools necessary to transforming your business, with total process improvements and reducing defects. Six Sigma drives growth, reduces costs, increases revenue, and produces strong business relationships with customers that last a lifetime.
About the Author
Six Sigma at 3M 1. What are the potential benefits and risks of implementing Six Sigma at 3M? Benefits: Six sigma not only provides a platform to improve existing processes but also enables 3M to design new processes in an efficient manner so that it results in lowered costs, increased sales, improved customer satisfaction, improved managerial development, increased cash flow and increased pace of development of 3M. 3M Acceleration was implemented by 3M to improve efficiency and pace of product development and commercialization cycles so that 3M could reap greater benefits on their investments. Also new and better products reach the customers faster through 3M Acceleration which leads to better customer satisfaction. As part of the Six Sigma initiative, 3M tried to improve their online presence as well via E productivity. By doing so, 3M will be able to better connect with the consumers which enables them to render quality service to the customers. Application of Six Sigma also demanded to make purchase decisions in smarter and more systematic way. By purchasing better, 3M can offer quality products to customers at competitive prices which will enhance their brand further. Six Sigma will also enable 3M to manage costs better. 3M can cut down on unnecessary spending by careful tracking of both direct and indirect costs. Six Sigma is a competency that can be transferred within organization. Six sigma is a core competency of 3M; it is ingrained in 3M’s system. It’s a difficult competency to build within a corporation (across firms in a corporation) and hence it’s inimitable, serving as 3M’s competitive advantage. Common approach with common goals. Risks: