The Evolution of Lean Six Sigma at 3M, Inc.

A Case Study

FACTS

On January 1, 2001, 3M announced that W. James McNerney Jr. was elected

the chairman and chief executive officer of the firm. He announced that at the top of
his agenda is a headlong and companywide implementation of the Six Sigma
approach to process and business improvement. He seen firsthand how Six Sigma
can energize an organization, increase sales and cash flow, satisfy customers better,
and strengthen management development. His first step is to training hundreds of
his senior executives to lead the implementation and train the middle management
as well.
The current Director of Six Sigma Operations, Jeanne O’Connell had
mentioned four reasons in implementation of the program; with the common
language to be instituted in the company from the program a common approach
could be used to achieve the common goals, transferrable skills is also developed
and it is the most effective way to increase and accelerate the business performance
and customer quality.
Ms. O’Connell noted that 3M is moving aggressively to drive process
improvement across the company. They started at the top with 3M senior leadership
and are building on 3M’s commitment to improvement. More than four thousand
people will have been trained by end of year 2001. At one point in her talk, she said
that they want to change the DNA of the organization and she even hinted that they
plan to make it a requirement for all executives to be black belts.
Six Sigma was off to a good start at 3M. After four years of implementation,
3M had 30,000 employees trained and all salaried employees had completed Green
Belt training. Over 11,000 projects were completed and 12,000 more were
underway. The 2003 annual report credited Six Sigma with increasing operating
income by 500 million dollars in 2002, and additional 400 million dollars in 2003 with
similar projection of 400 million dollars for 2004.

STATEMENTS OF THE PROBLEM

 The problem of the case is if continued application of Six Sigma throughout
the organization will have a significant positive impact on the company or if it stifles
innovation and creativity in research and development. Six Sigma focuses on
removing the causes of defects and minimizing variability in manufacturing and
business processes through management methods and statistical analysis. 3M, Inc.
used the DMAIC Improvement Model for existing purposes and DFSS (Design for
Six Sigma) for new product development. 3M, Inc. has a long history of innovation
and creativity and a large part of its success can be attributed to the development
and introduction of new products. Although using the Design for Six Sigma
methodology introduces various valuable tools such as Quality Function Deployment
and Computer simulation, it is difficult to establish a current process baseline and
goals for improvement in new product development. There is a certain degree of risk
and inefficiency involved in innovation and Six Sigma serves to stifle it.
The company also faces a constraint in balancing improvements in
manufacturing and administrative processes while encouraging innovation in the
research and development of new products. The structure of Six Sigma requires that a
process is selected for improvement, and then a cross-functional team is formed with
a “black-belt” as the leader. Using Six Sigma for processes allows a common
language across different functions. However, applying Six Sigma to only existing
processes and not new product development creates a constraint in maintaining this
cross-functionality.

ALTERNATIVE COURSES OF ACTION

1. One relevant alternative is to eliminate Six Sigma influence entirely. This

would allow for increased innovation in the research and development department.

However, Six Sigma has proven successful for the existing processes and had a

tremendously positive impact on profits for 3M, Inc. Applying lean systems alone

may not account for as much profitability as Six Sigma.

2. A certain amount of imposed change can be healthy and positive. While too

much change can cause problems, too little can be equally destructive. Change

exposes employees, including executives, to new values and approaches and

encourages reinterpretation of corporate culture.

 3. Change can be driven top-down. Involving employees early on in reviewing

a new work process may seem valuable. But new processes lose benefit if they are

amended too much before implementation.

BEST ALTERNATIVE

CONCLUSION

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.

 3M proved that Six Sigma best practices can save companies money. If the

processes are implemented appropriately, companies become more efficient,

productive and profitable.