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History of 3M
Founded in 1902 at the Lake Superior Town of Two Harbors, Minnesota by Five Businessman. Due to a rapid growth in Mining and Sandpaper products, the company moved to St. Paul in 1910. Gave out its first dividend at 6% share in 1916. Richard G. Drew (Lab assistant) invented masking tape which was a major innovation for the organization. From 1940-1980, 3M entered new ventures introducing the Scotch-Brite cleaning pads, Thermo Fax copying processor and several new electro-mechanical products. The 1990s set a new sales record of over $15 billion.
The basic methodology of DMADV or DFSS consists of the following five steps:
Define design goals that are consistent with customer demands
and the enterprise strategy. Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design. Design details, optimize the design, and plan for design verification. This phase may require simulations. Verify the design, set up pilot runs, implement the production process and hand it over to the process owners
Why Six-Sigma at 3M
3M was already a quality company with many high quality products in market but still their financial performance was flat due to which they felt the need of adopting six sigma.
Six-Sigma at 3M (Implementation)
The 3M approach to six sigma included two different improvement models: 1. For existing processes, the five-step DMAIC model.
2. For new product development DFSS (Design for Six Sigma) was used.
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3M Initiatives
3M moved from multiple quality management systems to single companywide approach : Six Sigma. Following are the few initiatives taken by 3M: 1. Six Sigma: pursuing quality improvement under one single program. Being more responsive to customers through 3M acceleration. 2. E-Productivity: Performing commercial activities through electronic media in order to be more efficient, productive and render better serviceas support to customers.
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3M initiatives
4. Supply: Purchasing in more systematic way led to cost reduction for 3M. 3. Indirect Cost: Good management of cost is critical for a sound business plan, especially in critical times. Due to implementation of six sigma a lot of indirect cost was reduced which led to increased efficiency.
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Approaches
3M's simple approach to Six Sigma. The Right Projects + The Right People + The Right Roadmap and Tools + The Right Support = The Right Results
Skeptics
The skeptics point to the following issues in using Six Sigma: We can't afford to improve our processes to 3.4 parts per million defects as implied by Six Sigma. Also, our customers don't need this level of quality. Six Sigma is too complicated and involves too much statistics for our people. We need a simpler approach to process improvement.
Six Sigma doesn't work very well for service processes or transaction-based processes that have intangible outputs and are difficult, if not impossible, to measure. Six Sigma is better suited to manufacturing. We can't afford the training costs and the appointment of full time black belts for process improvement. Six Sigma is just the latest quality fad-- it too will pass.
CHALLENGES AT 3M
Tracking and reporting of 6 sigma program Costs and risks involved in implementing this strategy Management skills required to implement it. Functional areas to be included under six sigma Information systems required to support 6 sigma Human resource implications for deploying six sigma (Black belts, master black belts, champions etc.) Planning for their incentives
Entitlement-A concept of Six Sigma :The absolute best possible outcome that can be achieved with a given process. It helps in setting goals for the best possible outcome. Helps in determining the true potential.
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Thank You......
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