OperationsResearch_Unit4Assigment_VietNguyenfinal - Running head UNIT IV CASE STUDY OPERATIONS RESEARCH Unit IV Case Study MBA6151 Operations Research

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Running head: UNIT IV CASE STUDY/ OPERATIONS RESEARCH Unit IV – Case Study MBA6151 Operations Research By Nguyen Le Khoa Viet Student ID 262373 Ho Chi Minh, Vietnam Southern Columbia University
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UNIT IV CASE STUDY/ OPERATIONS RESEARCH 2 According to Eckes (2003), Six Sigma, which is a measure of customer satisfaction that is near perfection, attempts to improve both effectiveness and efficiency at the same time. Six Sigma is applicable to all industries, and 3M is an example. Although applying Six Sigma brings many benefits to company including customer satisfaction improvement, company’s process variance and defects decrease, manufacturing efficiency increase, and profit increase, it also includes disadvantages of high cost and risks in managing and implementing the system. Follows are a details discussion in some main points with 3M case to clarify what a firm faces when they want to transform to Six Sigma. 1. What will be the benefits, costs, and risks of the Six Sigma program, and how will theybe tracked and supported?
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UNIT IV CASE STUDY/ OPERATIONS RESEARCH32000 sales of $16.7 billion (six percent increase), and operated in more than 60 countries (Schroeder, Goldstein, & Rungtusanatham, 2013). Besides, 3M net sales increase from $16,054 million in 2001 to $16,332 million in 2002. Besides, the operating expenses decreased from $13,781 million in 2001 to $13,286 million in 2002 (3M Company, 2003, p.41).Secondly, the cost is also a concern when applying Six Sigma. In details, the cost of the program will be the cost of implementing all the necessary software, training the company personnel on how to use the program, and the cost of changing existing processes to conform to Six Sigma standards. Snee and Hoerl (2003) noted that selecting software, which is consider as a significant portion of the investment companies make in Six Sigma, is one of the most important decisions in Six Sigma deployment leaders must make. Therefore, software cost is a need when
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