The Evolution of Lean Six Sigma at 3M.docx - The Evolution of Lean Six Sigma at 3M Inc 1 What will be the benefits and costs of Lean Six Sigma program

The Evolution of Lean Six Sigma at 3M.docx - The Evolution...

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The Evolution of Lean Six Sigma at 3M, Inc. 1. What will be the benefits and costs of Lean Six Sigma program and how should they be tracked? Benefits of Lean Six Sigma program include majorly improvement in customer satisfaction and cost reduction. The design of new projects was according to customer requirements. Benefits of Six Sigma also include increase sales, develop managers, increase cash flow, quality improvement with reduced variability, efficient productivity and processes acceleration, and single management system. Incorporation of E-productivity via electronic media will be beneficial to both 3M and its customers. Purchase resources in strategic ways will reduce cost. Six Sigma develops transferrable skills. More than 4000 employees will be trained by 2000. Sharing of information amongst the employees has increased. After second year of Six Sigma’s incorporation, the operating income is expected to increase by $300 million to $450 million and cash flow will improve by $250 million to $400 million. Greater returns on $1 billion investment on R&D are expected. Cost: Financial investment for reduction of risk by verification with potential customers, use of various tools like quality function deployment and computer simulations is required in Six Sigma and salary of full time appointed black belt in Six Sigma. The team leaders and management of the process selected for Six Sigma are held accountable for the result. Each project costs six months of time.
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