Besides the application of these new methods made the cost increase, Six Sigma strongly collected data, and detailed for analysis and evaluation. These activities required to hire more employees for data collecting, system storage and method for a faster searching
Successful applying quality management 7 data. It required the application of all the new technologies. The cost for these new technologies application also pushed up the cost for 3M. Besides that, Six Sigma required a lot of training for employees in a short amount of time. This one also pushed up the training cost for the whole system. Another important point was that there will be a black belt who responsible for the development of the process. Then, the salary for black belt must increase for their responsibility and the work motivation. Therefore, in the beginning of the Six Sigma application, when the cash flow did not increase, 3M should face a huge increment on their salary cost. Not only the cost suddenly increase as beginning period of the Six Sigma implementing as mentioned above, but also the Six Sigma plan required the 6 months period. This means there would be a huge amount of cost on these first six months. Then the cost for interest of the bank debt was raised because of the capital shorted during this first six month. It is obvious to see that the Six Sigma cost was unavoidable. In order to monitor these cost the 3M’s financial department must record, inspect and evaluate all the information and cost from these project monthly. This will show clearly the effectiveness of the Six Sigma during the start up phase. Then, Six Sigma project application will be supported from all other department. The risk. It is difficult to see the risk that 3M Inc. could face when using the Six Sigma application. However, we can see these obvious risk as mentioned below:
Successful applying quality management 8 Firstly, Six Sigma project application should take at least six month. During this time period, there would be some critical issue that can greatly affect the world economy. These issues may contain the possibility of war and economy crisis in the 3M’s market area. It could strongly effect 3M’s product and productivity as well. Second one is the Six Sigma required all the employees must be trained in order to understand the detail requirement for project development. The possibility risk in this case would the under-development employees after the training periods. This will create the un- balance between the manufacturing departments. Then, the high possibility for the bottleneck at one of these process delayed the whole system. It would give 3M a lot of difficulty. Third one is the Six Sigma application required the many employees training in knowledge about Six Sigma. In addition, the Six Sigma’s project application was phase to phase type. This would be highly risky because of the lacking in unity in the 3M’s manufacturing system.
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- Winter '17