With the Six Sigma application and a lot of effective innovation, McNerney got 3M’s revenue up to 21 billion USD per year in 2005 with 22% profit for each years. Then, the next CEO Buckley continued to apply the Six Sigma, he removed the Six Sigma in the R&D area but still developed Six Sigma in manufacturing and administrative areas. Until 2012, 3M Inc. increased their revenue from outside the U.S.A to 20 billion USD compare to 10 billion USD in the 2003. The total revenue for 2012 got up to 30 billion USD. Six Sigma: the total benefits. In 3M Inc., the goal of the quality management Six Sigma application was the higher customer satisfaction and cost savings. Therefore, we can see that the first benefit is increase
Successful applying quality management 4 of customer satisfaction. Throughout the Six Sigma application, 3M provided many teams to support the customers such as Grainger, DuPont, Ford, Estee Lauder, The Home Depot, Motorola, Procter & Gamble, Land Rover, Toyota, and Wal-Mart by directly contacting with the customer. This method increased the customer care performance and helped customer to understand more about their products and customer’s product guidance. Furthermore, the process development maximize all the possibility that can make different products and 3M was responsible for a faster and better customer services in order to reduce the risk and increase the customer satisfaction stability. The next benefit is the revenue increment. Then, with the cash flow is getting better and better, 3M invested more than 1 billion USD in R&D in order to push the revenue up faster. On the other hand, the Six Sigma tools also helped the high level managers to save their time in the product development and commercialization. Then, it would be faster to sell their product thus increasing the cash flow. The revenue increasing and the performance reformation through Six Sigma application by 3M by the management reformation. This activity not only provided the old manager a better skill development but also allowed to choose new manager through the recent human resources. This human resources was pretty obvious in the entitlement concept of Six Sigma. The entitlement represent received the reward that proportional for their accomplishment of the process. This reward did not only cash but also a chance to be promoted to manager or a upper division department. These entitled represents could motivate both employees and manager to accomplish their given process and improve their
Successful applying quality management 5 department performance. Therefore it also effectively contributed in the performance improvement of 3M Inc. Reducing the cost (or the wasting cost or unnecessary cost to be precise) was also one of the Six Sigma application’s goal since the beginning. In order to successfully do this, Six Sigma solved this problem by confronting these issue intelligently with plan. These plan helped Six Sigma employees to receive, back up and analyze data according to the Six Sigma way. These activities showed up the problem and the solution generally.
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- Winter '17