Operation Management Report: Six Sigma Program at 3M, Inc.

This report examines the implementation of Six Sigma programs within 3M, Inc., an organization facing flat financial performance. The analysis covers the action plan adopted, which includes steps for introduction, training, development, monitoring, and sustaining improvements. The report highlights the benefits of Six Sigma, such as enhanced financial performance, improved product design, and employee training, while also acknowledging the associated costs and risks, including potential limitations on innovation and creativity. It further explores the inclusion of various functional areas in Six Sigma initiatives, emphasizing the roles of senior and middle management. The report also discusses the role of Six Sigma in the corporate strategy, focusing on employee skill enhancement, productivity improvements, and customer satisfaction. Finally, it addresses the human resource implications, and the effects of Six Sigma projects on the innovative culture within the organization.

Running head: OPERATION MANAGEMENT
Operation Management
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This report deals with the implementation of six sigma programs in the context of 3M, Inc. This
organization has been facing flat financial performance and there is no improvement in this
situation. In order to overcome this situation, such organization has implemented six sigma
programs as this method is associated with the continuous improvement in an organization.
Employee training is a big part of six sigma programs. In the context of 3M, Inc, the senior and
middle managers have given training to the senior executives to improve their skill as well as to
enhance the organizational performance. One of the biggest loopholes of six sigma program is
the blockage of innovation and creativity. 3M, Inc has faced challenges in bringing creativity in
their R&D. On the other hand, training cost is high in the six sigma process, which is another
barrier to this methodology. However, many organizations fail to implement this program as it is
highly expensive. Cash flow savings and cost reductions are the major two benefits of six sigma
program. The daily operations of 3M, Inc need to save the cost that can fulfill the business
strategy. The business strategy of such organization focuses on the continuous growth, which can
be fulfilled by the six sigma programs.

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Table of Contents
Introduction......................................................................................................................................4
Action plan.......................................................................................................................................4
Benefits, cost and risks of the six sigma program...........................................................................5
Various functional areas in 3M, Inc be included in six sigma initiatives and the role of the seniors
and middle management..................................................................................................................7
Role of six sigma programs in corporate strategy...........................................................................8
Human resource implication for deploying six sigma...................................................................10
Six Sigma project affects the innovative culture...........................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

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Introduction
Six Sigma programs is a process of improvement in the organizational performance. The
main aim of the implementing six sigma tool is to bring improvement in the quality process by
detecting and reducing the causes of defects. This also minimizes the variability in the
manufacturing process (Furterer, 2016). A set of quality management methods and statistical
methods is included in six sigma tool. An organization is able to create a special infrastructure in
an organization by applying six sigma tool. However, this tool reduces the process cycle time,
pollution and operating cost. Apart from this, it helps the organization to increase the customer
satisfaction and profit in the context of a business. This study deals with the implementation of
six sigma tool in the context of 3M, Inc.
Action plan
According to the given scenario, 3M, Inc has decided to implement six sigma programs
to enhance their financial performance and the customer satisfaction level. 3M, Inc is a leading
organization of electronics, healthcare products, safety, industrial products and office products.
This company has diversified technology (Arthur & Linderman, 2007). This company was facing
flat financial performance and need to bring improvement in this area. For this reason, they have
implemented six sigma programs. The following steps are followed to implement the six sigma
program:
Steps Action plan Outcomes
Step 1 (2 week) Introduction of the six sigma
programs
Enhances the overall
organizational performance
Step 2 (12 weeks) Select the people and trained Improve the performance level of

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them the individuals
Step 3 (6 weeks) Development and implement the
improvement plan
Identify the loopholes of the
existing system
Step 4 (2 weeks) Monitor and evaluate the
implemented plan
Measures the effectiveness of the
implemented plan
Step 5 (2 weeks) Sustain the gains Maintains the continuous
improvement
Table 1: Action plan for the implementation of six sigma programs
(Source: Author)
Benefits, cost and risks of the six sigma program
Six Sigma programs have various benefits in enhancing the organizational performance.
It also involves in increasing the quality as well as financial performance of the organization.
According to the given scenario, 3M, Inc has implemented the six sigma programs to improve
their financial performance (Arthur & Linderman, 2007). However, six sigma program is a
methodology that allows a business to reduce inefficiencies and operating cost by identifying the
wasteful processes from the operating process (Ozkan et al., 2017). In the context of 3M, Inc
implementation of six sigma program was beneficial to bring a greater return from the research
and development in the context of this organization. On the other hand it had increased the
quality of the service, operating process and customer satisfaction. The sales revenue of 3M, Inc
had been increased by the implementation of the six sigma program as this program includes a
training program for the middle managers in this organization. The financial departments were
able to tackle the all projects as a result savings had done in a proper way. Such financial
departments had to use a tracking system in the Six Sigma program, which reduced the defects

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and calculate the savings. 3M, Inc had changed their working process by this program and had
observed the significant result. Product design is another benefit of the six sigma program. In the
context of 3M, Inc they were able to specify the product along with the reduction of risks from
product portfolio. Computer simulations of design and quality function deployment were the
major tools that had been used in six sigma programs to improve the product.
Employment training is a big part of the six sigma programs (Callahan & Roberts, 2017).
In the context of 3M, Inc almost 1700 employees were trained under the six sigma programs and
there were 600 projects in this organization in which almost 3000 people are involved. Many
projects were in control phase that ensures that the improvements were taking place. The team of
six sigma measured that significant outcomes were accounted and the achieved results were
sustained. In the context of 3M, Inc after the implementation of the six sigma program their sales
had been increased. In the year 2003, their sales were less than $10 billion which increased up to
$20 billion that is 65% increased by the year 2012.
One of the major risks of sigma programs is the blockage of creativity, innovation and the
development of new products (Martin, de Camargo& Zambelo, 2016). 3M, Inc also suffered
innovation challenges by the implementation of six sigma programs. Apart from this complexity
of the program and difficulties in measuring the outcomes of the business are the others risks of
six sigma programs. Therefore, six sigma is a complex process and consists of many statistics.
Therefore, the training program for a full time black belt to improve the quality is too costly. Six
Sigma programs is a costly process and 3M, Inc expended $100,000 to implement this program.

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Various functional areas in 3M, Inc be included in six sigma initiatives and the role of the
seniors and middle management
According to the current scenario, various functional areas of 3M, Inc were included in
the six sigma programs. Hence, the activities are taken to improve the performance of the
organization rather than the quality of the products. It is important for 3M, Inc to include each
and every area of their business operation in the six sigma initiatives. The productivity of the
organization is a crucial area that needs to be improved to enhance the profitability (Al-Aomar &
Chaudhry, 2018). 3M, Inc should enhance their productivity by identifying the manufacturing
issues in their organization as productivity is related to the manufacturing process. By the
implementation of new technology in the manufacturing process will be helpful to increase the
productivity (Nadeau, 2017). Incorporation of the modern technology will be beneficial to
change the traditional way of manufacturing and to bring rapid growth in the business. However,
3M, Inc had the low yield in their manufacturing process, which has been identified by the six
sigma programs. Thus, by incorporating the productivity area into six sigma initiatives this
organization can identify other loopholes in their manufacturing process.
In order to improve the financial performance cost reduction is necessary for a business
(He et al., 2017). In the context of 3M, Inc they should incorporate the supply chain
management process in the six sigma initiatives. This will help such organization to purchase
their raw materials in a smarter way, which saves the business cost. However, if the organization
can reduce the raw materials cost then they will be able to provide the customers cost-effective
and beneficial products. Financial planning should be taken under the six sigma program.
However, it is important for a business to make a financial planning properly to reduce the cost.
For this reason, cost management is crucial (Albliwi et al., 2017). By following the six sigma

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initiatives 3M, Inc will be able to manage the indirect cost reduction in their operating process.
This will help them to bring significant growth in their financial performance. Apart from this
innovation should be incorporated into the six sigma program. Hence, it is important for 3M, Inc
to put their innovation as well as product designing process under the six sigma programs as it
will help this organization to improve their product design process by quality function
deployment tool and computer simulation tool.
Seniors and middle managers have to carry out huge responsibilities in the
implementation of the six sigma programs in an organization as they are the major managerial
heads of an organization (Hwang, Lee & Seo, 2017). In the context of 3M, Inc the middle
managers and senior managers play the role of the trainer and the senior executives take the
training from them. However, the salaried executives also receive green belt training in the six
sigma program.
Role of six sigma programs in corporate strategy
Six Sigma brings changes in a business. However, an organization incorporates six sigma
tool in their business to refine their business process and to improve the value of an organization
(Albliwi et al., 2017). Six Sigma program includes the concept of to enhance the existing
business process and by saving the cost and increasing the customer satisfaction. Six Sigma
program consists of two models that are the DMAIC improvement model, which focuses on the
process definition, analysis, measurement, improvement and the control. Another model is DFSS
model, which highlights the needs of the customers and product specification based on the
customer demand (Mahato, Rai Dixit & Agrawal, 2017). In the context of 3M, Inc their financial
performance is not significant.

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Customer dissatisfaction is one of the major causes of such issues, which is also related to
the low financial growth in this organization. However, application of the six sigma program is
helpful for the corporate strategy as it is beneficial for an organization to improve the skill of the
employees (Kaushik & Kumar, 2017). In the context of 3M, Inc six sigma program includes the
training program, which is associated with the improvement of the employee performance.
Employee training is the part of the corporate strategy that is fulfilled by the six sigma training
program. Sis sigma program involves in the enhancement of the productivity by product
specification. Productivity improvement is another part of the corporate strategy. Hence, six
sigma programs contribute more in meeting the goal of such corporate strategy in the context of
3M, Inc. However, the establishment of a customer-centric business by satisfying the customers
is a vital goal of the corporate strategy. According to the current scenario, 3M, Inc can give more
concentration on the customer needs by the implementation of six sigma methodology as it helps
to improve the product feature by making changes in the product design process.
Growth, cost reduction, and cash savings are the main three corporate strategies that can
be fulfilled by the application of six sigma program (Patel,2017). According to the case scenario,
3M, Inc has implemented six sigma methodologies in their business to improve their financial
performance. To enhance the growth they need to satisfy their customers. By applying this six
sigma program the customers can see a financially healthy company along with solid investment.
On the other hand, six sigma program helps this organization to improve their leadership skill
and offer more competitive product and leadership skill. Cost reduction can be done in the
operating process of 3M, Inc by identifying the defects from the existing system, which enhances
the productivity (Roger et al., 2013). This is another positive outcome of six sigma program.
DMAIC model of six sigma program defines the blueprints of the business strategy (Chen, Chen

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& Chang, 2017). In the context of 3M, Inc this model identifies the current economic situation or
current market. The next step is the measured phase where the baseline of operation is measured
in 3M, Inc. In this phase, the data is collected to understand how the company is racking. In the
analyze phase 3M, Inc can identify their strength, weakness, threat, and opportunities. In the
improvement phase, this organization is able to implement their business strategy and to take
necessary actions to reduce the loopholes from their business performance. Finally, in the control
phase 3M, Inc is able to measure the company performance against their strategy by conducting
the monitoring process. Hence, to complete such steps 3M, Inc should include six sigma program
to enhance their corporate strategy.
Human resource implication for deploying six sigma
An organization needs to allocate right human resources for the deployment of six sigma
programs. 3M, Inc needs to manage the human resource implication to deploy the six sigma
programs in their organization. However, six sigma programs include many steps, which require
specific human resources. Such selected human resources need to have multiple skills and a clear
understanding about the end to end operation in an organization (Mefford et al., 2017). The
resources should have business knowledge, product knowledge, and technical knowledge to
reduce the technical complication from the business process. 3M, Inc has implemented six sigma
programs and the middle and senior managers are provided training to the senior executives to
enhance their technical as well as other skills. On the other hand, a large number of workforces is
required to give shape the six sigma programs as it includes many steps. In the context of 3M,
Inc about 1,700 employees are given the training to improve their skills. This ensures that strong
human resources are involved in managing the six sigma programs. This organization has 600
projects and more than 3,000 people are associated with these projects.

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To deploy a six sigma program coordination between each stage of the resources is required
(Ben Romdhane, Badreddine & Sansa, 2017). However, lack of coordination between the
resources causes poor outcomes from this methodology and the entire process can be less
effective. In the context of 3M, Inc they have provided training to their employees but there
should be a good coordination between employees to give shape the plan. However, if the team
or an employee is not compatible with the six sigma project due to lack of knowledge and skill
need to be changed in another project. In the context of 3M, Inc to get a better outcome they
need to use a different set of knowledge and skill for their every project. This organization has
improved the knowledge of the employees first then allows them to involve in their six sigma
project.
Six Sigma project affects the innovative culture
Six Sigma program is effective for the continuous improvement of the quality in an
organization but it hinders the innovative culture in an organization. Application of six sigma
methodology often blocks the creativity, innovation and the product development process
(Nupur, Gandhi, Solanki & Jha,, 2018). 3M, Inc has faced challenges in measuring their
organizational outcomes due to the implementation of the six sigma programs.
Six Sigma programs reduce the inefficiencies of the system (Mefford et al., 2017).
According to the scenario, 3M, Inc has followed the rules of six sigma program, as a result, the
strong restriction on the error resists this organization to develop a creative product. However, to
make something new this organization need to take the risk. As per the given scenario, six sigma
resists the 3M, Inc to do something creative in R&D. Hence, six sigma programs do not allow

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the organization to take a risk; as a result, they are forced to avoid innovation and creativity. On
the other hand, training cost is another loophole of six sigma as maximum business organizations
cannot afford such cost. In order to complete this phase of six sigma creativity of an organization
is hampered due to the lack of financial resources. There has been huge argumentative discussion
regarding the effectiveness of six sigma programs over the media. Based on the findings it can be
said that six sigma is not enough as a balance should be made between the creativity of the
organization and the implementation of six sigma. As per the case study, it has been observed
that application of six sigma methodology in 3M, Inc inhibits the product development in this
organization in terms of R & D (Research and Development) innovation. For an organization, it
is important to bring innovation in their business and research to develop something new to
enhance the customer satisfaction. Following the six sigma programs, an organization is not able
to incorporate new ideas as new ideas always include risk and six sigma methodologies always
focuson the reduction of risk to secure an organization financially (Hwang, Lee & Seo, 2017).
Based on this principle of six sigma program, the innovation of 3M, Inc is affected. Thus, six
sigma programs are not enough for an organization to enhance the complete growth.
Conclusion
The entire study gives a brief account of the application of six sigma programs in the
context of 3M, Inc. It has been found that six sigma programs affect the innovation in an
organization as 3M, Inc has suffered to innovate something new in their R&D. Therefore, the
financial performance of 3M, Inc is stagnant thus to improve this condition they have
implemented the six sigma programs. It has been observed that six sigma program is beneficial
to reduce cost and save the cash flow. Skilled employees are the major requirement of six sigma
program.

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