3m Case Study

-------------------------------------------------

Case: 3M

-------------------------------------------------

Course: Operations Management (MBA 589)

-------------------------------------------------

Compiled By: Vaibhav Kokal

-------------------------------------------------

Date: - 24th March, 2011

1. What are the benefits, costs and risks of the six sigma program and how can they be tracked and reported?

Solution:-

Six Sigma is a program that is used to improve processes within the organization be it in manufacturing or production processes. Six Sigma is generally geared at defining goals and problems, measuring existing data and processes, analyzing problems and goals, improving processes or tasks and controlling how the problems will be resolved in the future.

Benefits

* The benefits of Six Sigma include the improvement of operating procedures to ensure faster response time, quality products and services and better monitoring of performance and work outputs.

* The Six Sigma model can promise the said results and benefits because it provides a formula in which an existing processes is checked for consistency, efficiency and effectiveness, if it fails to measure to the existing industry standards it is revised and redesigned to match the best practices . In the event that there is no existing process, then Six Sigma will be used as a model or guide to develop one.

Costs

* Six Sigma also ensures that costs will be lowered because there will be less time spent in the process and more time to work on the actual tasks.

* The cost of Six Sigma is huge, the organization has to hire and maintain a consultant that would guide and train top management and middle management in the principles of Six Sigma.

* Moreover, each employee also has to be trained which can be costly since it would mean time away from work and training costs.

Risks

* Six sigma also has its own risks, it is not foolproof and some organizations may not be...