The Evolution of Lean Six Sigma at 3M Inc

Syndicate 3
Dwi Sulistyaningsih (29322461) | Erik Pascanugraha Hendarsin (29322449)
Firliani Sarah (29322432) | Hanas Nurpijar Kaloka (29322465)
Hanny Kusumawardhany Lukito (29322453)
 3M Company Overview

Humble Beginning Revolutionizing Sandpaper & New Products

Initial mining efforts failed to produce invented

corundum, a mineral ideal for making Patent product and Scotch brand was born
sandpaper. Instead, the mineral
anorthosite was used and sales were
weak.
1907 Nowadays

1902 1920
Leadership in the making 50.000++ Products in many business
segment
shaping the company’s culture of
innovation and collaboration, start
focus in research and development

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3M Products (that you may know)

… and many others.

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 Lean Six Sigma: 3M Study Case
3M successfully increased it sales by aggressively implemented Lean Six Sigma through simple approach

3M Initial Six Sigma Process:

In 2000 3M Management using Six Sigma, aim to:
Established Special
● Energize the organization, Massive training Projects
Team
● Increase sales and cash flow,
● Satisfy customers better, and A top down training start from Special team to lead project Select:
● Strengthen management development the Senior Executive (SE), SE called Black Belt with SE act as 1. the right improvement project
will be charge to lead training the “Champion”. Black Belt is a align with company strategic
for all middle management. full time team to project business objectives,
3M Six Sigma approach: improvement and trained in Six 2. The right people
1.DMAIC (Define-Measure-Analyze-Improve-Control) for the COST Sigma and Statistics, to lead a 3. The right roadmap and tools
process improvement team 4. The Right support
existing process aimed at making significant To get THE RIGHT RESULT
improvement in process.
2.DFSS (Design for Six Sigma) for product development

In 2004 3M management expanded its program to Lean All theLeanimprovements were

Six Sigma, to bring 4 approaches to choose, for the right standardized and reviewed
project at the right time. periodically to insure
continuing benefit to 3M. The
1 Six Sigma
Best suited to reduce variation in the process savings from the project were also
& improve the yield while reducing cost
carefully tracked by the
Is used to eliminate non-value added activities
financial organization in 3M,
2 Lean from the process, ie to improve the speed,
reduces inventory resulting sales increase gradually
This approach is based on the need to gain a over the years pasca
3 Process & Product
Understanding (PPU)
deep understanding of the customer & the
process implementing Lean Six Sigma as The Revenue
Business Process
exhibit 1.
4 Redesign
Is used when the process is cross-functional
and completely broken.
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 What are the benefits and costs of lean Six Sigma program and how to be tracked?

Lean Six Sigma offers benefits to business in profit increase, standardized & simplified process, reduce errors, develop employee and
offer value to customer. In the cost of training investment and potential resistance and disruption during implementation. Lean Six
Sigma program need to be tracked via KPI on monitoring the benefits & cost.

1 Lean 2 Six Sigma

1● Lean focuses on providing value to the customer,
eliminating waste, continuous improvement, and
reducing cycle time
2● Six Sigma focuses on reducing defects and
improving quality

Costs in implementing Six Sigma:

○ investment in training and resources,
○ potential resistance to change, and
○ potential disruptions during the implementation phase.

Tracking benefits and costs:

by making the process measurable and put on key performance
indicators to the monitoring progress towards established goals.

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Source: https://youtu.be/s2HCrhNVfak
 [2] How should the various functional areas in the organization be included in the
Lean Six Sigma initiative?

In implementing a Lean Six Sigma initiative, it is essential to involve all functional areas of the organization. Each department and
team should understand their role in the program and how their work fits into the overall initiative

#2 #4 #6
Communicate Identify Improvement Measure Performance &
the program Opportunities Recognize Success

#1 #3 #5
Establish a cross Provide Training Implement
functional Team improvement projects

By following these steps, organizations can ensure that the initiative is integrated into all departments and supports the
organization's overall strategy and goals.
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 [2] How should the various functional areas in the organization be included in the
Lean Six Sigma initiative, and what role should senior and middle management
play in this change initiative
Senior and middle management play different but equally important roles in a Lean Six Sigma initiative

Senior Management Roles :

1. Champion The Program

2. Provide resources
3. Establish a governance structure
Middle Management Roles
4. Set Goals/ Objective
5. Review Progress & Provide
1. Implement The Program
feedback
2. Provide support and resources
6. Remove Obstacles
3. Identify improvement opportunities
4. Assign improvement projects
5. Monitor progress Staff Level
6. Communicate the program
7. Measure Performance

A senior management plays a leadership role in championing the program and providing resources,
A middle management implements the program and ensures that it is integrated into day-to-day operations.
Both levels of management should communicate the program, identify improvement opportunities, assign improvement
projects, monitor progress, measure performance, and recognize success.
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[3] The Skeptics of Six Sigma Methodology

Six Sigma required very low defect rate of 3.4 parts per million (PPM) which difficult to achieve.

Complexity: Some processes may be inherently complex, with many

interdependent variables and factors that can impact the quality and performance of
the process

Variability: Processes that involve natural variation, may be more difficult to control
and optimize

Cost: Significant investments in equipment, training, and resources

Industry Standards: The required defect rate may differ for each industry, as there is
no one-size-fits-all approach to achieving optimal results. Some also argue that
customers don’t need this level of quality.

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 [3] The Skeptics of Six Sigma Methodology

Six sigma is too complicated and involves too many statistics for the people in the company.

a. Requires a thorough understanding of statistical tools and concepts

b. Significant resources and investment to deploy a series of projects.
c. Not all companies have the culture of data-driven decision-making.

Six sigma also doesn't work very well for service or transaction-based processes.

a. Intangible outputs are difficult to measure (subjective)

b. Service processes highly dependent on the behavior and performance of
individuals.

At first, the skeptics may worry six sigma is just another jargon to improve quality. However, we can say this skepticism is
deniable because the six sigma methodology, now, has been around for decades and adopted by many organizations
across different industries, proving its efficacy. 9
 [4] Six Sigma effect to the innovative culture at 3M

Key Takeaways:
1. By its definition, lean six sigma is actually a tool to make the business process as efficient and as effective as
possible.
2. Design by Six Sigma concept is also a useful tool to translate what consumer needs to technical requirement
3. However, an innovation to break the market does not necessarily only based on consumer needs, because
sometimes consumer does not knot what they want.
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 [4] Extreme Example: Create Product using Six Sigma vs Creative Ideas

You can get revenue by improving your existing product over and over; but to break the market, you sometimes have to leap beyond
the user imagination. Classic example : Apple vs Nokia

NOKIA APPLE
Improving product to have the best Innovate product with releasing
quality in the market market-breaking product

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 [4] 3M Example: Innovation before and during Six Sigma implementation

Six Sigma should be implemented on the manufacturing process, but not on the creative stages.

BEFORE SIX SIGMA IMPLEMENTATION DURING SIX SIGMA IMPLEMENTATION

(before 2001) (2001 - 2006)
Releasing one-of-a-kind product with a quality There is now new notable products, but the
that cannot be beaten by competitors. first time 3M achieved USD 20 billion in sales.

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 [5] How does Lean Six Sigma in 3M differ from traditional TQM program?

It's important to note that organizations may adopt elements from both Lean Six Sigma and traditional TQM, tailoring their
approach to best suit their specific needs and goals. The specific implementation and practices within 3M may further
shape the unique characteristics of their Lean Six Sigma program compared to traditional TQM.
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 Explanation
Lean Six Sigma (LSS) and Total Quality Management (TQM) are both process 3.
improvement methodologies that aim to enhance operational efficiency and quality
within an organization. While they share some similarities, there are key differences
between Lean Six Sigma in 3M and traditional TQM programs. Here are some
differentiating factors:
1. Focus and Approach:
Lean Six Sigma: LSS focuses on reducing process variations and
eliminating waste to improve efficiency and quality. It combines Lean
principles, which aim to streamline processes and eliminate non-value-added
activities, with Six Sigma methodologies that aim to reduce defects and
improve process capability. 4.
Traditional TQM: TQM takes a broader approach, emphasizing
continuous improvement and quality management throughout the
organization. It encompasses various principles and techniques to achieve
customer satisfaction, employee involvement, and process excellence.
2. Problem-Solving Tools:
Lean Six Sigma: LSS employs statistical tools and data analysis techniques,
such as process mapping, root cause analysis, regression analysis,
and hypothesis testing, to identify and solve problems. It heavily relies 5.
on data-driven decision-making and the DMAIC (Define, Measure, Analyze,
Improve, Control) framework to guide improvement projects.
Traditional TQM: TQM utilizes various quality improvement tools, such
as Pareto charts, cause-and-effect diagrams, flowcharts, and checklists, to
identify problems, analyze root causes, and implement corrective actions. It
emphasizes employee participation, teamwork, and a holistic approach to
quality improvement.
Roles and Certifications:
Lean Six Sigma: LSS typically involves specialized roles such as Green Belts,
Black Belts, and Master Black Belts, who undergo training and certification in
Lean Six Sigma methodologies. These individuals lead improvement projects,
analyze data, and facilitate change management.
Traditional TQM: TQM encourages a collective responsibility for quality
throughout the organization. While there may be quality teams or coordinators,
TQM does not have standardized certification programs for specific roles like Lean
Six Sigma.
Project Scope:
Lean Six Sigma: LSS projects are often focused on specific process
improvements, aimed at achieving measurable results and reducing defects
or variations. Projects are selected based on their potential impact on key
performance indicators (KPIs) or strategic goals.
Traditional TQM: TQM is a more holistic approach, emphasizing continuous
improvement in all processes and functions of the organization. It
encourages a culture of quality and long-term organizational transformation.
Data-Driven Decision Making:
Lean Six Sigma: LSS heavily relies on data analysis to drive decision-making.
Statistical tools and measurements are used to identify improvement opportunities,
set targets, and monitor progress.
Traditional TQM: While TQM also encourages data collection and analysis, it may
place more emphasis on qualitative methods, customer feedback, and
employee involvement in decision-making.