Applying Six Sigma at 3M

Copyright 3M 2002-2003
Applying Six Sigma at 3M

David Osten
Pressure Sensitive Tape Council
3M Company Vision & Values

To be the most innovative enterprise
and the preferred supplier.
Values
Satisfy customers with superior quality, value and
service.
Provide investors an attractive return through
sustained, quality growth.
Respect our social and physical environment
Be a company employees are proud to be part of.
50 Years of Advancing Pressure Sensitive Tapes
What is Six Sigma?

A proactive means of achieving excellence in all
business processes
A measurement of performance or improvement
in economic profit
A data- and fact-driven approach versus a
predominantly intuitive approach
A methodology to promote continuous
improvement, correct and prevent defects
Goal: Growth, increased productivity, higher
earnings
What Does Six Sigma Mean In Your Daily

Life ?
PPM
Prescription Writing
Tax Advice
Restaurant Bills
1,000,000
Payroll Processing
100,000
Baggage Handling
10,000
1,000
100
10
Airline
Safety Rate
1
1
Sigma Level
Copyright Sigma Breakthrough Technologies, Inc.
Used with SBTI permission
Six Sigma Is
Initiative
Improvement
Breakthrough
A Systematic, focused
approach
Right projects
Linked to business goals
Right people
Selected and trained
Methods and Tools
Process thinking
Process variation
Facts, figures, data
Define, Measure, Analyze,
Improve, Control (DMAIC)
Statistical tools
Critical few variables
Project management
Management reviews
Sustaining gains
Right results
Process and financial ($$)
Six Sigma Definition.

Six Sigma is a methodology for pursuing
continuous quality improvement and reducing
inherent variability. It requires a thorough
process and product understanding and is
clearly focused on customer driven expectations.
Why Did 3M Embrace Six Sigma?
Right Process for Business Decisions within 3M

Provides Common Approach to Problem Solving
Common Goals
Institutes a common language throughout the corporation,
with suppliers, and customers
Develops transferable skills to all levels
Provides Leadership Development throughout all
disciplines within the corporation
Most effective way to increase and
accelerate our business performance and customer quality
Six Sigma:
Supporting 3M Company Goals
Customers
Better Products
Meet Needs
Responsiveness
Employees
Development of
Talent
Energizing
Organization
Shareholders
Growth
Productivity
Cash
Driving 3Six Sigma to the Bottom Line

A Simple Approach
Process Input:
Strategic and Annual Business
Objectives and Targets
Select the
Right
Projects
Select and
Train the
Right
People
Develop and
Implement
Improvement
Plans
Manage for
Excellence in
Operations
Sustain the
Gains
Process Output:
Make the Numbers

Our Six Sigma Areas Of Focus

Growth
Commercialization Cycle Times
Sales & Marketing Effectiveness
Customer
Cost (Operating Margin)

Manufacturing
Supplier
Cash
Receivables
Inventory
Goal Tree Alignment

& Project Selection
Projects
How
More Valued Features
Metrics
BETTER
Increase Performance
Yield
Fewer Defects
Goals
Operating Margin
Growth
Improve Yield
FASTER
Working Capital
Reduce Cycle Time
Rate
Redesign Process Flow
Customer Sat.
Reduce Waste
Lower Inventory
CHEAPER
Waste
Reduce Rework
First Time Acceptance
Reduce Scrap
Links Individual Efforts to the

Strategic Plan & Value Creation
Why
Improve Quality of RMs
Performance
Pursuing Entitlement.
Six Sigma
Difference
Baseline
C
Traditional
Goal
Setting
Project
Goal
Closing the
Gap
Entitlement
The Funneling Effect..

Ys = Key Process
Output Variables
Xs = Key Process Input Variables
DEFINE
Tools
Process Map
Yield
Rate
Waste
MEASURE
Effectiveness
Efficiency
MSA
Many Xs
C&E Matrix
Reduced
Xs
ANALYZE
Few Key
Xs
IMPROVE
Gage R&R
Initial Capability
FMEA
Multi-Vari
Process simulation
DOE
Y=f(X)
2-3
Critical
Xs
CONTROL

Control Plan
Optimized Process
The Roadmap
Y = f (x1, x2, x3, x4, . . . xn)
Performance of
the output over
Time
Variation
of the
output
Process Map
Measurement
Variability
+
Initial
Capability
Assessment
Prioritization
Matrix
Risk
assessment
Multi-Vari identifies Noise Key inputs
variables and reduces the

inputs for Real Experiments

The Roadmap Reduces

the inputs from the trivial
many to a vital few
FMEA reduces variation and

effects for inputs gone wrong
Experiments identify the

Critical xs and their
relationship to the Y
Y = f (x7, x22, x57)
Controls in place
for Critical inputs
What Does this Mean to 3M?

A roadmap to breakthrough performance
Entitlement thinking and goal setting
A disciplined methodology to drive value
creation
Links the strategic plan to business critical Ys
Six Sigma
and
Leadership at 3M
LEADERSHIP IS THE KEY TO SIX SIGMA..
Leaders Must:
. Understand It
.
.
.
.
.
.
.
Use It
Demand It
Resource It
Spend Time on It
Measure It
Reward It
Teach It
A Simple Approach.
Process Input:
Strategic and Annual Business
Objectives and Targets
Select the
Right
Projects
Select and
Train the
Right
People
Develop and
Implement
Improvement
Plans
Manage for
Excellence in
Operations
Sustain the
Gains
Process Output:
Make the Numbers
Structure of the
3M Six Sigma Organization
Intl Area
VP
Business
Exec VP
Six Sigma
Staff VP.
Six Sigma
Operations
Six Sigma
Director
GM/VP
MD
(Similar approach
to GM/VP)
BB
Champion
Champion
BB
Champion
BB
GB
GB
Six Sigma
Director
MBB
Exact approach at the

business/staff area
level will vary
depending on Critical
Ys and scope
Functional or
Business Leader
Six Sigma Accountability

CEO
Business
Units
Staff
Functions
Geographies
Count
Both
Ways
Six Sigma
Corporate
Leadership
Six Sigma Integrated Into Operations

10
3Ms Six Sigma Journey and Goals

Initial Launch Feb. 2001 with 3M senior leadership
Build on 3Ms history of improvement
Training is focused on results/projects
4,000 people were trained by year end 2001, over 10,000 in
2002.
Goals in place to have all global salaried personnel belt
trained by year end 2004.
The State of Six Sigma at 3M

Strong support!
2001 a year of launching, training
2002 a year of results
2003 becoming part of the 3M culture
Over 3,000 projects underway globally

Essential to meeting improvement goals ($$)
The top priority at 3M

A tool to help everyone perform better
DFSS deployment underway

11
Lessons Learned.
! Projects must be aligned with business goals
! Full time Black Belts and Master Black Belts
are required
! Six Sigma is the way we work at 3M Value
of a common language
! Train the organization, share best practices
! Scoping of projects is absolutely critical
! Involve key operators, customers, suppliers,
etc.
! Controller involvement to validate financials
THOUGHTS TO TAKE-AWAY .
! Entitlement Thinking is KEY
! Follow the Priorities - Goal Trees
! Process Owners
! Management Ownership
! Communicate! Communicate!
12
3M Road To Six Sigma

2001
LEARN & BUILD
CRITICAL MASS
2002
2003
ACCELERATE
IMPACT
SIX SIGMA
DNA
13

Applying Six Sigma at 3M

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Copyright 3M 2002-2003

Applying Six Sigma at 3M

Pressure Sensitive Tape Council

3M Company Vision & Values

50 Years of Advancing Pressure Sensitive Tapes

What is Six Sigma?

50 Years of Advancing Pressure Sensitive Tapes

What Does Six Sigma Mean In Your Daily

50 Years of Advancing Pressure Sensitive Tapes

Methods and Tools

50 Years of Advancing Pressure Sensitive Tapes

Six Sigma Definition.

50 Years of Advancing Pressure Sensitive Tapes

Why Did 3M Embrace Six Sigma?

Right Process for Business Decisions within 3M

50 Years of Advancing Pressure Sensitive Tapes

Driving 3Six Sigma to the Bottom Line

50 Years of Advancing Pressure Sensitive Tapes

Copyright Sigma Breakthrough Technologies, Inc.

50 Years of Advancing Pressure Sensitive Tapes

Our Six Sigma Areas Of Focus

Cost (Operating Margin)

50 Years of Advancing Pressure Sensitive Tapes

Goal Tree Alignment

More Valued Features

Reduce Cycle Time

Redesign Process Flow

Links Individual Efforts to the

Improve Quality of RMs

50 Years of Advancing Pressure Sensitive Tapes

50 Years of Advancing Pressure Sensitive Tapes

The Funneling Effect..

Xs = Key Process Input Variables

Copyright Sigma Breakthrough Technologies, Inc.

50 Years of Advancing Pressure Sensitive Tapes

variables and reduces the

Copyright Sigma Breakthrough Technologies, Inc.

The Roadmap Reduces

FMEA reduces variation and

Experiments identify the

Y = f (x7, x22, x57)

50 Years of Advancing Pressure Sensitive Tapes

What Does this Mean to 3M?

50 Years of Advancing Pressure Sensitive Tapes

50 Years of Advancing Pressure Sensitive Tapes

LEADERSHIP IS THE KEY TO SIX SIGMA..

50 Years of Advancing Pressure Sensitive Tapes

50 Years of Advancing Pressure Sensitive Tapes

Exact approach at the

Six Sigma Accountability

Six Sigma Integrated Into Operations

50 Years of Advancing Pressure Sensitive Tapes

3Ms Six Sigma Journey and Goals

50 Years of Advancing Pressure Sensitive Tapes

The State of Six Sigma at 3M

Over 3,000 projects underway globally

The top priority at 3M

DFSS deployment underway

50 Years of Advancing Pressure Sensitive Tapes

50 Years of Advancing Pressure Sensitive Tapes

50 Years of Advancing Pressure Sensitive Tapes

3M Road To Six Sigma

50 Years of Advancing Pressure Sensitive Tapes

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