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Leadership Development and Sustained Process Improvement Program Success. Weiyong Zhang Department of Management School of Business Virginia Commonwealth University (804) 828-3196 firstname.lastname@example.org www.business.vcu.edu IIBA – Central Virginia Chapter April 16 th 2008.
Department of Management
School of Business
Virginia Commonwealth University
IIBA – Central Virginia Chapter
April 16th 2008
We fully integrated Six Sigma, making it part of the fabric of the company. As of year-end, more than 3,300 active Six Sigma projects were directly driving improvement in our
business units, and operating management had closed more than 1,200 projects, a big increase over the previous year.
Our continued focus on and execution of our five, integrated corporate initiatives – Six Sigma, 3M Acceleration, eProductivity, Global Sourcing Effectiveness, and Indirect
Cost Control. The initiatives increased operating income by more than $400 million on top of a benefit of more than
$500 million in 2002. The disciplined actions inherent in each of our initiatives are embedded in the everyday operations of 3M, and we expect our corporate initiatives to contribute an additional $400 million of operating income in 2004.
Six Sigma is 3M’s overarching initiative, and it continues to drive growth, reduce costs and increase cash flow in 3M businesses around the world. Since its launch four years ago, it has become deeply embedded in every function, every business and every country. Simply put, it’s now the way we work.
Today, more than 700 of our leaders around the world are dedicated to Six Sigma on a full-time basis. We already have completed more than 16,000 projects, and an additional 16,000 projects currently are under way. These include more than 400 “Six Sigma with Our Customers” projects, in which teams of employees from 3M and other companies work side by side to solve pressing problems.
The Company’s future results may be affected if the Company generates less productivity improvements than estimated. The Company utilizes various tools, such as Six Sigma, to improve operational efficiency and
productivity. There can be no assurance that all of the estimated productivity improvements will be realized.
The use of Lean Six Sigma in 3M’s manufacturing plants brought great productivity and quality benefits to 3M over the past few years. But in the euphoria of driving out waste, expectations that it would continually deliver more capacity were sometimes overestimated. There is, after all, a practical limit to the number of shifts that can be run, yield that can be obtained and line speeds that can be increased in a manufacturing plant. This overestimation led to demand
and capacity imbalances, with the largest divergence naturally emerging in those businesses with the highest growth rates.
Unfortunately, this view is not supported by the empirical data.
The enabling view is supported by the empirical data.
C) Governance for Transformation
predictive, preventive indicators)
B) Infrastructure Alignment
A) Project-based Improvement
Why leadership development?
We drive learning and sharing in many ways, from our Leadership Center (the flagship of our comprehensive leadership-
development approach) to our
four growth-and-productivity initiatives. Here are some examples of how our strategy of leveraging the depth and breadth of Boeing is taking root:
At the Leadership Center, Boeing
leaders present real Boeing business challenges and ask classes for help solving them. In fact, my leadership team has received—and is acting on—good ideas from several 2007 classes…