Benefits, Costs, and Risks of Six Sigma Program

2021-05-13 10:06:27
4 pages
1059 words
Type of paper: 
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The evaluation of benefits, costs, and risks of the program would compel the management to specify the costs-to-revenue outcomes of the capital invested in each department. Given that 3Ms establishment of the Six Sigma model refurbished the profit revenue structure through improved budgeting, financial provisions of capital-related operations, and in employee training; the company should be optimistic that the model is a viable utility. With that, the application of Six Sigma DFSS model (Design for Six Sigma) would incorporate innovations and product development processes to the cost-to-benefit analysis. This would make sigma program more beneficial and easy to apply particularly in product development and innovations.

Apparently, the management would be able to forecast the benefits and risks of the Six Sigma model after evaluating and tracking the results accrued from the new developments (Schroeder, Goldstein, & Rungtusanatham, 2013). Arguably, it is after evaluating and analyzing the results of every investment that the models costs, risks, or benefits would be reported by assessing the present to the past differences in revenue outcomes of the specified product. Hence, the benefit, costing, and risk assessments of model in 3M are dependent on the reporting for the results of the differences. Mainly, those accounted for in any present development from previous results of the same, in the absence of the Six Sigma.

Inclusion of 3Ms functional areas in the Six Sigma, and the desired role of the senior and middle management in the change initiative

By the time 3M implemented the Six Sigma model, McNerney advocated that the functional areas of operations, accounting, human resource and management of the business environment were either redundant or operating with less efficiency. This was seen to hinder adequate product development as well as innovations thus making it difficult to initiate change in management. As the models implementation revamped operating margins to 17% by the end of the year while still procuring a 40% increment in the speed of production, it is apparent that the approach was a loop to propel performances and inhibit the miscellaneous expenditures. To that effect, the incumbent functional areas of the management would be subjected to either the DMAIC or DFSS designs to match the conceptualized management style under the Six Sigma approach. Nearly all feasible functionalities are identified in 3Ms process mapping. With the contribution of the Green-Belt to Black-Belt training of the workforce, the functional areas would improve simultaneously following the increase of the trained individuals from 1,500 to 3,000 in time, with whom the managers are included.

The role that Six Sigma should play in corporate strategy

The implementation of the Six Sigma model replenished the internal culture of operations in 3M to improved performances of the e-business and finance operations. Subsequently, the DMAIC and DFSS model reduced 11% of the redundant workforce population. Through the employee training programs and the choice of competent leaders; for example, McNerney as the CEO, the companys corporate strategy would improve profusely. The provident measure relates to the 17% improvement of the companys marginal operations and 11% reduction of the workforce; factors that translate to improved performances and reduced expenditure of the capital. 3M depends on media resources, and it is with the inception of the Six Sigma approach that its stocks prices rose by a 20%-margin per share (Schroeder, Goldstein, & Rungtusanatham, 2013). The implied performance of the capital markets is that the corporate stakeholders contemplated and forecasted growth in the company following the changes. Arguably, the future corporate strategy of the company should address the important e-business and socio-economic variables through Six Sigmas graphical, statistical, or process mapping to analyze and evaluate the forecasted outcomes of the identified corporate issues.

Equally important, Six Sigma should ensure total efficiency in product development and also incorporates innovations that are fundamental pillars in ensuring success of corporate strategy. This goes hand in hand with the improvement of the companys marginal operations as it attracts laborforce reduction as an indication of positive growth in the company.

The human resource implications for deploying Six Sigma

3Ms advocacy of the DMAIC design and the training program presents a feasible or rather a viable plan for selecting employees. In support of the Six Sigmas resources, the trained employees would be reviewed through their performances and the quality assessment criteria would enlist the performance levels (Schroeder, Goldstein, & Rungtusanatham, 2013). In turn, the companys management would be able to evaluate and analyze the appropriate candidates for certain positions; thus, the Six Sigma model would enhance the employee selection process. On the other hand, the models DFSS design and the scheduled period for employees to engage in their endeavors are vital to distinguish the roles of the workforce. In turn, the motivated employees would pursue their performances in the different operations to accrue 3Ms goals and objectives. For the reward systems, the Six Sigma approach would influence the human resource and personnel to embrace self-esteem, teamwork, and result-oriented goals as the culture towards development and career culture. Teamwork would ensure the company achieves its objectives as the employees will be cooperating and putting a lot of positive effort to ensure they realize the company goals within the stipulated deadline. Evaluation of the effects of Six Sigma design on the companys innovative culture and whether the model is ardent to successful outcomes

The company stipulates that the application of the DFSS framework and the provision of free time for the employees to independent tasks revamp personal motivation. With the inception of intellectual skills from the training programs, the companys workforce is better positioned to improve or idealize innovations for products. Further, the companys Six Sigma plan to quality-assurance, skill building and improved workplace interactions indicates that 3Ms product portfolio would improve profusely with the communication of alternative approaches amongst the internal stakeholders (Schroeder, Goldstein, & Rungtusanatham, 2013). On the contrary, the idealized benefits of innovation under the managerial model would inhibit changes as employees anticipate that any involvement in tasks that do not reflect the delegated duties could lead to the termination of employment or demotion. It is advisable for the companys management to integrate cost-analysis and financing options to manage and attract new projects. In conclusion, the Six Sigma design is inevitable in restructuring the administration of the companys resources to benefit from socio-economic, political, and technological variations in the media industry.


Schroeder, R. G., Goldstein, S. M., & Rungtusanatham, M. J. (2013). Operations management in the supply chain: Decisions and cases. p. 485-498. Pdf.

Have the same topic and dont`t know what to write?
We can write a custom paper on any topic you need.

Request Removal

If you are the original author of this essay and no longer wish to have it published on the SuperbGrade website, please click below to request its removal: