Six Sigma and Innovation
2003; Allied Academies; Volume: 6; Linguagem: Inglês
ISSN
1524-7252
AutoresDeborah Inman, Rebecca Buell, R. Anthony Inman,
Tópico(s)ERP Systems Implementation and Impact
ResumoABSTRACT Innovation is proven success factor for many firms, specifically 3M. However, some feel that the impending implementation of the six sigma strategy may hinder the innovative process present at 3M. This paper looks at these concerns and makes recommendations regarding its inclusion within the strategic framework of one of the world's most innovative firms. INTRODUCTION In today's high-tech world, innovation has become driving force for individual firms and entire economies (Bixler, 2002). Long-term success requires that the customer be excited by innovations provided by company's product and services, hence continued survival requires continuous innovation (Pyzdek, 1999a). Success is about putting innovation at the heart of the company (Mazur, 2002). One such company meeting this description is Minnesota Mining and Manufacturing (3M). In fact, 3M exemplifies the use of innovation as distinctive competency. 3M began its tradition of innovation in the 1920s, when it introduced waterproof sandpaper. That tradition has lasted 100 years, introducing such products as masking tape, Scotchgard, Post-It Notes, and even astronaut Neil Armstrong's boots. 3M now has 7,100 research and development (RD Pyzdek, 1999b). Despite this background of innovation, some analysts believe that 3M's performance is still relatively lackluster in comparison to its potential. In response, 3M's new CEO, W. James McNerney has implemented the management technique/philosophy six sigma. Under the auspices of six sigma, McNerney has vowed to slash inefficiencies, implement an employee performance ranking system, and reduce the company's workforce by 7%. He rationalizes that, while 3M has outperformed other companies in its industry, it has always been an underachiever (Mullin, 2001). Specifically, McNerney expects to reach these goals by improving the prioritization of investments, reducing cycle times, and improving areas such as sourcing, indirect costs, and e-business. (Mullin, 2001). However, not everyone sees this as good news. There are some who feel that rigorous process such as six sigma actually detracts from creativity. Some of 3M's most prominent names, Art Fry, inventor of the Post-It Note and former 3M CEO, Lewis Lehr, for example, are concerned that six sigma's structure will stifle employee creativity (Haeg, 2002). So, are companies implementing six sigma destined to suffer from lack of future innovations? Is six sigma too structured and controlling for processes such as R&D? This possibility is the key issue of this paper. We look at the innovation process and the potential impact of six sigma upon this process. After discussion of the issues, recommendations are made for 3M and others who wish to incorporate the six sigma process. WHAT IS SIX SIGMA? A cost-saving, inefficiency-slashing program, six sigma is business concept that touts improving quality and business processes. Specifically, it is a disciplined method of using extremely rigorous data-gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them (Harry & Schroeder, 1999). The Greek letter sigma (s) represents standard deviation from the mean or average. The objective is to reduce process variation so that plus or minus ([+ or -]) six standard deviations lie between the mean and the nearest specification limit (Statistical six sigma definition, 2003). This translates to no more than 3.4 defective parts per million opportunities. Hence, six sigma implementation begins by measuring defects per million opportunities, allowing only 3.4 defects. Most companies do no better than three sigma (Arndt, 2002) and are pleased with their performance. …
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