Central Issue
The central issue is if continued application of Six Sigma throughout the organization will have a significant positive impact on the company or if it stifles innovation and creativity in research and development. Six Sigma focuses on removing the causes of defects and minimizing variability in manufacturing and business processes through management methods and statistical analysis. 3M, Inc. used the DMAIC Improvement Model for existing purposes and DFSS (Design for Six Sigma) for new product development. 3M, Inc. has a long history of innovation and creativity and a large part of its success can be attributed to the development and introduction of new products. Assuring the continued development and introduction of these products is essential to the continued growth and success of 3M, Inc.

Firm Goal
During the 1990s, 3M, Inc. set new annual sales records of over $15 billion. Products introduced within the past four years accounted for 30 percent of sales. By 2000, sales had reached $16.7 billion, a 6 percent increase. 33.5 percent of 2000 sales were from products introduced during the previous four years. $1.5 billion or 9 percent of these sales were from products introduced during 2000. Since the introduction of W. James McNerney Jr. as chairman and chief executive officer, profits have grown tremendously at an average of 22 percent annually. However, McNerney also laid off 8000 workers and slashed capital expenditures from $980 million to $677 million. Although sales grew to $21 billion in 2005, this only reflects an average annual growth rate of 4.7 percent.

The introduction of Six Sigma has had a substantial impact on profits for 3M, Inc., however, the overall growth of sales has slowed since before McNerney’s introduction. Continuing to reduce costs while refining manufacturing and administrative processes and encouraging