Retrieved from https://studentshare.org/marketing/1616721-memo
https://studentshare.org/marketing/1616721-memo.
and number: submitted: MEMO All Caterpillars’ employees and Executive management bodyDate: 3 Feb 2013Subject: Achievement of Six SigmaMany companies around the world are facing mounting pressures to innovate, however, enabling innovation still stand as a challenge for many organization. 6 sigma, a well-identified approach for attaining operational excellence can aid company managements develop an organization that has an integral inclination toward innovation. In present day marketplace, up surging globalization, unremitting technological advances and other competitive pressures are increasing the pace at which companies require to modify (Gillett, Fink, and Bevington 26).
Caterpillar has postulated high routine standards for mankinds health, environment, and safety at its facilities that go beyond compliance with laws and regulation. Proactive execution of these standards establishes its commitment to sustainability leadership in its industry. Caterpillar has been able to achieve this goal by having its Environment, Health, and Safety (EHS) specialist team up with caterpillar leadership to drive incredible improvement and intensified awareness of the significance of EHS across its enterprise.
Workers of team caterpillar are engaged in establishing and managing risk and they are active in continuously improving the EHS of its operations (Gillett, Fink, and Bevington 27). Plans established by Six Sigma teams are devoted on more efficient lighting, heating efficiency, and control of equipment. These have been replicated around the globe at caterpillar facilities, not only diminishing emission, but also saving money, cultivating quality and engaging workers.Through inventiveness of 6 sigma, Caterpillar Company has been able to involve more direct interaction with its clients.
All caterpillar staff, employees, and customers work collaboratively to solve problems and establish solutions, steadily creating closer relationships. Through alliances, Caterpillar Company has built good relationships all around the globe (Gillett, Fink, and Bevington 28). These have enabled the company to be more proficient and modest in the market place all around the world.Overall, the outcomes from Caterpillars’ Six Sigma inventiveness have been remarkable. The profits from the Caterpillars’ global Six Sigma project have surpassed implementation costs within the past few years.
The discipline and rigor of Six Sigma has enabled Caterpillar Company to achieve record benefits. Also, it has helped Caterpillar company to move towards its 2020 strategic goals. 6 Sigma has been applied to upsurge Caterpillar Company’s percent of industry in all of its principle lines of 6 Sigma, thus improving its competitiveness in the market place globally.Just like many companies all around the globe, Value Stream Mapping is a strategic lean tool in running a business, so it is to Caterpillar Company.
VSM is Caterpillar Company’s recommended starting point for a Six Sigma initiative. Operating 6 Sigma without VSM, lead to efforts which are not aimed at establishing better flow but rather at improving individual process which may result to no overall benefits (Gillett, Fink, and Bevington 28). Caterpillars Company’s VSM workshops generate benefits in lead time reduction, productivity improvement, and cost savings. VSM has enabled Caterpillar Company to visualize its key business process, bringing them to life as a competitive business organization.
This has allowed caterpillar to focus its efforts in business to lessen waste and identified its root cause.In conclusion, Caterpillar Company is continuing to embrace the 6 sigma methodology, not only in engineering and manufacturing, but also, across the organization. This way of working and reasoning continues to be effective in leading the Caterpillar Company’s strategy for change.Works CitedGillett J., Fink R., and Bevington N. How Caterpillar Uses 6 Sigma to Execute Strategy. Strategic finance.
April 2010
Read More