Question

Please discuss what the benefits are to Caterpillar from Six Sigma. Also, how does Six Sigma benefit the customers and employees of Caterpillar?

Answer 1

Six Sigma has not just helped Caterpillar achieve record results, but has also helped them improving the way they are doing business.

1.) Caterpillars reputation is built on producing quality products which gives them a competitive advantage.

a.) The product development process focusses on exceeding target levels for quality, reliability, cost and schedule.

* New Product introduction is the process Caterpillar uses to deliver quality products and services to customers worldwide.

* This New Product Introduction process is based on the 6 Sigma product and process creation methodology, DMEDI-( DMEDI: Design, Measure, Explore, Develop, Implement) is all that drives the process for caterpillar.

b.) Caterpillar is also trying to improve it's manufacturing efficiencies in global operations through introduction of 6 Sigma.

How does Six Sigma benefit the customers and employees of Caterpillar?:

2.) 6 Sigma is essential to Caterpillar's Production System in improving Order to Delivery processes.

a.) Everything from the time a customer places an order to the time he or she receives the finished product is critical and 6 Sigma allows the alignment of processes and closing gaps.

*Moreover 6 Sigma also helps in eliminating activities that consumes resources but create no value for the customer.

b.) Responding quickly to product problems experienced by customers is critical.

* The fundamentals of 6 Sigma DMAIC-( Dedine,measure, Analyze, Improve and control- methodology) provides a disciplined approach to identifying root cause and ensuring permanent corrective action.