EO1.2: Explain how value stream improvement builds organizational value.

EO1.3: Describe how value stream improvement supports customer relationships.

Sigma is a quality improvement process that decreases defects and costs, which in turn, adds value to the business and improves how the customer and other stakeholders view the business. Whether the firm is a for-profit business such as Caterpillar, a non-profit organization such as the Red Cross, or a government agency such as the Department of Defense, Six Sigma methodology and processes improve performance and decrease defects and costs.

Watch this short video (Links to an external site.)Links to an external site. on how Caterpillar used Six Sigma methods, especially Value Stream Mapping, to add value and increase profits. Note: You may click the CC button for close captioning.

Instructions:

Assume you are a Six Sigma Green Belt. Your supervisor has tasked you with forming a Six Sigma team to determine how to increase profits and add value. You are observing Caterpillar, a company that has implemented Six Sigma methodology very successfully. After you have watched the video, respond to these points in your post:

1. Briefly describe how Value Stream Mapping helped to streamline Caterpillar’s processes and increase profits.
2. What is your main take-away from this video about Six Sigma methodology and Value Stream processes?
3. Describe two ways the company for which you work (or with which a friend/family member works) might use Six Sigma to improve quality and add value.