Caterpillar Inc. Attributes Second Quarter Profit to Six Sigma
Posted by: meikah | 16 August 2009 | 7:32 pm
According to the press release:
Caterpillar Inc. reported a second-quarter profit of $0.60 per share, down $1.14 per share from the second quarter of 2008… The second-quarter profit of $371 million was down $735 million from $1.106 billion in the second quarter of 2008. The decline was largely a result of lower sales volume and $85 million of redundancy costs. These negative impacts were partially offset by lower Selling, General and Administrative (SG&A) and Research and Development (R&D) expenses, favorable price realization, LIFO inventory decrement benefits and a lower tax rate.
In addition to profit, Caterpillar is highly focused on delivering positive cash flow in 2009 and is committed to its $3 billion inventory reduction goal for the year. Utilizing the Caterpillar Production System (CPS) with 6 Sigma, the company reduced inventory in the second quarter by more than $800 million, and through the first half of the year inventory has declined by more than $1.6 billion.
Filed under: Caterpillar Inc., Six Sigma, Six Sigma Organizations
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MAG Industrial Automation Systems Receives the Caterpillar Inc. SQEP
Posted by: meikah | 25 June 2009 | 7:50 pm
Quality Magazine reports that MAG Industrial Automation Systems receives the Caterpillar Inc.‘s Supplier Quality Excellence Process Certification or SQEP. The award is given to suppliers who demonstrate strong values and ethical principles and a commitment to Caterpillar’s objective to implement a culture for zero-defects among its supply base.
MAG Industrial Automation Systems is a machine tool and systems company. The provide Caterpillar Inc. with products that are of high quality. The reason is of course, the company has a solid Six Sigma program.
As part of a commitment to best practices, MAG has invested heavily in Six Sigma at all of their plants. The MAG Fond du Lac plant was initially invited by Caterpillar to participate in its Six Sigma program in 2002. All MAG employees receive Six Sigma training, and the company currently has eight Black Belts and 115 Green Belts. Through a series of Six Sigma and lean projects, the company worked to develop modular designs that would allow it to build products more quickly while still allowing for the customization that buyers sought.
Filed under: Caterpillar Inc., MAG Industrial Automation Systems, Six Sigma, Six Sigma Organizations
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Six Sigma in Best Practices
Posted by: meikah | 12 November 2008 | 9:56 pm
A new best practice report by APQC and Ernst & Young reveals how successful organizations put process measures and analytics to effective use. It proves that the sustained and effective use of process measures and analytics is increasingly a key differentiator separating leading organizations from the rest of the pack.
Two Six Sigma companies were part of the study:
Caterpillar Financial Services: At Caterpillar, process owners, managers, continuous improvement consultants, and Six Sigma Black Belts all work together to identify, measure, and act on process measures and analytics. The measures are tied directly to the organization’s critical success factors and customer/stakeholder requirements.
GE Global Business Services: At GE, the CEO initiated the drive for integrated measures and analytics. Given GE’s background as a Six Sigma leader, he was surprised that the organization had not institutionalized strong process-based measures. The shared services organization was tapped to set an example for the entire business. With a CEO mandate in hand, GE Global Business Services leveraged a process framework and Six Sigma skills by linking process owners, product-line leaders, and quality/Six Sigma experts to establish global performance measures. GE’s leader mandate and collaborative approach has stimulated cooperation and enabled the organization to demonstrate value across the business.
Filed under: Best Practices, Caterpillar Inc., GE, Six Sigma, Six Sigma Organizations
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“Caterpillar Inc. Uses Six Sigma Teams to Achieve Greenhouse Gas Emissions Reduction Goals”
Posted by: meikah | 13 October 2008 | 8:48 pm
That’s the news on CSRWire.
Projects implemented by Six Sigma teams focused on heating efficiency, more efficient lighting and control of equipment and can be replicated across the globe at Caterpillar facilities, not only reducing emissions, but also saving money, improving quality and engaging employees.
The results: In 2006, Caterpillar reduced its total global greenhouse gas (GHG) emissions by 36 percent per dollar of revenue, exceeding its 2010 goal of 20 percent intensity reduction. The company again exceeded the goal in 2007 with a 38 percent intensity reduction over 2002.
For Caterpillar to use Six Sigma teams to drive its sustainable projects is actually no surprise. Caterpillar has been a Six Sigma company for years now, and has been reaping benefits from it.
