3M Canada

Source: Exec Digital Canada

Date :4/11/2008 4:36:43 AM

Ravi Samuel, Corporate Quality Manager, 3M Canada tells Exec how innovation, sustainability and strong principles have been used to make the company a flying success

Written by Roxanne Ridge and Produced by Michael Gutierrez

Think of something as simple as a Post-it note. Now think again about the many ways in which it has helped people organise their lives across the world.

A clever product, you will no doubt agree. And not something that’s thought of everyday.

It is, however, just one of the many imaginative products made by 3M – a company known for innovative items, which include Scotch-Brite, Nexcare, Filtrete, Thinsulate, and, of course, the Post-it note.

In fact, since 1902, the company has produced everything from healthcare and highway safety equipment to optical films for LCD displays and office solutions. And this is thanks to the 75,000 employees who have been hard at work manufacturing and selling 3M products worldwide.

Around 2,000 of these employees work for 3M Canada – one of the first subsidiaries of the 3M company, established in 1951 at the company’s headquarters in London, Ontario. Today, 3M Canada has proved to be a roaring success. And in 2006, the company won the National Quality Institute’s Canada Award for Excellence (CAE).

Reaching and beating sales targets in the company’s latest figures, 3M Canada has contributed generously to 3M’s worldwide annual revenues of $24 billion for the last year. So, what is it about 3M Canada’s approach that has made it so successful?

Highly organized

As well as the Headquarters in London, Ontario, 3M Canada has four other plants and sales offices across Canada. Two of which – in Brockville and Morden – were opened last year. Over these offices, employees work for various business units, which are divided into three main sectors: Industrial and Consumer, Healthcare and Transportation and Graphics and the Safety markets.

In addition to this, there are also a number of business divisions within these sectors, which are dependent on the market and products at the time. Ravi Samuel, 3M Canada’s corporate quality manager, who has been at the company since 1972, explains: “3M Canada’s work covers all of the six business units that 3M as a larger company organises its work into.

“And each division is further sub-divided into their own technical, manufacturing and sales and marketing functions. All of these have full access to the skills, knowledge and experience of the larger global organization, which really helps the company move forward.

“We make a wide range of products at 3M Canada – manufacturing everything from Scotch-Brite to aerosols and adhesives, which we distribute to big chains such as Wal Mart and Home Depot as well as exporting 80 percent globally.”

This appears a tidy-two way exchange – 3M Canada can benefit from other work that’s going on worldwide, while also contributing their experience and innovations to the bigger 3M picture.

This is not always easy. And recently 3M Canada has been affected in ways in which other countries haven’t because of the placing of the Canadian dollar in the marketplace.

“The cost of raw materials has gone up,” explains Ravi. “And this has really affected business. Supplies such as paper, petroleum and rubber are rising in cost and this in turn is making the manufacturing process a whole heap more expensive – something that’s not affected other countries producing the same goods.

The company has not felt disheartened by this recent challenge, however. And sitting on the success it has built-up since the onset, the company introduced Six Sigma principles in 2001. It has been using two major models to do this – DMAIC (Design, Measure, Analyse, Improve, Control) and DFSS (Design for Six Stigma) to drive forward and beat challenges like this.

“The Six Sigma principles are helping us tackle the problem of cost,” says Ravi. “We’ve been trying not to waste as many raw materials while we produce the products and we’ve been attempting to do this at a faster speed.”

Much of this is associated with getting the best supplier. 3M will try to source products locally and try to build relationships with the suppliers rather than just focusing on cost.

“We have a very advanced planning and scheduling and inventory system when it comes to the supply chain,” says Ravi. “And we’re really quite selective when it comes to picking the right suppliers.”

Superior value

Six Sigma principles have also helped the company respond to customer requests. Part of 3M Canada’s main vision is to grow by helping the customers win. In the 3M Canada Vision Statement on the company’s website, it says the company aims to do this ‘through the ingenuity and responsiveness of people who care.’ “We always listen to customer opinion,” explains Ravi. “And we always try to meet their requirements.

“We’ve had design requests in the past where customers have asked for certain products to be made using certain materials. 3M Canada has then gone away and thought about how to redesign a product and quickly come up with a solution.”

A lot of these customer requests are associated with sustainability and the use of more environmentally friendly products to make the 3M products.

“Since I started at the company, 3M Canada has plugged a lot of research and development into the policy, prevention and policing of energy and waste use. The company’s always been ahead of the game when it comes to this.”

It is these kinds of policies that 3M Canada brings to the wider 3M picture. The company uses lean manufacturing and has introduced new technologies, including Kaizen, 5S and IT equipment to do this. “Our practice in London can be shared,” explains Ravi. “And we regularly talk to other sections of the company and learn about best practice too.”

Strong staffing

None of this great practice would be possible, however, without a strong employee ethic. 3M Canada a company that staff are proud to belong to. They’re given regular training – and were all well equipped for the introduction of Six Sigma, and they have many opportunities for employee development across and within the company.

“The business model in each plant allows for the staff to move around if they want to,” explains Ravi. “We always listen to their feedback and aim to develop their skills within 3M.”

3M Canada also recruits staff through a graduate training scheme. “We have a sponsorship program in place to recruit graduates from McGill University through the Masters in Manufacturing Management (MMM) programme,” explains Ravi. “And we also bring in interns from the university for shorter periods.

“Both programs aim to equip students with the necessary skills they’ll need to come and work at a global company, such as 3M.

“The company has a very low turnover rate. I’ve worked at 3M for 30 years – I’ve been offered great challenges, opportunities and leadership skills since I started. And I’ve seen a lot of great innovations come out of 3M.”If the company continues to perform in the way in which it has been, there’s no doubt that this pattern is likely to continue in the future.