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Six Sigma in Electronics Company: A Case Study On Samsung: Gedela Rakesh Varma Prof - Jaladi Ravi

This document discusses the application of Six Sigma at Samsung Electronics. It provides background on Six Sigma, which is a method used by organizations to improve business processes and reduce defects. The document then discusses how electronics have become an important part of daily life and are used for tasks like cooking, health monitoring, driving, and entertainment. It provides an overview of how Samsung has implemented Six Sigma to improve quality. The document reviews literature on Six Sigma, covering general aspects, tools/techniques, and case studies of Six Sigma implementations in other industries.
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0% found this document useful (0 votes)
187 views13 pages

Six Sigma in Electronics Company: A Case Study On Samsung: Gedela Rakesh Varma Prof - Jaladi Ravi

This document discusses the application of Six Sigma at Samsung Electronics. It provides background on Six Sigma, which is a method used by organizations to improve business processes and reduce defects. The document then discusses how electronics have become an important part of daily life and are used for tasks like cooking, health monitoring, driving, and entertainment. It provides an overview of how Samsung has implemented Six Sigma to improve quality. The document reviews literature on Six Sigma, covering general aspects, tools/techniques, and case studies of Six Sigma implementations in other industries.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Six Sigma in Electronics Company: A Case Study on Samsung

Gedela Rakesh Varma Prof.Jaladi Ravi


Research Scholar, Professor,
Department of Commerce and Management Studies, Department of Commerce and Management Studies,
Andhra University, Visakhapatnam-530003. Andhra University, Visakhapatnam-530003.

Abstract: The LED was developed making use of electronics and


Six Sigma is a method that provides organizations its various methods. An application of Electronics is
equipment to improve the capability of their business used in every work done by the mankind. Cooking
procedures. This increase in performance and decrease food, health, driving, watching and many other things
in process variation lead to defect reduction and you will see the existence of electronics around. Man
enhancement in profits, employee morale, and high is now able to monitor his health by a small belt kept
quality of product or service. Six Sigma quality is a on his wrist or by just through the smart phones. They
term normally used to indicate a process is well in display the full health report that includes details
control. Electronics have become an important part of regarding calories & fats. Six Sigma approach is a
human life. Electronics is used every work done by the collection of managerial and statistical concept and
human being. cooking food, health, in driving, in techniques that focuses on reducing variation in
watching and many other things you will see the processes and preventing deficiencies in product. The
existence of electronics around. in this paper we will concept of Variation states ―NO two items will be
discuss about the six sigma application in samsung. perfectly identical.‖In a process that has achieved six
sigma capability, the variation is small compared to the
Key words: six sigma, employee morale, high quality. range of specification limit.. Six Sigma is a very clever
way of branding and packaging many aspects of Total
Preface: Quality Management (TQM).( TQM is a management
Six Sigma is a method that provides organizations approach to long–term success through customer
equipment to improve the capability of their business satisfaction.)
procedures. This increase in performance and decrease
in process variation lead to defect reduction and Review of Literature:
enhancement in profits, employee morale, and high Category1: Six Sigma General Aspects And
quality of product or service. Six Sigma quality is a Fundamentals This category includes publications on
term normally used to indicate a process is well in Six Sigma evolution, concepts, methodology and
control. Electronics have become an important part of performance matrices & employee perceptions .There
human life. Electronics is used in every work done by are 45 publications on this category from time span of
the human being.In cooking food, in monitoring 1991 to 2005. The numbers of papers are highest in
health, in driving, in watching and many other things this category corresponding to time span of 1991 to
you will see the existence of electronics around 2005 as papers belonging to this category represent
applications of Electronics • In Home: The lights basic concepts of Six Sigma. Due to quantum growth
devices in houses uses the electronics in it. The LED of Six Sigma deployment in various other sectors,
home lighting devices are utilized a lot because it is there is no sharp rise in numbers of papers belonging
much better than the fluorescent lights and are also to this category in previous five years.
effective in both power and cost.

Page 13
Few of the papers pertaining to above-mentioned He has suggested that Six Sigma should not be viewed
category are; Majoomdar [2002] has worked on the as advertising banner for promotional purposes. The
problem of process variation in the industries. He has organizations implementing Six Sigma have benefits
suggested that variation are single largest enemy of the from it in three major ways like reduced defect rate,
industries and suggested the tools to deal with short reduced operational cost, and an enhanced customer
term and long term variation. He has further suggested satisfaction. Six Sigma should be adopted as a way of
that statistics is a key ingredient in successful life. Authors have suggested that right training and
implementation of Six Sigma program. Man [2002] implementation will help people to understand that Six
has linked Six Sigma with adult learner characteristics. Sigma methodology is significantly different from
He has presented a model that enable adult learner to other quality initiatives. It contains many concepts &
engage in lifelong learning within their organization. philosophies that have been taught for years but then
He has further stressed that model enables learning again it is different because it teaches practical method
throughout in their personal lives also. Antony [2004] of achieving results. Schroder et al. [2008] have
has examined pros and cons of Six Sigma in a detailed provided definition & underlying theory of Six Sigma
manner. In addition, applications of statistical & non- and discussed structural control and structural
statistical tools and techniques to tackle process exploration of the same.
variability have been described. He has stressed that
applications of Six Sigma will grow in forthcoming Category2: Six Sigma Tools, Techniques And
years due to presence of statistical science within Six Framework This category includes publications on Six
Sigma. Sigma tools, techniques and frame works. There are
five publications from 1991-2005 belonging to this
Kwak and Anbari [2004] have stressed upon the key category. Few of the papers pertaining to above
factors like management commitment & involvement, mentioned category are; Henderson and Evans [2000]
training, cultural changes, linking Six Sigma to have reviewed the basic concepts of six sigma, its
business. Authors have also described obstacles, benefits, & successful approaches for implementation
challenges, and future of Six Sigma methodologies. & benchmarked the practices of General electric
Authors have suggested that primary focus should be company. Authors have dones tudy of Six Sigma
on improving management performance rather than DMAIC methodology in GE and found key factors for
just pinpointing and counting defects. Authors have successful implementation of Six Sigma include upper
further concluded that effective implementation of Six management support & involvement, training,
Sigma principles are more likely to succeed by infrastructure, tools and linking HR based action like
refining the organizational culture continuously. promotions, bonuses etc. Rowlands and Antony [2003]
Senapati [2004] has suggested Six Sigma DMAIC has presented the application of design of experiment
approach through deming cycle, TQM, MBNQA, and (DOE) in order to find out the key process parameters
Dorian shanin‟s statistical engineering. He has which affect the tensile strength of welded joints.
suggested Six Sigma as improvement initiative, which Statistical analysis was carried out to identify process
does more than any other existing plan. Kumar, M. et parameters that influence mean strength and variability
al. [2008] has found that Six Sigma is neither a fad nor in welded joint strength. The result of analysis may be
just another quality initiative. It has base of factual applied to a manufacturing company to extend the
data coupled with hard work & is a disciplined, application of DOE to other core processes.
focused, scientific, and structured problem solving
methodology.

Page 14
Lazreg and Gien[2009] have linked Six Sigma and Doble [2005] have compared Six Sigma methodology
maintenance excellence with quality function and chemical plant safety methodology for the
deployment. The authors suggested that linking chemical process safety.Kumar and Sosnoski [2009]
maintenance excellence & Six Sigma leads to an has examined one of the shop floor chronic quality
improved model of organization maintenance function, issue during heat treatment process through Six Sigma
eliminate the occurrence errors, and reduces the cycle DMAIC methodology. Radha Krishna and Dangayach
time of maintenance. Authors have claimed that these [2007] has presented the implementation of Process
two approaches can be coupled using quality function level Six Sigma in auto component manufacturing
deployment. Yeung [2009] has explored the use of plant. Gerhorst et al. [2006] have worked on Design-
supplier, input, process, output, and customer (SIPOC) For-Six-Sigma (DFSS) in product development at ford
in Six Sigma to monitor product and services provision motor company through computational fluid dynamics
for customer satisfaction . A case of integrating and experimented design technique. Sahoo et al.
SIPOC of Six Sigma into social, responsible, & ethical [2008] has implemented DMAIC in order to optimize
retail shoe shop has been demonstrated in this paper. radial forging operation. The authors had the prime
The author has suggested carrying out further research focus on minimizing the residual stresses developed in
on use of quality concept in analyzing relationship the components manufactured by radial forging.
between consumer behavior & business performance. Antony and Desai [2009] have accessed the status of
Six Sigma implementation in Indian industries. The
Category3: Six Sigma Applications In Manufacturing authors have presented the results for exploratory
Organizations These publications illustrate the empirical study. The questionnaire survey was applied
application and implementation of Six Sigma in in UK industries and adapted so that it could be
manufacturing industries. Case studies of actual applied in Indian industries. Awad et al. [2009] has
implementation of Six Sigma in manufacturing worked on DFSS approach to improve the expectancy
organizations are also presented in these papers. In of track roller & idlers for an off road machine through
addition, research papers from this category include CAE model. Aggogeri, Fet al. [2009] have worked on
general papers of Six Sigma in manufacturing, implementation of DFSS project in SME to improve
application of Six Sigma in jobbing industries, small performance of extrusion process.
and medium scale industries, application of Six
Sigmain construction, chemical and process industries. Category4: Six Sigma Applications In Service
There are 16 publications from 1991-2005 belonging Organizations These publications present overview of
to this category. There is considerable increase in Six Sigma DMAIC methodology in service
publication belonging to this category. Few of the organizations. In addition, case studies related to Six
papers pertaining to above-mentioned category are; Sigma applications in services including financial
Antony et al. [2005] has presented the application of organizations, education and health care have been
Six Sigma Define-Measure-Analyze-Improve-Control discussed. The research papers in this category include
(DMAIC) methodology to reduce engine-overheating general papers on six sigma, Six Sigma in education,
problem in an automotive industry. The experimental Six Sigma in health care services, Six Sigma in e-
data collected during DMAIC project will provide a business & financial services. During the time interval
greater scope for the wider application of Six Sigma of 1991-2005 number of publications corresponding to
methodology across the automobile companies in this category are 17.
future.

Page 15
In this category, there is substantial increase in number Six Sigma application. He has proposed a three -tier
of publications, because now a days service framework for academic institutions where Six Sigma
organizations like financial services, health care, e may be used as used by administrators, faculty, staff,
commerce, and logistics are playing a very vital role and students as an implementation guide. He has
for economy of developed countries. Few of the papers suggested that role of management is very critical if
pertaining to above-mentioned category are; Hensley Six Sigma is to be implemented successfully. He has
and Dobie [2005] has presented Six Sigma model in further encouraged college and departmental heads to
an urban public transit company. The model includes participate in Six Sigma training that will in turn
analysis of the transit company‟s readiness for Six encourage faculty and staff to participate in Six Sigma
Sigma. The survey analysis was used to identify the initiative. Behnam nakhai et al [2009] have found that
differences in perceptions between service employees extreme drive for adopting Six Sigma in service
and customers. He has suggested that Six Sigma organizations has led both to limited field of
programs work best in the organizations that are application & unrealistic expectation as to what Six
prepare to apply them. One of the limitations of study Sigm ais truly capable of achieving particularly in
was that it was implemented in single organization. service organizations. Authors have presented the
Antony [2006] has studied basic features of Six Sigma service quality model and described the gap between
methodology for implementation in service Six Sigma and service quality. Kay chan tan et al
organizations. He has investigated tools and techniques [2009] has done qualitative & quantitative analysis of
used within Six Sigma methodology for service Six Sigma organizations in Singapore and found out
processes performance. that application of Six Sigma in service sector is
concentrated in a few services. He has provided
Key factors for successful implementation of Six parameters to be considered for successful
Sigma in service organizations include strong implementation of Six Sigma. He has done a
leadership and management commitment, questionnaire survey of Singapore service
organizational culture change, selection of Six Sigma organizations to understand the status of Six Sigma in
team members and teamwork, Six Sigma training, Singapore The survey shows that 23% of responses are
linking Six Sigma to customers etc. Antony et al. not aware of Six Sigma methodology, 23% find it is
[2007] have studied the UK service organizations and not relevant. 15.38%, 17.95%, & 17.95% percentage
found out that average level of companies in UK was of responses find that it is not relevant, not interesting,
around 2.8 sigma. Authors have suggested key factors time consuming and difficulties in identifying process
for successful deployment of Six Sigma in service parameters.
organization include management commitment and
involvement, customer focus, linking Six Sigma to Category5: Six Sigma Project Selection &
business strategy, organizational structure, & project Implementation Strategies The research papers
management. Macarty and Fisher [2007] have pertaining to this category include papers on Six
described as how to get started and to overcome the Sigma project selection, Critical Success Factors
resistance for service organizations. Authors have (CSFs) affecting its implementation and Six Sigma
suggested that with guided implementation & implementation strategies. There has been eight
disciplined used Six Sigma yields tangible results in papers belonging to this category corresponding to
service environments. Jenicke et al. [2008] has time interval of 1991-2005.the number of papers
identified several aspects that differentiate an corresponding to 2006 were two & numbers of papers
academic environment from manufacturing setting for corresponding to 2010 were eight.

Page 16
The trend shows that there has been sharp increase in management, and Design for Six Sigma are
publication belonging to this category. It is due to the considered. Few of the papers pertaining to above -
large growth of Six Sigma implementation in service mentioned category are; Antony [2002] has stressed
as well as manufacturing organizations. Few of the that during journey of excellence of any firm, they
papers belonging to this category are; Antony and often need to redesign the products and processes in
Banuelas [2002] have reviewed critical success factors order to reduce defects and improve quality. Author
for deployment of Six Sigma in organizations. has explained the underlying statistical concepts and
Banuelas et al [2006] have used survey as method to methodology of design for Six Sigma (DFSS) for a
investigate that what measures are to be considered to firm moving toward the realization of Six Sigma
select Six Sigma project and how potential projects are quality. Banuelas and Antony [2003] have examined
identified. He has concluded that Six Sigma converts the similarities & differences in Six Sigma
quality improvements in to bottom line financial methodology and compared it with DFSS approach.
benefits and selection of appropriate project is a key Banuelas and Antony [2004] have stressed importance
factor to success. Chakravorty [2009] has commented of DFSS to design and redesign processes to ensure
that Six Sigma program fails because an achievement of high levels of quality. Authors have
implementation model to effectively guide the tested suitability of a multi criteria decision-making
program is lacking. He has recommended six steps technique and the analytical hierarchy process to make
implementation model for effectively implementing a choice between Six Sigma and DFSS in two
Six Sigma projects. Kumar, M. et al [2009] have multinational companies. Michel.O Leill [2004] has
focused on the importance of project selection and its reviewed the post occupancy evaluation research
role in successful deployment of Six Sigma within the methods and discussed how this can be deployed
organizations. within the Six Sigma quality frame work.

Authors have presented the methodology linking the Raisinghani et al [2005] have done conceptual study
project selection process to successful deployment of and found out that immediate goal of Six Sigma is
Six Sigma within the organization. Büyüközkan and reduction of defects. Reduced defects lead to process
Öztürkcan [2010] has presented a combination of ANP improvements and which enhance customer
(Analytical Process Network) & DEMATELC satisfaction. Authors have also described evolution of
(decision-making trail & evaluation laboratory) quality initiatives like TQM, Quality circles, kaizen,
techniques to help companies to determine the critical ISO 9000, and MBQNA. Authors have further
Six Sigma projects & identify the priority of these conducted case studies on few organizations like GE,
projects especially in Logistics Company. Desai and allied signal etc and suggested that Six Sigma project
Patel [2010] have commented that Six Sigma is not can have negative consequences if applied in wrong
being explored in Indian Industries to its full potential. project. Makrymichalos et al. [2005]. have
Authors have presented two real life cases highlighting demonstrated the vital linkage between Six Sigma and
Six Sigma implementation difficulties in Indian statistical thinking. Authors illustrated key
industries. characteristics required for statistical thinking &
common barriers in implementation of key principles
Category6: Six Sigma And Its Linkages With Other of statistical thinking.. Klefsjoet al.[2006] have
Initiatives Under this category literature on Six Sigma commented on both the TQM and Six Sigma. Authors
and its linkages with other initiative such as systems have stressed that TQM has lost some of its charm
thinking, lean, ISO 9001: 2008, supply chain before quality approaches such as Six Sigma and Lean

Page 17
enterprises. Yeung[2007] have stressed upon the Fact and Data Based Approach:
integration of ISO : 9001 and Six Sigma in The statistical and methodical aspects of Six Sigma
organizational culture. Pranckevicious et al. [2008] has show the scientific basis of the technique. This
worked on application of 5S technique in improve accentuates an important aspect of Six Sigma that in
phase of DMAIC methodology. Antony [2009] has Fact and Data based.
presented the fundamental and critical difference
between TQM & Six Sigma philosophies of quality Project and Objective Based Focus:
management. The author has presented the viewpoint The Six Sigma process is implemented for an
of the nine leading practitioners and academicians in organization's project tailored to its specifications and
countries such as USA, Singapore, India, UK, & requirement. The process is flexed to suit the
Korea. The viewpoint of this type would help a lot to requirements and conditions in which a project is
set out a research agenda in the future. Etienne[2009] operating to get the best results. Apart from that, the
has presented that Six Sigma can be used to analyze Six Sigma is also objective based. The management
the quality system of company. needs some incentive to invest in the Six Sigma
process. It is aimed to enhance profitability and to
Need for the Study: generate financial.
Six sigma is the method used by the organization to
improve their working standards so in this paper we The Customer Focus:
study about the six sigma application in Samsung The customer focus is fundamental to the Six Sigma
approach. The quality improvement and control
Objective: standards are based on the explicit customer
To Study the Six Sigma Application in the Samsung requirements.
Company
Teamwork Approach to Quality Management:
Methodology: The Six Sigma process requires organizations to get
This paper mainly based on secondary data .The organized when it comes to controlling and improving
articles which are published in the area of Six Sigma quality. Six Sigma actually involves a lot of training
and the information from Samsung Website. Six depending on the role of an individual in the Quality
Sigma is a set of techniques, and tools for process Management team.
improvement. it was developed by Motrola in 1986 Six
Sigma is a set of techniques, and tools for process Six Sigma objectives: Six Sigma methodology
improvement. It was developed by Motorola. Sir Bill focuses on business improvement. Beyond reducing
Smith, ― the Father of six sigma‖ introduce this quality the number of defects present in any given number of
improvement Methodology to Motorola. Six Sigma is products Any business seeking improved numbers
now an enormous 'brand' in the world of corporate must reduce the number of defective products or
development. In 1995, Six Sigma became well known services it produces. Defective products can harm
after Mr. Jack Welch made it a central focus of his customer satisfaction levels.
business strategy at General Electric, and today it is
used in different sectors of industry. By the year 2000, Reduce Costs: Reduced costs equal increased profits.
Six Sigma was effectively established as an industry in A company implementing Six Sigma principles has to
its own right, involving the training consultancy and look to reduce costs wherever it possible can without
methodology in six sigma. reducing Quality.

Page 18
Improve Cycle Time: Measure:
Any reduction in the amount of time it takes to Once you have successfully completed the define
produce a product or perform a service means money stage, you can begin to measure the current state of the
saved, both in maintenance costs and personnel wages. process and productivity.
Additionally, customer satisfaction improves when
both retailers and end users receive products sooner
Analyse:
than expected. The company that can get a product to
You then take the data from the Define and Measure
its customer faster may win her business.
stages, and begin to analyse it, to fully understand
what causes problems or low productivity.
Methodologies
1.DMAIC: DMAIC is used for projects aimed at
improving an existing business process Improve:
There are many aspects, approaches, and techniques Using all of the data you have gathered, you’ll begin to
involved in utilising the Lean Six Sigma model. It come up with ideas and strategies for improving how
takes several days of training to really get into detail things are done. That’s where the Improve stage kicks
about the Lean Six Sigma Model, but this page is in. Improve is the stage where you actively start to
intended to give you a quick overview of what’s implement change and improvement.
involved. The simplest, clearest way to give some
detail of how Lean Six Sigma works, is to talk about Control:
the DMAIC Cycle, which is at the heart of the Lean
Equally important to Improve is the Control Phase. It’s
Six Sigma model.
not enough to implement improvements – you need to
maintain the new level of productivity and efficiency.
The DMAIC Cycle:
Using the techniques within the Control Phase enables
When implementing Lean Six Sigma for a process,
you to do this on an ongoing basis.
business or product implementation, you must address
each stage in the DMAIC Cycle.
2. DMADV: DMADV is used for projects aimed at
creating new product or process designs
DMAIC stands for:
DMADV is a Six Sigma framework that focuses
 Define
primarily on the development of a new service,
 Measure
product or process as opposed to improving a
 Analyse
previously existing one. This approach – Define,
 Improve
Measure, Analyze, Design, Verify – is especially
 Control
useful when implementing new strategies and
initiatives because of its basis in data, early
Define:
identification of success and thorough analysis.
In the first stage, you will define what needs to be
done, or what the problem is. The DMADV methodology should be applied:
1. when a non-existent product or process needs to be
developed at a company and…

Page 19
2. when an existing process or product already exists Design:
but still needs to meet a Six Sigma level or This stage of DMADV includes both a detailed and
customer specification. high level design for the selected alternative. The
Let’s examine the five major phases of DMADV more elements of the design are prioritized and from there a
closely. high level design is developed. Once this step is
complete, a more detailed model will be prototyped in
Define: order to identify where errors may occur and to make
The goals of the first phase are to identify the purpose necessary modifications.
of the project, process or service, to identify and then
set realistic and measurable goals as seen from the Verify:
perspectives of the organization and the stakeholder(s), In the final phase, the team validates that the design is
to create the schedule and guidelines for the review acceptable to all stakeholders. Will the design be
and to identify and assess potential risks. A clear effective in the real world? Several pilot and
definition of the project is established during this step, production runs will be necessary to ensure that the
and every strategy and goal must be aligned with the quality is the highest possible. Here, expectations will
expectations of the company and the customers. be confirmed, deployment will be expanded and all
lessons learned will be documented. The Verify step
Measurement: also includes a plan to transition the product or service
Next comes measuring the factors that are critical to to a routine operation and to ensure that this change is
quality, or CTQs. Steps taken should include: defining sustainable. For any DMADV project, there may be
requirements and market segments, identifying the more emphasis on certain components of the approach
critical design parameters, designing scorecards that over others, though the goal remains the same: to
will evaluate the design components more important to address an identified issue and produce desired results
the quality, reassessing risk and assessing the in a way that can be maintained through normal
production process capability and product capability. operations.
Once the values for these factors are known, then an
effective approach can be taken to start the production Six Sigma was introduced into Korea in 1997.The
process. It is important here to determine which First National Quality Prize of Six Sigma was given to
metrics are critical to the stakeholder and to translate two companies. One is Samsung and other is LG
the customer requirements into clear project goals. electronics ; which are virtually the leader of six sigma
in Korea. Samsung SDI was founded in 1970 as a
Analysis: producer of the black/white Braun tube. It began to
Actions taken during this phase will include: produce the color Braun tube from 1980, and now it is
developing design alternatives, identifying the optimal the number one company for braun tubes in the world.
combination of requirements to achieve value within The market share of Braun tubes is 22%. The major
constraints, developing conceptual designs, evaluating products are CDT (color display tube), CPT (color
then selecting the best components, then developing picture tube), LCD (liquid crystal display), VFD
the best possible design. It is during this stage that an (vacuum fluorescent display), C/F (color filter), li-ion
estimate of the total life cycle cost of the design is battery and PDP (plasma display panel). The total sales
determined. After thoroughly exploring the different volume is about $4.4 billion and the total number of
design alternatives, what is the best design option employees is about 18,000 including 8,000 domestic
available for meeting the goals? employees.

Page 20
It has six overseas subsidiaries in Mexico, China, SEC’s strategic objective is to create both qualitative
Germany, Malaysia and Brazil. and quantitative growth and deliver competitive value
to all stakeholders—customers, partners and
The necessity of Six Sigma in Samsung shareholders—while maintaining profitability. The
The problems were in the large quality variations in objective is focused on the value chain of the
many products, repeated occurrences of the same company’s four major businesses—home, mobile and
defects, high quality costs(in particular, high failure office networks and core components. The emphasis is
costs), insufficient unified information for quality on creating a solid framework for these businesses by
and productivity, manufacturing-oriented small group optimizing the supply chain to make operations as
activities, and infrequent use of advanced scientific efficient and timely as possible. To achieve the goal of
methods. The company concluded that the directions efficiency and timeliness, SEC has integrated Six
for solving these problems lay in scientific and Sigma into its entire business process. SEC saw the
statistical approaches for product quality, elimination universal adoption of Six Sigma throughout the
of waste elements for process innovation, and company’s 16 businesses worldwide as the way to
continuous learning system for people. These perfect its fundamental approach to product, process
directions in turn demanded a firm strategy for a and personnel development. Deployment As a
complete overhaul, implying a new paradigm shift to foundation for its Six Sigma thrust, SEC began by
Six Sigma. Samsung SDI made a contract with SBTI pursuing a pervasive goal of developing its internal
(Six Sigma Break-through Inc.) for Six Sigma resources, especially people, to put innovation first in
consultation in 1999. It was a one-year, $3.4 million the development and design of products, in
contract in which SBTI was supposed to help the manufacturing and marketing, and in the growth of
company in every aspect of Six Sigma. employees.

Samsung Electronics Co. (SEC) of Seoul, Korea, is With its strategic objectives established, the foundation
perfecting its fundamental approach to product, was ready for the Six Sigma process to begin in late
process and personnel development by using Six 1999 and early 2000 with training for SEC’s
Sigma as a tool for innovation, efficiency and quality. management, Champions and other employees
SEC was founded in 1969 and sold its first product, a responsible for deployment planning. This was then
television receiver, in 1971. Since that time, the expanded to use design for Six Sigma using the
company has used tools and techniques such as total DMAIC phases for designing new products.
quality control, total process management, product Transactional Six Sigma was applied next to business
data management, enterprise resource management, and support processes internally and externally where
supply chain management and customer relationship customer needs and interactions have become
management. Six Sigma was added to upgrade these increasingly critical. Through Sigma Park, an intranet
existing innovations and improve SEC’s competitive site available worldwide to all SEC facilities, SEC
position in world markets. The financial benefits made provides reference materials, benchmarking
possible by Six Sigma, including cost savings and opportunities, reports to senior management and
increased profits from sales and new product enhancement for Six Sigma projects whose team
development, are expected to approach $1.5 billion by members span several continents. Cross-border
the end of 2002. Strategic Objective SEC wants to be a organizational learning is advanced as the Six Sigma
borderless, global brand that is a household word methodologies are applied consistently from location
wherever its products and services are available. to location.

Page 21
Conclusion: Antony, J., Kumar, M. and Tiwari, M. K. (2005b), ―An
Samsung has mainly implemented the use of SIX application of Six Sigma methodology to reduce the
SIGMA to change its image the company has used engine-overheating problem in an automotive
tools and techniques such as total quality control, total company‖, Proceedings of the Institution of
process management, product data management, Mechanical Engineers, Part B: Journal of Engineering
enterprise resource management, supply chain Manufacture, vol. 219, no. 8, pp. 633-646
management and customer relationship management.
Six Sigma was added to upgrade these existing Arnheiter, E.D. and Maleyeff, J. 2005), ―The
innovations and improve SEC’s competitive position integration of lean management and Six Sigma‖, The
in world markets. TQM Magazine, vol. 17, no. 1, pp. 5-18

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