SAMSUNG

SIX SIGMA TECHNIQUES

INTRODUCTION

Samsung Electronics Co. (SEC) of Seoul, Korea, is perfecting approach to product, process and personnel development by using Six Sigma as a tool for innovation, efficiency and quality.

INTRODUCTION

SEC was founded in 1969 and sold its first product, a television receiver, in 1971

Since that time, the company has used tools and techniques such as

Total quality control, total process management, product data management,

Enterprise resource management, supply chain management and

Customer relationship management

COST OF QUALITY (COQ)

1. Internal failure cost scrap, rework, retest, troubleshooting

costs, cycle time impact, etc.2. External failure cost losing customer, losing reputation,

product reimbursement, cost of customer inspection/sorting, losing quality as competitive advantage

3. Appraisal Cost In-Process and Final Inspection Cost

QUALITY

1. Value-Based: Quality is based on the relationship

of usefulness or satisfaction to price with competitor product

2. Manufacturing-Based: Quality is defined as the capability

of manufacturing or conformance to customer specifications

3.Product-Based: Quality is a differentiated by a

measurable performance variable of some product attributes

4.User-Based: Quality is determined by what a

customer wants, fitness for intended use, or how well the product performs its intended function

The ZOPEC Philosophy

ZERO DEFECT

ON-TIME DELIVERY

PRODUCT CONSISTANCY

EXCEED CUSTOMER SPECIFICATIONS

WHAT IS SIX SIGMA?

The central idea behind Six Sigma is that if you can measure how many "defects" you have in a process, you can systematically figure out how to eliminate them and get as close to "zero defects" as possible.

KEY CONCEPTS OF SIX SIGMA

Critical to Quality: Attributes most important to the customer.

Defect: Failing to deliver what the customer wants.

Variation: What the customer sees and feels.

Process Capability: What your process can deliver.

Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels.

Design for Six Sigma: Designing to meet customer needs and process capability.

DMAIC (Define, Measure, Analyse, Improve, Control) Methodology of Six Sigma is

a systematic data driven approach to reduce the defect and improve the quality in any type of business.

DMAIC

Define

Measure

Analyse

Improve

Control

DEFINE

Define the requirements and expectations of the customer

Define the project boundaries Define the process by mapping the

business flow

MEASURE

Measure the process to satisfy customer's needs

Develop a data collection plan Collect and compare data to

determine issues and shortfalls

ANALYZE

Analyze the causes of defects and sources of variation

Determine the variations in the process

Prioritize opportunities for future improvement

IMPROVE

Improve the process to eliminate variations

Develop creative alternatives and implement enhanced plan

CONTROL

Control process variations to meet customer requirements

Develop a strategy to monitor and control the improved process

Implement the improvements of systems and structures

RESULT OF SIX SIGMA

By 2001, SEC had earned net income of $2.2 billion on total revenues of $24.4 billion. Market capitalization stood at $43.6 billion.

According to SEC’s 2001 annual report, SEC now is one of the top 10 electronic and electrical equipment manufacturing companies in the world

RESULT OF SIX SIGMA

SEC says its technological strengths, Six Sigma quality initiatives and product marketability helped increase its share of the memory chip market in 2001 to 29%

SEC’s quality and innovative strategy helped it reach the number one position in the BusinessWeek 2002 information technology guide

REFERENCES

1- Antony, J, Kumar, M (2005), “Six Sigma in small and medium sized UK manufacturing enterprises”, International journal of quality and reliability management,Vol 122, No 8, 860-874

2- Antony,J (2006), “Six Sigma for service processes”,

Business process management journal, Vol 12, No 2, 234-248

3- Arnheiter,E.D. Maleyoff,J (2005), “The integration of

lean management and Six Sigma”, The TQM magazine, Vol 17, No1, 5-18