Quantitative Analysis Of Samsung Electronics Corp.

The driving factors for a success or failure of implementing Six Sigma is largely dependent on the inputs set forth at the conception and duration of the integration. This whitepaper will compare and contrast these critical inputs for a successful deployment. In order to accomplish this five various companies: GE Electric, W.R. Grace, Royal Chemicals, Diversified Paper and Lemforder. Some of these organizations had very successful results while others failed to reach their full potential. What is clear is the similarities of those that succeed and those that failed.

Samsung served as the manufacturing industry and international company analyzed. Samsung has been in business for over 70 years and manufactures products for diverse markets, including: digital media, high -tech electronics, home appliances, information technology and telecommunication. Samsung's motto is to "inspire the world and create the future" by leveraging three key strengths: new technology, innovative products and creative solutions.

Six Sigma can help companies achieve performance levels that externally are invaluable to customers and internally can reduce costs. These projects can now be found in very diverse industries and can span far-reaching …these two initiatives can be complementary, especially for "Greenfield" process improvements… UPS Supply Chain Solutions 2 business processes and geographies

Samsung’s efficiency was also driven by the quality of its employees. All R&D and production engineers lived together in the same company-provided housing, which lead to quick design, resolve and process any issues in design or production which in turn led to quick turnaround time, lower idle times and increased productivity. Also, the site was located in the mountains where the air was fresh and clean, which meant lower maintenance costs since most machinery was highly sensitive to dust and other particles

Samsung Electronics UK Limited is a subsidiary of Samsung Electronics. It manufactures, and distributes mobile devices to retailers in different parts of the country. It also manufactures and distributes audiovisuals products, computer-related products, cameras, home appliances

SAMSUNG Electronics Co. is a South Korean multinational electronic information technology company having headquarter in South Korea. Samsung Electronics is the world’s larger mobile phone maker and world’s second larger semiconductor chip-maker.

Six Sigma is a process improvement initiative developed by Motorola that assist organizations in identifying and reducing defects and inefficiencies within their existing business processes. The quality management system is a project-oriented system that drives cost savings and increases firm’s profitability by reducing variation in firm’s processes, products and services. (Russell, 2011). The process begins with four steps align, mobilize, accelerate and govern. Companies begin aligning by constructing company-wide metrics surrounding financial and strategic goals of the organization. These metrics are used to determine the area of the business that requires the most improvement and would have the largest financial

By the end of 2012, Samsung electronics become the largest producer of televisions and mobile phone. In order to achieve the success and the dramatic rise in consumer electronics sector, the company initiated new methods to innovate and create high quality products .

• Six Sigma affords the avoidance of a “hit and miss” approach by breaking into measurable bites an entire chain of events leading to a problem, and then coming up with a corrective action (Roff, 2005, p. 1). According to Bateman and Snell (2009, p. 582), the acceptable failure rate is “99.99966 percent level of accuracy.” Although Six Sigma is a powerful control mechanism, it takes about 2-3 years from the time of implementation until its development is fully realized. It is a method that is most useful to a company when it is tailored specifically to a company’s processes.

The concept of Six Sigma was developed in the early 1980’s at Motorola Corporation (Harry and Schroeder, 2000). Six Sigma can be defined as a statistical measure of the performance of a process or product (Kumi et. al., 2006). It is used as a quality control mechanism, which seeks to reduce defects or variations in a process to 3.4 per million opportunities thereby optimizing output and increasing customer satisfaction (Sambhe, 2012). Sigma is representing the standard deviation, a unit of measurement that designates the distribution or spread about the mean of a process (Six Sigma Academy, 2002). In addition, the Six Sigma uniquely driven by close understanding of customer needs, disciplined use of fact, data, and statistical analysis, and diligent attention to managing improving, and reinventing business processes (Pande, P., et. al. 2000). The Six Sigma methodology uses statistical tools to identify the factors that matter most for improving the quality of processes and generating bottom-line results. The Six Sigma DMAIC (Define, Measure,

Company Background: Samsung is a South Korean multinational company those starting its business as a small trading company and right now becoming world largest corporation. The company deals with its business in several sectors such as advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The company was established in 1969 in Suwon, South Korea and known globally for its electronic products (Kelly, 2011). The company is manufacturing several latest technologies, electronic appliances such as mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other products. The company runs its operations and sales its products in 61 countries with approx 160,000 employees in all over the world (SAMSUNG, 2014). Moreover, the company acquired the position of the world biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world. Furthermore, Samsung also becomes world leader in the segment of tablets, mobile phones and gadgets.

SEC’s strategic objective is to create both qualitative and quantitative growth and deliver competitive value to all stakeholders, customers and partners while maintaining profitability. With its strategic objectives established, the foundation was ready for the Six Sigma process to begin in late 1999 and early 2000. Starting in 2000, the use of the Six Sigma began in manufacturing using the define, measure, analyse, improve and control (DMAIC) discipline. This was then expanded to use design for Six Sigma using the DMAIC phases for designing new products. Transactional Six Sigma was applied next to business and support processes internally and externally where customer needs and interactions have become increasingly critical. This helped in optimizing cycle time and equipment usage, having fewer rejects or errors, improving response time to customer inquiries; reducing inspection, maintenance, inventory and other high costs, providing more employee development ,and boosting the bottom line. These impressive numbers have certainly played a major role in Samsung’s recent growth. Some indications of this include the following: • 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

Looking at the success of Motorola, many companies like Texas Instruments, Allied Signal etc started using Six Sigma methodology to bring organization-wide improvements.

SAMSUNG Electronics Co. is a South Korean multinational electronic information technology company having headquarter in South Korea. Samsung Electronics is the world’s larger mobile phone maker and world’s second larger semiconductor chip-maker.

From the three main activities, Samsung Electronics is the one that can compete with other leading brands. Initially that making Samsung’s products are on the rise is the development of 256K dynamic random access memory (DRAM) computer chip and a VLSI (very large scale integration) version of the 64K DRAM chip. By the turn of the millennium, the company’s successful introduction of leading-edge products such as mobile phones, MP3 players, digital televisions and personal digital assistants (PDAs).