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Group Name: _____Group 4______

Student Name (Print clearly) UniSA Email ID

1. Div Jyot Singh Sindy025@mymail.unisa.edu.au

2. Vivek John Johvy004@mymail.unisa.edu.au

3. Dilawer Mehmood Mehdy006@mymail.unisa.edu.au

4. Danish Inayatulla Mohammed Mohdy010@mymail.unisa.edu.au

5. Darsh Manojkumar Patel Patdy028@mymail.unisa.edu.au

6. Deepak Sharma Shady024@mymail.unisa.edu.au

7. Darpan Harshadbhai Bhatt Bhadh001@mymail.unisa.edu.au

8. Dhruv Soni Sondy009@mymail.unisa.edu.au

9. Chris Varughese Kunjumon Varcy012@mymail.unisa.edu.au

10. Dongni Wang Wandy044@mymail.unisa.edu.au

11. Aman Ullah Ullay001@mymail.unisa.edu.au

Course code and title: MFET 5053 - Lean Six Sigma

Program Code: LMEB School: School of Engineering

Day, Time & Location of Tutorial/Practical:

Course Coordinator: Dr Yousef Amer Tutor:

Extension granted (Yes/No): No Due Date: Sunday, 4 Nov 2018, 11:00 PM

Assignment number & topic: Lean Six Sigma Group Assignment

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Signed:

Div Jyot Singh 4/11/2018

Vivek John 4/11/2018

Dilawer Mehmood 4/11/2018

Danish Inayatulla Mohammed 4/11/2018

Darsh Manojkumar Patel 4/11/2018

Deepak Sharma 4/11/2018

Darpan Harshadbhai Bhatt 4/11/2018

Dhruv Soni 4/11/2018

Chris Varughese Kunjumon 4/11/2018

Dongni Wang 4/11/2018

Aman Ullah 4/11/2018

Date received from student Assessment/grade Assessed by:

Recorded: Dispatched:

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UNIVERSITY OF SOUTH AUSTRALIA

School of Engineering

LEAN SIX SIGMA

MFET 5053

SAMSUNG CASE STUDY

Submitted by-
Group 4:

Course Coordinator: Dr Yousef Amer

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Table of Content

1. Introduction……………………………………………………………………….…..5
2. Background ……………………………………………………………………....…..5
3. Selection of Six Sigma………………………………………………...………….…..6
4. Approach for selection and support system……………………………...……….…..7
5. Six Sigma Modification using DMAEV………………………………………….…..9
6. Design Principles………………………………………………………………..…..15
7. 5-Design Parameters………………………………………………..…………...…..17
8. SCOR model………………………………………………………………….……..18
9. Implementation Phase of DMAEV……………………..……………………….…..19
10. Six Sigma Belt Structure……………………………………………………...……..20
11. Potential Weaknesses………………………………………………………………..22
12. What Worked Well……………………………………………………..….....……..22
13. Conclusion…………………………………………………………………….....…..23
14. Recommendations…………………………………………………………….……..23
15. References…………………………………………………………………………...24

List of Figure

Figure 4.1: Implementation methodologies of GE, Du Pont and Honeywell………..…8

Figure 5.1: An overview of SCM Six Sigma (DMAEV) ………………………..……11
Figure 5.2: VOC and VOB summary ...………………………………………………12
Figure 5.3: The Quality function deployment for Samsung ...…………………...……15
Figure 6.1: Design Principles and Five Design Parameters.….……………………….17
Figure 8.1: SCOR Modelling ……………………………………….…………...……18
Figure 10.1: Six Sigma Organizational Structure……………….…....…………...……21

List of Tables
Table 5.1: The X-Y Matrix for Samsung …………………………..……….…………13
Table 5.2: The types and selected Xs …………………………………...……….……13
Table 5.3: Plan and execution for Samsung …………………..……………….………15

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1. Introduction

Supply Chain Management(SCM) was initially perceived as a practice to only reduce the
operational cost and to improve the inventory management for an organization. It was only in
the early 1990’s when some organizations realised the possible benefits of SCM for the
operation of their organization. Soon, SCM was accepted as a strategic way to improve the
entire business operation. One of the leading firms to adapt such a strategy was Samsung. This
report illustrates how Samsung developed and implemented supply chain management using
six Sigma. We will discuss the background, selection and implementation of the methodologies
in detail in the following sections.

2. Background of the Samsung Company

The Samsung Group was established in 1938 and founded by Lee Byung-chul in South
Korea. The Samsung group started as a trading firm within the Daegu city with a workforce of
roughly 40 employees. The Samsung group then later invested in the electronics market and it
was in the 1980s that the group witnessed drastic development in the field of electronics. Huge
amount of investments was made to increase their globalised activities. Soon, Samsung was
the one of the top brand valued companies a recorded a profit of more than $10bn in the year
2004. Samsung is believed to have attained such great success in such a short period of time
because of the continuous improvement of its business conducts.

Since the 1990’s Samsung has utilised six-sigma approach to improve not only the production,
but also the business operation. The six-sigma was initially applied to increase the product-
quality but was later on implemented for the business development by extensive use of Six
sigma in supply chain management. The results of the application of six sigma were promising
as there was room for improvement in the SCM to provide the methodology to deal with the
process variations. The company consistently achieved success with projects by maintaining
quality throughout the business process which later translated into customer satisfaction. The
completed projects’ feedback was collected and analysed to further improve the operation of
the company using a closed loop system approach with the involvement of customer feedback.
The company followed some other strategies too. They improved their HR framework to avoid
recruitment of ill-trained staff. They made appropriate use of quantitative data to cover the
flaws with their existent SCM process. They understood that communication in the supply
chain was critical to operation, therefore rapid response to the customer requests, demands and
wants was achieved to help the management to deliver flawless products and services . The use
of Advance Planning and scheduling (APS) was introduced to predict and control the problems
in the supply chain. After integrating the SCM and six Sigma, it was evident that this step was
unique and efficient for the company’s continuous improvement. (MO, 2007)

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3. Selection of six sigma in Samsung group:
The Supply chain management (SCM) was already recognized as an important strategy for
improvement of the operations. But regardless of extensive usage of SCM methods or
solutions, the company felt that there were some areas where still more improvements were
needed. Hence, in 2004, the firm decided to choose Six Sigma with SCM in four key areas to
further bring improvement to the existing process. This program was expected to created
quality and proficiency in SCM and help in raising the company profits and revenues. These
four key areas where Six Sigma showed great improvements were:

1- Project discipline as part of the entire process:

Samsung realised the lack of project discipline as one of the vulnerabilities. Six sigma uses a
methodology which is known as DMAIC (Define, Measure, Analyse, Improve, Control). This
approach can provide a structured, focused and disciplined approach for a process and is used
to overcome this weaknesses in operations and business (Hammer 2002). In addition, such an
approach helps to understand the root causes of the issues and then help in eradicating them.
Six Sigma further provides disciplinary approach in SCM projects by defining projects
vigorously which helps in the timely and efficient execution of the process.

2- Attaining Sustaining results by controlling or verifying processes:

Sustainment of results in SCM of a project after successful completion was considered a key
parameter by Samsung. A common practice for companies was to just judge a process to be
fit based on the success of the past projects. Samsung decided to further improve the current
process based on the previous experience. By choosing the Six Sigma, the experience from the
past projects was collected in the form of feedbacks and then further used. Close loop feedback
for linking planning and execution, which was an issue in manufacturing and control
(Vollmann et al. 1997) was sorted out by adopting either of the control phase of DMAIC or the
verify phase from the DMADOV frameworks. Therefore, the adoption of six sigma helped in
tracking and centralising of the records of all projects details in Samsung to support sustained
improvements in the future.

3- Developing a well-established HR framework:

Samsung until now had Six Sigma for both processes in manufacturing and SCM, but their
return of investment was centred around its workforce. The utilization of SCM depended on
the quality of qualified and trained people which play a role to enhance the potential of
company. A shortage of such workforce in Samsung had always been a challenge from the
management perspective. Six Sigma, with its coloured belt concept offered the a proving
methodology for the development of people from an HR’s perspective. The HRs could now
easily manage people and could judge their competency. Hence, this enhanced framework
enabled Samsung to harness to true potential of the existing system in place.

4- Quantitative strength:
Samsung understood that despite the availability of quantitative data for operations and
performance, they were not utilising it for the improvement in SCM. Keeping this scope in
mind, Samsung used Six Sigma to enhance the decision making and problem solving of its
SCM processes. Six Sigma methodologies extensively uses quantitative data for process
improvement. And thus, successfully improved the quality of decision making and reduces the

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flaws in operational capabilities in SCM for the Samsung group. Because of these
characteristics, Six Sigma become a unique strategy for the improvement of SCM activities for
the Samsung group (Breyfogle, 1999).

4. Approach and support system:

Based on the above mentioned four key factors, Samsung merged Six Sigma and SCM together
by practicing a developing supply chain management team to be more capable and sufficient
to lead SCM innovations. After the successful performance of SCM six sigma over a period of
2 years, SCM and Six Sigma proved to be valuable to Samsung's procedure for precise and
constant enhancement of its SCM process.

1. Building blocks
There were two major building blocks which were essential for Samsung to use SCM with Six
Sigma.

a. Building of Core Strategy:

The first block was a core strategy that was created by the SCM Business Team (widely
known as SBT). This group explored different six sigma methodologies of selected
world leading organizations and after that customized its learning to their own SCM
domain.

b. Key Design Principles from Past Experience:

The second component of SCM six sigma was some key design principles that were
attained from SCM experience of the team. This was to guide the usage of the
philosophy all through its distinctive stages (Mo Yang, Byung Seok Choi, Hyung Jin
Park, Min Soo Suh and Bongsug Chae, 2007).

2. Research and Training:

Samsung's SCM Business Team (SBT) conducted research about six sigma methodologies
which were utilized at DuPont, General Electric (GE) and Honeywell to get insight on how
different organizations utilised Six Sigma to their respective needs that were similar to those
of Samsung’s needs.

3. Key Findings that Samsung believed to be the influencing factors:

General Electric:
A key strategy of GE was to tailor the generic Six Sigma to meet the characteristics, needs
and attributes of its business units. GE moved beyond DMAIC using DMAIDV. SBT
inquired about the GE business approach for process advancement (PI) and understood how

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 they customized them to their respective needs of framework plan, execution, and product
development activities.

DuPont:
DuPont consolidated six sigma standards with the SCOR (Supply Chain Operations
Reference) show, which scopes five core management processes. This core management
processes included plan, source, make, deliver, and return. Moreover, six sigma approach
of Du Point utilizes quality function deployment (QFD) tool. QFD is a technique for
changing over clients' necessities to products, procedures or services.

Honeywell:
Honeywell was chosen on account of its broad utilization of lean procedures, which had
turned into a noteworthy apparatus in the execution of six sigma. Honeywell built up an
exclusive Six Sigma approach called Six Sigma Plus which joined lean manufacturing
concepts and tools into a general six sigma. Esteem stream guide and thought process map
were one of the examples of this.

Each methodology described above were broken down and the accompanying ends were
drawn. These encouraged Samsung ensuring advancement of the SCM using six sigma
methodologies. Figure 4.1 show the key point as illustrated.

Figure 4.1: Implementation methodologies of GE, Du Pont and Honeywell (Kelly Tatum
Kiling, 2013)

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 4. Concussions Drawn from the findings required for development of the Samsung
SCM with Six Sigma:

Conclusion 1: Need of design change or improvements:

Conclusion 2: DMADOV was not enough:
Conclusion 3: System development option need (DABLT used)

5. Why and How the Six Sigma was modified using DMAEV

Six Sigma basically centres around either updating procedures and frameworks or enhancing
execution levels of existing frameworks. In terms of Six Sigma, the procedures and frameworks
are usually updates through DMADOV (define, measure, analyse, design, optimize, verify).
On the other hand, the latter i.e. enhancement of execution of existing frameworks is attained
using DMAIC (define, measure, analyse, improve, control). Samsung’s business team got an
estimate that among all the supply chain management projects at Samsung, around 75%
required redesigning of the processes, whereas the rest 25% required process enhancement.

Let us discuss these two methodologies step by step:

a. DMAIC
DMAIC methodology refers to a data-driven quality strategy for improving processes. It is an
essential part for a company’s Six Sigma Quality Initiative. DMAIC stands for five interrelated
phases: Define, Measure, Analyze, Improve, and Control. The short description of these phases
are as follows.

Define:
In the first phase which is define phase, the customer, their requirements and expectations are
defined. Basically, the Customer, their Critical to Quality (CTQ) issues, and the Core Business
Process are understood and included in this stage.

Measure:
In the measure phase, the data collection plan for the process is developed. Moreover, the data
from different sources are collected to determine types of error and metrics.

Analyze:
In the analyze phase, the data collected, and the process maps are analyzed to determine root
causes of defects and opportunities for improvement.

Improve:
In the fourth phase, the target process is improved by designing creative solutions to fix the
existing and to prevent the present issues.

Control:

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Control phase is the last but indispensable phase in which improvements are controlled to
maintain process on the new course.

b. DMADOV
DMADOV is another tool which is used for improvement of six sigma process. It is an
acronym that stands for: Define, Measure, Analyze, Design, Optimize and Verify. The brief
information about each phase is mentioned below:

Define:
 The goals.
 Customer requirements.

Measure:
 Determine needs and specifications.
 Benchmark opportunities.

Analyze:
 Examine options.
 Determine creative solutions.

Design:
 Develop a product and process.
 Design experiments to verify design meets customer needs.

Optimize:
 Evaluate performance levels and impacts.
 Redesign as necessary.

Verify:
 Process ability to meet customer needs.
 Deploy the new process.

The emergence of DMAEV:

According to Kelly Tatum Kiling (2013), only DMAIC and DMADOV methodologies were
not potent enough as they could not provide the required support to execute the entire range of
SCM projects efficiently at the Samsung Group. The key contrast was subsequent to
performing investigations, the undertaking for the venture group would not aim at streamlining
or structuring processes as in DMADOV, but instead, it would be to determine how a proposed
enhancement can be realized in practice. For this reason, a stage, " Enable ", instead of “Design
and Optimize”, was acquainted with location this action. Framework improvement alternative
for SCM with six sigma ventures, as a rule, resulted in the improvement in the existing

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framework. For obtaining optimal solution for systems, the DABTL (define, architect, build,
test, launch) approach was utilized. This was achieved by incorporating proven software
engineering discipline to Six Sigma based SCM strategy. Hence, DMAEV procedure in driving
SCM development just didn’t depend on the quality of the strategy itself, but also depended on
important business and organizational components.

DMAEV has five different phases which are followed in any SCM six sigma project by
Samsung. The five different phases are mentioned as seen in the figure 5.1 below:

Figure 5.1: An overview of SCM Six Sigma (DMAEV) (Mo Yang, 2007)

Implementation of DMAEV at different Stages by Samsung:

Define:
At the define stage, certain key points need to be defined such as
 the issue that needs to be addressed
 the scope and objectives of the project,
 expected output for the projects and the project schedule integrity.

The Samsung business team collected feedback from clients on the issues that they were
confronting. This was translated into the voice of clients (VOC) or voice of business (VOB).
This data helped the organisation in framing the client’s requirements to determine the CTQ
dependent variable ‘Y’. The outcome from define stage was fundamental in moving to the next
stages. This is illustrated in figure 5.2 as depicted below.

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 Figure 5.2: VOC and VOB summary (Mo Yang, 2007)

Measure:
At the measure stage, the present state of CTQ-Ys were observed and factors 'Xs’ characterized
another objective level. The initial step was to check the CTQ-Ys and if necessary, different
pointers that could define CTQ-Y were recognised. The second step was to measure the present
levels of CTQ-Ys and a superior goal level of CTQ-Y was set. There were five design
parameters:

1. The process
2. Rules and policy of operation
3. Responsibility and Organizational role
4. Performance Measure
5. System.

The table 5.1 and 5.2, and 5.3 depict the X-Y matrix, the selection Xs and the plan and
execution respectively.

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Table 5.1: The X-Y Matrix for Samsung (Mo Yang, 2007)

Table 5.2: The types and selected “Xs” (Mo Yang, 2007)

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 Table 5.3: Plan and execution for Samsung (Mo Yang, 2007)

Analyse:
After setting the parameters, the task proceeded onward to the break down stage where
assessment, speculations and analysis from subjective and quantitative points of view were
recognized to approve the potential 'Xs'. Statistical tools like ANNOVA, Pareto examination
and relationship were utilized in quantitative investigation. Process mapping, cause and effect
diagrams and value streams maps were used for qualitative analysis. The intent of the steps at
the break down stage was to recognize key 'Xs'.

Enable:
In the enable stage, it was intended to recognize strategies to enhance the existing process and
to generate new frameworks and procedures. The quality function deployment tool was utilized
in choosing the key elements to help in enhancing the procedures. The arrangements were
identified, and the best arrangement was structured in detail utilizing the 5 planned parameters.
Tools including QFD, brain storming, AHP with Pugh Matrix were chosen. If system
development was needed, it was achieved by using the DABTL (define, architect, build, test,
launch) roadmap. The QFD for Samsung is a depicted below in figure 5.3:

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 Figure 5.3: The Quality function deployment for Samsung (Mo Yang, 2007)

Verify:
At final stage, i.e. in the verify phase, the executions of the enhancements were tried out and
approved to confirm the arrangements that were suggested in the enable stage. Upon approval,
control and change administration designs were characterized and actualized into the SCM
task. The executions were additionally observed and followed through performance indicators.
There were measure(KPI’s) that are used i.e. financial and operational. An example of financial
KPI is the rise in sales or decrease in investment due to improved SCM. Whereas, an example
of operational KPI are parameters such as lead time or cycle times, etc.

6. Design principles employed to guide the six sigma Supply Chain

Management Project

Supply Chain Management was appreciated as a very useful way to for efficient conduct for
the company’s whole business operation and offered improved planning and achievements.
The Samsung company decided to grow systematic Supply Chain Management rules using Six
Sigma and referred it to as “supply chain management projects and activities”. Samsung Supply
Chain Management with Six Sigma consisted of two key features. First being the core rules
and ideas that were introduced by the Supply Chain Management Business Team. The second
feature being some design principles used in the supply chain management for the
implementation of the rules and ideas for different purposes.

Design Principles

Supply Chain Management Business Team understood that the possible positive impacts of the
DMAEV (define, measure, analyze, enable, and verify) phases in running the Supply Chain
Management did not depend on strengths but also depended on organizational factors in a
company’s management. Hence, these factors needed some design principles for running the
system using Supply Chain Management with six sigma projects by implementing all the

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DMAEV stages. The approach was designed to be easy to learn and maintain the system. These
approaches were useful and easy for an individual to understand and implement on a regular
basis to their projects. These design principles were used by Samsung to guide the SCM six
sigma projects and are shown in figure 5.3. Design principles are discussed below:

 Global Optimum: Supply Chain Management six sigma aimed at enhancements of the end
to end SCM process such that processes are aligned with goals. For this, it was important
that improvements were made to the KPI’s for both the upstream processes and the
downstream processes. This was assured using two methods before attempting to improve
any process. Firstly, a flow down tree of KPI’s using critical to quality technique(CTQs)
was defined, and then secondly, after achieving the improvement, a bottom up check was
used to make sure that the global KPI’s were not drastically affected.

 Process KPI mapping: SCOR model was followed by KPIs and defined the objectives
and monitoring of the processes for the enhancement of the system. The use of SCM with
Six Sigma was believed to increase the credibility of the Critical to Quality(CTQs) “Y”
with the help of KPIs by synthesis of the SCOR model for improvement of the processes.

 Systematization: This was a major design principle for the Supply Chain Management at
Samsung. Samsung incorporated behaviour and system changes by implementing
advanced planning system for the processes. Thus, systematization plays a vital role for
SCM for the changes to be reflected into the systems. This was done by implementing
DABTL (design, analyze, build, test, launch) for the system enhancement.

 Five design parameters: Organizations needed to have broad and affective approach to
attain organizational changes. DMAEV made use of the five design parameters required to
describe the changes that were needed to be followed in all the stages of DMAEV. These
changes were: process design changes, responsibility changes, policy and operation rule
changes, performance measures(KPIs), master data and system changes. It was necessary
to identify the cause of latency and plans for improvement for all the parameters to make
sure that the root cause was be eradicated. (Yang et.al, 2007). The 5 design parameters are
discussed as below:

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 Figure 6.1: Design Principles to guide Supply Chain Management six sigma and Five Design
Parameters (Yang et.al, 2007)

7. 5-Design Parameters of DMAEV

The five design parameters that were employed in DMAEV approach are as follows:

a) Process changes: It involved a series of steps in which a change was initiated from
inception to delivery. It was a way of minimizing employee resistance and cost of the
organisation.
b) Operation rule & Policy changes: It involved decision on sequence in which various
operations were carried out or policy reforms that could produce incremental changes
in existing or new policy changes.
c) Role & responsibility changes: The decisions upon various tasks were taken by the
management after analysing individual skills, where roles and responsibilities for each
employee were assigned.
d) Performance measures or KPI changes: Organisation used Key Performance Indicator
as a measuring unit for indicating how efficiently a firm achieved its targets.
e) System and master data changes: In most of the cases, changes in system and master
data was because of the upgradation in technology and competition levels.
Five of the above given parameters were employed in the projects by Samsung in-order to
enable the association of Supply chain management with Six Sigma. For smooth functioning
of any organisation it was required to implement a comprehensive and structured approach,
such as DMAEV, which used the above five parameters at various stages. While initiating a
project all the factors obstructing improvement were taken into consideration for finding and
rectifying the likely causes in best possible manner (Mo Yang, 2007).

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8. SCOR model implementation:

SCOR model which stands for Supply Chain Operational Reference is a framework with the
combination of business process engineering, metrics, bench-marking and leading practices. It
is a flexible design for a company to create its own competitive strategy for improvement with
defining five management processes. The model provides such a benchmarking by quantifying
data of the company’s current state to make it available for comparison with the data of other
companies. (Mazzola, Gentili and Aggogeri, 2007). 4 major Pillars of SCOR are

 Process Modelling- Incorporates plan, source, Make, Delivery, Return and Enable
 Performance Measurement- key indicators to measure performance.
 Best Practices- Practices to bridge the identified gaps

figure 8.2 SCOR Modelling (Swartwood 2003)

How SCOR was implemented by Samsung:

In the case of Samsung, the company studied the strategies of DuPont for reference because it
had been selected as the 2006 Six Sigma Company by the International Society of Six Sigma
Professionals and found out that DuPont combined six sigma principles with the SCOR model
to achieve remarkable success (Yang et.al, 2007).

Samsung had successfully combined SCM and Six Sigma with SCOR model to attain SCOR
six sigma convergence in order to effectively monitor and control their SCM improvement
projects while taking its potential advantage of Supply Chain Management to further fulfill the
need of process improvement. In addition to this, guiding to success of an SCM project
depended not only on good methodologies, but also on the inevitable factors of the
organization. Hence Samsung SCM design implemented the previously discussed parameters
such as global optimum, process KPI mapping, systematization and the five design parameters.

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 SCOR model has an advantage that it acts like a diagnostic tool that the Samsung group used
to manage to improve their decision making. SCOR enabled the company to effectively
communicate within its supply chain as this model helped in depicting various activities such
as deliveries and returns, etc., involved in the supply chain of products to the customers.
SCOR Model was used in define phase and process KPI Mapping, it enabled the company to
successfully define the boundaries of activities and thus helped in efficient monitoring and
implementation of the various processes of the projects. This model defined the scope and
anything beyond the scope of SCOR was not considered. Furthermore, SCOR model offered
the project a detailed supply chain processes which increase the credibility of CTQ-Y selection.
The following were the advantages of SCOR Samsung

 Provided structure to methodology and approach for strategies

 Process and operation standardization and benchmarking
 Opportunity of improvement at macro level
 More capable workforce to improve supply chain
 Better utilization and speed.

9. Implementation Phase of DMAEV:

The real implementation started at the verification stage of DMAEV. This comprised of the
following steps:

Establishment of a pilot test run-

This step intended to demonstrate that if the proposed enhancement was pertinent to the
hierarchical structure. At this stage, conceivable escape clauses were distinguished and
identified before the trial was run. This reduced the possible inconsistencies and refined the
project to a great extent.

Validation & verification-

In the validation and verification, the proposed ventures were investigated to conform that the
pilot trial was good to go for a trial. It was checked for completion, approval, supplies and
assets, and action plans before it was permitted to begin. This stage acted as the final check
point before directing the trial. This step limited undesirable asset because such test runs were
performed in a realistic environment that included day to day business activities and thus
incurred cost.

Control and change management plans-

In control stage, after the test was run, the outcomes were checked and structured for elements
or execution markers to control, strategies demonstrating abnormalities, business unit in charge
of such event, and moved to be made in case of crisis. This helped calibrate the project before
the ideal solution was executed with respect to the identified design parameters.

Change management was the last phase of the implementation. At this stage, while everything
had been set and endorsed, the management needed to consider the effect on business,

19
 particularly on culture and funds. Success of the improvement activity depended on the change
management. The management support was also indispensable because without a solid
commitment of management to continually perform the set activities, the project wasn't
probably going to be prioritized and might have lost its purpose.

10.Six Sigma Belt Structure:

According to Yun and Chua (2002), Samsung had credited the administrative logic of Six
Sigma with improving its efficiency and empowering it to cut waste from its creation
procedures and store network. Samsung had dependably been on the forefront regarding its
utilization of aggregate quality administration (TQM) systems. Six Sigma's attention on quality
and zero deformities was added to overhaul these methods and enhance SEC's focused position
in world markets. As an establishment for Six Sigma, SEC concentrated on building up its
inward assets to put advancement first in the development, design, manufacture, and marketing
of its products and the development of its employees.

Six Sigma, as distinct from different types of TQM strategies, is certainly an information driven
technique for accomplishing near perfect quality. Six Sigma investigations can centre on any
component of production or service and has a solid accentuation on statistical analysis in
design, manufacturing and customer-oriented activities (Chapman 2011). The philosophy is so
famous it has advanced into a business all by itself, finished with a profoundly organized
training program. Mentors are granted different 'belts' in view of their effective culmination of
various parts of the program. In the execution of any six sigma SCM project, just certified six
sigma belt experts who fall in the six-sigma belt structure category are permitted to perform.
These experts fall into certain levels as seen in the figure below. They are responsible for
recognizing, creating, testing, and executing six sigma enhancements in an association. They
decide and measure the advantages of the exercises to the association from the money related
to the operational standpoint.

The categorization of six sigma belt structure for the Samsung employees is shown below:

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Figure 10.1: Six Sigma Organizational Structure (Redactie Management Career, 2017)

Yellow Belt:
Yellow belt positions were nearly equivalent to the Green belts. They had an essential
information of and they didn't lead extends individually. They were typically the colleagues of
a Six Sigma venture and were in charge of the advancement of process maps, gathering
information, and were capable of running little process upgrades.

Green Belt:
Green belt had intermediate duties and they work directly under the direction of black belts.
These professionals were the ones who process the information accumulated by the yellow
belts utilizing six sigma tools. They would likewise instruct and lead other green and yellow
belts. They were typically prepared and utilized their preparation once a day alongside their
work.

Black Belt:
Candidates for Black Belts were selected rigorously and obtained four to five weeks of training
on Six Sigma, focusing more on statistical methods along with actual Six Sigma project work
(Hoerl, 2001). These members supervised the entire undertaking and acted as mentors to their
colleagues. They were amongst the top contributors to six sigma activities and execution.

Some of the responsibilities of black belts included:

 Preparing a project charter.
 Help team members design experiments and analyze the data required for the project.
 Lead the project team and recommending additional six sigma projects

Master Black Belt:

Master Black Belt took the position of authority as attendant of the Six Sigma process,
consultant to administrators or business unit managers, and influenced, his/her abilities by
undertakings that were driven by black belts and green belts. Master Black belts reported
specifically to senior administrators or business unit managers. Master Black belts

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 demonstrated to be change specialist, pioneer, facilitator, and technical expert in Six Sigma
administration (Gitlow, H. & Levine, D., 2004)

11.Potential Weakness of The Projects In Samsung

There were two empowering agents existing with SCM and Six Sigma,

Need of change:
on account of dealing with the alteration management and the development. To start with,
Samsung every now and then required a few changes in project extends that needed to be
possible with the capacity of the current framework.

Global market risk:

Secondly, with electronics being a quickly evolving business sector, the end goal for Samsung
was to improve worldwide supply and secure markets ahead of competing organizations. The
jobs of SMEs were certainly to be expanded. Samsung's best administration had a sentiment of
emergency, in light of the fact that the firm turned into a quick supporter. Also, they had a
feeling that their management wouldn’t survive any longer in this situation

SCM Six Sigma had a basic segment for making a considerable measure of changes in
development, which would connect with vulnerability of business exercises. That was thought
upon, as the procedures and the framework itself by expanding the expense and hazard. Since
theory of inventive problem solving was a system which needed a great deal of time to learn
and apply, it was important to prepare inside workers through efficient instructional classes
with hands-on training. Additionally, since theory of inventive problem was another
framework being actualized at Samsung, it was required to enlist outside theory of inventive
problem authorities to bear on the instructive courses at their instructional hub. TRIZ was
looked upon as a science and adjust the innovation foreseeing strategies for business-to-
business applications.

12.What Worked Well?

Implementing Six Sigma throughout Samsung company was a success and is mainly due to the
following factors:

1. Solid proactive help with required assets, and an organisation wide training and
learning was given by best management.
2. Acknowledgment and execution of Six Sigma's essential trainees by representatives.
3. Linkage with all inventive and framework exercises
4. Exact and reasonable assessment of all effective Si x Sigma ventures, with important
acknowledgment and prizes for representatives.

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 The Black Belt program had delivered profoundly qualified and capable SCM authorities, who
transferred the required philosophy to individuals in their associations and driving SCM
ventures. SCM ventures were prepared and led in a more efficient way and their results were
constantly checked and shared through the organization's store.

13.Conclusion:
With Supply Chain Management being looked upon just as a practice for inventory
management, Samsung was one of the first few firms to have successfully integrated SCM with
Six Sigma to bring quality measures to entire process from manufacturing to the delivery and
return of the product. The approach was fostered with a belief that the only way to attain the
maximum potential of a system to bring quality measures to the entire process. Samsung
accepted SCM with Six Sigma as a strategic measure to improve the entire business operation
but modifying the generic Six Sigma technique by incorporating the “Enable” phase. To manage
the complications resulting from modification, Samsung modified DMADOV and DMAEV and
developed support systems to analyse the successful companies to analyse their approaches.
With a solid structure in place, the team adopted the Structured Six Sigma Belt system to ensure
that the company policies are driven by proficient workforce.
All these efforts reflected in the for improved supply, manufacturing, logistics and inventory
management. These improvements reflected in the form customer satisfaction. The customer
driven approach from manufacturing to delivering ensured that Samsung started dominating the
electronics market. Samsung since, have used the feedback from past projects to further improve
the future projects. The constant monitoring and review has enable a sustainable development
for the firm.

14.Recommendation and Future direction

The approach for SCM with Six Sigma by Samsung is now a benchmark to other emerging
firms. There are various strategies for the process improvements these days. Among them, the
six sigma is most preferable for the supply chain management for the process optimization.
Samsung implementing six Sigma proved to be very successful and offers a simplified
explanation for the trends. There are few recommendations that could possibly help the
Samsung and other emerging companies for the quality development.

 While implementing the Six Sigma to the process, it should be verified to the sub
process of a system.
 The strategies which are being implemented should be fully documented for the future
references.
 Each department involved in this process must be educated with the benefits of this
improvement process
 Every phase or department must have top leader who has experience in the Six Sigma.
 The small achievements must be celebrated in order to maintain the confidence in the
group of employees.
 It is important to verify the consistency and quality of a process.
 The market is driven by the customers, translating the demands of customers is the
utmost important factor to stay ahead of competition.

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15.References

Birkinshaw, J., Hamel, G., & Mol, M.J. (2008). Management innovation. Academy of
Management Review, 33(4), 825-845.

Breyfogle, F 1999, Implementing Six Sigma: Smarter Solutions Using Statistical Methods,
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Gitlow, H. and Levine, D. (2004), Six Sigma for Green Belts and Champions: Foundations,
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Hammer, M 2002,’Process management and the future of six sigma’, MIT Sloan Management
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Hoerl, R. (2001). Six Sigma Black Belts: What Should They Know? Journal of Quality
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Jong-Yong Yun and Richard C.H. Chua 2002, Samsung Uses Six Sigma to Change Its Image,
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Kelly Tatum Kiling 2013, SCM Six Sigma in Samsung, Accessed on 1st November, 2018.
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Mazzola, M., Gentili, E. and Aggogeri, F. (2007). SCOR, Lean and Six Sigma integration for
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Mo Yang, H., Seok Choi, B., Jin Park, H., Soo Suh, M. and Chae, B. (2007). Supply chain
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Swartwood, D. (2003). Using lean, six sigma, and SCOR to improve competitiveness. [ebook]
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Tedd Hessing 2014, Design for Six Sigma (DFSS, DMADV, IDDOV, DMADOV), Six Sigma
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