Samsung is a South Korean multinational conglomerate company

headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries

and affiliated businesses, most of them united under the Samsung brand, and
is the largest South Korean chaebol (business conglomerate).

From the beginnings as a small trading company,

Samsung has evolved to a world-class corporation
with businesses that span advance technology,
semiconductors, skyscraper and plant
construction, petrochemical, fashion, medicine,
finance, hotels and more. The discoveries,
inventions and breakthrough products have
allowed them to be a leader in these fields,
constantly pushing the industries forward.

Revenue: US$ 305 billion (2014)

Samsung Town in Seoul Net income: US$ 22.1 billion (2014)
 HISTORY
Samsung was founded by Lee Byung-chul in 1938 as a trading
company. Over the next three decades, the group diversified into areas
including food processing, textiles, insurance, securities and retail.

Samsung entered the electronics industry in the late 1960s and the
construction and shipbuilding industries in the mid-1970s; these areas
would drive its subsequent growth. Following Lee's death in 1987,
Samsung was separated into four business groups – Samsung Group,
Shinsegae Group, CJ Group and Hansol Group.

Since 1990, Samsung has increasingly globalized its activities and

electronics; in particular, its mobile phones and semiconductors have Lee Byung-chul
become its most important source of income.
 SAMSUNG SUBSIDIARIES
Notable Samsung industrial subsidiaries include:

• Samsung Electronics (the world's largest information technology company

measured by 2012 revenues, and 4th in market value),
• Samsung Heavy Industries (the world's 2nd-largest shipbuilder measured by
2010 revenues),
• Samsung Engineering and Samsung C&T (respectively the world's 13th and
36th-largest construction companies
• Samsung Life Insurance (the world's 14th-largest life insurance company),
• Samsung Everland (operator of Everland Resort, the oldest theme park in
South Korea) and
• Cheil Worldwide (the world's 15th-largest advertising agency measured by
2012 revenues).
 Apparels

Telecommun
Chemical
ications

PRODUCTS
Consumer
Ships
Electronics

Electronic and
Semiconductors Medical
Equipments
 Information and
Communication
Technology

Financial
Construction
Services

SERVICES

Entertainment Advertising
 Key people of Samsung

Lee Kun- hee : Chairman of Lee Jae- yong : Vice chairman of

Samsung Electronics Samsung Electronics
 The philosophy of Samsung
1. On the Basis of Human Resources & Technologies
•Make the extension of human resource development and technical superiority
with management principles
•Increase the synergy effect of the whole management system through human
resources and technologies

2. Create the Best Products and Services

•Create the products and services that give customers the best satisfaction
•Retain the 1st position in the world in the same line of business

3. And Contribute to Society

•Contribute for common interests and a rich life
•Perform the mission statement by a member of the community
 TOTAL QUALITY MANAGEMENT

To understand the meaning of “Total quality management”, let us first know what
does Quality mean?

Quality refers to a parameter which decides the superiority or inferiority of a

product or service. Quality can be defined as an attribute which differentiates a
product or service from its competitors. Quality plays an essential role in every
business. Business marketers need to emphasize on quality of their brands over
quantity to survive the cut throat competition.
Total Quality Management

Total Quality management is defined as a continuous effort by the management as

well as employees of a particular organization to ensure long term customer loyalty
and customer satisfaction. Remember, one happy and satisfied customer brings ten
new customers along with him whereas one disappointed individual will spread bad
word of mouth and spoil several of your existing as well as potential customers.
 Samsung Uses Six Sigma To Change Its
Image

• Samsung Electronics Co. (SEC) of Seoul, Korea, is perfecting its fundamental

approach to product, process and personnel development by using Six Sigma as a
tool for innovation, efficiency and quality.
• 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.
• Six Sigma was added to upgrade these existing innovations and improve SEC’s
competitive position in world markets
 What is Six Sigma?

Six Sigma at many organizations simply means a measure of quality that

strives for near perfection. Six Sigma is a disciplined, data-driven approach and
methodology for eliminating defects (driving toward six standard deviations
between the mean and the nearest specification limit) in any process – from
manufacturing to transactional and from product to service.

To achieve Six Sigma, a process must not produce more than 3.4 defects per
million opportunities. A Six Sigma defect is defined as anything outside of
customer specifications.
 The Six Sigma methodology is defined by 5 DMAIC steps. DMAIC is the
acronym for Define – Measure – Analyse – Improve – Control. In addition to the
5 DMAIC steps, there is also a step zero that occurs first. It is known as Six
Sigma Leadership.

Step Zero - Leadership

The first section provides specific details about the 6 steps of the Six Sigma
process. Training for Six Sigma is offered in a traditional live classroom option and
an online self-paced program both scenarios will cover the DMAIC method in
detail.
DMAIC
The four factors that have made Six Sigma successful throughout Samsung’s
international operations and culture are:
• Strong proactive support with required resources provided by top management.
• Acceptance and implementation of Six Sigma’s basic disciplines by employees.
• Linkage with all innovative and infrastructure activities.
• Accurate and fair evaluation of all successful Six Sigma projects, with
meaningful recognition and rewards for employees.
 Other Techniques adopted by Samsung to
achieve TQM
• CUSTOMER SATISFACTION INDEX

Samsung Engineering regularly conducts Customer

Satisfaction Index (CSI) surveys to assess client satisfaction,
address client complaints, and identify areas for improvement.
Phase-by-phase surveys are conducted at each stage of the
project (engineering, procurement, construction,
commissioning, etc.). The resulting project score is monitored
to allow the team to continuously improve client satisfaction.
Upon completion of the project, the client is asked to submit
final feedback in the form of a written report, the conclusions
of which are incorporated into Samsung Engineering’s
company-wide quality management practices.
• COST OF POOR QUALITY MANAGMENT

In the EPC business, failure to conduct quality management can result in significant
unnecessary costs. Seeking to avoid overages, Samsung Engineering engages in Cost
of Poor Quality (COPQ) control activities designed to prevent and mitigate quality
issues across the entire operation of the company, including rework, delays in
delivery of materials / equipment and interruptions in the construction schedule.
This initiative helps reduce project execution costs while, at the same time, improve
client satisfaction.
 • AUDIT PROGRAM
Samsung has set up and is operating the Corporate Audit Program, covering all
semiconductor sites, to upgrade the level of the quality management systems by
creating a desirable culture of objective diagnosis and improvement.

Auditor Training
Our company has divided the
qualifications of internal auditors
into 3 categories while training and
controlling auditors specialized in
each category.
(Auditor Career Path : Basic Course
for Auditor → National Certified
Auditor → International Certified
Auditor)
 Ongoing Audit
Company has seen improvement in all areas of semiconductor manufacturing by conducting
the ongoing audits for each purpose at the corporate and each individual site levels.
•Corporate Level
• Internal : Corporate Theme Audit (It is the system under which the audit is conducted
at the corporate level to diagnose and improve weak areas at the corporate level and to
prevent the occurrence of accidents.)
• External : Supplier Audit (It is the system under which the audit is conducted to ensure
improvement by providing new certification, the ratings, and the incentives for
suppliers.)
•Site Level
• Internal : Quality system, Site theme audit
• External : Supplier & Subcontractor audit
• Customer : Customer audit (SAMSUNG & Samsung's subcontractor)

Audit Information Control Infrastructure

Our company conducts an integrated control of all information generated from the
establishment stage of the audit plan until it is closed upon its conclusion.
 References

• http://www.samsungengineering.com/sustainability/quality/common/suView

• https://www.isixsigma.com/new-to-six-sigma/getting-started/what-six-sigma/

• http://www.samsung.com/semiconductor/about-us/quality-management/#CERTIFICATIONS

• https://www.google.co.in/search?biw=1366&bih=613&noj=1&tbm=isch&sa=1&q=total+qualit
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