Samsung has a history of strong supply chain. However, in
2004, company believed that it could improve its global business operations by
using six sigma. The company was of the
opinion that there were four areas within the company that six sigma aligned
with supply chain operations. These were:
1.
Quantitative strength
2.
Project discipline
3.
Sustaining results
4.
HR framework
SCM and six sigma were thus combined by training the supply
chain staff that could lead innovations to improve operations. In order to further improve supply chain, the
SCM Business team of Samsung looked towards other companies like GE, Honeywell
and DuPont that had used six sigma similarly.GE had successfully customized the
six sigma approach of process innovation for product development and system
design and implementation within the company. DuPont had interpreted sig sigma
to develop a quality function deployment tool that transformed customer needs
into products, services or processes. Honeywell
developed the Six Sigma Plus method that linked lean manufacturing tools and
concepts to six sigma.The team analysed these different approaches to come up
with the Samsung Six Sigma methodology.
The Team’s Findings:
·
Six Sigma in SCM either focuses on either
process redesign or Process improvement
·
The DMADOV (define, measure, analyze, design,
optimize, verify) model used for designing a process using Six Sigma was not
enough for Samsung SCM projects for which they had to introduce “Enable”
instead of design and optimize
·
System development option –The DABTL (define, architect, build, test, launch)
approach was used to support system building
The approach that they came up
with was the DMAEV- define, measure, analyze, enable, and verify. To this they
added the “five design parameters- process, operation rule and policy,
organization role and responsibility, performance measure, and system”, and
also other relevant tools like value chain map techniques and value analysis
methods.
Design principles to guide SCM
six sigma projects were made. These include:
·
Global optimum: All ideas must effect a positive
change not only locally, but on the entire process. If possible, the idea
should improve both upstream and downstream processes.
·
Process KPI mapping: Using key performance indicators
improves the credibility of the approach and monitors the process to help
manage improvement goals
·
Systemization: Use systems to effect positive
process and behavioral changes
·
Five
design parameters: SCM uses the five design parameters to characterize the
changes through the process.
Six Sigma has played a facilitating
role in the success of Samsung moving towards a global optimum in terms of
processes. However, Samsung claims that there is still room for improvement as
far as supply chain is concerned. What changes can you think of that Samsung
could make in managing the supply chain of any particular line of its products?
Do you think that today, it has managed to bring about consistent innovation
after adopting Six Sigma?
I want to start the consultancy business and In this business product quality is the most important factor and by the six sigma training I am getting the knowledge about the importance of the quality of the products...........
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