The six sigma methodology focuses on eliminating the issues by analyzing the processes that create them. Furthermore, Samsung achieves expansion and high stage of innovations by executing the six sigma model (Allen 2019). The execution of the six sigma model in the company’s supply chain management eliminates and decreases the cost that was linked with holding extra inventory in several cases. The company realized that they can further make improvements in the six sigma in order to enhance innovation in the most effective manner. The company has a history of a strong and effective supply chain. In addition, six sigma reduces the risk of client dissatisfaction by analyzing data that pinpoint which products or service attributes are critical to the customer perception of satisfaction.
In order to successfully implement and modify the six sigma approach the company has observed the strategy of some companies that have successfully modified six sigma (Jung and Chung 2016). Samsung has observed the strategies of Dupont and General electronic to modify the six sigma in the most effective manner. Also, the six sigma methodologies were modified to hold both redesigning and recovering procedures. In addition, six sigma uses quantitative data which can find the flaws and enhance the operations in the most effective manner.
Samsung was trying to find the approaches that can improve supply chain management and six sigma. This was attained by the business in the subsequent ways:
Project discipline: six sigma will help the business to deal with hazard and identify weakness linked with business. This will enable the business to recognize the major reason of issues in supply chain management.
General electric: in the early 1990s the accomplishment of general electric has sanctioned the business to surround the supply chain procedure through process modernization (Salah and Rahim 2019). The achievement of general electric has led the company to execute the same.
The amalgamation of six sigma with the supply chain procedure reference model with the assistance of Dupont will permit the dealer to make effectual communication with the supply chain management partners.
Honeywell: this will make sure the effective utilization of lean methodologies
Furthermore, the dissatisfaction in different areas of six sigma and supply chain has influenced the company to use a combined approach that would improve its international operations. Some of the key reasons that influence Samsung to modify the six sigma methodology include:
The conventional six sigma method was not adequate and effective enough to hold up the supply chain plan and reinstate the plan and optimize steps.
Another important reason is that the three-quarter company's requirements were to remodel plan with the rest recovering procedure, so its approach had to be split accordingly. The final reason is that support structure enablement and execution action had to be constructing into the procedure, which imitates an approach used by General electric.
The company integrated five design structures including process, operation rule and process, organization role and accountability, performance measure, and system. Samsung has used DMAEV methodology to drive supply chain management innovation (Maged et al 2019). It is important to note that the company's main objective of the six sigma approach is to progress the supply chain management process in the most effective manner.
The resulting approach used by SAMSUNG is known as DMAEV tools. The tools focus on defining, measuring, analyzing, enabling, and verifying the current structure. DMAEV is a six sigma structure that spotlights fundamentally on the advancement of the new service, products, or procedure instead of improving a formerly existing one (Salah and Rahim 2019). This methodology defines measure, analyze, enable, and verify.
The objective of the primary stage is to identify the reason for the undertaking, procedure, or administration to distinguish and after that set sensible and quantifiable objectives as observed from the points of view of the association and the stakeholder (Madhani 2016). In this phase the planning of the major project takes place. The customer flow chart, process model, and SCOR models were used in this step.
This step estimates the elements that are basic to quality or CTQs. The key aspects focus on recognizing the basic structure parameters, characterizing prerequisites, and planning scorecards that will evaluate the segments important to the quality. It also helps to reassess hazards and survey the generation procedure ability and item capacity. However, it is imperative to identify which measurements are basic to the partner.
During this stage the main focus is on creating structure choices, distinguishing the ideal blend of prerequisites to accomplish an incentive, and selecting the best segment. The quantitative and qualitative evaluation is used in this stage to assess the effectiveness of each option. In addition, process maps and value stream maps are some of the major tools used in this step.
The particular phase focuses on investigating diverse structure options. However, alternative optimal plans were also selected in this stage. The company selects the option which is highly suitable and effective in resolving the current issue in an effective manner. In this stage, brainstorming plays an important role in identifying different effective options for innovation. After collecting all the effective options the company selects the best options that can fulfill all the major requirements.
This is the final stage. The company approves the plan which is appropriate for all the partners. Also pilot and creation runs were used to assess the quality. In the stage, the desires will be affirmed, arrangements will be extended and all exercises educated will be reported (He et al 2017). However, the outcomes were continuously collected, monitored, and shared. In addition the financial and operational indicators were used to evaluate the performance of the overall approach.
DABTL approach was used to construct a support structure at Samsung. Furthermore, the major aim of this approach is to define, architect, build, test, and launch the system. A similar system was utilized by general motors for incorporating software engineering discipline to six sigma based methodology. In addition, the DABTL approach was employed to identify the system requirements as well as architect, build, conduct tests, and operationalize the system. Furthermore, six sigma plans help in system development.
Also a novel approach is required to support the system building activity (Marzagão 2016). Though many supply chain management projects may require change that can be enabled with active system capacity. Thus it is highly essential to use a method that can provide an optional enablement activity. The particular approach was mainly designed for the development of the systems in the most effective manner. The method is highly effective in increasing performance and eliminating the defects that affect the overall effectiveness of innovative approaches.
Allen, T.T 2019. Design for Six Sigma. In Introduction to Engineering Statistics and Lean Six Sigma (pp. 543-550). Springer, London.
He, Z., Deng, Y., Zhang, M., Zu, X. and Antony, J. 2017. An empirical investigation of the relationship between Six Sigma practices and organisational innovation. Total Quality Management & Business Excellence, 28(5-6), pp.459-480.
Jung, U. and Chung, B.D. 2016. Lessons from the history of Samsung’s SCM innovations: focus on the TQM perspective. Total Quality Management & Business Excellence, 27(7-8), pp.751-760.
Madhani, P.M. 2016. Application of six sigma in supply chain management: Evaluation and measurement approach. The IUP Journal of Supply Chain Management, 13(3), pp.34-53.
Maged, A., Haridy, S., Kaytbay, S. and Bhuiyan, N. 2019. Continuous improvement of injection moulding using Six Sigma: case study. International Journal of Industrial and Systems Engineering, 32(2), pp.243-266.
Marzagão, D.S.L. and Carvalho, M.M. 2016. Critical success factors for Six Sigma projects. International Journal of Project Management, 34(8), pp.1505-1518. Varma, G. and Ravi, J., 2017. Six Sigma in electronics company: A case study on Samsung. International Journal of Research in Management Studies, 2(5), pp.12-25.
Salah, S. and Rahim, A. 2019. Implementing Lean Six Sigma in supply chain management. In An Integrated Company-Wide Management System (pp. 105-111). Springer, Cham.
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