Samsungs DFSS: A Journey to Quality and Business Excellence

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Samsungs DFSS A Journey to Quality and Business
Excellence

• Sung Hyun Park
• 2006. 1. 12
• Seoul National University
• parksh_at_plaza.snu.ac.kr

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How important is information?

• How you gather, manage, and use information will
  determine whether you win or lose.
• (Bill Gate Microsoft)

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Statistical thinking will one day be as
necessary for efficient citizenship as the
ability to read and write. (Herbert Wells,
1866-1946)
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INTRODUCTION OF SAMSUNG ROUP Samsungs
organization

• The first small company of Samsung was founded
  
• in 1938 and began to grow since then.
• In 1969, Samsung Electronics was founded and
• then Samsung Group was eventually formed.
• The group consists of 45 companies including
  the
• leading company, Samsung Electronics Co.,
  LTD.
• The major characteristic of the group is their
  
• unrelenting commitment to being the best.
• Especially, the best in quality and value
  innovation.

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• The top 10 Samsung companies in sales and the
• number of domestic employees as of 2004 are
  as
• follows. (total employees about 200,000)
• -------------------------------------------
• Samsung Electronics (36.4 billion, 88,000
  persons)
• Samsung Life Insurance (19.3 billion,6,314
  persons)
• Samsung Corporation (7.54 billion, 4,240
  persons)
• Samsung SDI (4.01 billion, 8,140 persons)
• Samsung Heavy Industries (3.46 billion, 7,918
  persons)
• Samsung Card (3.14 billion, 2,940 persons)
• Samsung Electro-Mechanics (2.2 billion, 7,800
  persons)
• Samsung Atofina (1.7 billion, 890 persons)
• Samsung Techwin (1.5 billion, 3,915 persons)
• Samsung SDS (1.47 billion, 7,085 persons)
• -------------------------------------------

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• The groups main business is electronics
  which has
• grown dramatically in recent years.
• Samsung Electronics had impressive
  achievements
• number one world-wide in flash memory,
  DRAMs,
• SRAMs, color TVs, monitors, DVD Combos, and
• LDI(LCD Driver ICs). Also number one in
  Europe,
• number two in the US in LCD TVs, and number
  three
• in mobile phones.

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Samsungs strength in RD

• As of December, 2005, the RD personnel
  becomes
• 28,000 among all employees of about 90,000,
  which
• is roughly equal to 31 of total employees.
• In 2005, the company spent about 9.2 of total
  
• sales for RD, and in 2005 it plans to spend
  about
• 10 of total sales for RD. The total number
  of
• research institutes of this company is 42
  including 11
• institutes abroad.

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2. SAMSUNGS MANAGEMENT INOVATION

• The recent major management innovations in
  Samsung
• may be chronologically summarized as follows.
• - 1984 TQC/TPM (Total Quality Control /
  Total
• Productive Maintenance)
• - 1993 New Management / TQM
• - 1996 PI / ERP (Process innovation,
  Enterprise
• Resources Planning)
• - 1998 e-Biz / Digital Management
• - 2000 Six Sigma
• Here New Management was the management
  philosophy
• which was announced by the president Lee
  Keun-Hee,
• that quality is the top priority among all
• aspects of company outputs.

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Samsungs preparation for the future
Our goal is to increase worlds number 1
products up to 30 by the year 2006 The key
Success Factors are?People and technologies?!!
(Gun Hee Lee, Chairman ,2001.7 )

• Top Talents
• Quality first
• Frontier Technologies
• through RD

We have to preoccupy the market by identifying
what we can do the best for next 510 years.
The focus should be on the leading edge
technologies and top talents(2002. 4)
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3. SAMSUNG SDI THE LEADER OF SIX SIGMA IN
SAMSUNG3.1 Introduction

• The First National Quality Prize of Six Sigma
  was
• given to two companies. One is Samsung SDI
  and
• the other is LG Electronics, which are
  virtually the
• leaders of Six Sigma in Korea.
• Samsung SDI was founded in 1970 as a producer
  of
• the black/white braun tube. It began to
  produce the
• color braun tube from 1980, and now it is
  the
• number one company for braun tubes in the
  world.

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3.2 Why Six Sigma?

• Since its founding in 1970, it has employed
  several
• quality management strategies such as QC,
  TQC/TPM,
• TQM/ISO9000, and PI as shown in Figure 1. In
  1996, it
• began PI as the beginning stage of Six Sigma.
  Note
• that the direction of evolution in management
  strategies
• is from manufacturing areas to all areas of the
  company,
• and from product quality/small group activities
  to
• process innovation and redesign.

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Figure 1. Evolution of quality management
strategies in Samsung SDIproduct
quality/small group activity ? process
innovation redesign
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Figure 2. The necessity of Six Sigma
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3.3 Vision of Six Sigma

• The CEO of Samsung SDI, Son Wook, declared
  the
• slogan "True leader in digital world" as the
  Six Sigma
• vision at the end of 1996.
• The definition of Six Sigma in the company is
  "Six
• Sigma is the management philosophy, strategy
  and
• tool which achieves innovative process
  quality and
• development of world number one products, and
  
• which cultivates global professional
  manpower, and
• a way of thinking and working from the
  viewpoint of
• customer satisfaction.

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Figure 3. The vision of Six Sigma
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3.4 Major implementation of Six Sigma3.4.1
Realization of champion leadership

• Six Sigma is basically a top-down management
  tool.
• For implementation of Six Sigma, executive
  officers
• (i.e., champions) should be the leaders of Six
  Sigma.
• In Samsung SDI, the following points have been
  
• implemented for champion leadership.
• ? Champion education all champions take the
• champion education course of 4 days, and
  they
• obtain the GB certification.
• ? Champion planning Each champion is
  supposed
• to plan a 'Six Sigma roadmap for his
  division twice
• a year. The champion selects the themes of
  projects,
• and he supervises the Six Sigma plan for
  his division.

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• ? Champion day One day each month is designated
  
• as the champion day. On this day, the
  champions
• wear Six Sigma uniform, and discuss all kinds
  of
• subjects related to Six Sigma. Examples of
  champion
• planning, best practice of champion
  leadership, and
• best practice of BB projects are presented on
  this
• day.

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3.4.2 Project selection and implementation

• Projects are selected by considering the company
  6Y,
• which comprise company-wide CTQs, and each
• division's goal and objective. As of 2005, the
  company
• 6Y are as shown in Table 1.

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Table 1. Matrix mapping for project election
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Table 2. Belt system qualification and
maintenance
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3.4.3 Samsungs DFSS

• Samsung DFSS goes from strategic planning to
  project completion

Samsung DFSS 3T usual DFSS

• Tech. Roadmap
• Tech. Tree
• TRIZ

• VOC / QFD / CTQ
• DOE / Robust Design
• Scorecards / Reliability

? 80 of RD project success is decided in the
first step.
- Technology Roadmap Plan strategy together
with customer ? Right Strategy Setting -
Technology Tree Bring out core
technology ? Right Project
Planning - TRIZ
Excavate creative ideas
? Problem Solving
SAIT requires 3T methodologies before starting
design review.
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Analysis of Usual DFSS
Strong Points at Samsung
Weak Points at Samsung
Vital Few X Selection
Functional Flow Diagram
Strategy
Start
Market Segmentation
QFD-3
Business Plan
Process Mapping
Strategic FMEA
CE Matrix
Concept Engineering Design Score Card Big Y
Selection
VOC Collection
Process FMEA
KJ Method
Control Plan
QFD-1
Capability Analysis
Doing Experiment Optimization with Robust
Concept Generation
DOE
Pugh Concept Selection
RSM
QFD-2
Taguchi (Robust Design)
End
SPC
Weak Points at Samsung
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Why 3T ?
Why is this area Weak Points ?
Strategy
Start
Market Segmentation
Industrial trends and technology forecasting are
weak.Market can be driven by new technology.
Business Plan
Strategic FMEA
Concept Engineering Design Score Card Big Y
Selection
VOC Collection
Not enough tools at this stage. Relies on
brainstorming ideas, modeling and tradeoff
analysis.
KJ Method
QFD-1
Concept Generation
This method combines only partial ideas to be
formulated into final solutions.
Pugh Concept Selection
QFD-2
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How Do We Correct This Situation?
Technology roadmap (TR) maximizes business
efficiency of RD activity. We could share
strategy and goal between RD and business
unit. Thus avoid duplicated RD activities.
Strategy
Start
Market Segmentation
Technology RoadMap
Business Plan
Strategic FMEA
3T DFSS SS DFSS
Concept Engineering Design Score Card Big Y
Selection
VOC Collection
KJ Method
QFD-1
Technology Tree
TRIZ
Concept Generation
Technology flow down Project Planning is done
by Technology Tree (TT). TT will be done in
parallel with QFD.We could make a concrete
action plan. TT helps systemic development of
RD project from basic principles to technology.
Pugh Concept Selection
QFD-2
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Technology Roadmap Process (TR)
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A Strategic Technology Roadmap

• The strategic technology roadmap
• is a focused picture of technology
• advances that relate specifically
• to the companys product and
• market focuses.
• It shows advances over time
• It highlights technologies
• relative to targeted products
• and markets
• It shows the possibilities of
• technology advances

TR take a long-range look at technologies. TR is
updated annually.
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Technology Tree (TT)

• Identify the scope of RD Theme
• Deploy the key functions systematically
• Decide core technologies
• Build up project plan. Select outsourcing
  technologies

RD Theme
Core Tech.1
1st Function
2nd Function
Core Tech.2
2nd Function
Core Tech.3
2nd Function

Function deployment from basic principle to
specific technologies of RD project.
1st Function
1st Function
Principle Functions Basic Functions
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TRIZ Problem Solving Logic
CONVENTIONAL Approach
Specific Experimental Knowledge Area
Engineering experience Specific knowledge
REAL problem
REAL solution
Trial Error Random Way
1. Evaluation 2. Implement model solution
Whole system. Abstraction. Simplify
TRIZ Approach
Recommended Milestones (ARIZ, etc.)
MODEL problem
MODEL solution
Human Innovation knowledge
(Patents)
TRIZ is a thinking methodology to generate
alternative innovative design concepts, to
stimulate innovations achieve breakthroughs in
design.
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DFSS with TRIZ
DESIGN
Optimize
DEFINE
MEASURE
ANALYZE
VERIFY

• Define PJT
• Customer
• Define CTQ
• Define
• Scope OBJ

• Process
• Mapping
• Define Critical
• Process related
• to CTQ

• Analyze process
• characteristics
• ( problem )
• Choose problem
• solving strategy

• Verify the design
• Plan for design
• improvement

I. Define problem
II. Define ideal result
III. Concept by TRIZ . Standard solution
Needs of breakthrough concept
IV. Concept evaluation
NEED
V. Concept implementation
Optimization
NO NEED
NO
YES
DOE/Taguchi
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Develop Concept of Fundamental Patent
DESIGN
OPTIMIZE

• PJT Background
• PJT Boundary
• PJT Milestone

• VOC
• CTQ
• Function
• requirement
• Product
• requirement

• Reproducibility
• Reliability
• Patent filing

I. Define Problem
Concept Implementation
II. Define Ideal Result
Parameter tuning by DOE/Taguchi
III. Generate concept by TRIZ
Identify system/ surrounding/sub
IV. Assess concept
Identify available resources
V. Choose concept
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TRIZ Project Process (DAGEV)

• 5 Steps along TRIZ Project Process
• Standard Deliverables after Each Step

III.GENERATE
Problem Model
Concept Solution
II.ANALYZE
IV.EVALUATE
Problem Situation
Practical Solution
V.VERIFY
I.DEFINE
Final Solution
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SAITS RD Process DFSS Methodologies
Project initiation
Project execution
Strategy
Main stage
Starting DR
Validation DR
Completion DR
Portfolio Deliberation
Product DR
Gate
Planning DR
Value and Vision
Value for customer
Concept start
Feasibility study
Technology development
Process development
Transfer
Stage
Supporting Business
Process for Mass production
Activity
Customer Satisfaction Research
Strategy Set up
Idea Generation
RD
Goal Setting
Technology Roadmap
Technology Tree
QFD
TRIZ
DOE
Main Tools
Robust Design
CTQ Realization
Customer Total Life Cycle
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Right RD Project Select Proper 6s Project
Complete RD Proj
Sigma Proj . (BB, GB)
Success in Sigma Proj.
Project Manager Planning - Select 6
Sigma Project
BB,GB Project execution
TR
Project Roadmap
Success in RD Proj.
Proj 1 Proj 2 Proj 3 Proj 4 Proj 5
Technology Strategy
RD Proj. Score Card
Sigma Proj. Score Card
Project Plan
TT
Technology Acquisition Strategy
Fail in Sigma Proj.
Fail in RD Proj.
Problem Solving key
TRIZ
Clue of Contradiction
Proj N
BB/GB Project Review
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Link RD process DFSS Using Scorecard
RD Process
Concept Start
Feasibility Study
Tech. Process Development
Transfer
Value for Customer
Planning DR
Starting DR
Validation DR
Completion DR
Product DR
Scorecard
Score Card
Analyze
Design
Optimize
Verify
Define
Measure
Samsung (SAIT) DFSS
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3.4.4 Major results of Six Sigma

• ? The pre-tax profits for the Six Sigma beginning
  
• years 1998, 1999, 2000 were 51.7 million,
  166.7
• million, and 600 million, respectively,
  exhibiting
• dramatic yearly increases. The excellent Six
  Sigma
• programs contributed to the sharp increases.
  In 2004,
• the total sales became more than 4 billion.
  The
• financial benefits from the project teams in
  2004 were
• 46 million from BB projects and 45 million
  from GB
• projects.

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• ? The quality cost (prevention cost, appraisal
  cost and
• failure cost combined) in 1999 was 0.38
  billion, or
• 11.3 of total sales. However, due to
  intensive
• project activities to reduce the quality cost,
  the
• quality cost for 2003 was about 0.30 billion,
  or
• roughly 7.5 of the total sales. This
  remarkable gain
• in sales and profit together with reduction of
  quality
• costs attest to the positive effects of Six
  Sigma
• projects.

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4. CONCLUDING REMARKS

• Samsungs management philosophy can be
  summarized
• as follows.
• (1) Production of number one products (best
  oriented)
• (2) Challenge spirit promoted (target oriented)
• (3) Customer priority number one
• (4) Data driven management
• (5) Manpower focused
• (6) One family spirit (unification in the way of
  thinking and language)

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• Samsungs Six Sigma is the
• management strategy to promote the
• above management philosophy.
• Now Six Sigma is the major source of
• Samsungs initiatives in all aspects of
• company activities.

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Chairmans Message (on June 7, 1993)
Quality First - Samsung will consider defects
as a crime. - Change our priority from volume to
quality.
Change to Survive - Change everything except
wife and children. - Change starts from me
with small things.
DONT STAY STILL
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