Supply chain management six sigma: a management innovation methodology at the Samsung Group

Abstract

PurposeThis paper seeks to introduce a six‐sigma based methodology for the SCM domain which was developed and has been used in Samsung.Design/methodology/approachThe paper provides a detailed description of how and why a six‐sigma‐based methodology for the SCM domain was developed in Samsung and presents a real industry case to illustrate the usage of the methodology.FindingsIn Samsung, the effort and investment in synthesizing SCM and six sigma, and developing a unique six‐sigma‐based methodology to improve its SCM operation, have turned out to be fruitful. The Black Belt program has produced highly qualified and talented SCM specialists, who are currently training the methodology to members in their organizations and leading SCM projects. SCM projects are being prepared and conducted in a more disciplined way and their outcomes are continuously monitored and shared through the company's repository.Research limitations/implicationsTo generalize its usefulness, the methodology needs to be applied to the SCM projects of those companies whose organizational and cultural contexts are different from those of Samsung. In addition, the overview of an illustrative SCM project presented in the paper is brief due to space limitations.Practical implicationsToday, SCM is increasingly recognized as a strategic way to innovate a company's business operation. This paper shows that a methodology such as Samsung's SCM six sigma can be the key to conducting SCM projects in a more disciplined way and for fruitful outcomes.Originality/valueThe paper introduces a unique six‐sigma‐based methodology for the SCM domain which has been developed and applied in a leading global manufacturing, financial, and services conglomerate. This methodology could be adapted by other companies for their SCM projects to increase the likelihood of project success.

Reducing the delivery lead time in a food distribution SME through the implementation of six sigma methodology

“…He also emphasized that nature of SCM and Six Sigma is the same where as process redesign or improvement is involved in both (Yang, et al, 2007).…”

“…Benefits of Six Sigma in SC are including the project discipline, sustaining results, human resource development and quantitative strength (Yang, et al, 2007). So that it could be a good idea to use Six Sigma in SC projects in order to improve the SC metrics.…”

Integration of value stream map and strategic layout planning into DMAIC approach to improve carpeting process

“…The Six Sigma DMAIC (Define-Measure-Analyse-Improve-Control) approach has proven itself in a multitude of environments including manufacturing (Kumar & Sosnoski, 2009;Srinivasan, Muthu, Devadasan & Sugumaranl, 2016b) and service sectors (Antony, Antony, Kumar & Cho, 2007;Delgado, Ferreira & Branco, 2010), private and public (Desai & Patel 2009) sectors, governmental (Furterer & Elshennawy, 2005) and non-profit organizations (Cheng & Chang, 2012), and distinct organizations and supply chains (Christopher & Rutherford, 2004;Yang, Choi, Park, Suh & Chae, 2007). Significant benefits have accomplished where DMAIC approach and its' associated tools were connected to an organization's problem solving and improvement activities; including reduction of excess inventory, increase equipment availability, and enhance customer value.…”

Measuring business performance in a SCN using Six Sigma methodology - a case study

“…With the advent of SCQM, there appears to be support for the notion that integrating quality and SCM is important to the success of organisation with supply chain orientation involving customers, suppliers, and other partners (Pagell, 2004;Robinson and Malhotra, 2005;Foster et al, 2011). Yang et al (2007) also emphasised the role of Six Sigma and SCM techniques for process and quality improvement with the help of real industry case study.…”

“…Work by Batson and McGough (2007), highlighted the need for supply chain quality modelling tools to augment the vast array of quality tools used to predict and improve quality within a single corporate entity, as application of quality engineering to the manufacturing supply chain is an area that has not been fully explored. Yang et al (2007) emphasised the role of Six Sigma and SCM techniques for process and quality improvement with the help of real industry case study. While SCQM is still in the definitional stage, rigorous studies of SCQM practices and tools have yet to emerge (Foster et al, 2011).…”