QUALITY MANAGEMENT IN SAMSUNG

Quality Management In Samsung

Institutional Affiliation

QUALITY MANAGEMENT IN SAMSUNG

Quality Management In Samsung

Introduction
Quality management is one of the most valuable tools that is helping the company in
gaining strategic competitive advantage over their competitors. The requirements and
preferences of customers are increasing continuously because of the increased number of
alternatives and substitutes. It is the first and foremost effort of organization to attract and retain
the customers for a longer period of time, however, due to the changing market dynamics the
churn rates of customers is at a continuous hike. Therefore, the companies are trying to provide
more value to their clients by offering them the best quality of their products at competitive rates
to retain them in a longer run (Yang C. C., 1997). Customers understand the meaning of quality
by evaluating their utility satisfaction level of that product. Therefore, companies have to focus
on improving only those factors of the quality that will increase the satisfaction standards of the
customers (Edvards, 1968). In this essay, the analysis of quality and LEAN management of the
Samsung Company will be to evaluate their procedures to increase the satisfaction levels of their
customers by increasing the quality functions within their organizations (Crosby, 1979).
Samsung Electronics Co: Background
Samsung is the multinational conglomerate organization that is based in the Seoul, South
Korea. It was founded as a trading company in the 1938. In the next three decades, this
organization diversified in the other areas such as retail, securities, insurance, textiles and food
processing. Its entry into the electronic shipbuilding and construction industries was done in the
late sixties. After the passing of its founder named Lee, this organization was divided into three
other companies. Since that event, this group has kept on increasing its business areas in the

QUALITY MANAGEMENT IN SAMSUNG

fields of semiconductors, mobile phones and other products of the electronic industries. As it is
known that the customer satisfaction is given much importance in the electronic industry because
of the volatile and vicious competition in this industry. For that reason, in this essay the focus of
this assignment will be on the electronic items of the Samsung. Samsung have upheld its position
of one of the top mobile phones brand in the world from a number of years. It has manufactured
some of the best phones in the world that remain in the top positions on the mobile ranking
websites for significant time. It has also maintained to produce other great electronic products
that are also doing very well in their particular markets. The reasons behind the ability of
Samsung to maintain the highest level of quality in its construction sites will be discussed in
detail in this essay to increase the understanding of the quality control and LEAN management
procedures within the organization.
The quality improvement model named LEAN management was incorporated in the
organization in the late nineteenth century which enabled the organization to increase its overall
quality within the organization. A number of methods were tested in the organization before this
implementation such as the total process management, total quality management, enterprise
resource management, customer relationship management, product data management, supply
chain management and total quality management (Oakland, 2000.). LEAN and quality control is
the best option of the organization to date as it has enabled the organization to increase its
competitiveness by continuous increase in quality and reduction in different kinds of wastes
(Yang, 2004). The company enjoyed the financial benefit of this incorporation by increasing their
sales more than $1. Billion by 2002.
Quality and LEAN management

QUALITY MANAGEMENT IN SAMSUNG

LEAN management is a manufacturing process tool that is used within the organization
to increase the effectiveness and efficiency of the manufacturing processes within the
organization (Kelchner, 2007). Samsung initiated the LEAN management thrust to increase the
overall efficiency and productivity by implementing this technique in all of the manufacturing
departments within the organization. To analyze the performance of Samsung according to this
technique, in-depth analysis of the organization was done by conducting the primary, as well as
secondary researches.
LEAN management in Samsung
LEAN management process was initially implemented by the Japanese motors company
named Toyota Inc., which enabled the organization to execute drastic constructive changes
within its production facilities. After that, LEAN management techniques were also initiated in
Samsung to reduce the overall wastes within the organization. The resources that were not
adding value to the customers were being discarded in this process to increase higher levels of
efficiency within the organization.
1. In the first step of this process, customer centric approach was applied to the overall
organization. All of the employees were encouraged to think of the benefits of their
clients that motivated all of the employees to work hard to increase the satisfaction level
of their customers.
2. In the second step of this process focus was put to reduce the quality defects in the
organization. As a result, visual image facility was installed in the manufacturing
departments of the organization that analyzed the quality of the manufactured products by
having a closer look. Quality assurance procedures were also stricken in this step of the
LEAN management process.

QUALITY MANAGEMENT IN SAMSUNG

3. Employees working in the manufacturing department were asked to use the cause
analysis technique in their daily life procedures. This practice enabled them to avoid
taking any short term measures to deal with the problems.
4. In case the problems that were identified in the previous stage were much complex, and
workers were not able to solve them then the managers were asked to implement a longterm solution to deal with this issue. This step reduced a significant proportion of the
customer complaints because of the quality control efforts (samsungengineering.com,
2008).
Samsung was able to install an efficient quality control department because of which the
customer satisfaction was increased significantly. This process also helped the organization to
minimize different types of wastes in their manufacturing processes.
Types of Waste in TQM
Waste can be the wasted time, wasted skills, wasted production capacity, wasted space and
wasted materials. Wastes are divided into three major categories

Muda

Muda refers to the useless efforts of the employees that are not regarded by the customers. It
can either be the idleness of the employees or doing unnecessary work that is of no value to the
end users. For example, it was seen in Samsung whenever the workers needed some new parts to
arrive in the production facilities they remained idle and didnt perform any other value able
work in that time.

Muri

QUALITY MANAGEMENT IN SAMSUNG

Muri refers to wastes that are caused by the overburden of work when there is a possibility to
perform that work in simpler ways or with the help of any efficient tools. A number of Muri
wastes were identified in Samsung before the integration of LEAN and quality management
technique such as the poorly and unreliably maintained equipment, poor communication between
the workers and cluttered workplace that was poorly designed. Resultantly, Samsung was not
able to achieve the ultimate level of productivity because of these wastes.

Mura

Mura is the reason that all of the other wastes are generated. It can be understood as the
supply and demand rules in the context of Samsung. Samsung had the capacity to produce 1000
devices in one day and the demand for manufacturing was always fluctuating. Sometimes, the
demand was much lower than the 1000 devices and sometimes orders much larger than the 1000
arrived in the organization. Resultantly, workers were not able to produce all of the required
quantity in the given time and orders were canceled. Muri and Muda wastes were also generated
by this type of waste.
Five Ss and seven types of Wastes in Samsung
It is important to identify the different types of wastes in the production facilities to
initiate the quality controls programs in the organization (Mitra, 1998). Therefore, these were the
seven different types of wastes that were identified by the Samsung in their LEAN management
process (Stephenson, 2014).
1.
2.
3.
4.
5.

Waste from handling and transportation

Overproduction wastes
Wastes due to increased waiting times
Useless motions
Production process wastes

QUALITY MANAGEMENT IN SAMSUNG

6. Excess and useless inventories wastes

7. Wastes from the defects and scraps
Implementation of five S in Samsung
Five S are implemented in organizations to reduce the above-described wastes and make the
whole place more efficient and tidy. These are the prerequisites for almost all of the quality
improvement programs. Samsung takes the five S as a way of simplifying the work environment,
generating new ideas to make the workplace more efficient and strive for the reduction of wastes
through the organization while improving the safety and quality. 5S are the Japanese standards to
make the waste-free organizations, and they are explained in the context of Samsung in the
below lines (HOHMANN, 2011).
1. Seiri
Seiri refers to sort out the workplace in a more organized way that the most important tools
are placed near the employees all of the time. In Samsung, priorities are set for the tools that are
being used by the workers in the manufacturing department that helps them to reduce their
wasted time in searching them.
2. Seiton
Seiton focuses on the systematic arrangement of the manufacturing facilities to reduce the
wasted time of the employees. Samsung have devised their manufacturing plants in a systematic
order that helps to reduce the waste significantly.
3. Seiso

QUALITY MANAGEMENT IN SAMSUNG

Seiso refers to the cleaning activities within the organization. Samsung has enabled strict
cleaning programs within its facilities in which the daily follow ups and mystery checks are done
to uphold the safe and clean environment within the organization.
4. Seiketsu
Seiketsu deals with setting the standards within the organization to ensure conformance in the
quality of the organization. Samsung has enabled various quality standards such as ISO 16949,
ISO 9001 and ISO 9002.
5. Shitsuke
Shitsuke refers to encourage self-discipline within the employees. Samsung also focuses on
educating the employees about the benefits of the all of the above-described programs and their
overall benefit to the organization.
Conclusion
Samsung has integrated the useful quality and LEAN management procedures to meet the
increased demands of customers nowadays. The practices of LEAN management are effectively
implemented throughout the organization and helping it to improve and maintain its overall
quality within the organization. Therefore, the increase in productivity on the quarterly basis and
the amount of economic value added are the key performance indicator that the Samsung is
implementing throughout its manufacturing plants. Moreover, high customers satisfaction index
reduced number of complaints are being used as the key performance indicator in order to
increase the understanding of the satisfaction of customers. Moreover, six-sigma process is used
to measure and maintain the maximum operational capacity of the manufacturing facilities of the
Samsung. However, as it is known that the competition is continuously increasing Samsung will

QUALITY MANAGEMENT IN SAMSUNG

also have to regularly updating its quality control procedures to ensure its long-term survival in
its market.

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QUALITY MANAGEMENT IN SAMSUNG

Bibliography
Crosby, P. (1979). Quality is Free: The Art of Making Quality Certain. New York: :
McGrawHill;.
Edvards, C. D. (1968). The meaning of quality. . Quality Progress , 36-39. .
HOHMANN, C. (2011). Principle of 5 S. Retrieved from http://chohmann.free.fr/5S/fives.htm
Kelchner, L. (2007). How to Improve Quality With Lean Manufacturing. Retrieved from
http://smallbusiness.chron.com/improve-quality-lean-manufacturing-75709.html
Mitra, A. (1998). Fundamentals of Quality Control and Improvement Second edition. . London:
Prentice-Hall International (UK) Limited.
Oakland, J. S. (2000.). Total Quality Management, Second edition. . Jordan Hill, : Oxford:
Butterworth-Heinemann; .
samsungengineering.com. (2008). Quality Management. Retrieved from
http://www.samsungengineering.com/sustainability/quality/common/suView
Stephenson, S. (2014). Eliminating the Seven Wastes. Retrieved from
http://www.labelprinter.com/5s/articles/5s-seven-wastes.php
Yang, C. C. (1997). Quality is the Best Strategy in Competition. Taiwan: APEX International
Management Consulting Co.;.
Yang, C.-C. (2004). An integrated model of TQM and Six-Sigma. . International Journal of Six
Sigma and Competitive Advantage 1(1) , 97-111.

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