• Journal of Distribution Science
• /
• v.13 no.11
• /
• pp.123-130
• /
• 2015

Purpose - Due to highly elevated levels of competition, many companies today have to face the problem of decreasing profits even when their actual sales volume is increasing. This is a common phenomenon that is seen occurring among companies that focus heavily on quantitative growth rather than qualitative growth. These two aspects of growth should be well balanced for a company to create a sustainable business model. For supply chain management (SCM) planners, the optimized, quantified flow of resources used to be of major interest for decades. However, this trend is rapidly changing so that managers can put the appropriate balance between sales volume and sales quality, which can be evaluated from the profit margin. Profit optimization is a methodology for companies to use to achieve solutions focused more on profitability than sales volume. In this study, we attempt to provide executional insight for companies considering implementation of the profit optimization system to enhance their business profitability. Research design, data, and methodology - In this study, we present a comprehensive explanation of the subject of profit optimization, including the fundamental concepts, the most common profit optimization logic algorithm -linear programming -the business functional scope of the profit optimization system, major key success factors for implementing the profit optimization system at a business organization, and weekly level detailed business processes to actively manage effective system performance in achieving the goals of the system. Additionally, for the purpose of providing more realistic and practical information, we carefully investigate a profit optimization system implementation case study project fulfilled for company S. The project duration was about eight months, with four full-time system development consultants deployed for the period. To guarantee the project's success, the organization adopted a proven system implementation methodology, supply chain management (SCM) six-sigma. SCM six-sigma was originally developed by a group of talented consultants within Samsung SDS through focused efforts and investment in synthesizing SCM and six-sigma to improve and innovate their SCM operations across the entire Samsung Organization. Results - Profit optimization can enable a company to create sales and production plans focused on more profitable products and customers, resulting in sustainable growth. In this study, we explain the concept of profit optimization and prerequisites for successful implementation of the system. Furthermore, the efficient way of system security administration, one of the hottest topics today, is also addressed. Conclusion - This case study can benefit numerous companies that are eagerly searching for ways to break-through current profitability levels. We cannot guarantee that the decision to deploy the profit optimization system will bring success, but we can guarantee that with the help of our study, companies trying to implement profit optimization systems can minimize various possible risks across various system implementation phases. The actual system implementation case of the profit optimization project at company S introduced here can provide valuable lessons for both business organizations and research communities.

• Journal of the Korea Safety Management & Science
• /
• v.11 no.1
• /
• pp.103-113
• /
• 2009

Motorola which had developed and commercialized wireless telephone and mobile phone for the first time in the world made a decision on the separation of the mobile unit from the Motorola due to the continuous bad performance turn. In addition, the Korean company named Raincom which had developed and commercialized MP3 player have been disappeared since Raincom failed to compete with iPod of Apples. What is the main cause the companies that have been top of the world level weed out of IT product market? For less product life cycle and globalization of market, the company's competitiveness tends to be determined based on company's creative capability, rather than process implementation capability. Thus, companies spent a great amount of time and effort in the introduction of creativity management and R&D activities. However, as company's continuous investment on R&D and innovation activities did not lead to business performance, they starts to pay much attention on the effective R&D and innovation activities. Therefore, this paper tries to solve the limitation of the effectiveness of R&D activities by introducing the concept of 'creative quality'. The creative quality is executed by the creative process, which is designed for getting over the limitation of the traditional brainstorming method. This paper presents the concept so called 'creative quality management' and expects it to be an alternative to conquest the limitation of six sigma management.

• Proceedings of the Safety Management and Science Conference
• /
• 2010.11a
• /
• pp.539-550
• /
• 2010

The study presents the application strategy and understanding of regression analysis with GLM(Generalized Linear Model) unifying with other statistical techniques such as correlation analysis and design of experiment(DOE). The quidelines proposed in this paper can be used for practioners to implement GLM and ANOVA(Analysis of Variance) for the DMAIC 5 steps of six sigma breakthrough.

• Proceedings of the Safety Management and Science Conference
• /
• 2012.11a
• /
• pp.461-471
• /
• 2012

Most useful statistical techniques in six sigma DMAIC are hypothesis testing and interval estimation. So this paper reviews and derives sample size formula by considering significance level, power of detectability and effect difference. The quality practioners can effectively interpret the practical and statistical significance with the rational sample sizing.

• International Journal of Quality Innovation
• /
• v.7 no.3
• /
• pp.82-91
• /
• 2006

In order to achieve sustainable growth in the era of global competitiveness, a speedy and flexible strategy is needed in the fast changing management environment. For this purpose, strengthening the core confidence in the organization along with acquiring competitive advantages that cannot be easily copied by competitors should be done based on dealing with needs from customers and markets positively. In this study, the creative value innovation strategy and creative value design methodology will be presented to improve company competitiveness.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2004.05a
• /
• pp.302-305
• /
• 2004

6시그마 기법은 1987년 Motolora에서 태동하여 그 효과성을 선보인 이래 Texas Instrument, Allied Signal, General Electric 등과 같은 세계적인 선진기업들에서도 혁신적이고 효과적인 개선도구임이 입증되어 전세계의 기업에게로 확산되기 시작했다. 본 논문은 이러한 6시그마 기법을 산업현장에 적용하여 전기 사용량을 절감한 실제사례를 소개한다. 본 논문의 목적은 실제 실행과정을 단계별로 소개함으로써 6시그마 기법을 적용하여 생산성 향상을 추구하려는 실무자에거 적으나마 도움이 되고자 한다.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2005.05a
• /
• pp.579-584
• /
• 2005

A metric is a measure of one factor of a company's performance. The metrics are used to monitor the overall performance of the company for achieving business objectives. Insufficient metrics cannot reflect company's conditions. Therefore, it is important to be equipped with 'good' metrics. This study introduces the concept of metric quality and proposes its dimensions. The study also presents application scenarios that show the role and usefulness of the metric quality.

• Proceedings of the Safety Management and Science Conference
• /
• 2009.04a
• /
• pp.365-370
• /
• 2009

The present study proposes the various hypothesis tests and interval estimations for homogeneous and heterogeneous populations in the continuous and discrete process. These results can be used to complement the QC story 15 steps for quality improvement circle and DMAIC processes for six sigma innovation.

• Journal of the Korea Safety Management & Science
• /
• v.9 no.1
• /
• pp.119-131
• /
• 2007

Engineer and quality statistician use different terms and techniques but they have same meaning and concept. The terms accuracy and precision are frequently used by engineer and scientist in the department of R&D and production technology. This paper makes a contribution to the interpretation of statistical quality techniques by the use of accuracy and precision. Engineer and scientist who have six sigma black belt and statistical background can use efficiently and effectively accuracy and precision in a manner consistent with statistical usage according to this study.

• Proceedings of the Korean Society for Quality Management Conference
• /
• 2006.04a
• /
• pp.149-152
• /
• 2006

In this paper, We study several method of CTQ measurement for improvement of Quality. Measurement are cornerstone of basic improvement of Science and Technology and are considered continuous thesis. In this paper, we survey measure several variable for CTQ for Six sigma. We introduce Taguchi's SN ration Which is important example good measure for improve quality Improvement are succeed by good select measure variable which is called CTQ which should agree problem define and final goal.