• Journal of Korean Society for Quality Management
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• v.44 no.2
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• pp.341-356
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• 2016

Purpose: The purpose of this paper is to study whether the adoption of Six Sigma quality management by a firm positively affects its financial performance. The correlation between the duration of Six Sigma implementation period and the financial status of the firm is investigated as well. Methods: We conduct the analysis using data from Manufacturing Industry Productivity Panel Survey 2013 provided by Korea Productivity Center and Ministry of Trade, Industry and Energy. Propensity score matching is used to reduce sample selection bias of observational study. Furthermore, we use multiple linear regression in order to study the relationship between the implementation of Six Sigma quality management and financial performance. The return on assets and ratio of net income to net sales are considered as dependent variable and implementation of Six Sigma as independent variable. Results: The indication of this analysis is that implementation of Six Sigma quality management does not significantly enhance financial status. The firms that adopted Six Sigma quality management were categorized into three groups according to the implementation period. Comparison of each group with the firms that do not adopt Six Sigma quality management does not show statistically significant enhancement of financial status. Conclusion: In conclusion, both adoption and duration of six sigma quality management do not affect financial performance significantly.

• Journal of Korean Society for Quality Management
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• v.37 no.3
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• pp.94-101
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• 2009

It is important to measure financial effect of six sigma projects accurately for successful implementation of six sigma in a company. However, researches on methods of six sigma financial effect measurement are relatively new. In this study, frequent error patterns of six sigma financial effect measurement are defined and accurate measurement methods are suggested. And a method of connecting six sigma financial effect to corporate income performance is also suggested which not only assures reliability of financial effect measurement but also helps to align with business strategy.

• Proceedings of the Korean Society for Quality Management Conference
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• 2004.04a
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• pp.155-159
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• 2004

Continuous quality improvement has generally been recognized as an essential requirement for a company to stay in business. For this reason, Six Sigma plays an important role In reducing cost and development time of a product and achieving high quality products in a competitive market. The Six Sigma has proven that it is possible to achieve dramatic performance improvement for conducting business. However, several recognized Six Sigma companies have suffered the financial troubles, even if the Six Sigma should be successfully deployed in their business organizations. In this paper, the reason of this paradox is represented and discussed for a successful Six Sigma deployment, including next generation of Six Sigma.

• Journal of Korean Society for Quality Management
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• v.45 no.1
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• pp.1-10
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• 2017

Purpose: Most enterprises adopt six sigma acts to maximize the business performance with raising the executiveness for the project improvements in each parts. But there are little studies about six sigma actual operations in manufacturing whether the six sigma improvements that have injected a lot of budget, efforts, labours and time are run properly. Methods: This study select 31 interviewees who have MBB or BB from 5 large enterprises running six sigma over 10 years and 5 SMEs running six sigma over 5 years to understand and review the operational status of six sigma actions in manufacturing industry and to secure representativeness. This study identify the operational status of six sigma actions and key factors enhancing or impeding execution of six sigma projects through face-to-face interviews and online surveys by e-mail. Results: This study figured out the operational status of six sigma actions and key factors enhancing or impeding execution of six sigma projects. We used SPSS 16.0 for the reliability and the validity of survey data. Conclusion: There can be a lot of different factors that affect six sigma project improvements besides the key factors from this study. More study need to think of the organization characteristics and the basic conditions and to remedy the unreasonable points and defects rather than following foreign companies and enterprises.

• Korean Management Science Review
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• v.24 no.1
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• pp.147-160
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• 2007

Six Sigma's concept has long been used as an effective way of restructuring the management process of a firm. In literature regarding Six Sigma, a number of successful cases were reported, where Six Sigma based management activities could enhance firm's strategic performance dramatically for year. However, there exist very few researches investigating the effect of Six Sigma on process innovation and quality improvement. Therefore this study propose a research model testing whether Six Sigma innovation could improve process innovation and quality improvement by industrial classification. We collected 332 valid questionnaires from expert in Six Sigma activities, and applied PLS. Empirical results showed that Six Sigma activities could contribute to process innovation and quality improvement.

• Journal of Korean Society for Quality Management
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• v.37 no.3
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• pp.54-64
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• 2009

This study conducts an empirical analysis of how the suggestion activity, most widely used in quality control activities, interacts with the dimensions of learning organizations. The study also attempts to analyze the results of Six Sigma based on sub-dimensions of learning organizations, which are infrastructure, culture and system. In order for learning and innovation to take place in implementing a Six Sigma program, the organizational infrastructure and culture are created and sustained and then, a learning organization system would become effective. In this study, a empirical model is used to demonstrate such an association. The sample consists of 134 organizations who have implemented a Six Sigma program for more than three years. Using the version 16.0 of AMOS for structural equation modeling, the study estimates the structural equation model that has a Six Sigma organization's infrastructure, culture and system as independent constructs, the suggestion system as a mediator, and the performance of Six Sigma projects as a dependent construct.

• International Journal of Quality Innovation
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• v.9 no.2
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• pp.39-56
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• 2008

Six Sigma has been one of main quality improvement approaches since Motorola first invented Six Sigma in 1987. Many scholars and consult experts have discussed the critical success factors of implementing Six Sigma management, but most of them are based on related theories or qualitative analyses. In the paper, we first review critical success factor of Six Sigma status quo based on literature. Then we design the questionnaire and survey China manufacturing enterprises that have introduced Six Sigma management. And finally, we analyze the critical success factors of China manufacturing industry implementing Six Sigma management by using structural equation model and find that leadership and Six Sigma strategy, focus on market and customer, evaluation and motivation, selecting, managing and implementing Six Sigma projects are four critical success factors of China manufacturing enterprises implementing Six Sigma management. At the same time, the paper also presents the relationships between the critical success factors. The results are of important role in China manufacturing industry locating resources, eliminating waste and improving Six Sigma performance.

• Journal of Korean Society for Quality Management
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• v.36 no.3
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• pp.45-54
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• 2008

For successful accomplishment of six sigma innovation, one of the most important factor is performance evaluation and proper compensation. Six sigma project teams are well motivated to perform the projects only when their activities are properly evaluated and reasonable compensations are secured. In this paper, a systematic evaluation system of financial effect of six sigma projects is presented for order-based aerospace industry.

• International Journal of Quality Innovation
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• v.8 no.1
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• pp.1-14
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• 2007

The Six Sigma and Lean Production methodologies suggest that creating value for customers is the objective of a production process or an organisation. In the production context, "added value" dominates the discussion about the creation of value to customers. However, "added value" is often only defined conceptually or discussed at a strategic level, and the link between added value and customer value has not yet been well conceptualised. Therefore, the purpose of the paper is to develop a methodology to measure added value in order to complement the existing performance measures in Six Sigma and Lean Production by conceptualising the link between customer value and added value. The conceptual link "confirms" that quality, time, and costs are the elements of added value, which are transformed into a metric to express customer value. The implementation of the metric recommends the adoption of Lean (Six) Sigma and Lean Accounting (Activity Based Costing), which thus implies that "leanness" is an important "feature" of added value.

• Journal of Korea Society of Industrial Information Systems
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• v.13 no.5
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• pp.124-132
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• 2008

Most companies in Korea that are implementing six sigma programs evaluate belt's project performance based on their own evaluation systems. Financial performance is a major criterion to evaluate project performance. New project evaluation systems which are based on not only financial performance but also non-financial performance need to be presented for better performance system. The study presents the integration system of balanced scorecard and six sigma project evaluation systems to show balanced view points of performance. Each evaluation index of four view points are presented in the study and could be utilized for alternative project evaluation systems.