LG Electronics (LGE), part of South Korea’s LG Group, was the first LG company to embrace Six Sigma back in 1996 (about the same time as GE). As shown in the timeline below (2000 Annual Report), LGE has a solid history of innovation activities and quality improvement activities dating back to 1989.
Since 2000, LGE has launched additional initiatives such as Digital Manufacturing System (DMS) and Tear Down & Redesign (TDR). The TDR initiative is based on Six Sigma and is used throughout all areas of the company including R&D, marketing, production, and design.
“Since 1996, LG Electronics has been pushing 6-sigma innovation campaigns in all divisions including product development and manufacturing. All employees are encouraged to carry out one or more projects each year to accomplish the 6-sigma objectives (reducing defective products to below 3.4 per 1 million) in their respective fields. This project is extended to parts suppliers to ensure consistent quality standards.”
Savings and Benefits
“Driven by the strong growth of premium products, including popular washing machine and refrigerator models, LGE sales of digital appliances in 2002 were up a sharp 21.7% over the previous year, totaling 6.04 trillion won. This impressive performance, augmented by vigorous cost-saving 6 Sigma activities launched in and out of Korea, enabled the Digital Appliance Division to attain a remarkable 10% operating profit margin.”
“Intelligent selection of production sites, six sigma efficiency strategies, and proven quality all contributed to overseas sales increases of 36% for air conditioners and 22% for refrigerators.”
Articles and Links
Global CEO S.S. Kim(An excellent resource for news and information about S.S. Kim and LGE)
LG Electronics to Push Up Productivity,Global CEO S.S. Kim, January 8, 2004
Six Sigma Based Management at LG, Bon-Moo Koo Website (Brief descriptions of the LG companies that are using Six Sigma)
Business Activities -Six Sigma, Bon-Moo Koo Website
LG and the Six Sigma Sense, Business Line, November 10, 2001