Embracing the philosophy of “Customers are the best value,” LG Innotek has been trying to come up with innovative activities not only in its products and services, but also in other business areas, including research and development, production, marketing, and administration. Championing the keywords, “early innovation” and “fast execution,” we have vital performance indicators (KPI)-based objectives management system in place, and all the executives and staff will try to acquire the Six Sigma belt (a quality accreditation sign) by practicing no-defect, Six Sigma quality control philosophy and skills. Likewise, we have achieved remarkable improvement and performance through TDR activities every year. Also, to create a corporate culture geared toward being flexible, strong, and undaunted, we are continuing to pursue the “one person, one project” in-house innovation school, and “30% productivity enhancement campaigns,” among other campaign strategies, to come up with fresh innovation models.

Our continuous efforts toward Six Sigma quality control and innovation earned LG Innotek the ISO 9001 for management systems and ISO 17025 certifications from the Korea Laboratory Accreditation Scheme. We were also awarded the National Productivity Innovation Grand Prize and the Global Management Grand Prize, among other awards. Our customers also recognized us as the best business partners.

With its innovation battlecry of “Persistency is the key to attaining a winning management! Let us work hard until we achieve victory, to the last of our breath!” LG Innotek enthusiastically embraces and shares this slogan to its members. We at LG Innotek are vigorously conducting innovation activities to achieve Vision 2010 at an early date.

“Persistency,”means setting lofty goals and ambitions while exercising sheer determination to achieve them through passion and hard work. This further entails that we should determine the areas of innovation, define novel aspirations, and offer greater value to our customers. By clarifying our goals and objectives, we can rise to the challenge of achieving our lofty goals through a winning spirit and a positive, “never say die” attitude.

Attaining a “winning management”means striving to win, beating our competitors and seizing the top spot. This entails that we clearly and strategically select targets of competition and implement strategies through comprehensive and meticulous analysis and preparation. In so doing, we survive the global competition and become the global top player.

“…until we achieve victory,”means that we should aspire for the top spot, armed with our competitive edge. We should have the courage and tenacity to accept the challenges ahead of us, to adhere to the basics, to rely on common wisdom and to create fresh ideas, establishing best practices in the process.

“…to the last of our breath” means that we should maximize our performance by clearly focusing on the lofty goals we set for ourselves and by taking full advantage of our best practices, until these goals are achieved and outstanding performance becomes the end result. This is further defined to mean that, in embracing our purpose-driven philosophies, we should follow through with our “quick implementation” in order for our innovation activities to bear fruit, evolving into our core capabilities and fortifying our corporate culture.

LG Innotek operates the TP management system designed to divide improvement targets based on the items that are necessary for achieving business goals. Target amounts are then distributed to each department, and achievement levels are confirmed. We also operate the KPI-based objective management system, which tailored the balanced scorecard (BSC) concept to the manufacturing business. The system fits in with the company’s formulation of strategies, business plans, and the goals of each department. Also, the system allows members to autonomously control related indices in order to expand the company’s capabilities and meet its profitability requirements. Thus, we are able to consolidate our position as a global enterprise.

TDR (Tear-down and Redesign) activities aim to organize a team consisting of specialists in related areas who will complete a given project at a given time. Different from ordinary efforts to tackle projects, TDR activities seek to completely “tear down and redesign” existing work processes aimed at addressing the fundamental causes of these problems. TDR actives are so vigorously pursued that participants in these innovative activities are not allowed to leave the room assigned for that purpose until they resolve their assigned problems.

TDR activities involve various processes such as the selection of projects, the formation of a team, team building melt-in, implementation, follow-up management, and evaluation/awarding. All TDR projects are carried out based on Six Sigma concept and skills. Also, TDR projects receive skills support from Six Sigma experts who have a master black belt or a black belt. When the project is completed, the team is awarded according to its performance level. Likewise, individual participants are given incentive “mileage” points which can accumulate, enabling them to receive awards when they want to avail of them by applying for such requests. Also, when a team is selected as the best team in the best practice presentation competition, air travel incentives at home and abroad are awarded to both the participants and their spouses.

Master blackbelt holders join in core TDR projects on a full-time basis, and advanced awards for TDR activities are provided once a month by the CEO, and twice a month by the heads of the business units.

The Six Sigma concept is defined as a statistical measurement, a business strategy, and a business philosophy. In business performance, the Six Sigma concept refers to company-wide innovation activities where only 3.4 faulty cases are allowed among one million products or services. LG Innotek has been implementing the Six Sigma concept since 1999. The company uses it as an innovation tool aimed at drastically improving profitability, a concept that is totally different from traditional quality improvement programs. By practicing the Six Sigma campaign regularly, we strive to instill a corporate culture where rules of the workplace are observed and the capabilities of all employees are enhanced. We likewise endeavor to develop the most optimum processes aimed at continuously creating customer value, ensuring the superior quality of our products and services, and innovating on costs, realizing the vision of becoming the “First Partner.” We will exert every effort to internalize and conduct the Six Sigma campaign in our organization.