Employees of Hanmac Chemical Co., Ltd. (Jangseong, Jeonnam), which spearheaded manufacturing site innovation activities as part of the Smart Factory deployment project, are carrying out improvement work on the manufacturing line. (Photo: Courtesy of Samsung Electronics)

First applied to 224 companies in February, around 150 in March

Following the deployment of smart factories in the Gyeongbuk region last year, Samsung Electronics is expanding the deployment nationwide starting this year. Starting in February of this year, it will be applied first to 224 companies selected in the first round by Creative Economy Innovation Centers across the country.

The nationwide smart factory deployment project is implemented in stages according to the level, scale, and sector of small and medium-sized enterprises (SMEs) and mid-sized companies, including factory operating systems (MES, ERP, etc.) and ICT-based manufacturing technologies (manufacturing automation, process simulation, ultra-precision molds).

MES (Manufacturing Execution System) refers to a production management system, while ERP (Enterprise Resource Planning) refers to a resource management system.
Process simulation refers to simulating process layout and product design in a virtual space using 3D tools, and ultra-precision mold is an ultra-precision mold machining technology linked with CAD/CAM. Samsung Electronics plans to build 450 smart factories this year alone, including 224 in February and about 150 in March.

Achievements of smart factory deployment: 34% increase in productivity, 28% improvement in quality, and shortened logistics routes.

Hanmac Chemical Co., Ltd. (Jangseong, Jeonnam), which pioneered manufacturing site innovation activities as part of the nationwide smart factory dissemination project, succeeded in improving productivity by 34%, quality by 28%, and shortening logistics routes, while Dongsungsa (Iksan, Jeonbuk) also achieved a 36% improvement in productivity and a 52% reduction in logistics routes.

Baek Gyeong-gi, CEO of Hanmac Chemical Co., Ltd., said, “It was difficult to change the working environment due to the nature of packaging box manufacturers, but through manufacturing site innovation activities, we achieved reform beyond improvement,” adding, “We have high expectations for the adoption of Samsung Electronics’ smart factories.”

Jeong Cheol-yeong, CEO of Dongseongsa, stated, "The manufacturing site innovation activities not only improved the workplace but also instilled passion in the employees." Meanwhile, since 2015, Samsung Electronics has been supporting the establishment of smart factories by selecting about 120 companies in the Gyeongbuk region together with the Gyeongbuk Creative Economy Innovation Center.

In addition, Samsung Electronics established the Creative Economy Support Center last October to enhance the manufacturing competitiveness of domestic small and medium-sized enterprises and announced a plan to transform 1,000 companies nationwide into smart factories by 2017, in collaboration with the Ministry of Trade, Industry and Energy and the Ministry of Science, ICT and Future Planning.

Kim Jong-ho, President and Head of Samsung Electronics’ Creative Economy Support Center, stated, “The direction of smart factory construction supported by Samsung is to integrate ICT technology with manufacturing site innovation activities that transform the fundamental structure of Korea’s small and medium-sized enterprises (SMEs) and mid-sized companies.” He added, “The goal is to enable voluntary innovation to continue even after the smart factory is established by providing support for manufacturing operation systems (MES/ERP/SCM), manufacturing automation, process simulation, and ultra-precision molds.”