This report was written by the author of this study, acting as the operations and quality consultant for the board of directors of Samsung Electronics. The objective was to review and evaluate the company’s operations and quality management processes based on relevant academic literature, theories, principles, and current issues. It begins with an overview of the company, including its mission and vision.
The report highlighted the major operations management challenges currently facing Samsung Electronics and discussed three important principles of quality management. It also analyzed the impact of productivity, workflow, and quality on organizational competitiveness. Furthermore, it examined Samsung’s key operational strategies and their relationship with supply chain network design.
A balanced scorecard was presented to support performance monitoring, control, and continuous improvement. The report also discussed the role of management information systems and ICT applications in supporting strategic goals and improving operational processes. In addition, it analyzed appropriate methods and technologies, including artificial intelligence, for optimizing operations.
The report further applied the Program Evaluation and Review Technique (PERT), Work Breakdown Structure (WBS), and Failure Modes and Effects Analysis (FMEA) as suitable tools for project planning, scheduling, control, and evaluation.
Finally, the report presented key findings and recommendations and evaluated the role of project leadership in managing organizational change and stakeholder expectations. The main challenge identified was global competition, particularly as Samsung relies on the Android operating system, which is also used by competitors. Therefore, Samsung should adopt more innovative strategies, develop greater technological independence, and focus on areas such as 5G and the Internet of Things (IoT). Improving product quality is also essential for customer satisfaction. Strong leadership can help address internal and external challenges, with transformational, transactional, and team leadership recommended for Samsung’s operational activities. Finally, Samsung should improve inventory management and supplier and customer relationships through the Just-in-Time (JIT) approach.
TABLE OF CONTENTS
LIST OF FIGURES
EXECUTIVE SUMMARY
CHAPTER ONE
Introduction
1.1 Company Background
1.1.1 Mission
1.1.2 Vision
CHAPTER TWO
Operations Management and Quality Management
2.1 Operational Management Challenges
2.1.1 Innovation
2.1.2 Product Quality
2.1.3 Consumers Satisfaction
2.1.4 The Global Competition
2.1.5 Supply Chain Design
2.2 Quality Management Principles at Samsung Electronics
2.2.1 Customer Focus Management Practices
2.2.2 Leadership Management Practices
2.2.3 Engagement of People Management Practices
CHAPTER THREE
Operational Strategy and Supply Chain Management
3.1 The Impact of Productivity, Workflow and Quality on Organizational Competitiveness
3.1.1 Workflow
3.1.2 Productivity
3.1.3 Quality
3.2 Evaluating the Integration of Operational Strategies with the Business Strategy
3.2.1 Value Chain Model
3.2.2 Supply Chain Management Strategies and Sustainability
3.2.3 Personnel Management System
3.2.4 Design Strategy
3.2.5 Hybrid Management
3.2.6 Six Sigma and Supply Chain Management (SCM)
CHAPTER FOUR
Performance Measurement and Continuous Improvement
4.1 Performance Measures
4.1.1 Result Indicator
4.1.2 Performance Indicators
4.2 Deciding the Suitable Performance Indicator
4.2.1 Balanced Scorecard
CHAPTER FIVE
Management Information Systems and ICT Applications
5.1 Management Information System (MIS)
5.1.1 The Role of MIS at Samsung Electronics
5.2 The Role of ICT Applications at Samsung Electronics
5.2.1 Android
5.2.2 One UI
5.3.3 Tizen OS
5.3 The Actual Requirements, Appropriate Methods, Technologies, Using of Artificial Intelligence
5.3.1 Innovation and Product Quality
5.3.2 Artificial Intelligence in Optimizing Operational Process
5.3.3 Supply Chain Management Strategy and Design
5.3.4 Inventory Management and Forecasting
CHAPTER SIX
Methodologies and Analytical Tools for Project Management
6.1 The Suitable Methods and Scheduling Tools to Implement and Manage the Project
6.1.1 Program Evaluation and Review Technique (PERT)
6.1.2 Work Breakdown Structure (WBS)
6.1.3 Failure Modes and Effects Analysis (FMEA)
CHAPTER SEVEN
Conclusion and Recommendations
7.1 Conclusion
7.2 Recommendations
7.3 The Significance of Leadership in Driving Change and Managing Stakeholders
REFERENCES
LIST OF FIGURES
Figure 1.1: Samsung Electronics Overview
Figure 1.2: Samsung Electronics ‘Mission and Vission
Figure 2.1: Seven Quality Management Principles
Figure 3.1: Quality Management System Model-PDCA Cycle
Figure 3.2: Market Share by Vendors for Last 12 Months
Figure 3.3: Market Share by OS for Last 10 Years
Figure 3.4: : Chairman Lee’s “New Management” System Chairman
Figure 3.5: M. Porter’s Value Chain Model
Figure 3.6: Porter's Five Forces
Figure 3.7: The Strategic Management of Samsung Through the Generic Value Chain
Figure 3.8: Supply Chain Management Strategy and Five Criteria
Figure 3.9: Samsung Electronics’ SSCM Strategy and System
Figure 3.10: New Management and New HR Model
Figure 3.11: An Overview of SCM Six Sigma
Figure 4.1: Main Indicators of a Balanced Scorecard
Figure 4.2: Structure of MIS
Figure 5.1: Optimization Models
Figure 5.2: Optimization Methods
Figure 6.1: PERT Charts Example
Figure 6.2: Sample Diagram of Smartphone (Work Breakdown Structure)
Figure 6.3: FMEA Processes
Figure 6.4: Using Failure Mode and Effect Analysis Various for Parts of a Smart
EXECUTIVE SUMMARY
This report was written by author of this study, who is acting as the operations and quality consultant for the board of directors of Samsung Electronics. The objective of this report was to review and evaluate the operations and quality management processes of Samsung Electronics. Therefore, this report was done according to the relevant academic literature, theories, current issues, principles, and concepts in operations and quality management. It starts with a general background on the company and its mission and vision.
The report also provided a big picture of the serious operations management challenges that Samsun Electronics currently faces to give the board of directors a clear perspective on the current standing of the organization. In addition, the report discussed the application of three important principles in maintaining quality management in operations management practices. Moreover, the report provided an analysis of the impact of productivity, workflow, and quality on organizational competitiveness. After that, the report identified the highlighted operational strategies that Samsung Electronics is using and discussed their relation to the supply chain network design role.
It also provided a balanced scorecard tool, as it has the appropriate performance indicators to effectively track monitoring, control, and continuous improvement of the company's operations. Furthermore, it discussed the role of management information systems in assisting the strategic goals and operational processes of the Samsung Electronics organization with suitable recommendations. Besides, it evaluated the role of ICT applications in supporting and improving operations management in the Samsung Electronics organization. Thereafter, the report analyzed the actual requirements, appropriate methods, and technologies, including the use of artificial intelligence, that will help in the optimization of the operational processes of the organization.
At the end, it provided the Program Evaluation and Review Technique (PERT) method, Work Breakdown Structure (WBS), and Failure Modes and Effects Analysis (FMEA) as suitable methodologies and scheduling tools that were used to develop the project specifications, schedule, control, and evaluation to effectively implement and manage the project successfully.
The report concluded with final findings and recommendations, as well as evaluating the contribution of project leadership to effectively bring about the change and manage all stakeholders’ expectations. Accordingly, the report showed that the biggest challenge facing Samsung Electronics is global competition. For instance, Samsung uses the Android operating system, which is also being used by several of its competitors. Therefore, Samsung Electronics needs more innovative strategies to continue business growth despite competition and to have its own operating system. With 5G, it is suggested that Samsung focus on 5G technology and expand the market area, such as the IoT (Internet of Things). It also needs to improve the product quality to ensure customer satisfaction. Moreover, organizations can solve their internal and external challenges with the help of good leadership. Every company needs a leader who can lead the team and follows a certain leadership style for all operational activities. Accordingly, the suitable recommended styles of Samsung Electronics are transaction leadership, transformation leadership, and team leadership. Besides, it is suggested for Samsung Electronics to improve its inventory management and its relationships with suppliers and customers by using the just-in-time (JIT) method.
Keywords: Operations Management; Quality Management; Supply Chain Management; Innovation; Artificial Intelligence; Performance Measurement; Project Management
CHAPTER ONE
Introduction
As Samsung has been chosen as a reference to make a critical report on operations management, it will be started to introduce this organization with analyzing critically the core meaning of its vision and mission.
1.1 Company Background
Samsung Electronics is a multinational electronics company headquartered in Suwon. It is the pinnacle of the Samsung chaebol, accounting for 70% of the group's revenue in 2012 (Wikipedia, 2021). Samsung Group was founded as a grocery trading store on March 1, 1938, by Lee Byung-Chull. It first entered the electronics industry in 1969 with several electronics-focused divisions. The company specializes in the production of a widespread diversity of consumer and industry electronics, including appliances, digital media devices, semiconductors, and memory chips (Mavlyanov et al., 20). In 2019, Samsung Electronics was the world's second-largest technology company by revenue, and its market capitalization rose to US$520.65 billion, the 12th largest in the world (Yonhap News Agency, 2020). According to the Samsung Electronics 2020 report, Samsung Electronics has a team of 287,439 employees across 74 countries as shown in Figure 1.1 below. It also had 230 worldwide operating hubs, with 15 regional offices in South Korea, North America, Europe, Southeast Asia, Africa, and other regions of the world at the end of 2019.
1.1.1 Mission
Based on mission statement of Samsung “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society as shown in Figure 1.2 below.” This corporate mission was published in the 1990s. Samsung focuses on the following components in its corporate mission (Martin, 2019):
1) Human resources and technological resources: Samsung identify human resources and technology as the two main assets that it uses to follow its purpose and strategic aims in its global businesses.
2) Superiority of products and services is at the core of satisfying the consumer electronics company’s corporate mission.
1.1.2 Vision
According to Samsung’s business: Inspire the World, Create the Future as shown in Figure 2 below. “The company widely achieves this statement through its businesses’ operations in the consumer electronics, computing technology, and semiconductors industries. Samsung’s vision statement contained the following components (Martin, 2019):
• Global inspiration contains the development of products that motivate.
• Innovation is especially outstanding in the company’s products, like smartphones and laptops.
• Improvement of lives and future social richness.
• Improvement of the global society: the corporate mission goals positive contributions to improve the global society, leading to Samsung’s generic strategy, concentrated growth strategies, and strategic objectives that include the provision of high-quality products, such as smartphones, laptops, and home appliances.
Figure 1.1: Samsung Electronics Overview
Illustrations are not included in the reading sample
Source: (Samsung Electronics, 2020)
Figure 1.2: Samsung Electronics ‘Mission and Vision
Illustrations are not included in the reading sample
Source: (Samsung Electronics , 2021)
CHAPTER TWO
Operations Management and Quality Management
2.1 Operational Management Challenges
Operational management is the dominant main task of each organization, it includes managing people, equipment, technology, data, and all other resources required in the production of goods and services (Gadwe & Pallawi, 2019). Therefore, it will be discussed the big operational management challenges that Samsung face which involves five challenges as the following:
2.1.1 Innovation
The big challenge that still faces industry is innovation (Frederick, et al., 2016). it is one of the major issues faced by the operation managers of any organization because the technology changes rapidly. Therefore, Samsung has this challenge when it comes to most of its main products such as its smart phones, and various other consumer electronics. As many companies are expanding into new products that promise greater innovation to the consumers such as Apple, Lenovo, Huawei and OPPO, such competitors can result in the company suffering from a significant loss in the event that it is not addressed properly (Abraham, et al., 2020). For instance, Nokia failed because it had not been supporting innovation fast enough (O'Reilly, 2011).
From other hand, Samsung follows Google Android (OS) and application processors (4G) are applied by Qualcomm (AP). This is considering serious challenge that causes security issues so, Samsung needs more innovation to have its own operating system (Binti Mohd Haizar, et al., 2020).
2.1.2 Product Quality
Samsung faces the challenge of the products quality as it is the basic to all other aspects of the business operation in the company (EVANS, 2019). The customers can have the bad impression on the organization brand and reputation due to the bad product quality (Bartleby, 2021). For example, in 2016, Samsung pushed Galaxy Note to the market with the defect in manufacturing that the customers complained about. Samsung made the battery too small for the phones, which caused them to overheat and even catch fire as it didn’t subject the batteries to independent testing, as its competitors routinely do. It made a product that can no longer be easily repaired or renewed (Minter, 2016). Therefore, Samsung needs to improve the product quality though improving the technology and increasing the quality tests in different situations (Bartleby, 2021).
2.1.3 Consumers Satisfaction
Samsung has a serious challenge in operational management in maintenance, technical support and warranty. This challenge comes when customer return their completed warranty card supply with each product and details for future verification and the current outsource provider failed to maintain the level of service. So, Samsung need to think a better way of solving this problem so that they can have faster equipment repair turnaround, better warranty entitlement management to get high level customers satisfaction (Bartleby, 2021).
2.1.4 The Global Competition
Samsung Electronics started to face this problem since it started global exports, but it still the major problem because of the growth of competitors such as China’s Huawei. According to new study, with consumers put off by the high price tags related to their premium models. Samsung and Apple are increasingly losing their share of the smartphone market to China’s Huawei (Browne, 2019). So, Samsung faces huge challenges to sustain its place at the top of the global smartphone industry, including competition from cheap Chinese handset manufacturers and Google’s new Pixel smartphone (Lee, 2017).
2.1.5 Supply Chain Design
The supply chain design of Samsung Electronics became more complex after operating globally and the designed got adapted and advanced methods to plan, schedule and operate as they are necessary or success and stability. The supply chain design is the exposed to the changing technologies, as there will be change in the technology then the design of the supply chain will also be transformed and it will be allied with the changes because if it is not mold with the changes in the technology the organizational will face loss and those who change their supply chain with the technological changes tend to be successful (ZAIDI, 2015).
For example, in 2016, Samsung’s recall of its Galaxy Note 7 smartphones due to reports of fires caused by the lithium-ion battery exposes another issue in its supply chain strategy (Roos, 2016). According to (Ambrose, 2018) study, Samsung’s Galaxy Note 7 crisis demonstrates that stakeholders will still hold the organization responsible if the end. As the Wall Street Journal aptly stated, Samsung’s supply chain crisis placed “a spotlight on supply-chain oversight and raising questions about the ability of today’s technology and management tools to help companies maintain quality control in giant complex networks of suppliers” (Loten, et al., 2016).
Though, Samsung has expert in supply chain management, it faced multiple breaks in their supply chain and a severe supply chain crisis. As use of supply chains increases, supply chain managers should remain aware of the risks that depend on supply chain strategies. It also Samsung electronics face some issues in inventory and resources management that increase in the working capital and costs. For example, Samsung mobiles use the Android operating system which is also being used by several its competitors (ZAIDI, 2015).
2.2 Quality Management Principles at Samsung Electronics
In order to improve customer satisfaction and enhance product quality, Samsung Electronics uses a quality management system that satisfies all the requirements of ISO 9001 standard in all its operations (Choi, 2012). This standard is based on seven quality management principles (QMPs) (Hellingsworth, et al., 2020) as shown in (Figure 2.1).
Figure 2.1: Seven Quality Management Principle
Illustrations are not included in the reading sample
Source: (Hammar, 2014)
Therefore, it will be critically discussed three principles in maintaining quality management of the Operations Management practices in Samsung Electronics company.
2.2.1 Customer Focus Management Practices
Samsung Electronics is committed to building lasting relationships with its customers. With their motto "One Plus Done", it goes beyond one-time service overhauls and enables its employees to create unforgettable experiences for their customers (Morgan, 2018). Based on Quality Handbook of Samsung, Samsung sets a comprehensive suite of customer quality support systems that include quality issue resolution, returns, and quality cooperation which involve seven tools (Samsung Electronics , 2020):
■ Product Regulation Certifications
■ PCN (Process Change Notification)
■ Order Fulfillment Quality
■ Technical Support
■ Claim Management
■ RMA (Return Material Authorization)
■ VOC Management (Voice of Customer)
It has also other services like Live Chat, my Samsung application, and Samsung Care+ allow the company to provide high level customer service and collect relevant data along the way (Samsung Newsroom Malaysia, 2017). In short, Samsung treats its customers like main stakeholders (Mavlyanov, et al., 20).
2.2.2 Leadership Management Practices
Samsung Electronics Co. is the main of Samsung chaebol and the focus on this report is not Samsung Group, but its division Samsung Electronics. However, the leadership styles of Samsung and Samsung Electronics executives are similar in almost all ways. Therefore, it would be analyzed the leadership views of Lee Kun-Hee, the most recent CEO of Samsung. Lee Kun Hee’s leadership view can be described with his focus on group processes, his personality, exercise of influence, and his form of direction (Ivypanda, 2020).
According to (Kang, 2015) study, in 1993, at Samsung’s management conference in Frankfurt, Germany, Chairman K.H. Lee announced the “Samsung New Management” program, emphasizing change and innovation and prioritizing quality-oriented management. This declaration included a new vision and long-term goals for all Samsung Group companies, including Samsung Electronics. He strongly emphasized the importance of changes and innovation by saying, “Change everything except your wife.” His transformational type of leadership was very well-suited for Samsung in the periods of changing organizational mindset and reforming agenda. His despotic, delegating and participatory leadership style, together with his innovativeness, have greatly helped Samsung transform its leadership into global range (Ivypanda, 2020). The autocratic, delegating and participatory leadership can be seen in the hierarchical structure of the organization. The organizational structure is based on manager-employee relationships and it needs direct participation of managers in monitoring employee performance (Kang, 2015).
However, Samsung Electronics still faces various issues about its leadership managements. Firstly, skill management issue that refers to the advancement in technology leads to a change in technology after a certain period of time. As a result, employees face difficulty with change in techniques which lead in a change in working style. Secondly, lack of motivation issue that makes the employees feel stress as they work the same workday after day with no updating. Finally, some experts are leaving the organization because of they are not satisfied with the provided services from the management. Therefore, Samsung Electronics needs to look again to new methods to motivate, enhance the skills of the employees and work as a one team. The best styles that can help the organization to maintain its position globally are Transaction Leadership, Transformation Leadership and Team Leader. (Samplius, 2021).
2.2.3 Engagement of People Management Practices
Based on (Kang, 2015) study that most of the interviewees’ comments about engagement of people management principle of Samsung. Samsung Electronics looks at its employees as the most important resources of the business and respects them and provides opportunities to do their best. Samsung strongly motivates people with the best compensation for the best people for high performance. Samsung people are doing their tasks with an active psychological ownership with clear roles established for each role and position.
Samsung Electronics carried out ongoing investments in people and talent development for many years. At the same time, Samsung actively recruited international top talent from outside of Korea. The Samsung Group’s culture and environment provide support for achieving integrated human resources development and human resources management programs empowering people do their best to meet the firm’s vision and goals. Samsung Electronics and each of the Samsung group companies develop their own talent advance programs instantaneously with the Group-level programs so that all employees follow the permanent learning principle of Samsung Group management (Kang, 2015).
CHAPTER THREE
Operational Strategy and Supply Chain Management
3.1 The Impact of Productivity, Workflow and Quality on Organizational Competitiveness
3.1.1 Workflow
The workflow impacts on organizations positively and effectively as it is the best way for businesses to work more productively and free up time for innovation that creates competitiveness among worldwide organizations (Idm, 2018). According to (Choenni, et al., 2003) study, existing a model for measuring the impact of a workflow system that is regularly introduced in an organization. The model undertakes that performance indicators such as speed, quality, flexibility, and reliability are related to cost. The quantitative impact of a workflow system on a business process is stated by the total cost. Therefore, to remain competitiveness on company should successfully implement workflow systems, otherwise, it can not only cause a loss of the resources and time invested, but also limit the ability of organizations (Parkes, 2004).
Workflow system provided a competitive advantage for Samsung electronics organization. According to the value chain model, Samsung has been adopted open personnel management system in its workflow system to enhance efficiency and competitiveness. Open management means to respect the autonomy and creativity of employees and removing obstacles in systems to decorate performance and competitiveness, at the same time as selling obvious control to develop in concord with their customers. As a result, that workflow gadget has modified Samsung Electronics from a normal business enterprise to an international high-quality business enterprise (Jung, 2014).
3.1.2 Productivity
Productivity is the most important factors influencing company competitiveness as it is the only relevant measurement of competitiveness (Dresch, et al., 2018). Therefore, the increase in productivity indicates to the improvement of competitiveness (Wysoki, 2003). Productivity also establishes coherence between the organizational goals and aspirations of customers through the input and output relationships. Thus, the interactions result of organizational management systems with external environment factors is productivity. Essentially, that perception aims to accelerate actions in the sense of improving performance in various scopes (Dresch, et al., 2018).
Productivity at Samsung Electronics is one of the major competitiveness that made it as a global brand because of its international strategies of its productions. Firstly, it started the development for next generation products, while developing and mass producing the current generation products. Consequently, it helped to hasten new product development and be able to generate new technologies that could be directly applied to next generation products. Secondly, Samsung Electronics adopted the parallel development method to other related memory products such as flash memory that could accelerate the development speed of all products. Finally, Samsung Electronics forces engineers from design and manufacturing to cooperate with each other that can solve the many technical problems in product development and mass production and produce new product with helping of technology. Thus, the new product launches help the company to increase the customer loyalty and generate revenue growth which helped Samsung Electronics to be Global Leader (Park, et al., 2011). Samsung Electronics adopted Six Sigma was the high variations in product lines to identify the defects and to create a transparent framework for improving efficiency and timelines of business processes (Kiger, 2016).
3.1.3 Quality
Based on (Munizu, 2013) study, quality aspect has a higher impact in the global competition as it is evaluated according to the increasing request by customers for well product quality in marketplace that has encouraged many organizations to provide quality product and services with the purpose of competing in the marketplace successfully. To overcome the challenge of this global competition, most of the companies have invested substantial resources in adapting and implementing total quality management (TQM) practices in their operations’ is defined as an action plan to produce and deliver commodities or services, which are reliable with customers’ needs or requirements by better, inexpensive, faster, safer, easier processing than competitors with the participation of all employees under top management leadership.
According to Handbook of Samsung (Samsung Electronics , 2020), Samsung’s Quality Policy statement “We deliver, on the basis of an efficient quality system, the best products and services which conform to our customer requirements and expectations.” So, from the early beginning, Samsung Electronics boosted the quality management system to achieve the best quality in all products and services to improve its competitive power in the world. It has used many tools and techniques to improve their processes quality control, including customer relationship management, total quality control, supply chain management, product data management, total process management and others. Samsung Electronics is used the ISO/IATF standard and customer requirements serve as the baseline for Samsung’s QMS. It used to implement the Plan-Do-Check-Action (PDCA) cycle of the ISO 9001 into the system to provide adequate resources for the process and enhance the full performance continuously as shown in (Figure 3.1).
Figure 3.1: Quality Management System Model-PDCA Cycle
Illustrations are not included in the reading sample
Source: (Samsung Electronics , 2020)
As a result, Samsung became a strong competitive globally because of using such tools and other good strategies. For example, Samsung, Apple and Huawei have dominated smartphone industry for a long time since 2007-2008 with technological advancements and the release of iOS and Android operating systems, that have totally changed the way people use their mobile phones. So, it will be noticed below two figures top smartphone vendors and operating systems are shown for 2 different periods, where Samsung Electronica and Apple with Android and IOs operating systems respectively become high dominance of the global market share as revealed on Figure 3.2 and Figure 3.3 below (Statcounter, 2020).
Figure 3.2: Market Share by Vendors for Last 12 Months
Illustrations are not included in the reading sample
Source: (Statcounter, 2020).
Figure 3.3: Market Share by OS for Last 10 Years
Illustrations are not included in the reading sample
Source: (Statcounter, 2020).
3.2 Evaluating the Integration of Operational Strategies with the Business Strategy
Operational strategies mean the methods organizations use to achieve their goals. Organizations can test and carry out effective and efficient systems for using resources, personnel and the work process through developing operational strategies, (Richards- Gustafson, 2019). So, in this part will be discussed the integration of core operational strategies with the overall business strategy in Samsung company. Generally, Samsung has altered itself from an ordinary original equipment manufacturer based on low-cost advantages to a world class company with a strong brand and best products since Chairman Lee declared the launch of “New Management” in Frankfurt in 1993 as (Figure 3.4).
Figure 3.4: Chairman Lee’s “New Management” System Chairman
Illustrations are not included in the reading sample
Source: (Jung, 2014).
3.2.1 Value Chain Model
In this section, it will be analyzed Samsung electronics company’s strategic management system through Porter’s Value Chain Model as shown in (Figure 3.5) below.
Figure 3.5: M. Porter’s Value Chain Model
Illustrations are not included in the reading sample
Source: (Eby, 2018)
Along with (Mcgee, 2006) study, this figure refers to how the supply chain forms the basic centers of the Five Forces Analysis It holds all the activities needed to bring the final product or service to the final customer as it clears in (Figure 3.6).
Thus, each firm has its own value chain, a part of the supply chain. It is Porter’s classic picture of the value chain which two parts. The lower part is the primary activities that are organized in sequence just like a production line. Accordingly, inbound logistics is the first step, leading to manufacturing operations, then outbound logistics, marketing and sales, and eventually service. This is a picture of each firm’s value chain and will have different titles according to the nature of the operations. The second part of the value chain is the upper section which involves all the overhead service elements (labeled support activities) required by the firm. Based on Porter view there are four elements, firm infrastructure, human resource management, technology development, and procurement. Therefore, Industrial networks are depending on the agent bonds, resources ties and activity links and the organization is evaluated by its position in the structure of actors, resources and activities in the network and through its relationships with other network firms which make it a strong competitor (Jung, 2014).
Figure 3.6: Porter's Five Forces
Illustrations are not included in the reading sample
Source: (Marketlinks.org, n.d.)
At Samsung Electronics, the activities of basic research, product development and design are a primary activity, While the Porter’s original value chain model is different as he classified these as support activities (Jung, 2014). Along with the value chain model Samsung has been used open personnel management system to improve efficiency and competitiveness as shown in (Figure 3.7) as application of the value chain model to the strategic Management of Samsung Electronics. Samsung has also advanced a strong customer-focus which emphasizes on understanding needs and wants of future. It means that Samsung adopted American style strategy, while keeping Japanese style of operations management (Jung, 2014).
Figure 3.7: The Strategic Management of Samsung Through the Generic Value Chain
Illustrations are not included in the reading sample
Source: (Jung, 2014)
3.2.2 Supply Chain Management Strategies and Sustainability
Samsung Electronics efforts to achieve cost competitiveness as well as operational efficiency through strategic supply chain management while keeping its focus on sustainability as well (Pratap, 2020). Samsung Electronics has an enormous supply chain involving of some 2,500 suppliers around the world (Samsung, 2021). The supply chain management strategy of the company is based on five important standards. They are cost competitiveness, human resources capacity, on-time delivery, response to risk and supplier competitiveness as it is clear in (Figure 3.8).
Figure 3.8: Supply Chain Management Strategy and Five Criteria
Illustrations are not included in the reading sample
Source: (Samsung Electronics, 2021)
Samsung focuses on the economic, social as well as environmental aspects of its supply chain operations to manage its impact in all the three areas (Pratap, 2020). They conduct an environmental management assessment through in-house certification program, the Eco-Partner scheme as it appears in (Figure 3.9) (Samsung, 2021).
Figure 3.9: Samsung Electronics’ SSCM Strategy and System
Illustrations are not included in the reading sample
Source: (Samsung, 2021)
Based on (Jung & Chung, 2016) study, Samsung has an efficient supply chain network that was initiated by a cooperative program to maximize the stability of the company’s key suppliers. The greatest South Korean organization emphasizes the significance of supply chain management and as the fastest arranger to market trends., Samsung monitors new applicants into the market and purchases those that have a potential of leading competitiveness. Samsung’s Collaborative Planning Foreseeing and Replenishment (CPFR) strategy primarily focuses on improving the organization’s supply chain design and processes by amalgamating all stakeholder intelligence within its supply chain.
3.2.3 Personnel Management System
Samsung Electronics has implemented an open management in the era of personnel management. Open management refers to respect the autonomy and creativity of employees and eliminating difficulties in systems and practices to improve efficiency and competitiveness, while promoting transparent management to grow in agreement with their customers. The keys to Samsung’s open HR are human useful resource control that promotes same opportunity, placed skills first, and recognize human capability. Therefore, Samsung has used the new management strategy to achieve its goal of global first-class company based on its "People first" management philosophy as shown in (Figure 3.10) below. New HR facilitated new management strategy by building investment in HR and changing the awareness and performance of employees (Jung, 2014).
Figure 3.10: New Management and New HR Model
Illustrations are not included in the reading sample
Source: (Youndt & Snell, 2004).
3.2.4 Design Strategy
In April 2005, at the introductory of Samsung’s sixth global design center in Milan, Chairman Lee met his chief executives and addressed them with directives that inspired the Second Design Revolution at Samsung electronics not only in name, but in action. He put some steps to achieve that, to create remarkable designs and establish a user interface (UI) identity; recruit and secure the world’s best designers; nurture a creative corporate environment; and reinforce its molding technology infrastructure.
As a result, the presidents of all three customer product businesses responded directly with full support and specific goals (Freeze & Chung, 2015). Generally, Samsung recognizes the power of well- designed products and services. Through design, Samsung makes functional and emotional benefits. Moreover, Samsung has a strong design philosophy, which is simple and intuitive, efficient and adaptive. It wants to come up with eco-friendly designs, not just good-looking products. Furthermore, it attempts to create designs that can reflect users' lifestyles and interact with them. It designs not only to create unique and intelligent products, but also to engage and interact with customers (Jung, 2014).
3.2.5 Hybrid Management
Based on (Jung, 2014) study, Samsung Electronics combines American style strategy and HR with Japanese style of operations management that called as “Samsung’s Hybrid Management System. Samsung adopted that system to secure the main talent employees’ regional specialist to be change agents. Samsung transformation the seniority-based and merit-based promotion to make those talented to be promoted and compensated. Through the application of that system at Samsung electronics, it made it focus on its innovation of products and services and improve efficiency for continuous process improvement. Samsung mixed up traditional Japanese management style with the best western style of management skills. They made a new Samsung’s hybrid system as in (Table 1). Samsung’s hybrid management system presented a focus on innovation into a company enhanced for continuous process improvement.
Table 3.1: Samsung’s Hybrid System
Illustrations are not included in the reading sample
Source: (Jung, 2014)
3.2.6 Six Sigma and Supply Chain Management (SCM)
Six Sigma is a way that provides organizations equipment to improve the capability of their business procedures. This helps to increase in performance and decrease in process variation led to defect reduction and heightening in revenues, employee self-confidence, and high quality of product or service. Six Sigma quality is a method typically used to indicate a process is well in control (Varma & Ravi, 2017).
In early 1990, the Samsung Group’s senior management decided to capitalize on the potential interaction between supply chain management and six Sigma to improve global business operation. SCM Six sigma complements this need through the “control” stage in a DMAIC methodology (Define, Measure, Analyze, Improve, and Control) offers a structured and disciplined process for solving business problems (Yang, et al., 2007) as it appears in (Figure 3.11).
Figure 3.11: An Overview of SCM Six Sigma
Illustrations are not included in the reading sample
Source: (Yang, et al., 2007)
Samsung Electronics has adopted the managerial philosophy of Six Sigma with improving its productivity and enabling it to cut waste from its production processes and supply chain. Samsung Electronics has always been on the advanced in terms of its use of total quality management (TQM) techniques. Six Sigma's focus on quality and zero defects was added to promotion these techniques and improve Samsung Electronics’ competitive position in world markets. As a foundation for Six Sigma, Samsung Electronics focused on developing its internal resources to put innovation first in the development, design, manufacture, and marketing of its products and the growth of its employees (Jong-Yong & Chua, 2002).
CHAPTER FOUR
Performance Measurement and Continuous Improvement
In this chapter it will be focused on finding the appropriate performance indicators to track monitoring, control and continuous improvement.
4.1 Performance Measures
Performance indicators are measures of inputs, processes, outputs, outcomes, and impacts for development projects, programs, or strategies. KPIs make managers able to track progress, demonstrate results, take corrective action to improve service delivery and for management decision-making (UNISDR, 2013). According to (Parmenter, 2015) Key Performance Indicators (KPIs) are described as an illustration of a fixed of measures focusing on the one’s capabilities of organizational overall performance which are the maximum important for the present day and destiny fulfillment of the company. Therefore, to select the appropriate performance indicators which are mostly related to the company strategies, the mangers should link these selected indicators to the company's vision, mission and objectives as these indicators will support senior management in indicating toward the desired strategic direction (Ishaq Bhatti & Awan, 2014). Based on (Parmenter, 2015) study, there are four types of performance measures that is divided into two groups: result indicators and performance indicators.
4.1.1 Result Indicator
The result indicators reflect the fact that many measures are a summary of more than one team's input, it’s a usefully measure when looking at the united teamwork. But inappropriately, it does not give the management the necessary information that is needed to solve a problem, since it is hard to identify where the actual problem lies and to get which of the teams that delivered performance and who did not (Parmenter, 2015).
4.1.2 Performance Indicators
The performance indicators are measures that can be connected to a specific team or a collection of teams working towards a common goal or purpose. Good and bad performance is now the responsibility of a specific team, these measures thus give clarity and ownership of the performance or under achievement (Parmenter, 2015).
50, each measure gives us two measures for each measure type (Parmenter, 2015):
• Key result indicators (KRIs) give the board a general summary of how the organization is performing.
• Result indicators (RIs) states management how teams are joining to produce results.
• Performance indicators (PIs) states management what teams are delivering.
• Key performance indicators (KPIs) states management how the organization is performing in their critical success factors and, by monitoring them, management can increase performance dramatically.
4.2 Deciding the Suitable Performance Indicator
After reading many studies to have the appropriate performance indicators to effectively track monitoring, control and continuous improvement of the Samsung electronics operations, it is good to apply the balanced scorecard as a management framework way to choose KPIs.
4.2.1 Balanced Scorecard
A balanced scorecard is a strategy performance management tool as a semi-standard structured report, that can be used by managers to keep track of the implementation of strategies and operational activities by the employees within their control and to monitor the consequences arising from these operational activities (Wikipedia, 2021). Before implementing a balanced scorecard, the following questions should be answered: What is the purpose of my company? What do I want to accomplish with my company in the future? What do I have to do to accomplish it? These three questions identify the mission, vision and strategy of the main KPIs of the company (Peinado, 2018). A balanced scorecard includes four key indicators that used by Kaplan and Norton were financial indicator, internal operations indicator, customer indicator, and learning and innovation indicator (Peinado, 2018) as shown in (Figure 4.1).
Figure 4.1: Main Indicators of a Balanced Scorecard
Illustrations are not included in the reading sample
Source:(Mass,2014)
4.2.1.1 Financial Indicator
Financial indicators include five key performance indicators that are used to assess the financial viability of a project and alternative financial structures for the company’s performance as shown below (Henao, 2021):
■ Growth
Are the incomes and profits increasing or decreasing over a period?
■ Profitability
Is the business making expected profit compared to other similar companies?
■ Liquidity
Can the cash flow meet the company’s obligations?
■ Leverage
Is the organization taking advantage of financing to operate and grow?
■ Activity
Are you handling the assets of the company successfully?
4.2.1.2 Customer Indicator
The customer indicator monitors how the organization is providing value to its clients and determines the level of customer satisfaction with the organization’s products or services. Client satisfaction is an indicator of the company’s success. How well a company treats its customers can obviously affect its profitability (CFI, 2021).
Some examples of Customer Indicator (Enochson, 2021):
■ Number of Customers Retained
■ Percentage of Market Share
■ Net Promotor Score
■ Average Ticket/Support Resolution Time ■
4.2.1.3 Internal Operations Indicator
It measures organizational performance through the lenses of the quality and efficiency related to the product or services or other main business processes (Skinner, 2021). Some key internal operations indicator examples:
■ On-Time Delivery
■ Administrative expense / total revenues
■ Administrative expense / customer
■ Average Lead Time
■ Contracts filed without error
■ Lead time, product development
■ Lead time, from order to delivery
4.2.1.4 Learning and Innovation Indicators
These indicators provide information related to the grade of development of the various business areas. They are indicators that concentrate on analyzing processes including productivity, innovation and quality within the company and the method in which they affect the profitable and financial aspect (Peinado, 2018). Some examples of learning and innovation indicators (Kaplan & Norton, 2005):
■ Time to develop new generation of products
■ Life cycle to product maturity
■ Time to market versus competition.
CHAPTER FIVE
Management Information Systems and ICT Applications
5.1 Management Information System (MIS)
MIS is a key factor system contains information that is used to enhance strategic planning, support operations management and decision-making functions at various levels of an organization (Karim, 2011). The MIS has various components as it is shown in (Figure 4.2). The role of Management Information Systems is described in regarding of its capability for decision making which is needed to manage organizations efficiently and effectively as it provides up-to-date information regarding the organization's performance; for example, current inventory and sales (Yadeta, 2016).
Figure 4.2: Structure of MIS
Illustrations are not included in the reading sample
Source: (Wole, 2018)
5.1.1 The Role of MIS at Samsung Electronics
MIS plays a main role in assisting strategic goals and operational process success at Samsung electronics. So, in this part, it will be discussed them critically.
Based on (Suh, et al., 2012) study, in the 1980s, Samsung Electronics began to enter the global marketplace as a small consumer electronics company. Even Samsung Electronics began to enter the global marketplace as a small consumer electronics company in 1980, it grew rapidly to become a global one of the largest electronic companies in the world. So, it had to change its old system to a new system to achieve its strategic goals as a big and global company. At the beginning, it suffered a lot to adopt SCM as it didn’t have unified standard information with an unreliable demand forecast. As a result, it couldn’t make a good strategic planning for inventory and high reliability of delivery dates.
To solve such issues, Samsung decided to integrate all the planning steps into one concurrent plan by using MIS which helped to predict the demands implement its SCM successfully. Therefore, the new system helped Samsung to evaluate the current situation to achieve its goals about quality, time limit for delivery, and the price of products are all equally applied to high-tech products. Consequently. MIS was essential for on time delivery products that sustain high-quality within the contract term through reliable information sources, and this was possible with SCM. Today, Samsung uses management information systems to support operational process through advertising their products, analyzing their sales, their target market and buying trends (Coursehero, 2021). It is also to identify more future projects to sustain and develop innovation for high competition among the global companies. Moreover, with the best use of strategic information management, Samsung have a competitive SCM and machine-use that helps the managers to identify the achievable targets of selling of new products of fashionable mobiles. Furthermore, MIS is used at Samsung electronics to create value through more efficient processes and increase innovation through flows of information. This analysis of the value chain provides some insight into how information technology can lead to competitive advantage (Jung, 2014).
5.2 The Role of ICT Applications at Samsung Electronics
ICT Operations and Support includes areas related to processing, manipulating and managing information and providing user support for software, hardware and cloud technologies (Nationalindustryinsights, 2020). As Samsung is an electronics organization, it manufactures and push various applications to improve its smartphone with the fast development of technology to maintain its position among the worldwide organization as a strong brand competition. So, these applications have a great role to enhance and facilitate the operational process at Samsung electronics. But the most role of ICT in Samsung electronics is the operating systems that manages all the apps of the smartphones as well be discussed below.
5.2.1 Android
Samsung electronics has been developed the operate system android since 2011. The current app portfolio contains 133 apps. In the Google rankings, Samsung Electronics apps appear in the top 100 in more than 10 countries (AppBrain, 2021). All Samsung smartphones and tablets use the Android operating system, a mobile operating system designed by Google. Android systematically takes a major update in one time each year to add and update new features and improvements to all compatible devices. It's always a good idea to update the device to the latest operating system possible to make sure that phone or tablet is the best it can possibly be (Samsung, 2021).
5.2.2 One UI
It is a software communication developed by Samsung Electronics for Android devices running Android Pie and higher (Samsung, 2021). The core goal of the design of One UI is to make Samsung's hardware and software "work in perfect harmony" a more "natural" experience on smartphones with large screens. One UI displays most of the features in Samsung Experience UX. The design style pattern installed in Samsung's system apps in common cataloging and user interface elements along the screen instead of at the top, making it easy to access with the device's one-handed thumb (Wikipedia, 2021).
5.3.3 Tizen OS
It's a custom operating system developed by Samsung Electronics to address the needs of all stakeholders of the mobile and connected device ecosystem, including device manufacturers, mobile operators, application developers and independent software vendors (ISVs) (Bunton, 2021). Tizen provides the power of native application development with the flexibility of unparalleled HTML5 support, for application developers and ISVs. In addition, the operating system of smartphone can work with device associates to customize the operating system and user experience to meet the needs of exact customer segments or demographics (Tizen, 2021). Samsung’s online Tizen store will have about 1,000 apps available versus more than 1 million apps on rival operating systems. Samsung has also released cameras, smartwatches and TVs powered by Tizen (Scolaro, 2015).
5.3 The Actual Requirements, Appropriate Methods, Technologies, Using of Artificial Intelligence.
To analysis the actual requirements, appropriate methods, technologies, including use of Artificial Intelligence that relate to the operational process, it needs to identify the operational process challenges that face Samsung electronics organization. As the most operational process challenges are discussed at the first questions, it will be discussed the actual requirements, appropriate methods, technologies with use of Artificial Intelligence that that will help in optimization of the operational processes in Samsung electronics organization.
5.3.1 Innovation and Product Quality
Firstly, with 5G, Samsung needs develop its operating systems and application processors to decrease the dependency on Google android (OS) and Qualcomm (AP). As a result, that way can help Samsung to reduce the risk if the OS and AP have a technical problem (Madani, et al., 2017). Secondly, it is good for Samsung to hire and train more related professional researchers to be sustainable and competitive with the famous brand such as Apple and Huawei. Thirdly, Samsung needs to participate more with OS providers and third-party companies to develop and produce smartphones efficiently and in good quality.
Moreover, Samsung needs to focus more on the 5G core technology and secure its patent to ensure they are still the market leader for smartphones (Binti Mohd Haizar, et al., 2020). Besides, Samsung is recommended to expand the market area such as IoT (Internet of Things) so that there is a healthy competition with other brands (Keen, 2018). In addition, Samsung should do some research to understand customers’ changing needs nowadays which help to introduce the new products into the market that are satisfying their needs. Finally, Samsung needs to keep brand loyalty in high-end products so that the customers will keep buying its products (Binti Mohd Haizar, et al., 2020).
5.3.2 Artificial Intelligence in Optimizing Operational Process
Based on (Samsung Electronics , 2021) definition of Artificial Intelligence that (AI) is playing a progressively prominent role in our lives and it promises to transform the technological landscape as it continues to develop. Complex algorithms and processes, such as machine learning and deep learning, are driving the transformation, enhancing the need for more powerful on-device AI solutions. In order to improve speed and power efficiency, Samsung Exynos processors deliver cutting-edge performance designed to increase the power of AI. One of the important applications of artificial intelligence is reducing the computational costs of optimization. Optimization is the process of setting decision variable values in such a way that the objective in question is optimized (Koopialipoor & Noorbakhsh, 2016). The suitable solution of increasing or decreasing the objective function with satisfying the constraints is making a set of variables decisions. The decision-making process consists of three steps: problem formulation, problem modeling, and problem optimization (Koopialipoor & Noorbakhsh, 2016). A various of optimization models are applied to formulate and solve decision-making problems as in (Figure 5.1).
Figure 5.1: Optimization Models
Illustrations are not included in the reading sample
Source: (Koopialipoor & Noorbakhsh, 2016)
And the optimization methods are presented in (Figure 5.2).
Figure 5.2: Optimization Methods
Illustrations are not included in the reading sample
Source: (Koopialipoor & Noorbakhsh, 2016)
Therefore, Samsung works hardly to develop artificial intelligence (AI) technology to maintain its competition in the world as a big brand organization. In 2018, Samsung begin to launch its intention to be an artificial intelligence leader by organizing the Artificial Intelligence (AI) conference and brought together 300 university students, technical professionals and leading academics to explore ways to accelerate AI research and to develop the best business applications of AI (Marr, 2020). At CES 2018, Samsung declared that artificial intelligence capabilities would be a part of each device that manufacturers by 2020. In brief, Samsung Electronics needs to provide much efforts and studies to apply and enhance AI in all its operational process.
5.3.3 Supply Chain Management Strategy and Design
In order to maximize synergy, speed, and efficiency with its suppliers and create a corporate ecosystem that enables sustainable growth, Samsung Electronics is focus on supply chain management strategy to ensure an all-encompassing competitive edge in terms of cost, delivery, quality, technology, and human resources (Pratap, 2020). Samsung also used six sigma that is considering the best technique for Samsung to run its processes. However, Samsung still needs to improve its supply chain d strategies on operational process due to the fast changing in the technologies with strong competitors (ZAIDI, 2015). First of all, Samsung needs to improve supplier relationships with an emphasis on value from suppliers, as opposed to low cost, and quality control (Brody, 2016).Secondly, it needs to improve its sources to have its own internal source to have a competitive supply chain as outsourcing can lead to delays and difficulties (Madani, et al., 2017).
Furthermore, Samsung needs to be more transparent about both supply chain reliance and the suppliers within the chain to raise awareness of stakeholders of the supply chain complexities. If awareness is increased, in the event of a crisis, the break in the supply chain could be identified and more easily understood by stakeholders to be the at- fault party, as opposed to holding the organization only responsible. Finally, as internal measures are implemented to prevent and mitigate supply chain risks, external measures such as employing supply chain crisis managers, trained specifically to address the unique risks of supply chain crises (Ambrose, 2018).
5.3.4 Inventory Management and Forecasting
Inventory management is the most important parts of business operations for any original equipment manufacturer (OEM) as there is a direct relation between surplus inventory on hand and the cash liquidity in unused raw materials and unsold goods, while shortages can lead to production stoppages, delivery delays and client dissatisfaction. Therefore, Inventory management is considering as the motive of supply chain at OEMs, not only manage the raw material input from the first to the end but also distribute finished goods to customers (Apte, 2018). To manage inventory management well, organizations need to use forecasting to make decisions about resource allocation and help to keep track of sales and demand. It also helps to increase company’s revenue and decrease unnecessary costs (Prismvs, 2018).
It is suggested for Samsung electronics to improve its inventory management and its relationships with suppliers and customers by using Just-in-time (JIT) method. In fact, Justin-time (JIT) delivery of raw goods to the manufacturing floor is more effective if the OEM has transparency into the supply chain process from point of origin of manufacturing sellers forward (Apte, 2018). For example, Samsung Galaxy Tab Active2 can scan the SKUs of raw materials as they are being shipped and capture the data automatically to the supply chain management system (Apte, 2018).
CHAPTER SIX
Methodologies and Analytical Tools for Project Management
6.1 The Suitable Methods and Scheduling Tools to Implement and Manage the Project
In project management, there are several tools and techniques that can be used to develop the project specifications, schedule, control and evaluation tasks and resources to effectively implement and manage the project successfully. Therefore, it will be analyzed Program Evaluation and Review Technique (PERT), Work Breakdown Structure (WBS) and Failure Modes and Effects Analysis (FMEA) as the most appropriate tools and techniques that used for developing the project specifications in Samsung Electronics organization.
6.1.1 Program Evaluation and Review Technique (PERT)
PERT is a planning and control tool used to schedule, organize, and evaluation tasks necessary to complete a project. It is a method to analyze the tasks involved in completing a given project and to identify the least time needed for each task and to complete the total project as well. So, the main goal of PERT is to facilitate decision making and to minimize both the time and cost required to complete a project (Peak, 2016). PERT charts were invented in the 1950’s to help manage complex projects as it shows tasks as boxes and dependencies between tasks (e.g. Task 1 must be done before Task 2 starts within specific times) (Hyperplan, 2021) as in (Figure 6.1).
Figure 6.1: PERT Charts Example
Illustrations are not included in the reading sample
Source: (Hyperplan, 2021)
PERT planning is the best method for Samsung electronics project as it involves the effective steps that will be discussed critically (Peak, 2016). Firstly, to identify the specific activities and milestones. While the activities refer to the tasks required to complete a project, the milestones are the events marking the beginning and the end of one or more activities. Therefore, it is helpful to list the tasks in a table that in later steps can be expanded to include information on sequence and duration. Secondly, to determine the proper sequence of the activities. It means to analysis the tasks and activities to determine the exact order in which they must be performed. Thirdly, to construct a network diagram. Based on the activity sequence information, a network diagram can be drawn showing the sequence of the serial and parallel activities Every activity symbolizes a junction in the network, and the arrows referees the relation between activities. Finally, to measure the time required for each activity. It used weeks as unit of time for activity completion, but any consistent unit of time can be used. A distinguishing feature of PERT is its ability to deal with uncertainty in activity completion time. The model usually contains three-time estimates, for every single activity:
• The optimistic time: the minimum time required to complete a task.
• The pessimistic time: the maximum time required to complete a task.
• The most likely time: an estimate of how long the task will take
PERT method is somehow like the critical path method. But the total project time at CPM does not change so, the activities can be delayed without the project is referred to as a slack time (Danda, 2020).
PERT is a good method for Samsung electronics as it has complex projects with a high degree of inter-task dependency, projects which need a series of activities, some of them have to be performed sequentially and others that can be performed in parallel with other activities. Scheduling is the conclusion of a planning activity that is a primary component of software project management. Good software project management is important if software engineering projects are to be developed on schedule and within budget (Peak, 2016).
6.1.2 Work Breakdown Structure (WBS)
WBS in project management is an appropriate tool for Samsung Electronics as it is used a deliverable-oriented breakdown of a project into smaller components to be executed by the project team to accomplish the project objectives and create the required deliverables. A WBS is the keystone of effective project planning, execution, controlling, monitoring, and reporting. All the activities controlled within the WBS is to be identified, estimated, scheduled, and budgeted. The benefit of well-designed WBS describes planned outcomes instead of planned actions. Outcomes are the desired ends of the project, such as a product, result, or service, and can be predicted accurately. (Visual-paradigm, 2021). So, this method will be also so beneficial to use to develop the project specifications, schedule, control and evaluation to effectively implement and manage the project successfully in Samsung Electronics organization. To have a big picture about how to apply the (WBS) at Smartphones organizations, kindly look at the sample diagram in (Figure 6.2).
Figure 6.2: Sample Diagram of Smartphone (Work Breakdown Structure).
Illustrations are not included in the reading sample
Source: (Rumman, 2021)
6.1.3 Failure Modes and Effects Analysis (FMEA)
Samsung Electronics needs to apply Failure Modes and Effects Analysis (FMEA) tool to improve operational efficiency. Failure Modes and Effects Analysis (FMEA) is methodology for analyzing and identifying the root cause of any defects early in the development cycle where it is easier to take actions to overcome these issues, thereby enhancing reliability through design. FMEA is used to identify potential failure modes, determine their effect on the operation of the product, and identify actions to alleviate the failures. A crucial step is anticipating what might go wrong with a product (NPD, 2019).
This tool will be very helpful for Samsung Electronics as it is designed to assist the engineer improve the quality and reliability of design that help to provide different benefits (NPD, 2019):
• Improve product and process reliability and quality
• Increase customer satisfaction
• Early identification and removal of potential product and process failure modes
• Prioritize product and process deficits
• Capture engineering and organization knowledge
• Emphasizes problem anticipation
• Forms risk and actions taken to reduce hazard
• Provide focus for improved testing and development
• Minimizes late changes and associated cost
• Catalyst for teamwork and idea exchange between functions
There are four key steps for FMEA tool as shown in (Figure 6.3).
Figure 6.3: FMEA processes
Illustrations are not included in the reading sample
Source: (Sean, 2012)
And kindly look at the sample diagram for Smartphone industry as in (Figure 6.4) below.
Figure 6.4: Using Failure Mode and Effect Analysis Various for Parts of a Smart
Illustrations are not included in the reading sample
Source: (Vijayalakshmi, 2014)
CHAPTER SEVEN
Conclusion and Recommendations
7.1 Conclusion
The report has successfully addressed the operations and quality management processes in Samsung electronics organization. It has been shown that Samsung electronics is a strong competitive global leader organization with its global society mission and global inspiration vision. However, Samsung Electronics still have great operational management challenges to remain competitive in the increasingly competitive global marketplace. Innovation and the product quality are the most critical issues that Samsung faces as a result of a rapid changes in technology with great innovations product from the competitor companies such as Huawei and Apple. In addition, Samsung Electronics has a complicated supply chain design because of operating globally. The paper has also been analyzed the application of most quality management principles. Samsung Electronics has been building good relationships with its customers and emphasize the importance of changes and innovation. Samsung also considers its employees as the most important resource of the business and respects them and provides opportunities to do their best.
The report also evaluated the impact of productivity, workflow, and quality on organizational competitiveness. It reflected the integration of core operational strategies with the overall business strategy at Samsung electronics. Moreover, it provided balanced score indicators as an appropriate performance indicator to effectively track monitoring, control and continuous improvement of the company operations.
After that, it revealed the major role of MIS and the role of ICT applications at Samsung Electronics to improve its smartphone with the fast development of technology. Furthermore, it analyzed the actual requirements, appropriate methods, technologies, including use of Artificial Intelligence that relate to the operational process. It developed and advanced certain aspects of its supply chain management such as quality management, inventory management and supply chain design in order to remain above its upper class in the marketplace.
Finally, it has been suggested Program Evaluation and Review Technique (PERT) and Work Breakdown Structure (WBS) as the suitable methodologies and scheduling tools to effectively implement and manage the project successfully at Samsung Electronics. It also provided Failure Modes and Effects Analysis (FMEA) tool to improve operational efficiency.
7.2 Recommendations
Based on the analysis of review and evaluate the operations as well as quality management processes of Samsung Electronics, the report comes up with the following strategic recommendations: -
❖ Samsung needs to strengthen its technology regarding 5G technology software and innovation features with unique functions to maintain and create competitiveness among worldwide organizations such as Huawei and Apple by following these points.
❖ Developing their own operating system, applications processors;
❖ Decreasing the dependency on Google android (OS) and Qualcomm (AP);
❖ Hiring, investing and training more related professional researchers;
❖ Participating more with OS providers and third-party;
❖ Expanding the market area such as IoT;
❖ Keeping brand loyalty in high-end products.
❖ The most important factors Samsung Electronics needs to improve essentially are technical support, employee enthusiasm, better warranty entitlement management and speed of service level that could help the organization better manage its community and it truly loyal.
❖ The analysis of Samsung Electronics success showed that leaders should focus on ongoing business transformation and it is better to use Transaction Leadership, Transformation Leadership and Team Leader styles.
❖ Samsung Electronics can make use of Balanced scorecards indicators for continuous quality management through keeping track of the implementation of strategies and operational activities.
❖ It needs to rethink its Six Sigma practices that it was doing by finding what input variables will have greatest impact on the output.
❖ It can use Failure Modes and Effects Analysis (FMEA) tool to improve operational efficiency through identifying the root cause defects and assessing all possible failure modes of product and process in terms of manpower, management, materials, methods etc.
❖ It is good to use Program Evaluation and Review Technique (PERT) tool for planning and controlling, scheduling, organizing, and evaluating tasks necessary to complete its projects.
❖ It needs to use Just-in-time (JIT) method to improve its inventory management and its relationships with suppliers and customers.
7.3 The Significance of Leadership in Driving Change and Managing Stakeholders
The globalization changed the world to a small village because of rapid technological advancements and amazing innovations. That change happened as a result of the role of leaderships in the phenomena of organizational change and innovation. Most of the organizations have been compelled to continually reassess and reevaluate the way of their working and to understand, adopt and achieve changes in their business model in response of changing trends due to the fastest technological advancements, high expectations of clients, and ever-changing market situations. Therefore, for implement the process of organizational change demands, it needs a very effective and highly competent leadership that is well skilled to perceive the most desirable shape of a company and address the challenges of organizational change in most appropriate way because leadership has a central role in evolution and cultivating an organization. So, currently most of the organizations agree that effective leadership is one of the most important contributors to the overall organizational performance and change. Organizational change could make an enterprise successful to higher reply the destiny developments, technological changes, social and economic changes, and can also provide a competitor edge in this age of high competitions. Change also can enhance the overall performance of an enterprise which on the later stop may also lead agencies in the direction of a long-time period achievement and sustainability (Abbas & Asghar, 2010). According to (RIAHI, 2017), a good project manager recognizes the key impact that stakeholders can have both to help and to hinder the progress of the project. Scrupulous stakeholder analysis and a careful communication plan will maximize the project's chances of delivering deliverables on time and in budget. The management and communication strategies to be adopted for each type of stakeholder will be detailed in future works.
Stakeholder management also pays special attention to the communication with stakeholders in other to understand their needs and expectation, to address issues as they arise, to manage conflicting interest, to promote a commitment of the stakeholders in making the decision and activities of the project. The contribution of project leadership is critical for the development and management of change at Samsung electronics by the creation of an appropriate atmosphere in the organization for change adoption. The leadership practices support the adopted strategy to help the company maintain the leading position in the competitive market. Collaborative leadership is part of Samsung’s strategy, employees and managers participate in the areas of collaborative enterprise knowledge sharing and organizational learning practices. In fact, the managers are the only members at the organizations who have the chances to gain practical knowledge and techniques, develop the appropriate strategies and provide personal vision of how to become an inspiring and dynamic leader.
At Samsung Electronics, executive’s leadership provides series practical training courses to improves skills that help to assess business gaps identify new business opportunities, make timely decisions, and assess the efficiency of leadership practices (Freeessays, 2021). For example, in 2012, Samsung Electronics launched C-Lab program that made under the under the notion that creativity leads to higher productivity. The goal of this program is to give Samsung employees the opportunities to uncover new ideas and foster a culture of innovation throughout the company (Suazo, 2021). Accordingly, the analysis of the company’s leadership displays that the company can act as a role model for other business organizations operating in a highly competitive market.
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