Professional Documents
Culture Documents
Operation and Management Group-1
Operation and Management Group-1
Comprehensive Analysis
(GROUP-1)
(ASSISTANT PROFFESOR)
GALGOTIA’S UNIVERSITY
GREATER NOIDA
Table of Contents
1.0 Introduction.................................................................................................................................4
2.0 Supply Chain of Samsung.......................................................................................................4
2.1 Input..........................................................................................................................................5
2.2 Process.....................................................................................................................................5
2.3 Output.......................................................................................................................................5
3.0 Upstreaming supply chain of Samsung...............................................................................6
4.0 Operation management of Samsung....................................................................................6
4.1 4Vs of operation management............................................................................................7
5.0 Operation processes and layout............................................................................................8
5.1 Operation Layout.................................................................................................................11
6.0 Downstream supply chain.....................................................................................................11
7.0 Possible issues with operations and supply chain of Samsung..................................12
8.0 Project planning and management of Samsung..............................................................14
8.1 Agenda of the project..........................................................................................................14
8.2 Elements of Project process and plan............................................................................14
Conclusion.......................................................................................................................................17
References...........................................................................................................................................18
Appendices......................................................................................................................................22
Appendix 1.1................................................................................................................................22
Appendix 1.2................................................................................................................................22
Appendix 2...................................................................................................................................22
Executive Summary
This report will discuss about the operations management, supply chain and distinct
project plan of Samsung. Samsung Group has huge number of subsidiaries, all of
which produce huge range of product and services. But the report discussion has
mostly narrowed down to Samsung electronics, Samsung SDI and Samsung C&T.
The report discusses Samsung’s supply chain which includes upstreaming and down
streaming supply chain and how it has made substantial use of SCM strategies and
process improvements to support and improve its operation. the report talks about
the various supplies that Samsung has maintained. The following report has also
explained the 4V typologies of operation management of Samsung with relative
theories to support them. Furthermore, the operation process and layout are
discussed and its possible issues relating to it is also given. Lastly a project plan of
developing a new Operation System for the smartphones as a recommendation is
included in this report.
1.0 Introduction
The company chosen for this case is Samsung. Why Samsung? Because it is one of
the largest international electronics companies. Samsung, a South Korean company
was created by Lee Byung-chul in 1938, originally it was a trading store. Samsung
traversed the level of the electronic industry in the period of late 1960. Samsung
Electronics is currently a brand with 116 subsidiaries spread across 70 countries. It is
a major producer of industrial and consumer electronics., covering machines,
multimedia devices, processors, memory chips, and integrated systems
(Bondarenko, 2021). It entails various affiliated companies, the mainstream of which
are incorporated as the Samsung brand. It has the 8th highest brand value worldwide.
Technology's best-known brands Samsung contributes for almost twenty percent of
South Korea's total sell overseas. The market capitalization of Samsung is $355.66
Billion as of May 2022 which makes it the world’s 19 th most valuable company
(companiesmarketcap, 2022). Samsung’s major products are their smartphones.
Samsung had 23.4 percent global smartphone market share in the first quarter of
2022 (statista, 2022). Its revenue of the year 2020 was about $232 billion which was
a 18% growth rate from the previous year and in 2021 Samsung electronics revenue
went up to approximately $244.4 billion (gsmarena, 2022).
2.0 Supply Chain of Samsung
Over 2,500 companies are part of Samsung Electronics' enormous supply chain.
AT&T Store, Sprint Store, T-Mobile Store, US Cellular Store, and Verizon Stores
globally are some of the biggest suppliers. Some provide raw materials or
components, while others provide equipment; yet all are essential in input.
(Samsung, 2022).
2.2 Process
Samsung has manufacturing plants in seven countries worldwide. Its major factories
are from its home nation of South Korea and in China, where their products are
procured from its associate companies and are manufactured (Perez, 2022).
2.3 Output
Samsung’s supply chain is made to consistently meet the changing technical world
to achieve a competitive edge in the global environment. Samsung supply chain is
also designed to result in low cost of production which was possible due to its
manufacturing plants offshore. For example, if there is a shift in manufacturing plant
physical site, it is vital to implement minor adjustments in Samsung’s supply chain
primary model, but this will in future eventually lower cost of production (Yoo & Kim,
2015).
3.0 Upstreaming supply chain of Samsung
metal and industrial material Figure 2 upstream supply chain of Samsung (Krummel & Siegfried, 2021)
from Mongolia, the westerns (Canada, Mexico, Peru, and Chile), and Africa
(Democratic Republic of the Congo), and Southeast Asia (samsungcnt, 2019). This
part of the report will focus on major raw materials required for manufacture of
batteries for Samsung. In fig. 2 Samsung SDI is a battery manufacturing company of
Samsung which implements vertical integration for its production. Cobalt is a
crucial raw material for manufacture of lithium-ion batteries, which are used in
products such as mobile phones and The Democratic Republic of the Congo (DRC)
delivers more than 50% of world's source (USGS.gov, 2020). Samsung has
established reliable and ethical standards in their supply chain through business
partners to rely on cobalt suppliers in DRC (Krummel & Siegfried, 2021). Hence,
Samsung has maintained good relations with its suppliers of raw material.
4.0 Operation management of Samsung
Volume typology gives an idea about the amount of a specific produce that must be
manufactured to meet marketplace call (financialexpress, 2021). Samsung is a
highvolume manufacturing company with nearly 73.6 million units of smartphones
sold in the first quarter of 2022 (statista, 2022). Hence, they have a high level of
consistency in their product delivery. They have well-established processes and are
hence assured of repeating production at high speed due to process familiarity and
implementation of scheduling process.
Variety typology is all about diversity of products that are manufactured and sold to
the customer (financialexpress, 2021). If we ought to choose Samsung’s smartphone
division then it comes in various models: M, A, S, and foldables. M are low-price
series, A is mid-price, and S, foldables are flagship series. Furthermore, each series
are dressed in a range of colors, storage sizes, and features (Samsung, 2021).
Selling variety of goods increases trades and income while reducing a company’s
dependence on one or two products, which can lead to business to shut down if
demand for that product dies. Like Samsung discontinued Note series in 2022.
Cost – Samsung uses low-cost structure and high awareness of economic events.
For example, During the Asian financial crisis in the 1990s, Samsung reduced
expenses and reemphasized product quality and mass flexibility, allowing its
electronics to travel from the project phase to store shelves in six months (ipl , 2022).
Hence, gaining competitive advantage. For more information on performance
objectives refer to Appendix no. 2
Downstream supply chain involves those activities where the finished goods are
cleared out from the organization to the customers or to the market. It is a part of the
supply chain based on how products are distributed (Cirtita & Glaser
Segura,2012). As Samsung is a global brand, the products made in its
manufacturing and assembly facilities are distributed to markets all over the world.
Since logistics is an integral part of the supply chain. For outbound logistics from
manufacturing plants to stores and distributors across the countries. Samsung
Electronics Logitech (SELC) and Samsung SDC are the two largest logistics
companies of Samsung, both of which were once part of the core Samsung firm.
Samsung Electronics Logitech solely ships Samsung Electronics items to over 120
countries worldwide. Aside from that, it also delivers marketing and sales support to
Samsung Electronics for the sale and distribution of its products to customers all
over the world (Pratap, 2022). Moreover, Samsung has an agreement with Russian
railways to deliver its product from Korea or China to eastern Europe. Thus, this
route reduced the lead time from 50 days to 18 days and saved money on logistics
(Railwaypro , 2016). From the stores and distributors, the lead time after an order
has been placed is one to five business days after confirmation where shipping is
free for customers. If the customer wants express delivery, then lead time is only one
day but at a cost of $19 (Samsung, 2022). Hence, Samsung ensures that their
product is delivered safe, secure, and fast which gives a plus point for competitive
advantage and enhances their value chain. Additionally, it also adds importance to
their finished goods and service not as a cost.
7.0 Possible issues with operations and supply chain of Samsung
Although Samsung has all the positive aspects of operation and supply chain
management and all the benefits it holds, there are still some issues within it. These
problems can be investigated by evaluating the core situation of the company.
The larger and more complicated a supply chain network becomes, the harder it
would be to see into deep layers and obtain a complete picture of a product's
lifespan. Many supply chain challenges could be examined by breaking down and
recalling to a failure to communicate and cooperate between both internal
departments and retailers. In the case of Samsung Note 7 battery exploding case it
blamed that problem to one of its battery providers which was not officially confirmed.
Moreover, the replaced devices also caught on fire which made it clear that the issue
was deeper in the supply chain and the company does not know about it. This shows
lack of visibility and integration (strategicsourceror, 2016). However, the company
can overcome this failure by bringing out robust quality control team. Another supply
chain issue of Samsung is notable shortage of non- memory chip caused by high
demand of 5G devices. The challenges have increased with the Omicron Covid
which adds disturbance to logistics operation (Briançon, 2022).
8.0 Project planning and management of Samsung
Since Samsung smartphones not having its own Operating System is quite
concerning and currently in its tipping point this issue can jeopardize the competitive
edge that they have. The objective of the following project is to maintain the
competitive edge with its rival Apple for that the project is to make an Operating
System to test out to reviewers and tech enthusiastic teams and then rolling out the
OS. The Scope of this project is Samsung may use this project in terms of
developing a superior smartphone product capable of competing effectively in the
global market. As one of the leading businesses in the electronics industry,
implementing this project and using best approaches of quality management
Samsung can undoubtedly produce great results.
• Closing – This is the final stage of the project. This stage of the project can
further be supported by the Benchmarking project management tools. It is
a process of continual improvement that is used throughout the project
lifecycle. Benchmarking this project will allow Samsung to determine whether
it has met its performance objective based on internal outcomes, rival
performance, and industry guidelines. It also assists in identifying areas of
enhancement by employing a standardized quality control tool.
Conclusion
Bai, J., 2017. Samsung Galaxy Note 7 Crisis, Stanford : Stanford University.
Briançon, P., 2022. Samsung and Lam Research Issue Warnings on Persistent Supply-Chain
Challenges. [Online]
Available at: https://www.barrons.com/articles/samsung-lam-research-earnings-supply-
chainchallenges-51643278921 [Accessed 12 May 2022].
Cirtita, H. & Glaser-Segura, D., 2012. Measuring downstream supply chain performance. Journal of
Manufacturing Technology Management..
forbes, 2020. Samsung vs. Apple: Inside The Brutal War For Smartphone Dominance. [Online]
Available at: https://www.forbes.com/sites/forbesdigitalcovers/2020/03/13/samsung-vs-
appleinside-the-brutal-war-for-smartphone-dominance/?sh=5031ae224142 [Accessed 9 May
2022].
Gliss, C., Ciattaglia, S., Korn, W. & Moscato, I., 2018. Initial layout of DEMO buildings and
configuration of the main plant systems. Fusion Engineering and Design, Volume 136, pp. 534-539.
Greasley, A., 2008. Operations Process Types. In: Operations Management, SAGE Course
Companions Knowledge and Skills for Success,. London: SAGE Publications Ltd, pp. 23-27.
gsmarena, 2022. Samsung reports record revenue in 2021, strong foldable sales in Q4. [Online]
Available at:
https://www.gsmarena.com/samsung_reports_recordhigh_revenue_in_2021_foldable_sales_helpe
d_in_q4-news-52897.php#:~:text=Samsung%20posted%20its%20yearly%20financial,across%20the
%20Samsung%20Electronics%20company. [Accessed 8 May 2022].
Heizer, J., Render, B. & Munson, C., 2017. Operations management: sustainability and supply chain
management. 11th ed. New York: Pearson.
Jaeyong, S., Kyungmook, L. & Khanna, T., 2016. Dynamic Capabilities at Samsung: Optimizing Internal
Co-opetition. California Management Review, 58(4), pp. 118-140.
Krummel, D. & Siegfried, P., 2021. The Dark Side of Samsung’s Value Chain: The Human Costs of
Cobalt Mining “BLOOD, SWEAT AND COBALT”. Journal of Geoscience and Environment Protection,
9(2), pp. 182-203.
LEACHMAN, R., C., K. J. & LIN, V., 2002. SLIM: Short Cycle Time and Low Inventory in Manufacturing
at Samsung Electronics. Interfaces, 32(1), p. 61–77.
Mentzer, 2001. Defining supply chain management. Journal of Business Logistics, 22(2), p. 1 – 25.
Perez, K., 2022. Where are Samsung Phones Made [2022]? (The Truth). [Online] Available
at: https://samsungtechwin.com/where-are-samsung-phones-made/ [Accessed 11 May
2022].
Rhee, S. & Kim, J., 2000. Building competitive capability in manufacturing: a cumulative approach,
Seoul: The Korean Operations Research and Management Science Society.
Samsung , 2021. Product Support. [Online] Available
at: https://www.samsung.com/in/support/
[Accessed 9 May 2022].
Slack, N., Brandon-Jones, A. & Johnston, R., 2016. Operations Management. 8th ed. Harlow: Pearson
Education.
statista, 2022. Global smartphone unit shipments of Samsung 2010-2022, by quarter. [Online]
Available at: https://www.statista.com/statistics/299144/samsung-smartphone-
shipmentsworldwide/#:~:text=Global%20smartphone%20sales%20reached
%201.38,smartphones%20to %20end%20users%20worldwide. [Accessed 9 May 2022].
statista, 2022. Samsung's share of global smartphone shipments from 2nd quarter 2009 to 1st
quarter 2022. [Online]
Available at: https://www.statista.com/statistics/276477/global-market-share-held-by-
samsungsmartphones/#:~:text=Samsung%20has%20been%20a%20consistent,market%20share
%20of %2023.4%20percent.
[Accessed 8 May 2022].
Stock, J. & Lambert, D., 2001. Strategic logistics management (Vol. 4). 4th ed. Boston: MA:
McGrawHill/Irwin..
The verge, 2019. Samsung’s One UI is the best software it’s ever put on a smartphone. [Online]
Available at: https://www.theverge.com/2019/2/19/18229339/samsung-one-ui-update-android-
9pie-galaxy-s10-plus-s10e
[Accessed 12 May 2022].
USGS.gov, 2020. Cobalt Data Sheet—Mineral Commodity Summaries 2020. U.S. Geological Survey.
[Online]
Available at: https://pubs.usgs.gov/periodicals/mcs2020/mcs2020-cobalt.pdf
[Accessed 9 May 2022].
workclout, 2021. Push System vs. Pull System What's The Difference?. [Online]
Available at: https://www.workclout.com/blog/push-system-vs-pull-system-whats-the-difference
[Accessed 10 May 2022].
Yoo, Y. & Kim, K., 2015. How Samsung Became a Design Powerhouse. Harvard Business Review, 93(9),
pp. 72-12.
Yulianda, S. & Handayani, T., 2015. The effect of two aspects-quality products and consumers
psychology-toward the purchase decisions of Samsung mobile phone’. Mediterranean Journal of
Social Sciences, 6(5), pp. 203-208.
.
Appendices
Appendix 1.1
Appendix 1.2
Appendix 2
Quality - Samsung has solidified its image in modern-day society. To maintain its
image as a high-performance organization, Samsung has focused heavily on product
quality, continuously revising relevant standards, and strictly controlling output
(Yulianda & Handayani, 2015).