Operation and Project Management - Samsung

This assignment will show business theories that come to the Samsung Company. Moreover, a review and criticism of the implementation of the operational management principles in theory, and Samsung also create a plan of continuous improvement based on that. All of that comes with smaller details, theories, and examples.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 5 HND Diploma in Business
Unit number and title Unit 16: Operations and Project Management (528)
Submission date Date received (1st submission)
Re-submission date Date received (2nd submission)
Student name Nguyen Duc Duong Student ID GBD17215
Class GBD0601B Assessor name Nguyen M
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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plag
making a false declaration is a form of malpractice.
Student’s signature:
Duong
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Table of content
1.Introduction……………………………………………………………………………………………………………………………………..4 II.
Conduct a review and critique of the key concepts of operations management……………………………...4
- Conduct a review & critique of the implementations of operations management processes within an
organizational context………………………………………………………………………………………………………………………...5
IV. Prepare a continuous improvement plan based on the review and critique of operations management
principles for the chosen company……………………………………………………………………………………………………...10
V. Recommendations to achieve improved efficiency………………………………………………………………………………………...11
VI. Conclusion……………………………………………………………………………………………………………………………………...12
Reference Lists……………………………………………………………………………………………………………………………………..13

I. Introduction
This assignment below will show about business theories that come to the company specifically chosen
as Samsung Company. Moreover, a review and criticism of the implementation of the operational
management principles in theory and Samsung, also creates a plan of continuous improvement based on
that. All of that comes with smaller details, theory and examples.
II. A review and critique of the implementation of operations management principles within
an organizational context.
1. Define the key concepts
According to (Slack.N et al., 2010, p4), operation can be understand is an activity in business which is
performance of change the inputs into output and input is something like resources, output is product
and services for the customer. “Operation Management is the activity of managing the resources which
produce and present products and services”. There is always an active function in every business,
because every organization produces some kind of product and service. Operational functions are part of
the organization responsible for the results of products and services.
All operations in an organization produce products and services by changing inputs into outputs using
‘input-transformation-output processes’. As shown in Figure 1.4 below, activities are processes that take
a set of input resources that are used to transform themselves into outputs of products and services. For
example, if you just take a quick look at a motorcycle manufacturing company and a technology software
company, then maybe they are the same in how they do it, but getting closer, the difference begins.
show that one is product production and the other is service production. The main difference between
the two activities is the nature of the input (Slack.N et al., 2019)

Relationship Between Operations And Other Business Functions
As can be seen from Figure 1.2, the simulation of the relationship between activities and other business
functions in an organization follows the flow of information between them. Moreover, it gives an
overview of the nature of each relationship. Operational management, responsibility to support
functions to ensure that they understand the activities that their needs and help them meet.

The key responsibilities of an operations manager
Figure 2 shows the basic responsibilities that an operation manager needs to do, which makes it possible
to handle things more neatly and properly.

• Directing the overall and strategy of the operation, understanding of their operations and processes,
and their strategic and performance goals.
• Designing the operation’s services, products and processes
• Planning and control process delivery. Thereafter, the provision of services and products from
suppliers and through all activities to customers must be planned and controlled.
• Developing process performance. They are responsible for developing the ability of their processes to
improve process performance.
If we want to run a small business, we may need to hire an operational manager. This expert oversees
important aspects of the company such as production, human resources and inter-departmental
communications, and is also responsible for maintaining quality control standards and ensuring that the team
meets milestones. time and production time. The operations manager also ensures that the various parts of
the business are working smoothly toward the desired goal. It is essential to understand the full
responsibilities of the operations manager, before you want to hire someone to take up the position.
(Sampson Quain, 2019)
They are responsible for the overall operation of the company, managers who tend to have a big
perspective. They can also identify needs within the company and connect teams to solve problems as
they arise. They need to be commentators, critics, who can analyze situations and make decisions that
are in the best interest of the company rather than a department. Further may mean they also need to
resolve conflicts as they arise between employees and establish policies and guidelines on how to
accomplish the task.
In terms of skills and abilities, operational managers need a combination of hard and soft skills.
Depending on the industry, managers may need talent and mechanical knowledge of production
equipment, and will use computers and many related software programs, including guest management
tools, sales and budgeting and accounting.
-

III. Conduct a review & critique of the implementations of operations management processes
within an organizational context
The general operational process and the key approaches to operations management
Operations management is an important area in managing a company. It can be defined as a management
area related to the design and operation of business processes in the production of goods or services.
Basically, it is the conversion of resources into products and services. In addition, a company's competitive
advantage is directly affected by the efficient use of available resources that meet customer needs. Moreover,
operational management serves the transition management function of managing the process of converting
‘inputs, materials, labor and energy into outputs, in the form of goods and services. It is important to ensure
that a company's strategic direction is maintained by making resource-based tactical decisions to ensure that
its competitive advantage is maintained (Slack et al, 1995).

Operations management is related with controlling the production process and business operations in the
most efficient manner possible.
Modern operational management consists of four theories: business process redesign (BPR), six sigma, lean
manufacturing and re configurable production systems.
Maximize the resources involved in managing the use of raw materials and labor to create goods and services.
Companies should use the resources most needed and meet customer requirements to the highest standards
For example, Samsung is a multinational corporation that designs and manufactures electronic
components and related services. The company manages its operations in a way that ensures that
demand is met by supply but at the same time, it does not need to stock large quantities of products in
stock.(UK essays, 2016)
Operational strategies are composed of raw material ordering plans that convert them into finished
products, stored and sold to customers. Its performance is often mishandled in a rapidly changing
environment in today's globalized markets. Management issues in the area of operational management
include their complex quantitative, social, technical and composite issues (Liet al, 2000).
Evaluate the advantages and disadvantages of Six Sigma and Lean principles
In today's global competitive world, the pressure is increasing, many managers have faced issues such as
increasing sales, reducing costs, reducing inventories and devising specific strategies in the future. In
many ways, from the experience of other businesses, lean and six sigma are the two most effective
solutions to streamline business processes and eliminate waste. However, the two systems are still in
competition to see which system is better.

Many argue that the combination of the two systems gives the best results, so we must first learn the
benefits and the similarities between the two systems.
Six Sigma
According to Ankit Rastogi, 2018, Six Sigma is a data-based problem solving method. The focus is on the
variations of the process and the emphasis placed on customer satisfaction. Continuous process
improvement with low defects is the goal of this method.
Six Sigma refers to a data-based approach used by companies to upgrade their business processes. The
method uses a five-step method to eliminate defects at all stages in a company. Six Sigma defines defects
as anything that is not within the customer's expectations. The goal is to adopt a measurement-based
approach, focusing on identifying and improving defects (Nicholas Muhoro, 2019).
Advantage of six sigma
3 Add value and guarantee the quality of an enterprise's output in the form of added
improvements to its products or services
4 Optimize supply chain processes and increase customer satisfaction.
5 The benefits of Six Sigma go beyond simply solving problems and considering the entire
production process from raw material to the final product, as opposed to the final product.
6 Identify and make recommendations for potential issues before the company incurs any
form of losses.
• Can be deployed in several categories within an enterprise, directly affecting profitability
and cost reduction. It is important to note that for B2B customers, the Six Sigma standard for
manufactured products is a reliable testimony.

Disadvantage of six sigma
1 Six Sigma examines business processes every minute and generates large amounts of
empirical data, leading to complex and time-consuming procedures
2 This is a radical quality improvement process, the application of its protocols often leads
to an increase in overall costs.
3 For small businesses, it can restrict new ideas in favor of creativity and innovation, which
requires a number of risks to implement.
4 The small cost of applying Six Sigma by small businesses is not feasible. Even large
companies must provide a lot of training for employees to embrace the system (Nicholas Muhoro,
2019).
Lean principles
Lean is a systematic approach to reducing or eliminating activities that do not add value to the process.
It emphasizes eliminating wasted steps in a process and taking unique value-added steps. Lean Method
guarantees high quality and customer satisfaction.
Lean, as a management philosophy, is focused on improving process speed and quality through
reduction of process wastes. By reducing activities that thrust up cycle times or cost money
unnecessarily, processes can become more efficient and more predictable. Moreover, a streamlined
approach provides companies with the tools to survive in a global market that requires higher quality,
faster delivery, and lower prices. Lean production significantly reduces waste chains, reduces inventory
requirements and floor space, creates a more robust production system, develops a consistent material
distribution system, and Lean production improves the layout to increase flexibility.(Ankit Rastogi, 2018).
According to Neil Kokemuller,2018, the following analysis is an analysis of the benefits and disadvantages
of lean

Advantage of Lean
- Less infrastructure: a lean manufacturing manufacturer uses only the construction space,
equipment, tools, supplies and manpower needed to meet short-term inventory needs from
buyers.
- Waste is limited: The goal of limited waste is the main focus of lean production compared
to mass production. This approach eliminates day-to-date or obsolete inventories and the risk of
certain items being damaged. or expired. Eliminating waste is cost effective.
- Strong customer relationship: Lean manufacturing is an effective approach for customer
relationships. Meet the needs of loyal customers on a scheduled or predictable basis.
Disadvantage of Lean
- Equipment or labor failure: If the device is broken or a business needs more labor than
expected for certain processes, they may be left behind and lose the advantage of optimization
efficiency. In a lean manufacturing facility, there aren't many additional equipment and tools
around.
- Lost Shipments: Directly associated with the lack of flexibility or margin for errors is the
potential for missed delivery deadlines.

Figure 2: The principles of Lean and Six Sigma are compared
As can be seen from Table 2, one of the differences can be found when Lean or Six Sigma is commonly
applied as a way of managing businesses. Both include training as a core component but there is a
difference between the methods used. While both Lean and Six Sigma need trained students to succeed,
Lean has an additional value placed on training that does not exist in Six Sigma. A core concept of lean
culture is a cross-trained workforce. Cross-trained during working, not specific about lean tools. This is an
important part of Lean Transformation because the cross-trained workforce supports job motion to keep
workers from being bored and complacent.
Lean is characterized by the idea of “retainer leadership” in which the position views one of its main
functions to be enabling the success of the workers. On the other hand, Six Sigma was selected by
considering high performance and imposition of change down to some involvement.
Lean is often used for shorter, less complex issues, focusing on eliminating wasted steps. Six Sigma is a
larger analytical method, often quality oriented and it tends to have Statistical approach. Focus on
optimizing the important steps that reduce defects.

Although both systems focus and improve the process and achieve quality, Lean punctuate speed and
waste, but Six Sigma emphasizes change, defect, and process evaluation.
The development of operations management principles in modern context.
It can be said that today, new trends in the labor market and the digitization require creativity to manage
operations, and there are some trends that significantly impact the modern context. There are six
development of operations management principles, consists of: Craft manufacturing; Mass production;
Flexible specialization; Mass customization; Agile manufacturing; Scientific management; Lean
production.
Operational management theory today has been improved to match the trend of globalization, especially
lean and six sigma. Lean and six sigma are processes used to solve and eliminate problems, minimize
wastes in the production process, improve the ability to operate and work to better suit the needs of
customers. They are combined into a common method to improve the performance of each organization
and at the same time overcome the limitations it causes. Mostly, the combination of lean and six sigma
has brought efficiency and efficiency optimizations to businesses in Vietnam and around the world.
Behavioral Operations Management investigates new developments around behavioral components —
“people issues” — in operations management (OM). Operational management involves the design,
implementation, ongoing management and improvement of processes to convert inputs into value
outputs for customers. Regulatory solutions derived from performance goals often include simple
behavioral assumptions. Assumption do not accurately indicate human variables in a process. Behavioral
activities seeking an improved understanding of anomalies due to human deviations from normative
theory. There is a solid interest to understand the most important factors that influence manager’s
decisions, in order to make efficient problem-solving methods more widely accessible. With such a
toolbox, managers can make more rational decisions and improve the overall efficiency of the
operations. Cultural studies in OM may represent a promising direction of future behavioral research
OM. (Bendoly,E., Hur, D. 2007).

Lean and Agile are two of the most commonly discussed and debated principles of manufacturing,
particularly when there’s a transformation current. While there are many similarities between the two,
manufacturers need to have a clear understanding of how and when to put them into practice. It's a
continual improvement process to reduce waste and inventory, and maximize the output of high-quality,
low-cost products and services that fit the modern context. The reason it came to life was the growing
complexity of processes, and it is characterized by product development done in small increments.
IV. A continuous improvement plan based on the review and critique of operations
management principles
Samsung Electronics Company (SEC), is one of only two manufacturing companies worldwide to make
more than $ 10 billion in profits in 2004 (Toyota Motors is the other company). Many consider these
successes a reflection of Samsung's continued efforts to improve the way we conduct business in recent
years.
Six sigma has been a determining factor for the group's success. The President of the Group announced
the adoption of a new business innovation approach called Google's new management in 1993. Along
with the quality movement of users in the industry, new management evolved from ensuring quality
assurance initially but then shifted the focus to the quality of the entire business process, which is the
reason behind the six sigma. The results are high quality, innovative product development, and thus
increase customer satisfaction and profitability, and are well represented by many of the world's best
technology resources.(Hong Mo Yang, Byung Seok Choi, Hyung Jin Park, Min Soo Suh and Bongsug
(Kevin) Chae, 2007)
Explain the relevance of operations and other business functions at the chosen company.
Operations management is the area directly related to and related to the production of goods and
services. Operational strategy is a functional strategy; Need support and provide guidance and roadmap
for operation and management for any business journal. It is guided by strategic trading

The goal of managing the company's operations is to make more money and the goal is cost, quality,
delivery, flexibility and customer satisfaction. Samsung Electronics focuses on five business areas, which
are semiconductors, multimedia, digital applications, LCD and telecommunications networks,
globalization and new trends in commercial activities of Samsung electronics in 10 years, that means that
from 1993 to 2003, there was a total change for employers. commissioning and development
successfully.
In 2007, Samsung Electronics became the second largest mobile phone plant in the world. Successful
strategies are a direct concern for different market and customer actors. It creates the ability to manage
and market, design and manage electronic products. DRM product development makes an impact on
their progress when the company sells (samsung, 2019).
They have improved R&D extensively to maintain production and manage profitable products. Successful
planning and innovative operational management in their DRAM capabilities are among the employers'
interests and interests. The quality of Samsung's original electronic products and brands on the world
market and the image of its goods and you want excellent customers is one of their high-priced origins.
Today there are many approaches and systems for the innovation process (UK essay, 2018).
Samsung's electronic operations management is:
• They are responsible for managing daily business with the supply Chanel chain, sales, and
marketing
• They are the individuals responsible for management plan, stock level and sell through inventory
into different accounts.
• They are also responsible for direct financial and procurement use
The current continuous improvement processes

According to David Kiger, 2016, Product innovation is what makes companies like Samsung competitive in
today's electronics market and the collaboration between Six Sigma and supply chain management is
highly dependent on project discipline, maintenance results, The personnel framework is well-
established and clearly defined, resulting in qualitative results. Samsung is one of the best examples of
what Six Sigma implementation can do for a company and measurable success to span over half a
century, corroborating those claims.
Another often aspect is the need for an employee-driven environment. A business needs its employees
to do the right thing, but employees must have the right motivation to do so. Organizations that are
willing to fully pursue with staff have consistently shown a large increase in productivity. Sharing tools
and processes to solve Six Sigma problems will recognize employee progress and help create the climate
and environment for employee motivation.
Product innovation is what makes companies like Samsung competitive in today's electronics market and
the collaboration between Six Sigma and supply series management is highly dependent on project
discipline, maintenance results, the personnel model is well-established and clearly defined, resulting in
qualitative results. Samsung is one of the best examples of what Six Sigma implementation can do for a
company and measurable success to span over half a century, corroborating those claims.
Besides, Samsung corporations have direct sales models and telephone networks. They can also maintain
negative conversation cash cycles of this model. The company must receive payment before they have to pay
for new materials. They can also be used only in time management. They must be able to deliver their
product (electronics) at the right time, at the right price and reasonably on the tracking locations. By
approaching JIT it is possible to create computers and other electronic goods only after the client's LAN
commands and request documents that are directly concerned with customer needs and satisfaction
(Essays, UK. 2018).

Samsung operations management involves the application of the 10 decisions of operation management
such as: Design of goods and services, process and capacity design, location strategy, layout design and
strategy, job design and human resources, supply chain management, inventory management,
scheduling and maintenance to ensure that all aspects of the business are running smoothly. 10
operational management decisions are made carefully through concerted efforts in product design and
development, sales and marketing, and the company's supply chain, along with other companies in the
industry business. (Essays, UK, 2018). With a significant lead in the electronics technology industry,
Samsung is an example of success in addressing 10 critical areas of operational management. The
performance and strategy related to technological innovation help businesses thrive, despite the
competition involving Apple, Lenovo, Sony, Huawei, Xiaomi and other companies. This success
underscores the importance of Samsung's strategic methods to achieve high goals and performance in
the areas of operational management.
The Roles Of Lean Principles Within The Cycle Of Continuous Improvement
Lean manufacturing plays an extremely important role in optimizing costs and minimizing input materials
in Samsung manufacturing process. Encourage all employees to contribute initiatives in the efficient and
economical use of materials to optimize production costs. Moreover, Samsung mobilizes factories to
carry out the movement of saving materials and using labor effectively, maximizing productivity.
Lean principles has created for Samsung an innovative and continually improved work environment,
requiring leaders to trust the capabilities of their employees, listen to their opinions, lead them to their
priority jobs. accordingly, this brings the highest value to customers. In addition, Samsung also applies ``
stop the line '', such as the AI technology they are improving, if a problem arises, an assembly line will
halt production to resolve it. The problem, no matter how small.
In the end, what they value most is still people, or more specifically about providing value to people,
Samsung has always been at the forefront of listening to customers, always listening to the wishes from.
customers so that they can improve the product and create future things. In 2018, Samsung gives
customers the ability to build a whole range of exciting new products that will push the boundaries of
applications such as 5G, Artificial Intelligence, Enterprise and Hyperscale Datacenter, IoT, Cars, and
Networks. Changing the appearance and giving customers new experiences.

The Impact Of Process Technology
• Samsung completed developing the EUV 5nm process technology: Semiconductor contract
manufacturers say they can reuse all existing 7LPP intellectual property on chips designed for
5LPE technology, which will help reduce customer travel costs and reduce product development
cycle
• Advanced molding technology is introduced with Silicon's latest innovation and ecosystem: This is
the initial design work of customers to enhance design competitiveness. Samsung Electronics fully
understands that achieving robust and reliable silicon solutions requires not only the most
advanced manufacturing and packaging processes as well as design solutions, but also
relationships. Cooperation between customers and factories based on common beliefs and
visions
• Nowadays, Samsung has launched smart phones from many different segments such as S, A, J,
NOTE and so on, attached accessories such as Bluetooth headsets, smart watches smart to
increase engagement with customers, and give customers confidence and innovation when using
their products.
• Samsung Asset Management complies with Samsung Business Principles which provides
guidelines to all Samsung employees when making decisions, executing strategies, and
performing business activities.

V. Recommendations to achieve improved efficiency
Samsung has one of the most advanced operational management systems in their organization. Their
operations not only reduce time and costs but also help them provide superior services. Currently, they
do not need any major changes in their operations management, as everything is updated and works
very well. However, in Asian markets, Samsung needs to apply two lean systems as well as six sigma to
improve performance, because Samsung has only invested in Asian markets such as China, India, and so
on, so it takes a long time to balance the stability of business operations. Samsung does not have the
option to prevent erratic failures like power surges, so they have to make something that prevents
operators from this kind of problem. Besides, they can also set up marketing strategies based on diversity
and different economic environments. Purchasing behavior and consumer preferences are rapidly
changing. Therefore, they should change their basic operational strategy and implement new design
technologies and marketing strategies.

VI. Conclusion
The assignment has shown information about operational management in theory also in specific
company. After the transfer, we can easily know how an organization or company runs its business with
their innovative processes such as six sigma, fine manufacturing and other business functions.
Operations Management is very important in the organization because they played a big role in the
business as they create the highest level of efficiency in the organization. Operations Management is also
the business to make it successful and achieve a really good result. Therefore, the operations manager
must take numerous factors into account when producing the product. They must make decisions to
balance the cost and quality of their products or services when deciding whether to source, innovate
with technology or have inventory, and they also choose to use globalization as a strategy for businesses.
The management of these key factors will add to the success or failure of the business, so the choices
made by managers have a large impact on the way they do business.

Reference Lists
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