Operations Management Analysis: Samsung's Continuous Improvement Plan

This report delves into the operations management practices of Samsung, a global leader in electronics and home appliances. It examines the application of key principles such as reality, organization, fundamentals, accountability, and variance within the company's organizational context. The report further explores the implementation of Six Sigma and Lean production methodologies, evaluating their impact on efficiency and quality. A significant portion of the report is dedicated to the development of a continuous improvement plan, addressing issues related to employee accountability and proposing strategies for enhanced performance. The report also discusses relevant management theories like Taylor's Scientific Management, flexible specialization, and mass customization, providing a comprehensive analysis of Samsung's operational strategies and their impact on the product life cycle and overall business development. The report concludes with a plan outlining the improvements needed within the organization.

Operations and
Project Management

INTRODUCTION
Operation management is the practices in business administration to create higher level of
efficiency within the organisation. It is mainly related with converting material and labour into
goods and services so that highly efficient goods and services should be achieve to gain
maximum profit share in organisation. This report is based on Samsung Company which is
headquartered in Seoul, South Korea and was founded in the year 1938. It provides their
customers with many products and services such as home appliances, automotive and chemicals,
electronic components, medical equipments, advertising, construction, entertainment, financial
services and many more. deals in home appliances and have a good market share and reputation
also in its product line. It sells fridges and freezers, gas and electric cookers with washing
machines and plan to expand in Television market with new and innovative product which is 58
inches TV. This report based on operation management principles in organisational context and
on that basis prepare an continuous development plan to give suitable solution of the problems.
Further it elaborates product life cycle and contribution of each and every stage in development
of organisation and select one of the most important theories and models that help in PLC.
TASK 1
P1 Conduct a review and critique of the implementation of operations management principles
within an organisational context.
In every organisation operation management play very important role to get optimal
outputs from various types of inputs and it is use by every type of organisation whether it is
manufacturing or offering services to their consumers. Operation management consist of
planning, organising and investigating and establish necessary improvements to get higher
profitability in organisational growth (Turner,2014). Operation management is a
multidisciplinary approach that is use by every department whether it is finance and marketing to
get effective results by organisation for utilising labour and other resources in proper manner
(Subramanian and Ramanathan, 2012).
The major principles of operation management:
To understand the potentiality of operation management there is need to understand its
principles that gives important insights and knowledge in organisational development and its
enhancement that are as follows:

Reality:
This principle state that organisation have to focus on problem rather than methods and
techniques because there is not any tool that is self sufficient in universal solution of problem. In
case of Samsung corporation by analysing the problem or need of consumers they aimed to
launch a new product in the market and segment accordingly market about consumer choices and
preferences ( Gunasekaran and Ngai, 2012).
Organisation:
Organisation is a whole group of work and activities in which they all are connected with
each other to give effective results. In organisation all manufacturing activities are connect with
each other to give at last best product and services to their consumers. So in case of Samsung
corporation their each and every element should connect with each other to get best outcome in
organisational development. For example in Samsung organisation all departments and activities
are connected with each other, when they launch a new product that is TV in that scenario they
connect with each department. Marketing department give the knowledge about their need and
give information to the finance department and they evaluate funds according to that and HR
department recruit the employees to attain goals and objectives. So in organisation each and
every department connect with each other ( Fleming and Koppelman, 2016).
Fundamentals:
This principles states that 80% of success carried out from the old maintaining records
and techniques and 20% comes from the application of new processes and techniques to that are
important steps in progress of organisational development. In case of Samsung corporation in
present scenario it works on to give best products in which it launches new TV of 58 inches. So
by giving their previous products with efficiency and rest of them with new and innovative way.
Accountability:
In that principle consist of rules and regulations which is set by managers and higher
authorities and they define their problems to their subordinates and continuously check that goals
and objectives should be match with organisational goals and objectives. In that scenario they
work in benefit of workers and they also give best. In case of Samsung corporation higher
authorities not distribute proper tasks and responsibilities that hinders their self interest, hence in
that scenario they do not give their best in organisational growth and stability.
Variance:

This principle state that in organisation's various processes and practices are prevail
simultaneously so management have to focus on all these activities with creativity. In case of
Samsung corporation it manage various activities simultaneously to get effective results.
Six sigma:
Six sigma is a statical tool and technique that work on reducing defects and variability in
processes. In six sigma process major attributes includes measurement, improvement and
validate work and activities. Six sigma is the relation with no. of defects on per million basis and
standard deviation found within the specification (Ramasesh and Browning, 2014).
There are some specified steps that helps in implementation of six sigma that are as follows:
This process helps in measure the current mistakes with errors and increase the
performance of organisation by using statically improved tools and techniques. In this way, the
improvement in the ways of working could be made and the possible chances of errors are also
removed with the help of this application. This method is associated with DMAIC that stands for
Define, measure, analyse, improve and control.
Define:
In stage of define, the detailed description of problem and issues is describe in detail so
that major drawbacks can be eliminated from that and effectiveness should be achieve in
organisational growth (Pemsel and Wiewiora, 2013). In define project scope, resources and plan
should be explain in detail, in case of Samsung corporation by it understand the problem of
product and services.
Measure:
In that step of six sigma, organisation assemble current state of present scenario and
build baseline according to them, by developing process map and collection plans.
Analyse:
In analysis stage of six sigma, it identify the factors that are responsible and root cause of
the defect. In that scenario the factors help to analyse in which includes data, factors, root cause
so that effective results should be achieve. So with the help of these factors Samsung find out the
problem and their solution also.
Improve:
In that stage organisation find out the root cause of the problem and corrective steps and
actions should be taken to identify to resolve issues. In that case problems be solved by identify

solution and failure modes where that solution can be fail and then potential improvements
should be adopted in Samsung organisation.
Control:
In this phase, proper evaluation of the results should be observed and according to it
control measures are taken to correct and prevent the variations. By accessing needs and
demands of consumers and according to that organisation plan to launch new product that is 58
inches TV in market.
Lean production:
Lean production is an management tool that focus on curtail in cost with best quality
product and services. This approach is applicable in all areas from design to production to
distribution. The main aim of that approach is to minimize activities that not help in given value
to production process (Beringer, Jonas and Kock, 2013). With the help of this approach, it is
possible to remove the deviations in relation to the work performed and get the best quality of
work that could satisfy the needs and demands of customers. Further, this appraoch will also be
hepful in reducing the overll cost of production of the company.
Principles of lean:
There are five principles of lean that helps in increase the production efficiency and
eradicate defects also.
Define value:
The first and foremost principle focus on giving value to their customers and understand
what kind of value an customer wants from their organisation. In that case Samsung corporation
build the product and services according to consumer choices and preferences. It launch the new
TV which satisfy their future needs and provide them value (Mir and Pinnington, 2014).
Map the value stream:
In the second phase, marketers identify value and use these value as a reference point
and give it in product and services and eliminate activities that not generate any kind of value. In
case of Samsung corporation it add more features and values in their TV so that it can give
delighted experiences to customers.
Create flow:
In that stage elimination of stages or activities that are not giving proper value to
organisation after that it should be eliminate at that time. Later some strategies should be

adopted to give their best in which includes breaking down, reconfiguration of steps are major
things that added value in Samsung corporation.
Establish pull:
In an organisation inventory is considered as the biggest wastage in production process
and the goal of that step is to limit in inventory and work in process items so that it can be ensure
that proper flow of material and information is available for smooth work flow in Samsung
corporation. A pull based system enables for just in time delivery and manufacturing in which
product are developed when they needed in just the required quantities for satisfying demands of
consumers organisation plan to launch a new TV.
Pursue perfection:
This process is one of the most important which helps in continuous improvement and
lean thinking and it become part of organisational progress. It helps in improve in product and
services in case of Samsung corporation and employee should be strive to give their best in
organisational success (Weglarz, 2012).
 Taylor’s theory of Scientific Management: This theory was established by F.W
Taylor's. It was attempted to identify the most effective way to do any kinds of job. As
per him, a effective management is totally depends upon the scientific management
approach to perform where standards of objectives are set through means of time, motion,
method and fatigue studies. The respective firm use this approach so that they can able to
do their operations in effectively and efficiently as it is helpful to set the goals criteria.
 Flexible specialisation: This is defined as the business strategy that a firm consider for
making themselves more competitive. Moreover, this approach is a kind of
industrialisation where company specialise in specific products but can modify at short
time period for manufacturing different ones. This approach can be utilise by Samsung so
that if necessary they can introduce new features in their respective product in less time
duration in order to gain more profitability.
 Mass customisation: This is defined as the manufacturing techniques that integrates the
flexibility as well as personalisation of custom made goods with low costs of units related
with mass production. In respect of Samsung, this helps them to analyse the needs as well
as demand of market and produce the products accordingly.

TASK 2
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles within an organisational context
Source Anticipated Outcome Recent performance
level
Improvement in
strategies
Employees Due to problem of
accountability it create
chaos but when
organisation adopt
different strategies to
resolve them. It gives
positive outcomes
employees get
motivation and they
effectively contribute
in growth.
Due to lack in
accountability
employees do not
clearly understand
their roles and not able
to give their best in
organisational
development (Fleming,
and Koppelman, 2016
). with the help of lean
principles which is
responsible to
eliminate defects by
improving level of
efficiency to enhance
productivity of
employees to get
optimum outcomes.
With the help of Lean
principles they
coordinate works and
activities within the
employees so that they
In case of Samsung
organisation there is
need that every
individual understand
their role and
responsibility before
launch a new product
into the market, tasks
with duties and
authorities should be
distributed within the
organisation.

can give their best.
Management In the scenario when
accountability problem
arise in organisation
then management
become aware about
that and frame rules
and regulations
accordingly. It gives
growth and stability to
organisation.
Due to the lack in
understanding in
management regarding
employees skills and
competencies, it
creates dissatisfaction
in employees because
mismanagement
occurs in organisation.
To manage works and
activities within the
organisation such as
Samsung aimed to
launch 58 inches TV in
marketplace for that
lean principles helps to
find out the gaps in
performing well and
reduce wastage while
manufacturing TV for
consumers.
To improve the
performance of both
employees and
organisation there is
need to distribute
proper authority and
powers to the potential
employees so that
necessary results
should be accomplish
in organisational
development.
Effectiveness of the continuous improvement plan:
Continuous improvement plan is the plan which help in understand problems in depth to
find out the root cause of that problem and then find out potential solution of that issue. That
process takes time because improvements not occurs in a day, organisation to adopt and
according to them apply in organisational development and individual also. In case of Samsung
corporation it faces the problem of accountability in their organisation so in that case both
organisation and individual can not give their best in works and proceedings. Due to lack of
accountability employees not give their proper contribution and remain always in confusion that
which tasks they need to perform and what are their responsibilities. In same case the

management is not able to understand potential of the individual and not able to distribute
authorities to individuals. that creates dissatisfaction among employees and it increase the
employee turnover of the organisation. To reduce that problem organisation have to access the
potential skills of the employees by different methods and work to improve their motivation level
so that they can give their best in organisational development. Accountability is the major
problem in organisational development and its enhancement so to remove that problem necessary
steps should be adopted so that effective results can be accomplish. So all reliable principles and
laws should be work in organisational effectiveness and overall contribution of each and every
principle helps in organisational development and enhancement (Jacobs, Chase and Lummus,
2014). continuous improvement plan helps in improve the working conditions of whole
organisation and employees also. In case of Samsung corporation it access consumer demand
and plan to launch a TV that is also part of CIP. It gives satisfaction to both organisation and
consumers also.
While launching a new product into the marketplace which is 58 inches TV into marketplace
they have to use various tools and techniques that helps to satisfy the emerging needs and wants
of consumers in positive manner.
Customer Relationship Management (CRM):
Customer Relationship Management (CRM) refers to the process with the help of which
an organisation maintains proper relationship with their customers and also the potential
customers. In the light of continuous improvement in the working processes of an organisation
such as Samsung, it could be made possible with the help of knowing the needs and demands
from customers. An organisation could interact with their customers in different ways with the
help of which it could be possible to know what the customer really wants in the products and
services of the company. So with the passing of time, the tastes and preferences of people
changes and on the very basis, the improvement in the products and services of the company are
needed to be made so that it could become a continuous source of attraction for customers and
also an important source of income and revenues for the company as well. For this
improvement, it is important for the organisations to be in touch of their customers so as to be
aware about the needed changes in the products and services which the customers are expecting
from the company to make. In this way, with the help of Customer Relationship Management, it

will be possible to make the needed improvement in products according to the tastes and
preferences of customers.
Enterprise Resource Planning systems (ERP)
Respective technological system proved beneficial in context of Samsung while aimed to
launch a new 58 inches TV into the marketplace. Respective software system helps to
organisation to integrate various kinds of applications to coordinate the business activities by
automate various back office functions which relate with technological advancement.
Supply Chain Management (SCM):
SCM is one of significant management regarding flow of products and services in which
includes all activities related with transforming raw material into finished goods. In context of
Samsung which aimed to launch a new product which is 58 inches TV into marketplace for that
they have to opt sound supply chain by including various intermediaries that are specialised into
their tasks and duties.
New-Product development (NPD):
NPD is the chain of activities for bringing new product into the marketplace, in context of
Samsung which aimed to launch new 58 inches TV into market so before launching into market
they have to acquire potential information such as market wants, ways to build product smarter
and necessary improvements to become competent to satisfy present as well as emerging needs
and wants of consumers positively. They follow complete chain of NPD so that any kind of
discrepancies not occurs at time of product launching.
So all are the important terms that proved useful for the Samsung which aimed to launch a new
product into marketplace to bring technological advancement in their respective product to attain
positive response of consumers.
Role of TQM and Re engineering :
TQM and Business process re engineering share a close relationship with each other as
they known as quality specialists majorly focus on the incremental modifications and
improvements in the quality management by initiating in programs and activities. On other hand
re engineering focus on the redesign in process innovation by taking prudent initiatives to
improve the working conditions in a specified time period. In context of Samsung they by use
both tools to eradicate the errors while producing products and services to get optimum
outcomes.

TASK 3
P3 Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project e.g. a business case, project plan, work
breakdown structure.
Product life cycle is the succession of strategies by business management in which
product passes through the definite path and steps and these steps are called as product life cycle.
The product passes through different kind of changes (Kerzner and Kerzner, 2017). In scenario
Samsung organisation aimed to expand its market share by launching a new product that is 58
inches TV in the market for successful implementation of that project there is need to follow the
proper steps. These steps helps in successful completion and for effective results accomplish in
organisation. In case of home appliances people wants innovation at very rapid pace so satisfy
their needs and wants kind of strategies should have to follow. To successful implementation
there is need to understand that each and every person their roles and responsibilities and give
their contribution in effective manner (Martinsand Martins, 2012). Samsung corporation plan to
expand its market share and their target market is upper middle class that easily afford them. It
plays very important role in organisation development because they complete their product line
and their estimated sales in first year are 250 "€".
Product life cycle ( PLC):
Product life cycle is the very important tool to determine the stage or phase in which
product is at present and important decisions should be taken in that stage. There are four major
steps from which product is passes through. In PLC Firms seek knowledge and important
insights and accordingly develop products and services to get success in market.
These are the stages of PLC:
Introduction stage:
It is the first and foremost stage in whole PLC program in which identification of wants
and insights of potential consumers should be observed. In case of Samsung corporation by
observing needs and important views of their customer aimed to expand its market share in TV
line and launch a new product that is 58 inches TV for the consumers. It is the most important
stage in which brand awareness and insights about developing a product and services should be
observed to get better results. In case of Samsung corporation it by different types of surveys