Operation and Project Management Analysis for Samsung Company

This report provides a comprehensive analysis of Samsung's operations and project management, delving into the challenges faced in areas such as operational strategies, supply chain management, and the implementation of artificial intelligence. The report examines specific challenges like communication issues, uneven distribution of responsibilities, poor supplier selection, and errors in procurement. It reviews operational strategies, including training and development, the Kaizen method, and vertical integration, offering solutions to improve efficiency and address identified problems. Furthermore, the report explores the benefits and challenges of implementing AI within Samsung's operations. It highlights key aspects of supply chain management and quality management approaches, providing a detailed overview of Samsung's operational landscape and strategies for improvement.

OPERATION AND PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Challenges faced by Samsung ................................................................................................3
2. Review of operational strategy ...............................................................................................5
3. Challenges faced in supply chain management......................................................................7
4. Lean management quality management approaches...............................................................9
5. Benefits and challenges experienced by Samsung in implementing Artificial Intelligence
...................................................................................................................................................12
TASK 2..........................................................................................................................................14
REFERENCES..............................................................................................................................18

INTRODUCTION
Operation and project management is very important for successful accomplishment of
any task. It is concerned with focusing on production of commodities. When every operation of a
firm is successfully managed then it leads to serve smooth operations of other departments. An
improper functioning of all units which are involved in the process of manufacturing can make
an organisation to suffer in various ways. This area deals with monitoring, controlling and
designing of production and restructuring of all commercial operations for procuring good or
services. It also concentrates on provision of adequate training to all employee for efficient use
of inventories and proper equipment maintenance (Hitt, Xu and Carnes, 2016). Apart from this,
project management is very necessary which includes all those phases that are coordinated for
successful accomplishment of a particular project on time.
Following report consist of description related to various operation of Samsung which
includes Operation, supply chain and quality management. Also, various challenges are faced by
the company in managing these fields for effective timely completion of project. Several
solutions have been provided in order to successfully manage these functions by overcoming all
those problems. Depiction of the contribution in enhancement of overall business is also done.
TASK 1
1. Challenges faced by Samsung
It is a South Korean Multinational Company who headquarter is situated in Seoul.
Samsung includes many associated businesses which is working under the brand name of

Samsung. This group has a diversification in many areas such as textiles, food processing,
insurance, retail and securities. It is regarded as one of the fastest growing company of mobile
phones. In the year of 2017, firm has reported 40 percent growth in revenue. The number of
employees working in company is huge that is about 325000 around the world. Major clients of
Samsung include Royal Dutch Shell, government of UAE and Ontario.
There are various challenges which are faced in several functioning of this organisation
such as managing operations department , Supply Chain and quality management that are
essential for handling production unit of the firm in an efficient and effective manner. Functional
units face certain challenges that are needed to be resolved in order to minimise negative effects
and facilitate timely completion and delivery of projects to clients. Operational challenges that
are faced by Samsung are issue in communication, distribution of roles and responsibilities in
uneven manner which tends to create certain confusion among employees for successful
following of their role. There are many problems in the development of product due to several
faults in technical aspect and improper working of machine used for facilitating operational
activities.
As the major concentration of Samsung is to provide an effective services to their
consumers. But there are many obstacles that hinders successful management of supply chain
functions as selection of supplier is considered to be very poor, there are various errors in
procurement and company has to face many problems in importing as well as exporting
inventories or processed products across various nations (Smith, Maull and CL Ng, 2014). Apart
from this, the strategies which are formulated for procurement is not effective and does not fulfil
objectives of the department. All these factors lead to increase the lead time that degrades their
efficiency. There are certain concerns related to quality of the product as many customers has
complaint regarding poor features of commodities that are delivered to them. There can be many
problems which does not support applications of many techniques that can be beneficial for
increasing this aspect of every product. There are certain issues which are faced by Samsung in
making alterations in existing practices such as ineffective human resource management that
does not lead to manage workers of company in an efficient manner.
In addition to the above problems there are several financial issues that are needed to be
resolved in order to provide a strong financial stability against potential crisis of market and
making it prepare for managing in scenario of adverse changes in economies of several global

markets. Technological factor also has an impact on the functioning of all those task that are
involved in manufacturing mobile phones for customers.
2. Review of operational strategy
There are many challenges which are faced by operation department of Samsung such as
 Communication Issue
 Uneven distribution of roles and responsibilities
 Product development issue
 Problems in Information Technology
There can be many solutions to these challenges which can be implemented in order to
make scenario much better that will lead to influence the company in a better way.
Training and development- It is necessary to train employees for enhancing their skills
that will lead to develop their capability for providing quality output by utilising every resource
in an optimal manner. With assessment of each employee Samsung can acknowledge its
potential which can be used for placing them at appropriate profile which is necessary to resolve
all issues that are involved in uneven assignment of roles and responsibilities of various
individuals. It provides manager an opportunity for monitoring performance of every worker
that can be essential for evaluating those factor which are influencing their performance. Those
aspects can be improved by applying certain solutions. There are many sessions which are
organised for creating awareness regarding importance of quality in the delivery of product and
services and what methods can applied which can utilise whole resources in a optimal way and
quenches out maximum benefits form it.
Kaizen Method- This method is very beneficial as it includes those activities that
focuses on improvement of all functions and tends to involve workers for different roles. This
method is applied on processes such as logistics and purchasing. By serving improvement in all
the programmes associated with production, aims for eradication of waste. It tends to provide
accurate amount that is optimal for usage and does not lead to procure surplus quantity. It serves
to provide small improvement by changing as well as monitoring results and then adjusting it in
a most suitable manner. There are various advantages of applying this method as it leads to
enhance the teamwork of an organisation which resolves issues that are related to
communication and eliminate all barriers that restrict these processes. Apart form this, there is an
increase in efficiency as it tends to create a lean and tight running business. It promotes

satisfaction of employees by providing invitation to several employees for looking at all
processes and related systems so that they can suggest remedial solutions for all problem which
are associated with it (Kato and et.al., 2015). As their involvement lead to provide them a sense
of being connected. Apart form this, there is an improvement in safety aspect on work floors of
firm due to better control of all process and equipments. Training related to safety provided to
normal employees and management to make them aware regarding handling of any type of
disaster or accidents that can be life threatening as well as harmful for organisation also.
Vertical Integration Strategy- Vertical integration is considered to be as one of the best
method for improving operational strategy of Samsung. This is a decided pattern procuring and
supplying various inventories or products at different places. It safeguard need of company
regarding supply factor for producing several commodities for selling in a market. This leads to
reduce all the problems which are associated with distribution as well as supplying of products or
services to several nations. There are various benefits which are associated with implementation
of this concept, such as competitiveness of Samsung will increase, there will be a greater control
in all process that are involved in production, market here will tend to rise that will secure their
financial potion in market and apart from this there will be maximization of coordination in all
supply chain activities. Apart from this the cost for procuring or procuring the commodity will
get decreased that will lead to provide an increase in the profitability amount. There will be
control in costing related to every activity which are involved in business. Apart from thi
competitive advantages will be provided to the company that will lead to position themselves in
market persuading every customer to prefer them over other companies those are selling similar
products.
There are various benefits which are associated with implementation of this concept, such
as competitiveness of Samsung will increase, there will be a greater control in all process that
are involved in production, market here will tend to rise that will secure their financial potion in
market and apart from this there will be maximization of coordination in all supply chain
activities. Apart from this the cost for procuring or procuring the commodity will get decreased
that will lead to provide an increase in the profitability amount. There will be control in costing
related to every activity which are involved in business. Apart from thi competitive advantages
will be provided to the company that will lead to position themselves in market persuading every
customer to prefer them over other companies those are selling similar products.

Research and Development- For eradication of all the problem which is related to
development of product, effective investigation has to be conducted that will analyse every
aspects which is related to market that affect the demand of that particular product. It provides
proper assessment of the requirement and need of customers of that product can be enhanced for
satisfying their needs which will lead to provide benefits to organisation only. Product
development is an essential aspect because it serves a newer version of a product which is better
than existing product in many ways (Walker and et.al.,2015). Samsung leads to invest 9% of its
earned revenue on R&D. There is an appointment of several experts that researches various
fields that are involved in providing a better advanced version of their commodities in market.
As current scenario includes dynamic changes that are needed to be updated in firm on
improving every task which is associated with manufacturing process. It provides effective
participation in market by eliminating every leap which can hinder their presence in market. It is
beneficial for attracting new customers in market segment and also winning their interest. There
is an effective management cost and their related benefit which can lead to provide several
advantages in financial terms. It leads to retain all highly skilled employees that can contribute in
an effective manner. Apart from this, there are certain market abilities which is needed to be
grabbed by the company for building up impacting advertisement campaigns.
3. Challenges faced in supply chain management
It involves effective management as well as storage of inventories and finished goods
from where it is manufactured to the location of consumption by customers. It is a network of
interconnected series or channels that facilitates the whole process. Improper management of
SCM can lead to many adverse impact on Samsung such as late delivery of products in market,
delay in procuring input required for processing which lead to delay whole process. There are
many challenges which are faced managing supply chain management of Samsung which are :
 Poor supplier selection
 Errors in procurement
 Export and import issues
Effective relationship with Suppliers- They are responsible for supplying inventories
as well as final products to company. As being an electronic device manufacturer there is an
requirement of various inputs that are not available at particular location. Company needs to
import from various nation for manufacturing one entity. Therefore, role of suppliers is very

important in processing. They have a high bargaining power which can be a threat to firm as it
can lead to delay supply of important elements which can affect functioning of various
department that are interlinked with it. These supplier demands high amount for supplying the
required material and are limited in numbers which tends to provide them a reason for charging
high price from company (Mahadevan, 2015). There are many aspects which are needed to be
covered such as a good relation and understanding with supplier must be establish so that they
can perform their role at negotiable process which can be beneficial for firm in many way. There
will be availability of every element at the right time and apart from this customer will get their
demanded commodities on time which will create a positive impact on them that will lead to
increase their sale and a establishment of a relationship of a trust. This strong bond leads to
develop a strong base for loyal consumers for Samsung. It will also provide a quality material
which will lead to serve an effective final product which will serve a competitive advantage in
market.
Improved Design for Supply chain Network- There are some faults in every
networking structure which can lead to effect the performance of firm in several ways
Therefore, it is very important to check and monitor all nodes of supply chain network in order to
identify loop holes which are responsible for making it more degraded (Riepma, 2017).
Therefore, every activity must be observed in such way that it must accomplish time and cost
effectiveness in order to provide timely delivery of raw materials and processed commodities at
required place. New design of supply chain must be structured that overcome these loop holes
and provide effective producing and delivery of the commodities, that will lead to avoid any kind
of delays which can occur due to these gaps.
Controlling Logistic Processes- There are various issue which are related to export and
import of products and input which are required for production. Some of the obstacles that can
be strict government policies, not having required permission and documents for performing
logistics operations and apart from this trade barrier can be major reason which can restrict these
logistical processes. Due to this, accessibility to their products can be at threat which can lead to
affect their position in market. There is an requirement for fulfilling every conditions and terms
which can be used for successful exporting and importing. This will lead to make their reach at
global level which will be very beneficial for them to sustain as well as lead in market. There can
be differentiation of laws regarding trade which has to be kept updated for formulating defending

strategic that can be beneficial for them in facilitating trade in international boundaries. Apart
from this, there are various geographical and environmental obstacles which can serve the
transfer of commodities from one place to other (van Aken, Chandrasekaran and Halman, 2016).
Therefore, firm must analyse every routes which can lead to transfer on less time and avoiding
any kind of natural disasters which have potential harm to their products that can lead to bear a
huge loss if not properly protected from unfavourable climatic conditions.
Hiring Supply Chain Analytics- Many operations requires appropriate technology that
can be used for collecting data according to many aspects such as conditions which are related
to demand of machines, forecasting of demand in a target market and above all health of a supply
chain which gets degraded due to many factor. The major challenge is to analyse huge data
which is collected and transformed into actionable insights. The reason for these challenges can
be lack of expert skills for quenching information from piles of data which is accumulated
through many sources. Specialist must be hired for handling big data in order to provide effective
information which can used for developing successful strategies that can be used for gaining
many advantages in market. There is a lot of benefits that are associated with vast information a
it lead to provide establishment of effective structure which is developed for formulating the
network of supply chain to be effective and making its health at a quality level that will lead to
access every activity which is involved successfully.
4. Lean management quality management approaches
Lean management is defined as the concept which focuses on eradication of waste in a
manufacturing unit. It focuses on the increase in efficiency and effectiveness of every task that
are involved in business activities. It provides addition in value of a product that involve
reduction in all waste which leads to increase in quality level for performing any task. It is
regarded to be transformative approach that is implemented for improving the conduction of
every activity.
There are many benefit which are related to it. They are described as below:
Improvement in quality level- It is regarded as an important aspect which includes
improving quality of all task that are related to processing of particular commodity. As there is
an arrival of many techniques which can be used for solving various problems that are related
with quality aspect. All the stages of processing are monitored and fault are recorded which are
later improved.

Visual Management- It is considered to be another advantage which can be obtained
from effective lean management is managing through sight. If all the inventories are
implemented properly than visual scanning can be used for controlling every methods that are
occurring in the process of production (Maylor and et.al., 2018). Apart from this, abnormality
can be easily identified in order to get instant solution for the same
Reduction of Manpower- It majorly focuses on adoption of automation for processing
of goods. As it leads to provide them an opportunity to eliminate manual work that has more
chances for error which is needed to be improved. Therefore, providing a fully machine
dependent system leads to minimise human errors and provide more advanced and quality
product that leads to accomplish goal of Samsung in an effective manner.
There are various approaches which are followed in Lean Management such as :
Just in Time Approach- This is considered to be very effective approach in handling
inventories which are required for several task in manufacturing of a particular commodity. It
focuses on the timely ordering of required resources in the perfect amount so that there is no
wastage or surplus remain of them that can lead to degrade the quality and involves lot of cost
which company has to bear in the production (Looijen, 2018). Apart from this, it focuses on the
proper management of the input which are required for processing at perfect time and leads to
avoid any kind of delay in the processing which leads to provide many disadvantages to the
company.
There are various benefits which are associated with this approach such as reduction in
cost for operation, enhancement in performance, increase in quality aspect, improvement in
delivery, maximised innovation and flexibility, reduction in short time as well as inventory to be
used, provides effective support between different processes and clarification in all problems
which are associated with operations.
Jidoka- It is considered to be a widely adopted method which is adopted in development
of manufacturing product. Also, known to be Autonomation which is a solution for protecting
the company from delivering commodities having low quality or defects to consumers.
Autonomation tends to provide a feature that concentrates on machine designing for effecting
principle of Jidoka. This procedure can also be known as intelligent automation. There are four
principles which are followed under this:
1. Detection of Abnormality

2. Stop
3. Instant Fixation or correction
4. Investigation of root cause and installation of countermeasure.
There are various benefits of applying this method as it leads in prevention of production
of those product which are defective in nature, eliminating overproduction and focusing on
understanding problems for ensuring its eradication.
5S- It includes the combination of five activities which are defined as below:
Sort- It focuses on sorting every item at a location and removal of unnecessary objects
from that area. That facilitates to eliminate time reduction.
Set- It includes providing required items at optimal place in order to fulfil every function
at workplace.
Sweep- It means cleaning and also inspecting working area, machinery and tools
regularly.
Standardize- It concentrates on establishment of all schedules and procedure for ensuring
repetitions of other methods which lead to standardize every process used for sorting, ordering
and cleaning.
Sustaining- It lead to provide sustenance in the development of process through self
discipline of workers. It is used for ensuring proper implementation of the whole approach.

5. Benefits and challenges experienced by Samsung in implementing Artificial Intelligence
Artificial Intelligence is defined as a concept that concentrates on creating intelligent
machine which tends to work as well as act like human being. It is considered to be essential for
developing advanced manufacturing system that is adopted by Samsung for making their product
technologically advanced (Ketokivi and McIntosh, 2017). It has used this technology in
production unit for providing highly advanced features to customers at affordable prices.
There are various advantages that Samsung experienced by implementing AI in their
organisation :
Real time assistance- As customer base of company is very large which requires a
regular communication with them in order to engage them with various aspects of firms. There
should be a proper and real time interaction with them for delivering information and handling
their grievances. Apart from this, employees in manufacturing units requires data for certain
operations which are served by artificial intelligence machines that make their production much
easier and their strategies to be very effective.
Operational automation- AI is completely able to handle all technologies that
maximises automation in a business (Choi, Cheng and Zhao, 2016). It is used for controlling
Illustration 1: Methods of 5S