Explain the model of location and factor influencing the optimum selection of a region of country and position of Samsung

Introduction

In the following assignment, information related to Samsung will be provided. The information about the location of the manufacturing unit of Samsung will be enumerated. The below-discussed transfer will also give knowledge on the lean manufacturing and cell manufacturing process of Samsung. The assignment will also generate information about how Samsung utilizes JIT manufacturing methodology to achieve its customers. It will also provide a clear view of the warehousing and logistics of Samsung and the issues which arise. Knowledge about Analytical planning techniques in Samsung will also gain from the below-discussed assignment. The information about forecasting and linear planning plays a role in material planning will also provide.

Task 1

Explain the model of location and factor influencing the optimum selection of a region of country and position of Samsung

The facility location is the right location for the facility of manufacturing. Every organization must choose the site according to the availability of the required objectives. The main aim of an organization is to satisfy and delight customers by providing superior quality products. Therefore the organization needs to implement some strategic ideas while choosing the manufacturing unit. The company must have a clear focus on the manufacturing unit because it is the place where all inputs were gathered and manufacture the final product for the customers. The most vital factor for a manufacturing group to become successful is the location. According to Samsung, this company mainly operates its business in the places by keeping a focus on cost, available infrastructure, labor skills, government policies, and environment (Rahman and Qi, 2016). The right location supports the organization in achieving customers efficiently. In the case of Samsung, their main motive is to satisfy the customers by providing products at a low price. This can be possible by improving the location strategy. So, while choosing the location, they put their full focus so that no mistakes arise. The factors influencing the optimum selection of country region and area of Samsung are enumerated below:

The proximity of customers: Samsung selects a facility located closer to the customers to reduce transportation costs. As a result, the prices of the products become cheaper. It also helps in reducing the period of reaching the products to the customers.

Skilled labor: The other important part is to engage the worker who is specialized so that they produce the products efficiently. The determination of facility location also depends upon the skills and experience of skilled labor.

Suppliers: Samsung also chooses the location according to the availability of the raw materials in that particular area.

Environmental behavior: The organization also has control over the environment. So, Samsung operates its manufacturing unit in the areas where there is no locality nearby.

Free market area: This area endorses the formulation of the manufacturing facility by providing enticement in custom duties and levies (Nemati, Batteate, and Jerrett, 2017). Samsung identifies an open market area to reduce the price of the product and can satisfy the demands of the customers effectively.

Appraise the facilities process of planning and optimum pattern of layout

The facility layout is a preparation of different facets of manufacturing conveniently to obtain desired results of production. The organization always provides individual attention to the facility layout to achieve an efficient and effective result.  The facility layout contemplates accessible space, the safety of users, and the assistance of operation. According to Samsung, the main objective of the facility layout is to structure a useful workflow to make types of equipment and employees more productive. A portrait of facility layout maintains a better relationship between the raw material and workforce at a lower price under a safe and comfortable environment. The main motive of Samsung is to donate an efficient workforce and technology to produce superior products and services and to contribute to the global society. The other mission of Samsung is to improve the global community (???????, Silaeva, ??????????, and IGNATENKOV, 2017). In the case of Samsung, the vision of this organization is to inspire the world by providing its innovative technologies and devote itself to communal accomplishment by initiating a new future.

Whereas, Samsung maintains three designs of the layout to obtain competitive advantages globally. The design layout is two or three spatial templates, progression analysis, and line balancing. The facility planning process of Samsung s based upon its customer relationships. They design and produce products according to the preferences of their customers. This organization also maintains a regional strategy of differentiation of products. According to the current report, the revenue of Samsung is $109 billion, and the net profit of the company was $7.2 billion in 2009 (Janeczko, 2017). They also implement different ideas to maintain their management as compared to other organizations.

Evaluation of location and layout modeling applying quantitative approaches

Demands are getting affected due to the competitors in the market. Samsung is working on it by performing a lot of research to execute philosophical, empirical, and operational approaches to evaluate the location where the company can earn huge profits. Samsung keeps its primary focus on the area and the layout modeling through which the market can capture. It generally uses the design in mobile phones in such a manner that it can reimburse. Samsung also uses technology of eco friendly to reduce pollution in nature. Through the operational approach, Samsung forecasts the location where it can expand its business efficiently.

Task 2

Define lean, cell manufacturing, and Just In Time production. Appraise the influencing principles of lean manufacturing

Lean manufacturing is a process of reducing waste in a system of production without sacrificing productivity. The essential elements of lean manufacturing are the elimination of waste, one-piece workflow, and customer pull. Eliminating trash is necessary for the company to achieve customer and to reduce the components that do not add value to the customers. Samsung mainly focuses on the improvement of the manufacturing plant that aims at standardization to improve profitability, efficiency, safety, and needs. Samsung also designs its products to reduce wastage and use innovative ideas while producing mobile phones. Samsung establishes the concept of ‘fast, lean production’ (Varma, and Ravi, 2017). Samsung is the only organization that works faster as compared to other companies.  Samsung is an organization that can gather large development teams and can invest billion dollars within an hour. The primary strategy which Samsung utilizes is concentrating on a small number of products. Cell manufacturing is an approach in which the types of equipment and the workplace arranged to facilitate flow production. The employees who are engaged in a cell manufacturing unit of Samsung are well trained, and they hold the ability to perform multiple tasks in the organization efficiently (Lee, Kim, and Sang-Soo, Samsung Electronics Co Ltd, 2018). Just in Time production is a methodology that can grow a company or can break a company. It supports the organization to control variability in their processes. In Samsung, the JIT production system followed to increase the productivity of the products and to lower the cost of the products. There are several issues which may occur inefficiency of the JIT production in Samsung. The problems are inaccurate demand forecast data, sudden changes in designs, quality issues, and constant changes in the schedule of the output (Green, and Passenger, 2017).

The guiding principles of lean manufacturing are enumerated below:

Investigate perfection: Samsung utilizes the philosophy of Kaizen to improve the skills and knowledge of the workers who perform their tasks in the organization. Kaizen aims to make small incremental changes and engage every worker to enhance business practices.

Analyze value: According to Samsung, this company uses DFSS to define, measure, and analyze what the needs of the customers (Cho, Kim, and Jung, Samsung Electronics Co Ltd, 2019). Samsung focuses on the preferences of the customers and designs its products accordingly. This process of designing also removes the wasteful steps that may have required for unwanted features.

Generate flow: Samsung maintains its workflow strategically so that the movement of products from production to shipping without disturbance can achieve. Samsung also manages a well-organized workflow to reduce the time of creation.

Perception of cell production and its components

The use of cell production in the manufacturing unit is done by Samsung to increase the flow of materials and to eliminate the waste. Samsung gathers together similar machines together to reduce wastage and to produce productive products that can quickly fulfill the demands of the customers. In some cases, cell products become challenging as it requires high capital. The cell production methodology keeps key people machine and supplies in one strategic location. Cell production in Samsung helps the workers to keep records about what is happening all the time. It also improves the communication process in the workplace. Cells production has flourished because they work and work in any type of manufacturing environment. The only reason Samsung uses this production methodology as it reduces the wastes and also lowers the prices of the products. Thus increases sales of the products. The cell can also place the people, tools, and supplies strategically.

The characteristics of cell production in Samsung discussed below:

  • Machines within a cell in the Samsung manufacturing unit placed together so that the defective parts can walk from one device to the next (Han, Shin, and Jhun, 2020).
  • Within the production cells, the workers can operate more than one machine at a time.
  • The products prepared from the cells in Samsung have similar features, so it minimizes the setup of the machines.
  • Samsung utilizes this process to reduce inventory levels and improves the quality of the products.

The conception of Just In Time production and its benefits towards Samsung

Just in time production strategy uses by Samsung to increase efficiency and to reduce the wastage of products. This production strategy also lowers the cost of inventory. The company demands raw materials only when the production gets processed. In Just in Time production process, the producers maintain the colossal quantity of products so that they can capture a significant market area by delivering the raw materials at the time of need. In the case of Samsung, the JIT production works while the company manufactures the products of high prices. The company demands raw materials to the suppliers whenever an order arises. Samsung also maintains steady manufacturing, high-quality artistry, and reliable suppliers so that they could process the JIT production in the workplace. Samsung also supports the producer generously to forecast demand accurately.

The benefits Samsung gain after engaging Just In Time production are as follows:

  • This production methodology is cost-efficient and also reduces the prices of the products.
  • This system also reduces manufacturing time. So, Samsung is a company that earns more than $500 billion per year (Janeczko, 2017).
  • This technique also improves the productivity of the workers as well as the products of Samsung.
  • Decrease cost associated with storage.
  • The development of the relationship with the suppliers is also possible with this process of production.
  • Samsung uses JIT production to reduce wastage, and this could lower the price of inventory, and as a result, the costs of the final products also decrease.

Task 3

Demonstrate the concept of warehousing and logistics. Define the models and theories of warehousing

Warehousing is a place where the goods stored for selling and distributing later. Storage supports the manufacturers, suppliers, and retailers to store products safely. In other words, warehousing defined as holding or preserving goods in large quantities from the time of their production until the time of sale. Storage is essential for the company because it can fulfill the demand of the consumers in the future. According to Samsung, this company is much concerned about warehousing as it can continue the manufacturing program with the help of the warehouse. At the same time, logistics include activities relevant to the production of goods and distribution for consumption. It consists of two unified branches physical distribution and product management. Material management consists of the activities related to the creation of products, recycling, and reusing of the products. Similarly, physical distribution consists of making parts and finished goods available for consumption. In the case of Samsung, this company uniquely maintains its logistics service. Samsung ships its sourced components to the assembly factories either from Korea or directly from the overseas with the help of the Samsung Electronics Logitech. Samsung is also working with the global ETP system maintained by Samsung SDS (Warehouse & Logistics Archives - Samsung Business Insights, 2020).

According to Samsung, this company maintains the warehousing conveniently. Innovative scanners and rugged mobile phones are used in the warehouse operation to meet high demands. The company also utilizes a free wearable barcode scanner pair to increase the productivity and safety of the workers. The theory which Samsung maintains while choosing its warehousing location is the area from where the products can be reached to the customers easily. The company uses mobile devices in the warehousing to increase its efficiency and accuracy by automating laborious and redundant records systems (The Concept of Logistics, 2020). The storage is the crucial element in the supply chain, so this company accurately implements some strategic theories and models to maintain it.

Deliberate the common issues and problems relevant to warehousing and logistics in Samsung

The common issues and problems related to warehousing and logistics problems aspects in Samsung enumerated below:

Location of inventory: Samsung faces some problems in inventory oversight, and as a result, the prices of the products get higher, and it also causes inefficiency in the management. The manufacturing unit of Samsung is in Korea, so it takes time to reach the final products to the customers. Delay of product delivery also slows the loading process of the company (Technology et al., 2020).

Customer expectations: Samsung faces problems when it provides products to its customers at a higher price. They need to produce the products according to the demand of the customers. The features Samsung provides in its cell phones are not up to the mark. The other companies are providing more features at a lower price. 

Managing fluctuations in demand: Warehouses need to forecast the market timely and accurately. Samsung faces problems as when they produced backdated mobile phones in a large quantity. So, it increased the wastage and a margin of loss. Similarly, a global financial crisis will lower the confidence of the consumers. E.g., in this pandemic time, Samsung facing a massive problem as consumers are not buying mobile phones as compared to the rate of purchase of the previous year.

Globalization: Various companies produce the same products at a lower price. So, at that time, the company faces problems in capturing customers. Sometimes the lower production cost of some other company affects the business of Samsung. The problem can overcome if Samsung maintains effective warehouse management.

Picking optimization: The company needs to improve its management by installing automated machines, which will reduce the wastage of products. Samsung also needs to improve the delivery services so that the demanded products of the customers reach them on time.

Scrutinize the relevance of logistics to warehousing and stocking

According to Samsung, this company put its full focus on logistics as it is an essential part through which the company can increase its efficiency. The company perceives that implementing smooth logistics is a pivotal element to maintain a good relationship with the customers and the outsourcing competitors. The importance of logistics to warehousing and stocking is as follows:

Logistics supports in decreasing cost and develop efficiency: The logistics service that Samsung uses is SDS. It observed that logistics services help the company to achieve more success. Logistics in Samsung is the heart of the supply chain. The management focuses on logistics more efficiently as it strengthens the bond between the customers and the company. Samsung achieves customer satisfaction by providing products within the delivery time.

Logistics helps to deliver the product at the right place timely: Logistics defined as transferring the products from the warehouse to the final consumer. Samsung engaged around 4530 logistics experts globally to provide the demanded products to the customers within the prescribed time. Samsung also maintains integrated services at 230 sites in 61 branches across 38 countries (Integrated Logistics | Global 4PL services | Samsung SDS, 2020). Accordingly, Samsung chooses some professionals to look into the logistics services.

Logistics support supply chain to become successful: Samsung also provides the services of transport, ground shipping, warehousing, LMD as well as VAS and reverse logistics. Logistics services also develop the supply chain of Samsung as it deals with the production, shipment, storage, and delivery of products. This service is essential for the company as it mostly affects sales and profits.

Task 4

Demonstrate interpretive planning techniques in Samsung. Scrutinize the role of forecasting and linear programming in material planning

According to Samsung, the planning techniques which they implement to capture the vast market are strategic planning, tactical planning, assumption bases planning, and action planning. The methods evaluated below:

Strategic planning: According to Samsung, this organization utilizes a strategic plan to expand its market and to earn huge profits. This company keeps its focuses upon the goals set up by the company. The management trained the employees expertly so that they could quickly achieve the market by providing better services to the customers. Samsung uses the strategy of designing the products in such a manner that it can be repaired or can disassemble. Samsung uses the EXYNOS processor for its security. Samsung is the only company that uses its processor in its mobile phones. They also engage only certified eco partners to reduce pollution in the environment. 

Tactical planning: Samsung is the only company that can take immediate action for the assigned strategic plans. They mainly focus on short-term actions or policies. Samsung appoints some experts in the lower level managers so that they forecast daily operations in the workplace. Samsung also provides firmware updates to improve the performance of the products which satisfy the consumers, and due to this, they achieve success in capturing the customers.

Assumption-based planning: Every plan has assumptions about the future. Samsung mainly focuses on customer demands, and they pack the products with the environment in mind. They planned to build a service center around the world so that customers can conveniently use their products. Samsung derived that they use 35.1% of plastic, 15.5% of gold, 10.6% steel, 20.2% aluminum (Resource Efficiency | Environment | Sustainability | Samsung LEVANT, 2020). So, this company keeps a keen focus on the customers and their demands and performs accordingly.

Action planning: Samsung also focuses on day-to-day activities. They assigned some experts to forecast the day to day services so that they can easily capture the market by performing accordingly. Samsung mainly aims at the small market rather than focusing on the big picture. These factors increase efficiency and motivation levels. They also provide various facilities to the workers so that they perform their assigned tasks effectively, and this reduces wastage.

Classify the importance of Minitab, Excel, ERP, and SAP in material planning

Minitab is a tool used for classifying statistics. Minitab has extensive applications of data interpretation using the techniques of six sigma. Samsung uses this tool to forecast the statistical pieces of equipment and simple graphs so that in the missing part, they could perform effectively. It is very flexible software. Minitab also provides information about when the raw materials are required. This software makes it Samsung easy to find out the demands. It is a straightforward process. Minitab also offers ready-made things, whereas in excel formulas are required. This tool even provides graphs and becomes helpful for Samsung while manufacturing its products.

Excel in Samsung is used to keep records of payroll and the information about the workers who work there. Excel helps the company to understand where the cost is coming from the company. The files help the organization to control them for the future. This tool is used by Samsung to list out dates and topics regarding materials inlet and outlet. It also helps in summarizing customer revenue by-products and finding the areas where the company needs to improve. Samsung implements this in material planning to provide discounts to the customers based on monthly purchase volume.

Enterprise Resource Planning helps Samsung to expand its business without investing in staffing and IT departmentss. It is business management software that enables a company to advantage a suite of unified applications to automate processes and effective operation. It also improves the information systems of the company. It provides complete visibility into the core business of Samsung. ERP also keeps the essential data secured and protects the data from being disclosed. It supports in material planning as Samsung produce the mobile phones securely and suddenly launch in the market. This software also helps in capturing the vast demand.

The system, application, and product are a range of helpful software that can assure that a company has control over its various data, resources, and methods of communication. Samsung uses the HCM module of SAP, which helps the management to gain ideas from every employee and design the products accordingly. SAP software also expands the business of Samsung by providing valid information about the market.

Conclusion

In the above-discussed assignment, the information related to the Samsung manufacturing process discussed. It has the information related to the location, types of the manufacturing process. The knowledge about the planning process of Samsung relevant to materials is also enumerated. It also provided the information regarding what software mainly Samsung uses to keep records of their employees and their customers. It also provided information about what strategic ideas Samsung used in warehousing and logistics to capture a huge market globally.

References

Cho, S.J., Kim, S.W. and Jung, S.G., Samsung Electronics Co Ltd, 2019. Refrigerator. U.S. Patent 10,408,527.

Green, B. and Passenger, S.A.F., 2017. Samsung Electronics Company, Ltd.: Galaxy Note 7 Crisis.

Han, S., Ko, Y., Shin, S.J. and Jhun, B.W., 2020. Characteristics of Circulating CD4+ T Cell Subsets in Patients with Mycobacterium avium Complex Pulmonary Disease. Journal of Clinical Medicine, 9(5), p.1331.

Janeczko, S., 2017. Samsung Technical and Fundamental Analysis.

Janeczko, S., 2017. Samsung Technical and Fundamental Analysis.

Lee, E.S., Kim, S.Y. and Sang-Soo, J.E.E., Samsung Electronics Co Ltd, 2018. Conductive paste and solar cell. U.S. Patent 9,984,787.

Nemati, E., Battle, C., and Jerrett, M., 2017. Opportunistic Environmental Sensing with Smartphones: a Critical Review of Current Literature and Applications. Current Environmental Health Reports, 4(3), pp.306-318.

Rahman, M., and Qi, X., 2016. Global Supply Chain Management of RMG Outsourcing: Factors Affecting Country Selection. International Journal of Business and Management, 11(8), p.241.

Samsung Business Insights. 2020. Warehouse & Logistics Archives - Samsung Business Insights. [online] Available at: [Accessed 14 August 2020].

Samsung levant. 2020. Resource Efficiency | Environment | Sustainability | Samsung LEVANT. [online] Available at: [Accessed 15 August 2020].

Samsungsds.com. 2020. Integrated Logistics | Global 4PL Services | Samsung SDS. [online] Available at: [Accessed 14 August 2020].

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Varma, G. and Ravi, J., 2017. Six Sigma in electronics company: A case study on Samsung. International Journal of Research in Management Studies, 2(5), pp.12-25.

???????, ?., Silaeva, A., ??????????, ?. and IGNATENKOV, G., 2017. APPLE, SAMSUNG ? ANDROID PAY: FEATURES OF CONTACTLESS MOBILE PAYMENT SYSTEMS AND THE PROSPECTS FOR THEIR IMPLEMENTATION IN RUSSIA. Services in Russia and abroad, 11(3), pp.126-135.

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