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Question 3 Essay

513 words - 3 pages

If you are one of the management team of Samsung Co. What management advises would you give to Samsung Co. in order to improve their management and to maintain Samsung as a top player in smartphones industry.

As the one of the management team of Samsung Co. To improve and maintain their management as a top player in smartphones industry, a number of decisions must be made. Based upon the time frame involved, these decisions can be categorized as long-term system design decisions and short-term operating and control decisions.

In the Long-term system design decisions there is 5, choice of a product or service. This decision is linked directly to corporate strategy for it answers the question. The choice of product of service will ultimately decide what inputs will be ...view middle of the document...

System capacity, level of product or service output that the system will be able to provide the firm will make its major investment decisions. The decision is the number of facilities to be built, the size of each facility, the individual capabilities and an amount and type of equipment to be purchased.
Facility layout, the arrangement of the work areas and equipment so that inputs progress through the transformation process in as orderly a fashion as possible.

In the short-term operating and control decisions there is 6 decisions. Aggregate planning, a series of decisions designed to set the overall level of operations for a planning horizon that generally spans the upcoming year. Demand forecasts are used to make rough production, labor-scheduling and inventory decisions. This to ensure customer demand can be satisfied. The firm’s resources won’t be overtaxed and relative costs are held to a minimum.
Master production schedule, a detailed statement of projected production quantities for each item in each time period. The master production schedule is simply a more detailed breakdown of the aggregate plan. The sum of the part must equal the whole the aggregate plan.
One of the most studied of the short-term decisions deals with the control of inventories. Four forms may exist in inventory is raw material, work-in-process, finished goods and supplies.
Materials Requirements Planning, Uses the production schedule for the finished products to derive demand and production schedules for component items that make up the final product.
Just-in-Time (JIT) Inventory Management, JIT attempts to reduce inventory because inventory can be costly and can hide problems. By scheduling smaller but more frequent shipments from internal and external suppliers, JIT works toward a zero-inventory system. The ultimate goal is the almost total elimination of inventory.

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