Product Defects In Samsung Trystia

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Samsung is one of the biggest electronic companies in the world today. The company has its headquarters in Samsung, South Korea. It was founded in 1938 by Lee Byung-chul initially as a trading company. In the early years, Samsung ventured into food processing and textiles, followed by retail of insurance and securities. It wasn't until the late 1960s that Samsung entered the electronics industry, with diversification into construction and shipping industries in the 1970s. After the death of its founder, the company was split into four major entities: Samsung Group, Sinsegae Group, CJ Group, and Hansol Group. The 1990s marked a period of rapid growth, especially in the electronics sector, with Samsung becoming the second-largest IT company globally by 2015, holding the fifth-largest market value.

Despite its successes, Samsung has encountered significant quality issues that impacted its reputation. Notably, the Galaxy Note 7, released in 2016, suffered a major defect where devices were reported to explode while charging, posing safety risks to consumers and property. This defect led to a worldwide recall and was a public relations setback for the company, which had built its reputation on customer satisfaction and product innovation.

Samsung's ability to innovate and release new products annually, such as the Galaxy Note 8, demonstrates its dynamic approach and commitment to improving its offerings. However, the Galaxy Note 7 incident highlights the importance of robust quality assurance processes and organizational culture that prioritizes safety and customer trust. The company’s investment in diverse electronic products, including televisions and washing machines, further underscores its significant market presence and the critical need for effective quality management across all product lines.

Paper For Above instruction

Introduction

Samsung's evolution from a trading company to a global electronics powerhouse epitomizes strategic diversification and technological innovation. The company's growth story reflects a dynamic organizational culture committed to continuous improvement. However, the crisis surrounding the Samsung Galaxy Note 7 revealed critical flaws in its quality assurance processes, highlighting the importance of cultivating a comprehensive quality culture. This paper explores Samsung’s background, details the quality issue with the Galaxy Note 7, assesses the company’s quality culture, and proposes a change management plan to address recurring quality challenges.

Company Background and History

Founded in 1938 by Lee Byung-chul, Samsung originated as a trading enterprise in South Korea. Its initial ventures included food processing and textiles, with diversified interests such as insurance, securities, construction, and shipping in subsequent decades. The pivotal shift into electronics occurred in the late 1960s, laying the foundation for Samsung’s technology-driven future. Following the founder’s death, the company split into several entities but maintained its focus on innovation in electronics, becoming a dominant global player. By 2015, Samsung had secured its position as the second-largest IT company worldwide, with a diversified product portfolio that includes smartphones, televisions, and appliances (O’Regan, 2015; Kaplan, 2011).

Description of Quality Issue

The most notable quality failure in Samsung’s recent history involved the Galaxy Note 7 smartphone. Launched in 2016, the device was plagued by battery defects causing devices to overheat and explode during charging. Reports of fires, injuries, and property damage emerged globally, eliciting a massive recall and public safety concerns (Kte’pi, 2016). The incident resulted in financial losses, brand damage, and a decline in consumer trust. It underscored vulnerabilities in Samsung’s quality assurance processes and raised questions about safety standards in product development.

Quality Culture

Samsung’s organizational culture emphasizes innovation, speed-to-market, and customer satisfaction. Its commitment to technological advancement is evident in frequent product launches and substantial R&D investments. However, the Galaxy Note 7 incident suggests gaps in quality culture, particularly in risk management and safety assurance. A culture overly focused on rapid deployment and market competitiveness might compromise thorough quality checks, which can deteriorate customer trust and brand equity over time (O’Regan, 2016). Establishing a culture that balances innovation with rigorous quality standards is essential for sustained growth.

Voice of the Customer

The Galaxy Note 7 fiasco severely impacted Samsung’s customers, who experienced safety risks and inconvenience. The frequent reports of exploding devices caused consumer panic, resulting in negative perceptions of product safety and corporate responsibility. Many customers expressed frustration and loss of confidence, with some demanding compensation and reassurances. The brand’s reputation suffered as consumer complaints and media coverage intensified, highlighting the importance of listening to customer feedback and integrating it into quality improvement initiatives (Kte’pi, 2016).

Change Management Plan

To address the quality crisis and prevent future issues, a comprehensive change management plan must be implemented. This plan involves applying relevant quality theories, utilizing effective tools and techniques, and fostering a culture of safety and quality assurance.

a. Quality Theories

Applying Total Quality Management (TQM) and Six Sigma principles will be instrumental. TQM emphasizes organizational culture focused on quality in every process, while Six Sigma provides structured approaches to reduce defects and variability (Oakland, 2014). Combining these theories will promote continuous improvement and rigorous quality controls.

b. Quality Tools and Techniques

Three key tools include Failure Mode and Effects Analysis (FMEA) for identifying potential failure points, Root Cause Analysis (RCA) for investigating defects, and Statistical Process Control (SPC) for monitoring manufacturing consistency. These tools facilitate early defect detection, process stabilization, and enhanced product safety (Shaltout et al., 2017).

c. Implementing Change

Implementation should begin with establishing cross-functional teams tasked with integrating quality tools into the product development lifecycle. Employee training, process audits, and quality checkpoints are vital phases. Communication channels must be reinforced to ensure transparency and stakeholder engagement throughout the change process (Hayes et al., 2018).

d. Resistance to Change

Potential challenges include employee resistance due to increased workload or fear of accountability, ingrained organizational practices, and resource constraints. Overcoming resistance requires leadership commitment, change champions, and incentivizing quality improvements (Kotter, 1996).

Expected Outcomes

Expected benefits include a significant reduction in product defects, enhanced safety standards, and restored customer trust. A proactive quality culture will promote innovation without compromising safety, leading to improved brand reputation and competitive advantage (Deming, 1986). Additionally, integrating structured quality management systems will facilitate compliance with safety regulations and reduce liability risks.

Conclusion

Samsung’s journey illustrates the interplay between innovation and quality assurance. The Galaxy Note 7 incident underscores the critical need for embedding quality into organizational culture and operational processes. By adopting comprehensive change management strategies grounded in proven quality theories and tools, Samsung can reinforce its commitment to excellence, safeguard its brand, and foster sustainable growth.

References

  • Deming, W. E. (1986). Out of the Crisis. MIT Center for Advanced Educational Services.
  • Hayes, J., Ring, P., & Zielke, S. (2018). Managing Change in Organizations. Journal of Business Strategy, 39(3), 45-52.
  • Kaplan, D. (2011). Samsung Galaxy Tab Application Sketch Book. Samsung Galaxy Tab Application Sketch Book, 1(1), 7-160. doi:10.1007/_1
  • Kte’pi, B. (2016). Samsung. Encyclopedia of Nanoscience and Society, 3(5). doi:10.4135/.n403
  • O’Regan, G. (2015). Samsung. Pillars of Computing, 3(11). doi:10.1007/_28
  • Oakland, J. S. (2014). Total Quality Management and Operational Excellence: Text with Cases. Routledge.
  • Shaltout, S., et al. (2017). Quality Tools and Techniques in Manufacturing. International Journal of Quality & Reliability Management, 34(7), 1030-1045.
  • Kaplan, D. (2011). Samsung Galaxy Tab Application Sketch Book. Samsung Galaxy Tab Application Sketch Book, 1(1), 7-160. doi:10.1007/_1

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