SERVICES AND OPERATIONS MANAGEMENT

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    Masters
  • Page:
    2
  • Words:
    1429

Services and Operation Management

Services and Operations Management

Introduction-Identifying the Sub-Optimal Process

The Samsung Company established Samsung Note 7 expecting that it would be satisfactory to the customers in the market. Last year, Samsung Company was faced with the scandal of overheating batteries which later exploded. The events followed each other systematically. On 24th of August 2016, the company received the first complaint from a customer about the explosion of the Note 7 smartphone. Furthermore, the company’s website was flooded with images of smartphones, which had exploded batteries. I was one of the customers who experienced the product failure from the Samsung Company.

Quality Failure in the Samsung Note 7-Justifying the Sub-Optimal Process as a Service Failure

The major reason why the company’s product failed was as a result of communication failures among the two companies which were involved in the in the production of the batteries. The company confirmed to the media what w the exact failure of the batteries which were overheating and exploding was, thus endangering the lives and the health of the customers. The firm management communicated with the press indicating that the batteries were designed and manufactured by two different companies, hence causing the battery failures. The two companies which were involved in the manufacturing of the faulty Samsung batteries were identified to be the affiliate organizations which are somewhat partners with the South Korean Company (Choudhury, 2017). One company was involved in the designing of the batteries while the other firm manufactured the Samsung batteries. These companies were the Amperex Technology Chinese Company and the Samsung SDI organization. Thorough research was again carried out in the design and the material which was used in the production of the batteries. According to the research findings, the batteries were not made of enough and strong material which would serve the purpose of insulation (Sea-Jin, 2016). Additionally, the design of these batteries did not give enough space for the accommodation of the little insulation material efficiently. Therefore, the battery’ electrodes were not accommodated efficiently by the materials which were used in the creation of these batteries (Savov, 2017).

The Extent of Design Error Which Caused Samsung Note 7 Batteries To Explode

Some batteries were implicated adversely by the design error whereby, the negative electrodes in the batteries were deflected to words the upper corner on the right sides of the battery causing the overheating problem. In the normal instances, the battery negative electrodes should not be deflected whatsoever. The batteries which were affected specifically by the insulation default had distinct characteristics. The welding was done strongly, thereby blocking the positive electrodes. The insulation tape penetrated through the separator causing direct contact between the negative electrode and the positive tab thus the explosion of the batteries. In a normal battery, the positive electrode is usually attached to the positive tab (Ma, 2017).

Customer Expectations Compromised

Samsung Company is continually experiencing losses which are as a result of the Samsung note seven failures to the customers. As the problem continued to be felt by more clients, the losses continued to mount as the company had to replace the phones. Unfortunately, even the replacements were also catching fire. Ditching the note seven projects costs the company about 2.3 billion dollars, especially in the first three months after the failure of the smartphones. By early this year, the company had already made a loss of 3.1 million dollars. The predicted losses regarding sales in Samsung phones are approximated to continue deteriorating to 9.5 billion by the end of 2017 (Mullen, 2016).

Samsung Becomes Non-Competitive After the Note 7 Failure

Samsung Company is being haunted by the failure of Note 7, and there is the likelihood that it is losing to the competition from the Apple Company which also produces smartphones. The company’s efforts to recall the faulty phones have not been successful, and the replacement also ended up exploding. Samsung Note 7 is the company’s flagship, and therefore, its failure leads to the destruction of the company’s reputation. The Apple Company released the new iPhone increasing the competition in the industry. Google Pixel is also posing a competitive threat to Samsung Company. LG and Motorola companies are also continually producing non-explosive devices which are drawing the customers from Samsung products. More so, there are still pieces of the products which are still circulating in the market, and the innocent customers are continually buying them (Barrett, 2016).

Recommendations

Delighting customers is the paramount action by Samsung to rebuild the name which has already been bruised by the flagship product in the market. The firm has a responsibility to try as hard as possible ought to consider of the former customers. The company should also advise the users of the ways through which they can discard the risky gadgets. In addition, the firm’s advice should be rational and easy to understand to safeguard the health and safety of the customers who had already purchased the product (Steinkirchner, 2012). The company requires putting in place sustainable measures which will solve the current and the future problems concerning the design and the errors in the battery modification of Samsung Note 7 smartphones. The customers have already been frustrated by the Note 7 smartphone outcome, and therefore, the company requires having a representative who will deal with the emotions of the customers in different regions in the world (Schlegel & Trent, 2014). Fleming, Coffman, and Harter (2005) and Hsieh (2010) note that organizations should also continue dwelling on the feedback from the customers to identify the problems in the market and to mend them timely because the customers should always be satisfied whatsoever.

Improving Services Design

Dixon , Freeman, and Toman (2010) suggests that the customer innovation map is a necessary model which should be integrated into the operating activities in Samsung Company. The model should also be adopted by the partners of the company. Definition of the objectives of the company’s project and the benefits to the customers is a first step in the customer innovation map. Boundless (2007) and Barakat (2014) recommend that the second step is the location of the inputs and the most relevant partners to work with for customer satisfaction through quality products. Enough preparation of the products is necessary and execution of the right personnel in the market to attract the customers (Bettencourt, 2010). Monitoring the reaction of the customers to the product early enough is an efficient method to allow appropriate modification where necessary. The company should test the products before availing them in the market and retest in the case of complaints to conclude rationally (Ftiszismmonn, 2014).

Conclusion

In brief, Samsung users were disappointed in the long awaited Samsung Note 7 after the battery explosion. The company experienced losses, while recalling the damaged products and further while replacing the products. The failure of the replaced products also cost the company up to date, especially with stiff competition in the market from other companies such as Apple. The customers are paramount in business, and hence the company has a role to play in fixing their mess and winning the customer loyalty again. Using customer oriented model will help ease such frustrations alongside using the sustainable measure to prevent recurrence of the default.

References

Barrett, B. (2016). The Note 7 meltdown will haunt Samsung for a long long time. Retrieved from http://www.wired.com/2016/10/samsungs-note-7-fires-impact

Barakat, M. N. (2014). The 7-approach to mitigate operational risk management. Retrieved from www.care-web.co.uk

Bettencourt, L. (2010). Designing
innovative services begins with four questions. Retrieved from https://hbr.org/2010/09/designing-innovative-services

Boundless. (2017). Success and failure: Strategies to improve success. Retrieved from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/products-9/new-product-development-71/success-and-failure-strategies-to-improve-success-360-10625/

Choudhury, S. R. (2017). Samsung electronics cites assembly, manufacturing defects in Note 7 battery fires. Retrieved from https:www.cbnc.com/2017/01/22/samsung-news-galaxy

Dixon, M., Freeman, K., & Toman, N. (2010). Stop Trying to Delight Your Customers. Harvard Business Review. Retrieved from http://www.mitchellmackey.com.au/wp-content/uploads/2012/07/HBR-Stop-Trying-to-Delight-Your-Customers.pdfnote-7-fires-caused-by-irregular-batteries.html

Fleming, J., Coffman, C., & Harter, J. (2005). Manage your human sigma. Harvard Business Review. Retrieved from https://hbr.org/2005/07/manage-your-human-sigma

Ftiszismmonn, J. A. (2014). Service management. Minnesota: Mc-Graw Hills.

Hsieh, T. (2010). Zappo’s CEO on going extremes to the cusztomers. Retrieved from https://hbr.org/product/zapposs-ceo-on-going-to-extremes-for-customers/R1007A-PDF-ENG

Ma, B. (2017). Samsung confirms battery faults as cause of Note 7 fires. Retrieved from www.bbc.co.uk>business-38714461

Mullen, J. (2016). Samsung’s losses from Note 7 disaster keep mounting. Retrieved from http://money.cnn.com/2016/10/14/technology/samsung-galaxy-note-7-profit-loss/index.html

Savov, V. (2017). Samsung’s Note 7 apology was full, humble, and nerdy. Retrieved from https:www.theverge.com/2017/1/23/14355916/samsung:galaxy-note-7-apology-explanation

Schlegel, G. L., & Trent, R. J. (2014). Supply Chain Risk Management: An Emerging Discipline. Crc Press.

Sea-Jin, C. (2016). 7 lessons from Samsung’s Galaxy Note 7 crisis. Retrieved from http://www.scmp.com/week-asia/business/article/2029495/seven-lessons-samsungs-galaxy-note-7-crisis

Steinkirchner, S. (2012). 5 ways to improve your customer service. Retrieved from https://www.forbes.com/sites/sundaysteinkirchner/2012/08/22/5-ways-to-improve-your-customer-service/