Samsung Electronics,
Innovative & Productive
Handset Powerhouse

Its Telecommunication Network Division wins the Production Innovation Awards

Samsung Electronics'
Telecommunication Network Division has been presented with the Production Innovation Award during the 31st National Quality Management Convention.
The division, headed by President Lee Ki-tae, has grown into a global handset maker thanks to its continuous production innovations. These production innovation efforts have paid off: the division shattered the 10 million handset unit barrier in yearly production of cellular phones under the brand "Anycall"in 1999. The following year, the division churned out 20 million units, 50 million units in 2003 and opened an era of 100 million units two years later in 2005.
The division has specified implementation tasks and goals to each department and each individual in order to carry out production innovation activities in a more systematic manner in connection with its management strategies.
In particular, the division has overhauled production process to remove possible problems through such activities as IE, TPS (JIT), Six Sigma, task working groups and suggestions. It has been able to supply products at a cheaper price in time by integrating and optimizing the supply-chain process of the production management system marketing, production, purchase and logistics in a more efficient manner. Samsung Electronics began to build up infrastructure for launching the PRO-3M,
total productive maintenance (TPM) process tailored to the work characteristics of the division, which has improved the constitution of manpower and equipment. It has realized a highly efficient production field by removing equipment loss.
These production innovation efforts have brought about an improvement in per capita productivity and Mean Time Between Failure (MTBF) and a rise in the global market share. The division saw per capita productivity rising from 100 in 2003 to 118 in 2004 and an estimated 131 in 2005 as well as MTBF soaring from 100 in 2003 to 125 in 2004 and an estimated 150 in 2005. Samsung Electronics?handset market share has increased from 10.8 percent in 2003, 12.7 percent in 2004 and an estimated 13.5 percent in 2005.
The division? production innovation activities have contributed to realizing production of the so-called world-first and world-best mobile telephones on a continuous basis. Samsung Electronics has won the New Technology Excellence Award from the Korea Standards Association for the sixth straight year this year. Thanks to efforts to strengthen quality management capability, the division has ranked first for the seventh straight year in 2005 in terms of quality competitiveness and for the eighth straight year this year in domestic customer satisfaction.
The division said it plans to accelerate its production innovation activities in the years to come and work on endless study of ideas designed to ensure customer satisfaction. Capitalizing on these innovative activities, the division will make every effort to maintain the world-best production competitiveness and make the brand "Anycall"loved by people. The division will exert itself in ensuring growth of the global handset market by continuing to develop innovative and differentiating products by making the most of its world-class technology and design power, officials said.

Samsung Electronics'Telecommunication Network Division plant (left) and research office

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