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Lg Company Analysis Report

In: Business and Management

Submitted By bhargavi
Words 1730
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Slide 1:
INTRODUCTION : INTRODUCTION The company was originally established in 1958 as Goldstar, producing radios, TVs, refrigerators, washing machines, and air conditioners. The L.G group was a merger of two Korean companies Lucky and Goldstar. Is the second largest producer of television and third largest producer of mobile phones.

l.g. india : l.g. india LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra LG plans to set up Rs 500-cr unit in South

Buisiness divisions : Buisiness divisions

Market segmentation : Market segmentation Demographic - Income -Occupation Geographic -Tier 1 cities - Tier 2 cities Psychographic -Life style -Personality Behavioural -Value -Benifit

S.w.o.t. analysis : S.w.o.t. analysis Strengths:- Market leader in home appliances. Has got manufacturing unit in tax incentive . Wide range of products to serve all categories. Widest distribution network in the industry(47 barnches,10000 trade partners). Good after sales service offered.

Annual production GRAPH : Annual production GRAPH


weaknessES. : weaknessES. Samsung being its competitor provides similar products. Consumers compare L.G with Samsung its Korean rival not with other global companies. Lack of expert operators for complex machines due to illiteracy and lack of training in India.

oppOrtunitIES : Fast growth of the home appliances market Shifting to rural areas Thus maintaining control over the market and the highest share in home appliances market oppOrtunitIES

Threats : Threats Close competitors like Samsung are compared to it. Price war with Samsung. Competition from Indian brand and other foreign brands.

Major landmarks of l.g. india. : Major landmarks of l.g. india. Feb’97 : Established LGEIL May’97 : Launched CTV, WM, REF. Jan’98 : Launched AC Apr’98 : Inaugurated Noida Plant-CTV, AC, WM May’01: Started Monitor Prod. … Jan’04 : Started PC Production Oct’04 : Inaugurated Pune Plant-CTV, REF Apr’05 : Started GSM Production (P) Jan’07 : Started TFT Monitor production Apr’07 : 5 Star Energy Rating for products

Growth planning : Growth planning Growth strategy “fast innovation fast growth” The new plant which is under development aims to reach a manpower base of 1500 people and an investment of Rs 300 crore till 2010. Growth strategies aimed at gaining more customers from the 1.1 billion prospective customers of India. Currently India is equipped with a production line to manufacture 6 lakh T.V sets and 1 million refriegerators per year.



Shell Washing machine : Shell Washing machine Before Status :To dry the Components in Shell washing machine earlier 60 KW Electrical heater were used .Running Cost / Day:Appx Rs 4,000 Running Cost/Month: Appx. Rs 1,04,000 After Status:Two Propane fired Burner Has been Installed to Serve the same Purpose Running Cost/Day: Appx. Rs.1,675 Investment :Appx. Rs. 6,00,000 Running Cost / Month:Appx. Rs. 43,550 Savings / Month:Appx. Rs.60,450

Pickling machine : Pickling machine Before Status :To dry the Components in Shell washing machine earlier 70 KW Electrical heater were used . Running Cost / Day:Appx Rs 4,620 Running Cost/Month: Appx. Rs 1,20,120 After Status:Two Propane fired Burner Has been Installed to Serve the same Purpose Running Cost/Day: Appx. Rs.1,800 Investment :Appx. Rs. 6,00,000 Running Cost / Month:Appx. Rs. 46,800 Savings / Month:Appx. Rs.75,000

Paint Shop Burner Changeover : Paint Shop Burner Changeover Before Status :To dry the Components in Paint Shop oven Diesel Fired Burner was Used . Running Cost / Day:Appx Rs 44,640 Running Cost/Month: Appx. Rs 1,249,920 After Status:Two Propane fired Burner Has been Installed to Serve the same Purpose Running Cost/Day: Appx. Rs.31,250 Investment :Appx. Rs. 1,000,000 Running Cost / Month:Appx. Rs. 875,000 Savings / Month:Appx. Rs.375,000

Installation of Blower on Pickling Machine : Installation of Blower on Pickling Machine Before Status : Earlier Compressed Air were UsedTo dry the Components in Pickling Machine. Running Cost / Day:Appx Rs 2,000 Running Cost/Month: Appx. Rs 52,000 After Status:Now One Blower of 10 KW is Installed to serve the same purpose. Running Cost/Day: Appx. Rs.655 Investment :Appx. Rs. 200,000 Running Cost / Month:Appx. Rs. 17,000 Savings / Month:Appx. Rs.35,000

Case Foaming Pre Heating Chamber : Case Foaming Pre Heating Chamber Before Status : To Pre Heat the Case of Ref. Earlier 100 KW heater were used. Running Cost / Day:Appx Rs 6,000 Running Cost/Month: Appx. Rs 156,000 After Status:Now Propane fired Burner is doing the same Job. Running Cost/Day: Appx. Rs.2150 Investment :Appx. Rs. 650,000 Running Cost / Month:Appx. Rs. 55,000 Savings / Month:Appx. Rs.100,000

Slide 21: Before Status : To Achieve the Humidity in Part Reliability Building we were using 18 KW Heater Running Cost / Day:Appx Rs 2,590 Running Cost/Month: Appx. Rs 77,760 After Status:Now we provided high speed Atomizer to serve the same purpose with only 0.4 KW motor Running Cost/Day: Appx. Rs.57 Investment :Appx. Rs. 45,000 Running Cost / Month:Appx. Rs. 1720 Savings / Month:Appx. Rs.75,000

Slide 22: Part Reliability Testing of Sync.Motor, Louver,Cam & Link done with product . 2 Nos Product run continuously for 15 days for testing of one lotPower Saving , Less Space Required .No of Samples can be increased from 2 to 5 Test Jig made in which Parts Can be Tested separately from the product with same assy condition . After Benefits Test Condition : Assemble the cam ,Link with Machines for 15 Days Continuous Running Innovation : Test the Cam , Link & Syn Motor with Test Jig with same Load(160Gf) •Machine Run Time -15days •Total Unit per days = 2x2x24 = 96units •Total Cost ( per Unit ) = Rs 6 •Savings per Month = 15x96x6x2 = Rs 17280 •avings for one year = 8640x12 = Rs 2,07,360

ENERGY SAVER FOR LIGHTING LOAD : ENERGY SAVER FOR LIGHTING LOAD Energy Saver installed in Sub station-4 on 7thOct 2007 Energy Saver installed in Sub station-1 on 21stOct 2007 Energy Saver installed in Sub station-2 on 10thNov 2007

Innovation Idea : Innovation Idea Extensive usage of Transvector Nozzlesat C-Block washing, Pickling ,Part Washing and Shell Washing Machine Replace compressed air system by Electrically Driven Blowers for homogenization Of Chemical in Degreasing Installation of pressure boosters for local need.

MHL Replacement with T5 Energy Efficient Lights : MHL Replacement with T5 Energy Efficient Lights

TECHNIQUES USED : TECHNIQUES USED Before Status :To Cool Rotor from 3000C to 900C there are 16 open pipes of Compressed Air and one number of 18 KW A.C. is being used for cooling.Running Cost / Day:Appx Rs 2,990 Running Cost/Month: Appx. Rs 77,740 After Status:Three Cooling Nozzles Has been installed which are Serving the Same Purpose ,by this nozzle we will get the Temp. of -50C. Running Cost/Day: Appx. Rs.120 Investment :Appx. Rs. 60,000 Running Cost / Month:Appx. Rs. 3120 Savings / Month:Appx. Rs.75,000

Degreasing Machine : Degreasing Machine Before Status:The chemical mixture was being agitated by using compressed air at 7 Kg/cm2. This way the chemical would get homoginised. Running Cost / Day:Appx Rs 3000 Rs (10 Hrs x cost of air) Degreasing Machine Running Cost/Month: Appx 78,000 Rs. After Status: A 3 HP motor with a blower unit is used to deliver high volume airfor the same purpose of homogisation by agitating the chemical mix Running Cost /Day: Rs 110 Investment : Rs 90,000Savings / Month: Rs 75,000

Wi-fi at plant : Wi-fi at plant LGEIL deployed a Wi-Fi solution at its manufacturing plant in order to improve employee collaboration, allow better decision-making, and help personnel meet deadlines. The company Wi-Fi-enabled all 500 notebooks at the plant by adding more access points. The company used the Cisco Aironet 1200 Series AP products to set up the 802.11b Wi-Fi network. Benefits: 500 users are already on the Wi-Fi network. The flow of business information has improved, and has consequently improved co-ordination. The office area looks cleaner with fewer cables, and network maintenance costs have dropped.

Quality standard : Quality standard Control decisions.

Six sigma : Six sigma Six Sigma seeks to improve the quality of process outputs in manufacturing and buisness processes Uses a set of quality management methods, including statistical methods Creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods

Six Sigma(several key roles for its successful implementation) : Six Sigma(several key roles for its successful implementation) Executive Leadership. Champions. Master Black Belts. Black Belts . Green Belts. Yellow Belts.

Making Six Sigma a common language : Making Six Sigma a common language

CPQ(Customer Perception Quality) : CPQ(Customer Perception Quality) Perceive and Improve the Customer Satisfaction for Product Quality through survey Customer Survey from 10 Major cities Survey by QA based on : Random sample Questionnaire Calculation of C.P.Q.Index Feedback to other deptts. Monthly review with Top management

c.p.q. table : c.p.q. table

i.s.o. certificates : i.s.o. certificates I.S.O. 14001 I.S.O.14001 / OHSAS 18001

I.s.o certificates : I.s.o certificates I.S.O.14001 / OHSAS 18001 OHSAS 18001

I.S.O./OHSAS : I.S.O./OHSAS ISO 14001 is a standard developed by the International Organization for Standardization (ISO) It establishes environmental management system (EMS) requirements for organizations of all types and sizes. OHSAS (Occupational Health and Safety Assessment Series) 18001 is a standard for implementing a safety management system (SMS).


STRATEGIC DECISIONS : STRATEGIC DECISIONS Local and efficient manufacturing to reduce the cost R&D potential Regional channel and wide distribution network Product localization Innovative marketing strategy

lg R AND D : lg R AND D To further enhance competencies in production technology, the institute conducts active research and develops core manufacturing solutions, including: PHOTO LITHOGRAPHY. THIN-FILM TECHNOLOGY. LASER APPLIED PROCESSING. SYSTEM ENGINEERING. ENGINEERING SOLUTIONS. APPEARANCE TECHNOLOGY.


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