Unit Name: Management of Change Unit Code: ND 301

Time Allowed/Due Date: 13th of Dec 2013
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Assessment Type: Essay
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Value of Assessment: 10% of Final Grade ASSESSMENT CONDITIONS: N/A SPECIAL REQUIREMENTS: N/A DECLARATION 1. I am aware that penalties exist for cheating, plagiarism (copying) and unauthorised collusion with other students, or external consultants.

2. I am aware of the requirements covering style and layout standards as designated by my teacher/tutor.

3. For assessments other than those conducted in-class, I have retained a copy. I understand that uncollected assessments will be destroyed.

Questions | Possible Marks | Actual Marks | | | | 1 | 10% | |

Student’s signature: _________________________________ Date:

Introduction of LG
LG electronics which is called GoldStar at that time was founded by KOO IN-HWOI who was founder of LG corporation in 1st Oct 1958 at KOREA.
At that time, radios were attracting interests as embodiments of civilization, bringing news of the world to their listeners. Mr. Koo thought, ‘we could make a radio by ourselves likes TOSHIBA, NATIONAL.’ So, he founded GoldStar. And finally, at 15th Nov 1959 they made the first Korean radio which is including more than 60% of domestic components. It was beginning of both LG electronics history and Korean electronic industry’s history. LG electronics started expanding their business to overseas by exporting radios to U.S at 29. Nov. 1962. LG electronics Singapore. Started business as the international purchasing office(IPO) in Singapore in October, 1989 for the first time in the Korean industry history. LG Electronics was able to purchase parts from the Singapore manufactures at lower cost and supplied to the plants of USA ,Europe, and Korea.
Today Seoul, Korea-based LG Electronics is a $48.2 billion global technology leader with more than 93,000 employees working in more than 120 operations around the world. With annual worldwide revenues exceeding $40 billion, LG Electronics comprises five business units: Home Entertainment,Home Appliance, Air Conditioning, Business Solutions and Mobile Communications. LG is one of the world's leading producers of mobile handsets, flat panel TVs, air conditioners, front-loading washing machines, optical storage products, DVD players and home theater systems. LG Electronics also had a very Korean-centric cultural approach, whereby hard work and compliance were heavily rewarded. The downfall: leaders often were authoritarian and individuals tended to deflect responsibility. Leaders didn’t understand global standards for leadership, and the company didn’t have a way to compare its leaders to other global companies.LG Electronics wanted to build a stronger reputation and presence. The company made English its official business language and brought in a new international leadership team to execute an aggressive global growth strategy. It is the world's second-largest television manufacturer (after Samsung Electronics), and the world's fifth-largest mobile phone maker by unit sales in the second quarter of 2013.

Core problem
The LG brand is made of four elements namely values, Innovation, People and Passion. Positioning Statement given by LG in this regards focusing on the objective of strengthening the customers life and life-style with pride of ownership, amazing feelings, extraordinary performance. LG Electronics has sponsored so many Sporting events in order to make an effective brand call for increased brand awareness which will re-sult in the higher brand value for LG. This has given LG a platform to strengthen friendships, ownerships, commitments and making the existing customers to be more loyal towards the brand. The Mega sporting events sponsored by LG in different regions as well as throughout the world include LGs partnership with F1™, “LG Action Sports Champion-ships and “LG Snowboard FIS World Cup”.
Global leader and technology innovator for consumer electronics, mobile communications and home appliances
A newlywed couple looks around the home appliance section of a local department store, trying to pick the right appliances to fill their new home. What immediately catches their eye is the Dios from LG Electronics, a wine-colored refrigerator with beautiful flower patterns. Considered a prime example of “techart” marketing, the patterns were drawn by the famous artist, Ha Sam Lim, also known as “painter of flowers.”
Outward appearance, however, is not the only reason so many people choose this LG Electronics refrigerator. The appliance is strongly, yet meticulously, constructed to provide airtight conditions with an excellent cooling system that preserves 76 percent of moisture. The impeccable construction results from the continuous efforts of LG’s researchers to link design and production and as a result of using the advanced technology of Siemens –NX™ software and Variation Analysis CAD, which is part of Tecnomatix® software.
The HA Company of LG Electronics, located in Changwon in the Kyungnam province, focuses on research and development for home appliances such as air conditioners, refrigerators and washing machines for the five business units of LG Electronics. The center is a significant reason for the company’s top three position in the global home appliance market. Only Whirlpool Corporation (United States) and AB Electrolux (Sweden) rank ahead of LG Electronics in this sector.

Continuous improvement
Striving to further improve its reputation as a provider of high-performance home appliances, LG Electronics stays focused on ways to provide better products for its customers. To enhance overall quality and reduce defects – and after testing several simulation tools – LG Electronics employed the NX and the Variation Analysis CAD capabilities of Tecnomatix. The Refrigerator R&D Lab was concerned with quality issues in the company’s overall refrigerator production as certain problems could not be properly addressed using its previous methodology. Links between design and production were insufficient. For example, one area where improvement was desired involved deflecting doors.
Before the introduction of NX and Tecnomatix, LG researchers tried dealing with the issues by utilizing limit stack analysis and root mean square methods to analyze existing 3D accumulated tolerance. But these methods were inadequate due to the occurrence of errors during assembly. It was especially difficult as Refrigerator R&D Lab researchers encountered special challenges in conducting tolerance translation for complex shapes. In addition, LG Electronics hoped to embody the door deflection logic tree and 3D accumulated tolerance analysis.
Using NX, the Refrigerator R&D Lab ran a tolerance analysis of 3D tolerance accumulation. The researchers were able to determine priorities regarding what should be solved and to list the root causes of chronic defects through design data. They were able to compare accumulated tolerance of design data with after-production measurement data. The strategy was to use NX for the tolerance input method. The tolerance ability of each part was defined with an initial value of 3 Sigma in the Tecnomatix software. The researchers used 10,000 sample runs for simulation. With other tools, it would have been difficult to create the list of elements that caused these chronic defects.
Improved assembly, reduced cost, faster time-to-market
Siemens’ NX and Tecnomatix solutions enabled researchers to determine errors in the assembly order and assembly method of products. While not citing exact figures, LG Electronics noted a much better cost-efficiency through reduced rate of inferiority via simulation. LG Electronics also increased production by determining elements influencing tolerance and revising tolerance to determine inferiority.
In addition, the NX solution was used on a real-time basis to reduce product development time. There was a notable quality improvement with enhanced understanding of tolerance in the overall design, production machines and production process. The long-time problem of door defects was substantially reduced as well.
Kang notes, “Siemens’ technology opened new doors of opportunity by enabling comparison between design models and actual production models and by enabling tolerance data input for single product parts (acquired from simulation results) as calculated tolerance in the actual production.”
Conclusion
LG's TV sales improved a bit and smartphone sales hit a quarterly high of 12.1 million handsets. LG is set to expand the number of its retail stores in emerging markets. Still, in China, the world’s largest smartphone market, local players like Huawei and ZTE have a competitive edge.
NX and Tecnomatix help LG Electronics solve chronic design and production issues to maintain global in competitive edge. As a global technology innovator in consumer electronics, mobile communications and home appliances – and one of the preeminent producers of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines – LG Electronics currently employs more than 80,000 people working in more than 115 locations around the world. 2009 global revenue was 55.5 trillion (Korean won) or about $43.4 billion (US dollars). With Siemens PLM, our improved quality and efficiency in designing and producing home appliances has established a solid foundation for LG Electronics to continue its journey as a leading global manufacturer. The LG Electronics home appliance research center deployed Siemens’ NX to clarify design standards and enhance understanding of tolerance in overall design, production machines and production

* Determined errors in product assembly order and assembly method * Reduced rate of defects through simulation * Achieved target cost savings * Identified elements influencing tolerance; optimized tolerance and increased production * Measurably reduced product development time * Significantly improved understanding of tolerance in overall design, production machine and production process

References

http://www.academia.edu/3206810/BRAND_ANALYSIS_OF_LG_ELECTRONICS_A_CASE_STUDY http://www.lg.com/global/about-lg/corporate-information/jeong-do-management https://www.plm.automation.siemens.com http://team6ccm.blogspot.com/2007/02/introduction-and-ceo.html http://blogs.wsj.com/digits/2013/05/06/lg-takes-no-3-spot-in-smartphone-market/