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Figure 31 is both generic to Samsung’s whole organisation and specific to mobile
decision making:
Figure 31: Decision Flowchart of Samsung Production
Source: Consultant’s estimate based on Samsung’s annual report 2010 and Samsung’s sustainability report
5.2.5. Components
Figure 32: Global Value Chain of Samsung Electronics for Smartphones
Product and
Technology
Development
For mobile media such as notebook and tablet, the technologies use three main features:
• Superior Visual Quality
• Eco-Friendly and Mobile Design: The designs from the mobile are slim, low power
design, featuring with dimming control for outdoor and indoor use.
• Touch and 3D Features: Using 3D gaming, movies, and multimedia, Samsung
continues to provides the most compelling touch and 3D mass-market technologies
Components
Samsung Product Lines for Mobile Phones Mobile DRAM: Memory
• SRAM: Buffer
• NAND Flash: memory (external, internal)
• NOR Flash: boot-up
• MCP: Memory, buffer, removable storage, boot-up
• ASIC: controllers
• Foundry services: Storage
• CMOS image sensor: camera
• LCD: mobile displays
• Display Driver 1Cs: display controllers
Source: Samsung Electronics’ website, Business OEM Solution
xx
Components will be sourced from existing Samsung plants or affiliates and only if not
available through this route will be sourced from external partners. These will normally
be existing partners with a proven track record. The Chinese and Vietnamese plants are
assessing potential local suppliers, but the current trend at the end of 2011 seems to be to
bring back sourcing to Korea. This will follow the decision tree given in Figure 31 above
mobile media?
Yes
supply?
Electro -
Techwin
D
igital Imaging
1
. Samsung Electro
-
Mechanics:
passive component printed circuit board, wireless
a
nd power supply, resistors, inductors, capacitors,
EMC components, Chip resistors, General Thick
F
ilm Chip Processor, Precision Thick Film
Trimmable
x
EV
rechargeable battery, for e -
(
Energy Storage System), Solar Energy, Display
(Plasma Display Panel), Cathode Ray Tube,
V
acuum Fluorescent Display
3. Samsung Corning Precision Materials:
T
FT-
L
CD Glass Substrates, High-
display, Glass substrates, Target (Core material
t
hat ensures conductivity and transparency),
Coating (cover glass)
4. Samsung SDS: Engineering convergence
s
ervice (ECS), Enterprise Tra
(ETS), Infrastructure Reliability Service (IRS)
Techwin
H
ealthcare, security, digital and IT, etc.
6. Samsung Mobile Display: Display for mobile
p
hones, MP3, digital camera, mobile internet
d
evices, personal navigation device, automotive
device, notebook PC, etc.
7. Samsung Digital Imaging: Digital camera and
camcorders
supplier?
No
s
upplier
?
s
upplier
s
upplier
C
conduct
proposal
the proposal
F
ollowing the lawful instructions of the
S
EC, using reasonable care and only
a
uthority granted.
O
pen and impartial procedures in
s
e
lecting the suppliers and will maintain
m
utually beneficial working relationships
w
ith them
A
void and refrain from the intent and
appearance of unethical practices (such
a
s accepting money, loans or prejudicial
d
iscount, and fights, enterta
favour from current or potential suppliers)
P
romoting positive supplier relationship
through courtesy, open mindedness, and
close communication.
Identifying what does Samsung
n
eed:
1.
components?
2.
(Cost, delivery, service and
quality)
application forms (download the proposal,
fill it and send it through email)
1.
Select evaluation target suppliers (Decision of
target suppliers at beginning of the year)
2.
Execute evaluation (Execute performance
evaluation using supplier and SEC data)
3.
Add extra point (Reflect the self improvement
project and record of awarded the prize)
4. Calculate final score and
performance evaluation score and extra point
give grade according to the final score: A, B,
C, D)