Analysis of Samsung Electronics

Analysis of Samsung Electronics

A Pareto Diagram works first by organizing themes from highest to lowest frequency in terms of number of complaints per category. Then, the cumulative count and the percentage of complaints in relation to the total number of complaints is determined (see Exhibit 1). This information is then transformed into a graphical representation and interpreted through the 80-20 rule. The 80-20 rule was first applied to quality by Joseph M. Juran, who split different issues between the “vital few” and the “trivial many.” This method allows the user to understand that the “vital few” (or 20% of the causes) are responsible for the “trivial many” (or 80% of the results).

In Exhibit 2, the vital few issues at Samsung include: distorted visibility, bad return policy, failure to turn on, and bad customer service. According the Pareto diagram (Exhibit 2), these four complaints are responsible for more than 80% of the quality issues found with the LCD TV models and indicates which issues Samsung should handle first. According to the data, visibility is the most discussed issue found in the consumer complaints. Another popular manufacturing issue was that the TV failed to turn on or turned on for a short amount of time. Many customers stated they experienced either a completely black screen, a superimposed image, a red line down the middle, a fluttering picture, or a screen that was completely whitewashed. Once these issues with visibility occurred, they eventually worsened until the picture was completely gone or the TV would no longer turn on. These manufacturing issues were likely a result of a faulty capacitator, LCD panel, or main power board. the data also cites bad customer service and return policy as another major problem. Customers appeared unimpressed with representative’s knowledge, attitude, level of empathy, and ability to help. Further, customers were also very angry about Samsung’s return policy.  The policy is short, unclear, and does not include exchanges, or cover repair fees, often resulting in a repair fee similar to the price of purchasing a brand-new TV.