Best Practises at LG Electronics India Limited This document is authorised to be used by Yashraj Behera of IMI only.

Question 1. What are the reasons of competitive advantages of LGEIL? AnswerThere are many factors that have given an edge or what we can say competitive advantage to LGEIL. Some of these are 1. LGEIL has adopted concepts of open, responsible and flexible approach towards developing operations and supply chain strategy. 2. They have started manufacturing consumer durables in India, which gives them an advantage over costs, transportation, tax and duties. 3. Their inclinations towards Eco-Friendly products ensure a high sense of environment safety, which surely has a positive vibe on consumers, who are day by day going cautious towards environment and environmentally friendly products. 4. The Production, sales, Inventory plan and rolling sales plan review are conducted daily, followed on weekly and monthly basis, this in term helps to increase the accuracy in planning activities of sales and production. 5. LGEIL has started S.M.A.R.T (self-monitoring analysis and reporting technology) that helps in maintain high quality sigma level, reduce defect through modification in process in continuum with their Six sigma Black Belt technique. 6. Special initiative to identify vendor as per their quality of materials through ABC mechanism, which has definite impact on the overall supply of materials and they can insist on better materials from manufacturers or could end their contract if materials not found of recommended quality, which also helps in maintaining good products and it has also taken high steps for maintaining the Green Products with suppliers so as the products are efficient as per energy and various other norms. 7. Open environment in work area, give a sense of freedom, belongingness, and ownership to the employees of LGEIL which leads to a better work culture better flow of ideas and brings a sense of pride towards the organisation and better employee engagement which inculcate a sense of ownership towards the organisation. 8. Use of statistical tools and techniques (Six Sigma) to identify issues in product quality and improving their products. 9. Learning actively from other counter parts of LG subsidiaries, has given them a distinct advantage from other competitors as their experience, techniques have helped them to prevent them from doing past mistakes if any and going for a successful strategy. 10. In short they have created a Value for their products by virtue of better production, best quality materials, better marketing, and sales and after sales service.

Submitted By- Yashraj Behera -12 PGDM-BHU025

Best Practises at LG Electronics India Limited This document is authorised to be used by Yashraj Behera of IMI only.
Continued,

Q.2- Map the growth of LGEIL in consumer durables and electronics goods in India in terms of product, brand, best practises in manufacturing and HR AnswerLGEIL has now become a house hold name in consumer durables across India and the globe, be it Televisions ,Refrigerators ,Air-Conditioner or any of its other product lines, it has excelled in every sphere with it high innovation, product differentiation, good quality products at an affordable prices with a very good sales and after sales services. It has adopted the best practises in manufacturing by using the techniques of Six sigma Black belts S.M.A.R.T, which ensures a proper quality of materials which is scientifically proven. The materials suppliers are also made into three cadres in terms of their materials provided by the vendors, which helps them to distinguish between the qualities of products provided by them .The quality issues are also identified during the various process like a. Incoming part issues from suppliers b. Assembly process during manufacturing c. Product issue while actual usage by customers. This has helped them to locate the root cause of any problems arising in their products. They have set up a manufacturing unit at Greater Noida, which helps to manufacture products as per the demand of the consumers in India; it provides them various other positive factors like maintaining a proper R&D, lower cost of production and transportation charges and production as per demand. They have initiated the use of Lean six sigma drive, that has helped to reduce waste and unwarranted efforts towards non-value added activities through various statistical approaches, the frequency of regular check-ups i.e. is in daily, weekly and monthly of production, sales, inventory plan has lead them to go in for higher operating profits and strategies, the cost of carrying, holding goods will be minimal and sales loss would be minimum and production would be optimum as per the demand in the market with a very efficient, open supply chain management. The Brand value of LGEIL is also climbing at a faster pace, the eager to learn from the other subsidiaries of LG across globe, the use of best practises, materials, efficient products, competitive pricing, efficient after sales service and the care for environment by going green in terms of manufacturing and their products has led to high appreciation of their product line and hence a better value for their products and the brand LG.

BY Yashraj Behera -12 PGDM-BHU 025

Best Practises at LG Electronics India Limited This document is authorised to be used by Yashraj Behera of IMI only.
Continued, In terms of HR policy, LG is maintaining a highly conducive environment for its employees; their employees are actively engaged in taking their organization to higher glory, they are given chance and authority to amend new ideas, their ideas are being heard by the management at an equal level, which in terms helps keep their employees highly engaged and the use of best practices keep them highly motivated and committed towards LG without retaliating with the management.

BY Yashraj Behera -12 PGDM-BHU 025