1. The document lists the names and IDs of 5 students. 2. It provides background information on Philips Singapore, including its founding, expansion into manufacturing, economic changes in the 1990s that led to restructuring, and establishment of a shared services center. 3. The presentation is by student Md. Touhidul Islam about alternative solutions for Philips to reduce costs while maintaining service quality at its shared services center.

2. Names ID
1. Pantho Sarker 20-033
2. Md. Gulam Kibria 20-075
3. Md. Touhidul Islam 20-077
4. Khaleda Easmin 20-087
5. Sheikh Sajid Hasan 20-181

3. A case analysis on…
PHILIPS SINGAPORE
Creating value through human resource shared centre

4. Now Presenting....
MD. TOUHIDUL ISLAM
ID: 20-077

5. 1950s
Founded a sales marketing business
1950 – 1980
Became a manufacturer
1990 – 1998(early)
Economical structural change and
had six business locations
Mid – 1998
Merged TV and Audio production
into “Philips Consumer Electronics”
and moved production to china
Philips electronics
Singapore private
limited
Company Background

6. 1998
• Retrenchment of 200 employees due to merging of TV and audio products production.
• Relocation of production plants to China resulting another 750 employee retrenchment
2000
• Launching of “HR Excellent 2002” with goal of developing existing process.
• Consolidation of HR departments(Business HR, Functional HR, Corporate HR) to reduce cost and increase efficiency
2001
• Launching “Transforming into one Philips” program to bring together the company’s functional areas, attain one-time
cost saving and improve efficiency and effectiveness.
2002
2003
• Launching “world class HR 2004” to win the war of talent, create customer friendly HR and deliver HR services
more cost efficiently.
• Appointment of “Yeo lay lay” as the manager of the shared service center.
• Establishment of “Philips People Services (PPS)”
Case Background

7. Now Presenting....
PANTHO SARKER
ID: 20-033

8. Problem Statements

9. Problem Statements
The main core problems faced by PPS (Philips People Service) are summed up to the basic
core problem of reducing service fee without any compromise in quality of HR services
provided by PPS while the product of Philips Electronics Limited, Singapore facing price
erosion.

10. Reducing
fees
Without
Considering
Service
Quality
Reduce
employee’s
efficiency and
performance
All the variable expenses were paid
directly to vendors.
The links of high quality services
with motivational factors
The employee turnover rate is
increasing.
Alteration of the service quality
is very sensitive to performance.
Service-quality and costs are
positively correlated.
Why Reducing
Service fees is a
Challenge?
Why Ensuring
high quality HR
services is a
Challenge?

11. Now Presenting....
SHEIKH SAJID HASAN
ID: 20-181

12. Alternative Solutions

13. Alternative Solutions
 Increase Outsourcing from South Asian Countries
Increased
profit margin
to tackle
price erosion
Reduction of
the cost per
product
Increase of
employee
efficiency and
productivity
Increase of
employee’s
motivational
level
Enhancing
the quality of
HR services

14. Alternative Solutions
Enhancing service quality to tackle price erosion:
Increased Outsourcing
• From Asian
Countries
Decreased Labor cost • Low labor cost
Minimization of Cost • Cost Savings

15. Now Presenting........
KHALDA EASMIN
ID: 20-087

16. Alternative Solutions
 Specialization in PPS Centre:
The Service Centre will be operated and managed by specialized people from
different departments. The benefits will be’
 Uncovering the bottlenecks.
 Fulfilling the departmental special needs.
 Cost minimization.
 The HR functions will be easy and simple.
Centraliza
tion
Specializa
tion
PPS
Centre

17. Alternative Solutions
Variation in fees according to difference in departments:
• The HR activities will be needed differently in different departments
according to the category of company’s business. So The HR charges
should be different for different departments.
 Taking the advantage of large economic scale benefit for cost
minimization.
 The overall service fee per employee will decrease.
 The employee satisfaction will also increase.
 Better handle of the price erosion challenge.

18. Alternative Solutions
 The continuing cost cutting of the service fees in relation to the price
erosion using cost saving technologies and complete automation:
Decreasing Price
Decreasing Production cost
Increasing Productivity
Decreasing other
product cost
So the company should
decrease the HR service
fees

19. Now Presenting....
MD. GULAM KIBRIA
ID: 20-075

20. Long run
sustainable
price
Price will be
less prone to
erosion
Increasing
service
quality to
tackle price
erosion
Immediatiate
impact on
cost cutting
Short run
Charge
different
service fee
for different
employees
Didn’t work, Go to this
Recommended Solution

21. Conclusion
 Having a very good business with a broad market already, if Philips can
reduce the cost of training their employees through the ways we
recommended, it will become a market giant surely. And PPS will be
providing world class HR services at lower and compatible cost.