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F 308 : Case Analysis
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.
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F 308 : Case Analysis
- 2. Names ID 1. PanthoSarker 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 analysison… PHILIPS SINGAPORE Creating value through human resource shared centre
- 4. Now Presenting.... MD. TOUHIDULISLAM ID: 20-077
- 5. 1950s Founded a salesmarketing 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 of200 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
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- 9. Problem Statements The maincore 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 thevariable 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 SAJIDHASAN ID: 20-181
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- 13. Alternative Solutions IncreaseOutsourcing 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 servicequality to tackle price erosion: Increased Outsourcing • From Asian Countries Decreased Labor cost • Low labor cost Minimization of Cost • Cost Savings
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- 16. Alternative Solutions Specializationin 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 infees 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 Thecontinuing 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. GULAMKIBRIA ID: 20-075
- 20. Long run sustainable price Price willbe 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 avery 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.