HOLY ANGEL UNIVERSITY

Angeles City
Module 1= Organizational Theory, 2nd Trimester

Assignment 1

I. Name of the Organization: TFT-LCD Manufacturing Corporation

II. Nature of the Organization

(1) Type according to purpose: Semiconductor Manufacturing Company
(2) Type of Ownership: Private (Conglomerate). A Part of Japan Display Group of Companies
(3) Location: Clark, Pampanga
(4) Products/Services: Producer of LCD modules for different applications (Mobile, Consumer and
Industrial Applications)

III. Vision-Mission-Goals-Objectives
1. Vision
 To set quality as the foundation of the company
 To pursue individual growth through given task
 To contribute to the society as one of the companies based in the Philippines

2. Mission
To be the world’s number one manufacturing company in providing customer satisfaction.

3. Goals
3.1 Environment, Health and Safety
 LTI and SI should be ZERO
 Environmental accident should be ZERO
 Reduce energy consumption and the amount of waste
 Align specific EHS objectives and targets with JDI in consideration of the
Significant Aspects and Occupational Hazards of NPI
3.2 Budget
 Keep our cost and expenses within the budget
3.3 Quality
 Achieve customer claim number target value
 Should be quality assurance activity with cost consciousness
 100% achievement of customer audit
3.4 Cost Reduction
 Attain a competitive cost by continuous cost reduction activities and programs
 Reduction of over stock products and products in progress in inventories
 Increase in efficiencies
3.5 Delivery
 Supplying products to customers with high quality on time for delivery
3.6 External Audit and Company Activity
 Updating audit of OHSAS/EMS/QMS
 Achieve 100% compliance on all applicable legal and other requirements
 Activation of NIC activities
4. Objectives
We shall:
 Understand trust and cooperation with each other through constant communication.
 Aim higher target and stick to achieve.
 Consider the efficiency of the job and improve them.
 Keep working environment clean and neat.
IV. Organizational Structure
1. Operating units (Departments, Divisions, etc.)

2. Organizational Chart
 3. Summary of Responsibilities of the Various Roles/Positions and Supervisory Relations (who is
responsible to whom; who supervises whom)

Director (Japanese)

 Overseas multiple divisions in the organization.

 Together with the General Managers, they directly report to the President and Japan Counterparts

General Manager (Japanese)

 Head of the Division
 Manufacturing Engineering Division General Manager handles Four Departments.

Senior Manager (Japanese / Local)

 Head of a single department in a division
 Under Manufacturing Engineering, there are 4 Senior Managers reporting to the General Manager and
Director.
 Sets department targets
 KPI reports
 Prepares all instructions (Specifications, Engineering Change Notice) coming from Japan

Senior Supervisor / Supervisor (Local)

 Head of a single department reporting to the department’s Senior Manager
 Summarizes per process reports
 Monitor Yield and Shipment
 Training of Personnel, EHS and QMS reports

Engineers / Staffs
 Process Owners
 Yield Monitoring and Failure Analysis
 Line Balancing and Capacity Monitoring
 Documentation (Specifications, Work Instructions, Control Plan and FMEA)

Line Leaders
 Supervise Operators
 Monitoring of Daily Targets

Operators
 Direct (Production Operators, Technicians) and Indirect manpower (Encoder, Clerk, etc)

4. Manpower size (number): by department; total

HR / GS / Finance – 132
Procurement /PPIC – 182
Manufacturing Engineering – 207
Production Engineering - 168
Production – 4100
Quality Assurance – 572
TOTAL - 5361
 Assignment no. 2

ON ORGANIZATIONAL EFFECTIVENESS

1. Draw a model of the way the organization creates value. Use the following template of the I-P(C)-O-E
(Refer to Figure 1—1 of Jones’ Chap. 1 – Module 2a2 power point).
Briefly describe its Inputs, Process Conversion), Outputs, and Environment.

Our organization is patterned on a manufacturing / production setup. The main inputs are raw
materials needed to be assembled, the workers to operate and perform tasks, specifications (design
documents) that serve as references. The conversions needed are machines, human skills, methodologies, and
quality assurance. The outputs are the finished goods (in case of our organization, we have LCD modules
delivered to various customers). Our organization gives salaries and performance based bonus to its
employees as a reward. Finally, the environment of our organization includes our customers (the main
recipient of our finished goods, which we need to satisfy most), suppliers, competitors and the government.

2. How does your organization define organizational effectiveness (from the point of view of the various
stakeholders? What are the indicators?
 Our organization’s measure of effectiveness is by KPI (key performance indicator). For the
Manufacturing Engineering Division (Development Section), our KPI is measured by Defect Ratio Level
(Process Cause Defects) and Shipment Achievement. Defect ratio is set per model depending on its
characteristics. For shipment, our target is 100% shipment quantity and delivered on time.

3. Do an initial analysis of your organization’s major problems/issues. What challenges confront your
organization today, for example, in its efforts to attract customers, increase organizational effectiveness and
operating efficiency? How do its organizational structure, design, and climate to the problems?
 Our company produced two major types of LCD modules according to its application. First is for
Consumer and Industrial applications like Cameras (GoPro, Nikkon, Canon, Sony), VR models (Google, Huawei),
and Wearable models (Suunto, Garmin, etc). Second is for Mobile Phone Applications (Sony, Fujitsu, LG,
Huawei, Google, Oppo, etc).

Currently, Mobile applications is losing against its competitors like Samsung, Apple, Oppo (our
company did not get the approval to run continuously on Mass Production), LG and other Korean and Chinese
competitors. The main reason is that the technological capabilities of our company was left behind and
became slow to shift to the new technologies of mobile phones. Competitors already been doing the OLED
Technology in Mass Production while our company is still in its development stage.

This results to the following:

 Reduction of working hours (overtime, Saturday and Sunday operations)
 Abolishment of old and Creation of new departments, tasks and functions
 Management and employee reshuffle
o Have overlapping tasks
o Managers losing their authorities on certain functions

4. What organizational design change do you propose? Why?

 The restructuring of the Research and Development section is important. The fact that our
technological capabilities was left behind implies that the current R&D setup is not effective.
 At our current organizational setup, Japanese managers on the top hierarchy gives all the decision and
no inputs coming from the local side. Local managers are becoming less effective and efficient. It also
affects human behavior of local employees.
 At our local setup, Engineers and Staffs are per process (1 or 2 staffs per 15 lines) which is too much
work and difficult to monitor. Per model management must be considered.