New Employees With an Annual Salary of 1 Trillion Won - Chapter 125

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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Chapter 125. Internal Crackdown (4)

I called an emergency meeting.

Daehyeon Courier, Rollbook Mart, Midopa Department Store, Nexcon, Semiconductor Division, Rollbook Shopping.

I gathered all the team leaders from the inventory management departments of every company under Tiger Fund into the conference room.

Most of them were meeting each other for the first time.

Perhaps because of this, hardly anyone spoke up, and they were all just watching each other cautiously.

“The purpose of today’s meeting is to form a TFT for inventory management innovation. We will create an integrated inventory and logistics management program that all affiliates can use together to maximize productivity and efficiency. We need your cooperation for this.”

Gathering them like this, the scale was quite impressive.

The number of affiliates had grown to rival any major corporation, and if we brought them together to pursue a single project, we could significantly reduce the time needed.

“We plan to apply the real-time inventory management system already implemented at Rollbook Mart and Midopa Department Store to all affiliates. This will require modification work tailored to each affiliate, which is why we need your help.”

Of course, many companies were already introducing and using inventory management programs.

However, compared to Rollbook Mart’s system, there were still many inadequate aspects, and we were virtually the first to actively operate a combination of barcodes and ERP.

“I’d like to know how the inventory management system applied to Rollbook Mart differs from existing systems.”

“Kim Sang-sik, the developer in charge of the inventory system, will explain that part.”

Rollbook Mart was organically linked with Rollbook Shopping.

Moreover, since Kim Sang-sik not only directly managed the program but also led the initial development, he could provide the answers we wanted.

“I’m Kim Sang-sik, a developer at Rollbook. What differs from general inventory management systems is that we actively utilize barcodes. We attach barcodes to all inventory for fast and efficient inventory management.”

“You mean attaching barcodes to parts and inventory like convenience stores do?”

“That’s correct. And we analyze data in real-time to understand the consumption time for each part and automatically proceed with inventory supply procedures.”

People were bound to make mistakes.

But we could compensate for mistakes through algorithms.

Especially if it was an algorithm based on data, predicting situations was entirely possible.

“The initial data input process might be a bit difficult, but once the system is complete, inventory management becomes much easier.”

“For example, in production lines, if a line supervisor just carries a barcode reader, inventory tracking happens at near real-time speed. If we link not only inventory quantity confirmation but also automatic ordering, management efficiency will increase several times over.”

I joined in to add more explanation.

Meanwhile, Kim Sang-sik displayed related materials on the large screen.

He explained in detail how it was actually being used at Rollbook Mart and how it was being managed at Rollbook.

Only then did all the affiliate team leaders nod their heads.

They expressed admiration one after another for the innovative inventory management system.

“Now we just need to negotiate according to each company’s situation. If improvements are needed, consult with Developer Kim Sang-sik, and if you have new ideas, please share them with each other.”

“Is the TFT temporary? Or will it be maintained continuously?”

“Actually, though I called it a TFT, please understand it as more of a permanent cooperation system. Think of it as creating a channel where you can always discuss and negotiate with each other.”

The most reliable method would be for me to create it directly.

I could go around factories and companies one by one to build customized systems.

But that method would take too much time, and Rollbook’s manpower was also limited. That’s why I gathered the team leaders from each affiliate.

Rollbook and I couldn’t be responsible for all inventory management forever.

We would only provide the framework; from now on, each affiliate would have to develop it on their own.

“I’ll arrange meetings like this once a week. And we’re also creating an internal messenger, so after the system is completed, you can communicate through the messenger.”

With those words, I came out with Kim Sang-sik.

It seemed the affiliate team leaders needed time to communicate among themselves.

“Creating customized inventory management systems for each affiliate will take quite a while, won’t it?”

“I don’t think it will take that long. Once the team leaders bring the data, we just need to apply it or make minor modifications.”

“That’s fortunate then. I was actually thinking of creating a new system.”

Kim Sang-sik’s eyes were crying, but his mouth was smiling.

Though there wasn’t time to create something new right now, his expression clearly showed his desire to create something.

“What are you planning to create?”

“I want to create a system to reduce defect rates. Looking at defect reports, there are defects that can definitely be addressed proactively.”

“How is proactive response possible?”

“By installing sensors. Heat detection sensors for defects caused by high temperatures, vibration sensors for motor problems, pressure sensors for assembly pressure, and connecting humidity and optical sensors too. Right now everyone uses them separately, but we would collect and analyze all data in real-time, preventing defects before they occur.”

The current approach to handling defects was too passive.

Taking action only after problems occurred was already too late.

But if we could predict defects in advance and respond proactively, there would be no reason for defective products to occur in the first place.

“You mean attaching sensors to all processes and equipment to collect data?”

“We’ll convert all variables that create defects into numerical data. That’s how responses become faster.”

“Certainly, if we secure the data, most problems can be predicted.”

I always prioritized data above all else.

When data was insufficient, calculations became unclear, and when calculations became unclear, control became impossible.

That’s why all variables had to be converted to data. Only then could I manipulate things as I wanted.

“Looking around various factories, I noticed they’re doing people-centered management.”

“I understand they’ve adopted methods like Six Sigma or TQM from Japan or the United States.”

“People can’t be perfectly controlled. But data is different. If we manage all variables as data, we can create more efficient and predictable factories.”

A factory centered on data, not people.

I wanted to create a smart factory that judged and moved on its own, rather than the current system that passively depended on human hands.

Of course, it wouldn’t be easy at all.

All processes would need to be converted to data, and matching algorithms and systems would need to be newly constructed.

But for perfect control, such effort was nothing significant.

Moreover, I wasn’t alone anymore.

With numerous affiliates under my control, I could achieve this without having to run around personally.

***

The data-based factory system was first applied to Nexcon.

Hundreds of types of sensors were installed throughout equipment and lines, and all factory movements were recorded as data.

As a result, enormous amounts of information accumulated daily, and we could create new algorithms based on that data.

The first thing applied was the defect rate prediction algorithm.

It analyzed temperature, humidity, and vibration patterns in the work environment to give advance warning of signs just before defects occurred.

“Branch Manager, the defect rate has decreased significantly. The hard disk installation defect rate, which occurred most frequently, has been reduced to less than half. Previously, initial defect rates reached 4-5% due to shock and heat, but now they’ve dropped below 1%.”

“Other defects have also decreased considerably.”

“Battery contact defects have improved, and button assembly defects as well as LCD module foreign matter defects have greatly improved.”

It had been only a month since we started mass production of iPods.

Yet the defect rate had already dropped below 1%.

Generally, initial defect rates start around 5%, and only after mass production stabilization do they aim for 2%.

“I heard existing iPod production factories still have defect rates exceeding 5%.”

“Thanks to our defect management system, we could take proactive measures before defective products were created.”

“Then reducing the defect rate below 0.5% should also be possible.”

“It’s not an impossible goal. However, since it’s difficult to prevent defects in the components themselves, there are practical limits.”

This was frustrating.

Of course, screening defective components was also our factory’s job.

But since we couldn’t inspect every single component, it was difficult to lower the defect rate further.

“Components that frequently produce defects need more intensive inspection.”

“Currently we’re only doing sampling inspections. We’ll increase the sampling numbers a bit more.”

“Instead of that, let’s introduce an automatic optical inspection system. It’s already been introduced in semiconductor factories.”

Semiconductor factories were already conducting comprehensive inspections with optical inspection systems.

However, there were no cases of introducing optical inspection systems to small device factories like this.

“The price of optical inspection equipment is too high.”

“So it doesn’t make financial sense.”

“To be honest, that’s correct. Of course, if we had the equipment, comprehensive inspection would be entirely possible, but we’d also need to hire more personnel.”

I knew well that the equipment was expensive.

But there was a way to apply it without necessarily buying equipment.

“I heard there’s old optical equipment at the semiconductor factory. If we improve that a bit, it should be helpful enough.”

“If it’s recycling existing equipment, that’s entirely possible!”

“And I’ll create algorithms and systems to find defective components too. That should lower the defect rate even more.”

Having optical equipment alone wasn’t the end of it.

It was merely a tool for capturing images; the key was how to analyze and interpret that data.

What I was ultimately trying to do was create an automated optical inspection machine.

When optical inspection was performed, algorithms could analyze images in real-time, creating a system that could immediately determine whether products were defective.

“That would certainly lower the defect rate further. But there’s not much difference between a 1% or 0.5% defect rate.”

“When this experience accumulates, it will become a huge asset when producing more complex products in the future. If we end up making devices far more sophisticated than the iPod, that 0.5% difference will feel enormous.”

The iPod was just the beginning.

Apple would pour out more complex and sophisticated devices in the future.

To prepare for that future, we needed to maximize production yield even if it meant accepting some losses now.

***

We sent the first batch of iPods produced at Nexcon to the United States.

Jobs called immediately after personally checking the products.

[The quality of products manufactured at Nexcon was very good.]

“The yield is getting better and better, and production speed is also continuously increasing.”

[As expected from a factory directly managed by Mister Lee, it’s excellent.]

“Once the Nexcon Factory stabilizes, iPod production will likely exceed North American demand. So I’d like to start sales in Japan and China, beginning with Korea.”

One of the reasons Apple chose Nexcon was for Asian expansion.

Of course, this wasn’t Apple’s original plan, but thanks to Tiger Fund’s proposal, Apple was considering Asian expansion.

[Since supply isn’t properly secured yet, let’s start with the Korean Market first. Once the Nexcon line expansion is complete, we’ll expand into Japanese and Chinese markets too.]

“Tiger Fund will develop sales channels in Japan and China in advance.”

[That would be great for us.]

“And I’d like to designate Tiger Fund’s Department Stores and Marts as iPod sales outlets in Korea. Would that be alright?”

Korea didn’t have dedicated Apple stores yet.

So products were being sold through official resellers at franchises or distributors, and I planned to make Midopa Department Store and Rollbook Mart dedicated sales outlets.

[You handle Korean sales, Mister Lee. I can certainly give you that authority.]

“Then I’ll arrange for iPod sales to begin at Tiger Fund’s Department Stores and Marts.”

[By all means. And let me say again, it’s really perfect. Please continue making such perfect products.]

I ended the call after hearing his thanks.

While rumors circulated about Jobs having a difficult personality, he was at least kind to me.

I couldn’t tell if the rumors were exaggerated or if he viewed me particularly favorably.

In any case, the result was clear.

I had easily obtained exclusive iPod sales rights for Korea.

Now a special product that could only be purchased at Midopa Department Store and Rollbook Mart was born.

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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