The Magician’s Memorial - Chapter 44
Only Krnovel
Episode 44. Value of 10 billion (2)
I really don’t know how time flies these days.
Because there was so much to do, each day felt like just one minute, and when I looked at the calendar, it was already April.
I started April with a phone call with Steve.
He mainly communicated with the development or design team, but this time he called me directly.
[Software development has been completed. [It is a completely different product from the mobile phone software that has been released so far.]
“Thank you for your hard work. “Are all the features I mentioned included?”
[of course. It took a long time to add that feature. Calculator and memo functions have also been added. I also added a simple pinball game. I understand everything else, but I have no idea why they asked to add the game.]
Today’s cell phone is literally a phone.
It was simply a machine designed to make wireless phone calls.
However, just a few years later, an era will come where we can do everything with our mobile phones.
“My goal is to allow people to listen to music, watch movies, and play games on their phones.”
[My goals are almost the same. Except for games.]
Why do I hate games so much?
Although Steve was a famous music fanatic, he had a very negative attitude toward gaming.
Of course, you can listen to music, watch movies, and play games on your phone.
“Game aside, I guess the production of flip phones is almost over.”
[There are no further changes to be made in the software and design areas.]
“Then it’s time to take the next step.”
[We haven’t even properly produced a flip phone yet, so are we already preparing for the next step?]
“You have to run without stopping so others can’t chase you.”
[yes. What is the next goal?]
“We need to make sure Steve can listen to music on his phone the way he wants.”
[It’s a good thing to hear.]
Steve was a music fanatic whose voice changed dramatically.
“We are developing an MP3 player. However, further technological development is still needed to apply it to the next version of mobile phone. “In the meantime, we need to develop other types of mobile phones first.”
[They lift and place people. In the end, doesn’t it mean that music playback will not be possible until the next model?]
“Shouldn’t Apple go back to making phones that can play music? “The flip phone as well as the next version of the phone are preparatory work for Steve to return to Apple.”
[I understand. So what kind of phone should we make this time?]
“Now that we’ve created the flip phone, shouldn’t we make a slide phone?”
[The design draft you showed me included a slide-type mobile phone.]
The next mobile phone was a slide phone.
Since the introduction of the flip phone, cell phones of various designs have been released.
Among them, there were successful and failed designs, and I know well which designs will be successful.
“Once we develop a slide phone, we can create phones that can play music in the next version.
[That means I can return to Apple when that time comes.]
“I will make sure Steve returns to Apple.”
[I will only believe you. But when are you going to start producing flip phones?]
“All preparations are complete, so let’s get started right away. We’re looking at a release date after October, but production needs to start now to fix any issues. And we can build up inventory.”
There would be no major problems if the flip phone was released right away.
However, since the factory is small, we had to build up as much inventory as possible before launching it.
And for the sake of publicity, we had no choice but to schedule the release in October.
“Did you know that the International Home Appliances Fair will be held in Germany in September?”
[Of course I know.]
“I want Steve to show off his flip phone there.”
[This is what you need to promote. Will there be any promotional effect if I go to the German International Expo rather than the CES held in the United States?]
“sure. “If Steve promotes it, it will be a big hit.”
[Hmm, I understand. I will prepare thoroughly. So, please make a perfect flip phone too.]
“If it’s not the right product, we won’t even release it.”
I headed to the Incheon factory to keep my promise to Steve.
The Incheon factory was so different from when I first came that I wondered if it was the same factory.
While I was looking at the exterior of the factory, Manager Lee came up to me and said hello.
“Director, are you here? Production preparations are complete.”
“The factory has definitely become much cleaner.”
It was a factory without a speck of dust in sight.
The cleanliness of the Incheon factory was not much lower than that of a semiconductor factory.
Well, I also emphasized cleanliness.
“The air curtain installation has been completed and the air purification system is operating normally. And all workers wear dust-proof clothing while working.”
“Everyone feels very uncomfortable, right?”
“There are no major complaints yet. “I think I’ll skip it because the food is so good.”
The company was ultimately about money and welfare.
The most important thing among welfare was food.
Even if you only provide good food, loyalty to the company increases.
I had also promised a bonus, so the workers didn’t complain much even if I wore dustproof clothing.
“Please pay attention to your meals. And let’s go to the factory manager’s office to finish the rest of the discussion.”
I went up to the factory manager’s office with Manager Lee.
There, the factory manager could be seen wearing a dustproof suit and processing documents.
“Why are you dressed like that?”
“Workers are also wearing dustproof clothing. Shouldn’t I wear one too? That way, there will be fewer complaints.”
“Did you by any chance require other office workers to wear dust suits as well?”
“I’m not that harsh of a person. “It’s enough for me to be uncomfortable.”
Factory manager Koo Cheol-gyu was a very unique person.
I don’t know if he changed as a person after working at the Incheon factory for a long time or if he became the Incheon factory manager because he was an unusual person, but it was clear that he was a perfect fit for the Incheon factory.
“Please start full-scale production of flip phones now.”
“I was already waiting.”
“How many units can be produced per day?”
“If we operate our two plants, Incheon and Bucheon, we can produce at least 1,000 units per day.”
Only a thousand units.
1,000 units per day, 30,000 units per month.
With six months left until launch, we were able to build up inventory of 180,000 units.
“Production is insufficient. “How many units can the factory operate at full capacity?”
“If we run it in two or three shifts, the number of units produced will increase, but will we need that much inventory? “To be honest, our current production volume is very high.”
The factory manager’s concerns were natural.
In the case of Samjin Electronics, which dominates the Korean mobile phone market, sales of one model were around 200,000 units.
But we planned to produce 180,000 units.
The factory manager was concerned that if no products were sold, all products would remain in bad inventory.
“Didn’t the factory manager know this after seeing it? “This is a product that is bound to succeed.”
“So I also agreed to produce 180,000 units. That amount of production is enough to cover even if there is leftover inventory. But any more than that is too adventurous. “How about starting additional production while watching the sales volume trend?”
“I will take full responsibility. Please operate the factory at full capacity and build up inventory.”
Anyway, I take full responsibility.
Some responsibility will also be passed on to the factory manager, but he will never lose anything.
Because flip phones are unconditionally successful products.
“Then we will operate the factory in three shifts. If that happens, production can reach up to 1,500 units per day.”
“We could build up an additional 90,000 units in inventory. Still, there are only 270,000 units.”
“If it’s 270,000, it’s a huge deal. “This is a sales volume that even Samjin Electronics could not achieve.”
“Once it’s released, you’ll know why I’m doing this.”
It was the moment when the third shift work at the Incheon and Bucheon factories was decided.
Production workers, who until now worked leisurely because they had nothing to do, are now working in third shifts and with less sleep.
As work increases, labor costs naturally increase.
In particular, in the case of night work, additional allowances must be paid, so labor costs are higher.
As labor costs increase, risks naturally also increase.
A situation was created that people who wanted me to fail would like.
* * *
Taewoo Electronics President’s Office.
President Park Jin-hoon and Vice President Woo Seong-il were leisurely enjoying tea time.
“It is said that the Incheon factory will start working in three shifts starting today. “I am asking you to support the insufficient number of people. What should I do?”
“Of course we should support it. “Please support us generously.”
“Is that okay? When assembling mobile phones in three shifts, 45,000 mobile phones are produced every month. “If it remains in inventory, the loss will be severe.”
President Park Jin-hoon put down his coffee cup and smiled wryly.
“If you think of it as the cost of training the person who will become the next president, it is not that expensive. And if there is any bad inventory left over, we can minimize losses by selling it at a low price to China or Southeast Asia.”
“Do you plan to take this opportunity to completely send Director Kim away?”
“You know why we don’t focus on the mobile phone business, right?”
“This is because Motorola and Samjin Electronics are already deeply rooted in the mobile phone market. “The moment you get involved, you have to engage in fierce competition.”
“Stocking up close to 300,000 units in the mobile phone market? Unless there is a huge hit, there will always be stock left. So no matter how good a product you make, you will never hear that it is successful.”
“I finally understand the president’s deep meaning.”
It was President Park Jin-hoon, who had been in the electronics market for decades.
He was confident that he knew the market trends better than anyone else, and he thought that jumping into the mobile phone market now would be suicidal.
“Wouldn’t it be better to work in securities rather than electronics or automobiles? I heard you also have experience working on Wall Street. We need to send Director Kim to a place that suits his aptitude. Manufacturing is a place where experience is important, so it is right to gain experience before joining.
“That is correct. “We must protect Taewoo Electronics while Director Kim works hard to gain experience.”
“What can I do? Still, we raised Taewoo Electronics, so we must take responsibility until the end.”
Although it sounds like the words of a loyal vassal.
In reality, it was no different from saying that they would ignore the next chairman, Kim Min-jae, and run Taewoo Electronics on their own.
“But do you mind if I don’t look at the mobile phone prototype produced by Taewoo Electronics?”
“It’s better not to take responsibility for nothing.”
“ah! “If product sales are low, people may ask why we didn’t help even after seeing the prototype.”
“To prevent gossip, we just need to provide support. “If you ask for money, give money. If you ask for people, give them all.”
“I will. I didn’t know that I could feel good about giving away money. ha ha ha!”
The president’s office was filled with laughter.
They accepted the failure of the flip phone as a foregone conclusion, and were hoping to incur more losses by producing more phones.