Samsung’s hands-on apple factory triples sales in 3 years ‘Mugwort’

On the 11th, I visited a fruit processing factory in Andong, Gyeongsangbuk-do. Employees were busy washing and packing apples produced in Abanggok Village, where the factory is located. In particular, it was more busy as it was the time before the lunar new year holiday.

Fruit Dream CEO Hwang Chan-young, who runs the factory, said, “Even though the economy is difficult, Fruit Dream, a small rural enterprise, is diligently preparing products for the New Year’s Day with farmers.” he laughed.

The first thing that caught my eye when I entered the factory was the phrase ‘7S 3 tablets’ posted on the wall in large letters. It is a list of 10 principles that are the most important at the manufacturing site, such as organization, order, cleanliness, cleaning, washing, and sterilization. After putting on sanitary clothes, washing my hands, and entering the factory, I was able to see for myself the space where this principle was followed. The inside of the factory was so clean that it was hard to see a speck of dust, and it was neatly organized.

Although it is a small company with only 17 employees, it is thanks to Samsung Electronics’ smart factory construction support project that it can keep the basic principles of manufacturing.

Since 2015, Samsung Electronics has been operating the ‘Smart Factory Construction Support Project’ to support world-class manufacturing innovation technology and success know-how for mutual growth of domestic small and medium-sized enterprises. So far, more than 3,000 companies have benefited from building smart factories. Before Samsung Electronics’ support, CEO Hwang cut fruit himself with his staff and packed it into cups. Even if employees worked all day, all they could do was produce 3,000 cups of fruit. Thinking ‘I can’t go on like this’, President Hwang came across Samsung Electronics’ smart factory application announcement by chance and applied.

Samsung Electronics dispatched three manufacturing experts to the site. They went to work with fruit dreams every day for eight weeks and led the change. While working with the employees, he gave them trust and helped Samsung Electronics’ know-how in manufacturing technology permeate naturally. Park Gyeong-yong, an employee of the Smart Factory Implementation Team at Samsung Electronics, said, “We taught each one of the basic principles that must be followed at the manufacturing site.”

With the help of Samsung, a big change has begun in Fruit Dream. Samsung first automated the cutting and packaging of fruit. Through this, the average daily production jumped from 3,000 to 10,000.

In the past, various fruits such as cherry tomatoes, grapes, and plums were washed and separated at once, but after the application of the smart factory, washing facilities dedicated to each fruit were introduced to classify fruits by type from the time of washing. There is also a transport truck that moves apple crates. Previously, if a person moved the box by hand on average 90 times a day, the use of a bogie reduced the number of movements to 30 times. Samsung’s help was also great in pioneering the market. Fruit Dream has been selling apples in an online marketplace targeting Samsung employees since 2019. This year, the company plans to diversify its sales channels to home shopping and online.

After Samsung’s smart factory business, Fruit Dream’s sales nearly tripled from 500 million won in 2019 to 1.5 billion won last year. From March this year, the smart factory will be upgraded. The goal is to produce an average of 15,000 cups of fruit per day by building automated facilities suitable for small-lot production of many varieties.

“We will increase the number of contract farms to 20 this year,” said CEO Hwang. “We plan to expand exports to Southeast Asian countries such as Vietnam.”

Meanwhile, Samsung announced that it would pay 1.4 trillion won in advance to small and medium-sized suppliers for the Lunar New Year holiday. Eleven affiliates including Samsung Electronics, Samsung SDI, and Samsung C&T are participating in this initiative. Samsung will also set up an online marketplace for executives and employees until the 20th to sell domestic agricultural, livestock and marine products and specialty products from sister villages. Fruit Dream products are also available here. Samsung Electronics Chairman Lee Jae-yong said, “It is a difficult situation, but we must overcome it together.”

[안동/이새하 기자]