Operation Strategy at Galanz
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Transcript of Operation Strategy at Galanz
GOOD PRACTICES Cost leadership as Order Winning
Dimension. Free production line transfer. High investment in R&D. Maximum utilization of resources : 3 x 8 x
365 Use of Total Productive Maintenance process. Strategic alliance with Wal-Mart and K-Mart. Self sufficiency in core components
manufacturing (took initiative in manufacturing magnetrons).
BAD PRACTICES Centralized Decision Making. No Concurrent Engineering (Less co-
ordination between R&D – Testing – Operation).
Exploitation of production capacities. Parameters for forecast was not adequate. No proper emphasis on PLC. No emphasis on international marketing
strategies and ignorant towards cultural differences in overseas market.
Ignorance of data records and compliances with code of practice.
PROBLEMS Problems on prioritizing between ODM – OEM
– OBM. Withdrawal by suppliers. Demand of low volume and high variety of
products. Rapid wear and tear of machineries. OBM was a failure in overseas market. Information flow was slow and inadequate.
SOLUTIONS Should follow OEM – ODM – OBM. Should increase production capacity of
magnetron. Should make small scale production of
various product. Scheduling maintenance of machineries at
regular intervals. Should emphasize on brand building and
adopt good marketing strategies, overseas. Should follow horizontal, vertical and
diagonal flow of information (Decentralized Decision Making).