European Family Business Barometer: Sustaining future growth
SUSTAINING GROWTH AT COLYTECH How to organize and manage growth in the dynamic Chinese market?
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Transcript of SUSTAINING GROWTH AT COLYTECH How to organize and manage growth in the dynamic Chinese market?
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SUSTAINING GROWTH AT COLYTECHHow to organize and manage growth in the dynamic Chinese market?
![Page 2: SUSTAINING GROWTH AT COLYTECH How to organize and manage growth in the dynamic Chinese market?](https://reader038.fdocuments.net/reader038/viewer/2022110103/56649f125503460f94c24e77/html5/thumbnails/2.jpg)
www.colytech.com
Introduction of ColyTech Problem Definition
Analysis of ColyTech Design of a new Organization Structure
CONTENTS
Analysis of the Contract Manufacturing Business Unit Design of a Control and Evaluation Structure and Tool
Conclusions
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www.colytech.com
1. INTRODUCTION OF COLYTECH
INTRODUCTION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ORGANIZATION STRUCTURE
ANALYSISCOLYTECH
Founded in June 2002, HQ in Shanghai
Joint Venture between:– Jiangdong Group from China – Meridien Technology from Singapore
Initially:– Six Business Development Units– 30 employees
PROBLEM DEFINITION
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www.colytech.com
INTRODUCTION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
PROBLEM DEFINITION
ORGANIZATION STRUCTURE
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www.colytech.com
Mission & Strategy
INTRODUCTION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
Mission
To be the essential bridge between customers & suppliers to provide the customer with innovative products, services and solutions
Strategy
Create a « fast growing company » by focussing on (potential) customers and entrepreneurship
PROBLEM DEFINITION
ORGANIZATION STRUCTURE
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www.colytech.com
2. PROBLEM DEFINITION
How to prepare ColyTech for future growth?
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
How to achieve the flexibility and agility that is necessary to adapt to the constantly
changing environment?
ORGANIZATION STRUCTURE
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www.colytech.com
3. ANALYSIS OF COLYTECH
Top-down: organization structure
Bottom-up: analysis of the different Business Development Units (BDU’s)
SWOT analysis of the overall organization
Improvement fields
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
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www.colytech.com
Initial Organization Structure
Four Departments:
– Business Development– Research & Development & Engineering– Operations– General Administration
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
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www.colytech.com
Business Development Units
International Business BDU– Mainly Contract Manufacturing– Consulting services– Assisting other BDU’s – ColyTech Network Alliance
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
REMARKS:– Large dependency on suppliers and
partners (quality, reliability)– Assuring value-add
ORGANIZATION STRUCTURE
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www.colytech.com
Business Development Units
Mechatronics BDU– Agent for foreign Rapid Prototyping
and Rapid Tooling Systems– Agent for own
Rapid Prototyping Systems
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
REMARKS– Small niche market– Expanding product/services range– Synergy with Bureau Services BDU
ORGANIZATION STRUCTURE
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www.colytech.com
Business Development Units
Bureau Services BDU– Offers Rapid Prototyping and
Rapid Tooling services to customers– Both suppliers and own resources– Focus on R&D in automotive sector
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
REMARKS– Complete range of products– Extensive experience– Offering value-add
ORGANIZATION STRUCTURE
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www.colytech.com
Business Development Units
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
Electronics BDU
Factory Automation BDU
Automotive BDUORGANIZATION
STRUCTURE
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www.colytech.com
SWOT Analysis
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
• Experienced people• Supplier & customer
networks• Total solutions
• Customer sharing• Expanding network • International markets
• Organization• Responsibilities &
control• Supplier dependency
• Shortage job market• Capital• Assuring value-add
Strengths Weaknesses
Opportunities Threats
ORGANIZATION STRUCTURE
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www.colytech.com
Improvement Fields
Organization structure:
Facilitate flexibility, innovative power
Control and evaluation structure:
Linked with responsibilities
Quality:
Supplier assessment and selection
« performed by René Kleine »
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
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www.colytech.com
4. ORGANIZATION STRUCTURE
INTRODUCTION Design criteria:– Flexibility– Innovative power– Fast time-to-market– Cooperation & Integration– Continuity
« Project based Matrix structure »– Business Units: long-term– Projects: short-term
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ORGANIZATION STRUCTURE
ANALYSISCOLYTECH
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www.colytech.com
Horizontal Structure
INTRODUCTION Functional separation between Business Development and management of Business Units and Projects
R&D only deals with R&D tasks anymore Engineering, Customer Service and
Assembly in Shanghai moved to Operations Division
No changes at General Administration
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ORGANIZATION STRUCTURE
ANALYSISCOLYTECH
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www.colytech.com
5. ANALYSIS CM BUSINESS UNIT
INTRODUCTION
Primary goal« The reliable offering of quality products with added value to its customers; at acceptable costs but still profitable for the company »
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
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www.colytech.com
Aggregation level 1
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE Market
Contract Manufacturing Business Unitmaterials
resources
products
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www.colytech.com
Aggregation level 1
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
IST• Offering flexible
solutions• Focus on growth
SOLL+ Offering global
solutions+ Consolidating growth
Problems:
- « Reliability » rather low- « Quality of working life » could be better
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www.colytech.com
Aggregation level 2
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE Market
Contract Manufacturing Business Unitmaterials
resources
products
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www.colytech.com
MarketContract
Manufacturing Business Unitmaterials
resources
products
Aggregation level 2
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTUREWO
resources
products
Project Execution
Offer & Acceptance
Order rejection
Customer Order
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www.colytech.com
Aggregation level 2
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
ISTFocus on efficiency by:• Hiring more employees• Budgetting more money
SOLL• Shift to productivity increase• Globalization requires higher reliability
forecasted input
real input
outputinput
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www.colytech.com
Aggregation level 2
INTRODUCTION Boundary conditions:– lack of skilled employees– lack of capital
Problems:– How to increase productivity?– How to increase reliability?
Solution:– Create control and evaluation structure
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
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www.colytech.com
Aggregation level 3
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTUREWO
resources
products
Project Execution
Offer & Acceptance
Order rejection
Customer Order
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www.colytech.com
6. CONTROL & EVALUATION
INTRODUCTION Establishing a productivity and reliability control and evaluation structure for the offer & acceptance function.
Establishing a reliability control and evaluation structure for the project execution function.
PROBLEM DEFINITION
CONCLUSIONS
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
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www.colytech.com
Control & Evaluation Tools
INTRODUCTION Project Checklist– Tasks– Responsibilities– Dates– Approvals
Evaluation forms
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
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www.colytech.com
7. CONCLUSIONS
INTRODUCTION Project Based Matrix Structure:– More flexibility– Better responsibility structure
Control and evaluation structure:– Productivity increase– Reliability increase
Recommendations:– Expand to other departments– Evolve into IT system
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
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?QUESTIONS
INTRODUCTIONPROBLEM DEFINITION
CONCLUSIONSCONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
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ColyTech Manufacturing
Co., Ltd.
Customer Customer
Alliance Member
Alliance Member
Alliance MemberAlliance Member
Alliance Member
Customer
Alliance Member
Alliance Member
Alliance Member
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www.colytech.com
Aggregation level 3
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTUREWO
resources
products
Project Execution
Offer & Acceptance
Order rejection
Customer Order
![Page 37: SUSTAINING GROWTH AT COLYTECH How to organize and manage growth in the dynamic Chinese market?](https://reader038.fdocuments.net/reader038/viewer/2022110103/56649f125503460f94c24e77/html5/thumbnails/37.jpg)
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www.colytech.com
Aggregation level 3
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTUREWO
resources
products
Project Execution
Offer & Acceptance
Order rejection
Customer Order
![Page 39: SUSTAINING GROWTH AT COLYTECH How to organize and manage growth in the dynamic Chinese market?](https://reader038.fdocuments.net/reader038/viewer/2022110103/56649f125503460f94c24e77/html5/thumbnails/39.jpg)