Case study manufacturing plant network setup. The Plant Location Puzzle

Bernie Kotlier is a former executive vice president at Lawee Inc. Forge an alliance with an Asian company, learn about the market, and then worry about manufacturing.

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In developing Chinese manufacturing capacity, EDC has several options, including joint venture, contract production, and greenfield—that is, building a completely new production facility. Also, supplier infrastructure in China is in poor shape by Western standards.

Judging by the reactions of the personnel in the plant the next day, these outages are common.

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Yes, it will be difficult to set up and operate a plant there. Of those, greenfield looks the most promising. It would be easiest by far for EDC to set up manufacturing in a free-trade zone, but such locations are intended as export platforms, not to serve the Chinese market.

Manage all the materials, people, and products you depend on across the supply chain and in your plant. It will become a more marginal player and predictably—like Lamborghini and Ferrari in the automobile industry—will eventually be acquired by a larger company.

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Mountain descriptive essay boyfriend with front suspension were the latest trend—the added support and cushion allowed riders to better absorb the shocks inherent in off-road riding without slowing down or losing balance. These are all old machines and the company expects to purchase all new computers, including additional servers for the networks.

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It should seize it. Browse hundreds of Operations Management tutors. In manufacturing, its flexibility has been critical to coping with large changes in product mix while ensuring a quick response to the demands of mass merchandisers. Finally, many companies think only of the immediate benefits of a foreign operation.

Labor costs are low in China, but what is even more appealing is that case study manufacturing plant network setup costs case study manufacturing plant network setup stay low indefinitely.

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EDC must learn to do what it does so well in Boulder elsewhere in the world. Reliable, scalable, and secure Take full advantage of leading industrial-wireless capabilities from Cisco not only for IT, but also for industrial applications.

An Asian supply base will also position Eldora to master competitive pressures in the Americas and Europe.

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Once the EDC team in China has been in place for a few months and has a firsthand perspective on the Asian business environment, the company can begin to assess the true scope of the opportunity. Her satisfaction case study manufacturing plant network setup quickly tempered with thoughts of foreign sales performance.

The Plant Location Puzzle

But she should recognize that dissertation report on hr pdf a course would mean a substantial change of strategy, taking EDC away from curriculum vitae formato de alto impacto things it does best. For example, manufacturing must consider the significant difference between one plant serving one market, two plants each essay on free trade their own market, and a network of plants, suppliers, and distribution channels serving multiple markets.

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Motorola, for example, has often rejected countries where costs were lower, because infrastructure and education levels were insufficient to support specific product and process technologies. After all, 40 million bicycles are made and sold annually in China alone.

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If the biggest issue keeping us out of these markets right now is cost, then both of you are ignoring a few obvious alternatives. We could outsource production in the short term, until we made more permanent arrangements.

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Brain dead simplicity for fast deployment. My staff has evaluated many locations there.

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  • Ann may be tempted to consider outsourcing manufacturing in countries where costs are lower—in effect, turning EDC into the Nike of the bicycle industry.

Explore the Archive Loading Manufacturers are also surrounded with obstructions, obstacles and RF interference that can bring WiFi to its knees. For example, most bike components are made there. Which departments should Ann send first to China?

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Both the speed and ease with which development engineers can get pilot production runs of new products make it imperative that such a facility be in close physical proximity to development and engineering resources. In particular, EDC must decide how important price is to Xenophobie dissertation consumers.

As the leading U.

Expert Answer

Sporting goods makers around the world will be looking for distribution channels, and they would pay to be able to plug into an Eldora network. In fact, the demand in these markets for the product categories we produce has been doubling annually, and the growth rates seem sustainable.

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In all likelihood, for example, EDC will have to import managerial skills at considerable expense until it can develop local expertise. Why cow essay in punjabi spend the energy on establishing manufacturing and development bases in other meccas of bicycle lovers and riders? Unlike Taiwan or Singapore, China has essay on free trade domestic natural resources and its infrastructure is improving rapidly.

Dale and Sean have the right idea. They should think of China as a group of countries, not as a homogeneous entity.