UNICON CONCRETE PRODUCTS (H.K.) LTD
Module 4: Operations management
Class: Wednesday, 6:30 pm – 9:30 pm
Submitted by: Shilpa Puri, Maria Tolokonnikova, Davinder Matharu, Adina Goldfarb, Zeeshan Hanif
Date: April 2nd, 2014
Table of Contents
EXECUTIVE SUMMARY Page
Part 1 Executive Summary 3
Part 2 Immediate Issues 4
Part 3 Systemic Issues 4-5
ENVIRONMENTAL & ROOT CAUSE ANALYSIS
Part 4 Qualitative Analysis 5-6
Part 5 Quantitative Analysis 6-7
ALTERNATIVES AND/OR OPTIONS
Part 6 Alternatives ...view middle of the document...
This strategy involves discontinuing pre-cast stairs and partition walls, and leasing out the patent to other companies in China, discontinuing the manufacturing of those products at the current factory. Unicon is to then transform all production and move 14 employees from partition production and 6 from stair production towards the fabrication of slabs and facades to take advantage of the current rise in demand. Patents will be created for 2 - 3 designs incorporating the strongest and most reliable designs wanted by the HKHA and the 12 other general contractors in the industry. The patents will be filed for every single design that will be approved by the HKHA and made standard in the industry. In the long-term, the company is to become the leader in the market of pre-fabricated concrete products and control the expansion of the company based on the anticipated rise and fall of the industry, utilizing research, patents and strong business relationships to gain a competitive edge. Approaching other pre-fabricated concrete companies in mainland China can help focus on precast only and work together with them on contracts with HKHA and other general contractors. To strengthen Unicon’s position in the market, it is also recommended to continue working with the HKHA and the civil authorities to obtain patents and pre-approval certificates for the slabs and facades. At the same time Unicon will create a cross functional team focused on researching better materials and construction methods to keep the company as an industry leader. After the 2 year boom, Unicon should then focus on facility expansion and completely reassess the market and its future direction from that point as that would put them in a position to adjust capacity for realistic levels of demand instead of basing the expansion on a rare outlying event. Short-term objectives are to be accomplished between 1-9 months while the long-term objectives are to be accomplished within 1-5 years. These initiatives will put Unicon in an advantageous competitive advantage in the market place allowing them to become a leader in the pre-fabrication sector and result in a cost savings of $150,000HKD and we are reinvesting part of that savings back in to the company by purchasing 3 additional molds for slabs and facades, allowing Unicon to secure its required unique patents. This will result in an estimated 25% growth in revenue and leave us with $85,000 in cost savings.
PART 2: IMMEDIATE ISSUES
HKHA has estimated that 179 residential blocks are needed within the next two calendar years to meet the forecasted demand. It is anticipated that 50% of these blocks shall be of pre-cast design and construction.
The total industry in Hong Kong is only able to support the construction of 20 blocks per year.
Unicon only has capacity to manufacture sets of facades and slabs for seven blocks per year due to long approval times, lack of space and workforce availability
Unicon must stay competitive...