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Operation Strategy at Galanz

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Galanz and their operation strategy. Case study analysis.

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Page 1: Operation Strategy at Galanz
Page 2: 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).

Page 3: Operation Strategy at Galanz

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.

Page 4: Operation Strategy at Galanz

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.

Page 5: Operation Strategy at Galanz

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).

Page 6: Operation Strategy at Galanz