Professional Documents
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SYNERGY
Analysis by: team
CASE FACTS
Facades
were 20% of total sales in 1997 while slabs were 34%. Stairs made up only 6% of slabs while the rest 40% was made up by partitioning walls
In Hong Kong, the construction process had two steps viz superstructure and substructure and the design calculations and drawings has to be submitted to govt. building dept. for approval prior to construction The review process takes upto 2 months For construction either of the below two methods were used
Traditional method of pouring concrete walls and floors on site Assembling precast slabs and facades
cost of construction project Reliance on high skilled tradespeople who commanded high salary Effects of bad weather and shortage of labour Better quality and finishing Restrictions on creativity and originality
HKHA PROGRAM
Hong Kong govt. announces a four year program to construct new residential blocks 179 blocks of them is expected in 1998 itself Also expected that among these half of them would require precast materials Currently Unicon can meet the need of 7 blocks per year while the industry capacity is estimated to be 20 blocks per year
CASE ISSUES
CAPACITY EXPANSION
Expansion
of plant will not be completed before Aug 1998, so capacity has to be expanded in short term alternatives available to achieve the same are
Two
submissions for HKHA projects could be resubmitted for future projects without requiring a review or approval by an RSE or govt. authority Cost saving for one housing block would be about HK$150,000 Lead time reduced by one month HKHA has to be convinced to accept the recommendation through demonstration of Mutual Advantages of the plan
RECOMMENDATIONS
It
is seen that the production cycle extend for around 26 hours and all the moulds in the inventory are used in the process So having a second shift will not add value addition if there is no resource addition Its hence recommended that Unicon reallocate plant space by discontinuing some of their products till the plant expansion happens
Also
recommended that Unicon for a short term should stop the production of stairs as well as that of partitioning walls and reallocate the resources to Slabs and Facades This way the resources can be effectively used on products that have high growth rate and higher margins.
The
timing for mould setup will be preponed by 2-4 hours and Unicon can have a special shift on that time just for mould setup.
THANK YOU