CASE STUDY -3

GALANZ
Group

3
Roll No-(210-279)

BRIEF BACKGROUND
Founder LIANG QUINDE, 1978
Headquartered in Shunde, Guangdong
Initially GALANZ as (GHIZHOU down product
factory) was a global garment industry( down
feather products )
In 1991 LIANG QUINDE , decided to search
for a new business opportunity as the profit
growth has become stagnant.
After analyzing the Chinese market for a
year & identify great potential in China , he
switch on to microwave oven.

GOOD PRACTICES
GALANZ took initiative in producing
MAGNETRONS itself.
To catch hold on market, production cost was
reduced by using cheap labor & land.
It increased its production capacity through a
free production line transfer.
Investment in R&D and product innovation.
LIANG was quality concerned

CONT
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).

BAD PRACTICES
Centralized Decision Making.
No Concurrent Engineering (Less coordination 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.

CONT
Non stop production ( 3 shifts /day, 24 *7, 365
days/year).
Ignorance of data records and compliances with
code of practice.
It strived to produce more than forecasted
demand.
Synchronizing production ( prototype production )
Hierarchical practices ( 3 levels)

PROBLEMS FACED
Business challenges
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.
Handling of customer complaints.

RECOMMENDATION
Should follow 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).
Should invest in enhancing customer service

THANK YOU