CILDRO PLYWOOD

Business Economics
Business Administration
Faculty

Team Members:
Balaceanu Cristina Prof. Sorin Anagnoste
Buturca Silvia Cristiana Prof. Simona Agoston
Olaru Andrei

14. November. 2015, Bucharest

Table of Content
1. Introduction.........................................................................................................................................3
2. History of Company.............................................................................................................................4
3. Description of Departements..............................................................................................................5
3.1 Office Administration.........................................................................................................................5
3.2 Finance sector....................................................................................................................................5
3.3 Management.....................................................................................................................................5
3.4 Delivery..............................................................................................................................................6
3.5 Marketing..........................................................................................................................................6
3.6 Research and Development...............................................................................................................6
4. Key Indicators......................................................................................................................................7
4.1 Development and economic growth.................................................................................................7
4.2 Work schedule...................................................................................................................................7
4.3 Budget...............................................................................................................................................8
4.4 Balance sheet....................................................................................................................................9
5. Challenges.........................................................................................................................................10
5.1 Challenge 1......................................................................................................................................10
5.2 Challenge 2................................................................................................................................10
5.3 Challenge 3................................................................................................................................10
6. Conclusion.........................................................................................................................................11
 1. Introduction
The existence of a wood economy, or more correctly, a forest economy, is a prominent
matter in many developing countries as well as in many other nations with temperate climate and
especially in those with low temperatures. These are generally the countries with greater forested
areas. The uses of wood in furniture, buildings, bridges, and as a source of energy are widely
known. Additionally, wood from trees and bushes, can be employed in a wide variety, including
those produced from wood pulp, as cellulose in paper, celluloid in early photographic film,
cellophane, and rayon (a substitute for silk).
Cildro Plywood is a multinational company witch over the years had managed to succeed
in a specific department of wood production. Its product portfolio features different kind of
products like wood plies, technical veneer, aesthetic veneer, Fagotex and Global 100 HL.
When it comes to conception, we can refer at several characteristics that recommend the
company.

1. The speed. In the industrial sector speed is a crucial factor that should always be
considered. Although the demand is high, this company has always managed to finish the
products before the deadline.

2. The variety. With a large range of products they manage to easily please all the
customers. Their fantastic ability to adapt is the main reason why they are sole importers
in Europe.

3. The seriousness. Every contract is treated the same. No matter if the contract is a big one
or a small one, they tread their clients like they are the same. No one is put on the second
place. Because of this, every customer is feeling appreciated and they are always come
back to make another deal.
 2. History of Company
Starting with 1963, the “Wood processing plant” from Drobeta Turnu Severin opened a
new section which considers Plywood and Veneer.
Since then and until now the company has experienced an impressive development,
particularly through innovation and by diversifying products.
At the moment, CILDRO Plywood is specialized exclusively on beech plywood made of
laminated woof and beech veneer.
Using high standard technology and KnowHow german, Plywood CILDRO products have
managed to achieve a unique standard of quality across Europe. Our company became one of the
largest manufacturers of laminated beech wood in Central and Eastern Europe.
Cildro Plywood products are globally commercialized, between his renowned clients are
included concerns like DaimlerChrysler, Porsche, Volkswagen, Siemens, ABB, IVECO,
Romexpo Bucuresti, Pinum Doors & Windows. Cildro Plywood SRL products are used as high
quality raw material in various fields.
Cildro Plywood laminates can be found everywhere on earth ( Europe, America, Asia) in
halls of the renowned concerns like DaimlerKreysler, VolksWagen, Audi, Porsche, Jaguar,
General Motors, Skoda, Seat S.A., also the biggest exposition centers use the Cildro Plywood
laminates for cladding not only walls and floors but also ceilings. The particularly “welcoming”
visual appearance, physical wear and heavy traffic resistance make the Cildro Plywood laminates
to be implemented in various centers of exposition (Expo Leipzig, Expo München, Romexpo
Bucuresti, Expo Köln).
 3. Description of Departements
3.1 Office Administration
This is a very important department because of its responsibility. In the production
process, if the supervisor does not verify the equipment properly, a lot of damage can occur.
Also they are in charged with the safety of the employees, so they have to check each one of
them to make sure that they are respecting the safety protocol .Other responsibilities are related
to financial planning, recordkeeping and organization.
3.2 Finance sector
The activities expected from the finance department cover a wide range from basic
bookkeeping to providing information to assisting managers in making strategic decisions.
The finance department is also responsible for the management of the cash flow and they
have to make sure that there are enough funds available to meet the day to day payments.  This
area also is in charge of the credit and collections policies for the company’s customers, to
ensure that the payment will be on time.
To summarize the importance of the financial department its role is to prepare and create
financial accounts, keep and maintain financial records, analyze the current financial situation
and pay the employees and also the wages.
3.3 Management
This crucial department has the role of organization. Its duty is to coordinate the efforts
of people in order to accomplish their goals and objectives by using available resources
efficiently and effectively.
Its activity is divided in six sections, each one of them being coordinate by a different
director:
1. forecasting
2. planning
3. organizing
4. commanding
5. coordinating
6. controlling

3.4 Delivery
 Another very important department is consisted by the delivery.
Its role is to ensure the quality of the product and to prepare it for the delivery.It is
divided in 2 sectors: The quality assurance and the distribution. The role of the last sector is to
double check the quality of the product and prepare it for the shipping.
3.5 Marketing
This department existed in the early years of the firm but it was abolished 3 years ago
because of its uselessness. The market it is quite exclusively for certain types of customers and it
is not approachable for everyone. Therefore, there is no need for any kind of advertisement. This
market as the say it is a safe one with its own clients. Still they have not given up entirely
This department was integrated in the Office Administration department.
With this organization decision the costs were reduce and productivity raised in the last
years by 30%.
3.6 Research and Development.
This department is consisted of engineers and the head of department.
This is a very important department because it has to face one of the biggest problems. Its
role is to find out any solutions that could reduce the resources needed for the production. As we
know, this industry uses a quite rare and important resource that is used by many entities. Wood,
as we know it it is not that hard to find, but it is very hard to procure it (keep in mind that one
tree grows in approximately 25 years).In present the resources that are used are in the normal
parameters, but still solutions have to be found in order to improve the functionality of the firm.
 4. Key Indicators
4.1 Development and economic growth
The firm was founded in 1963 and for 40 years managed to register a big profit. Romania
however, was a communist country until 1989. That means that the organization was managed
by the state for approximately 36 years. After the big revolution the firm was taken in control by
third parties and the situation would have known a quite significant change. The year 2003
would represent a dramatic situation. Not only they were not able to register any profit, the losses
that they were facing were dramatic. Because of the bad organization, the firm entered the state
of insolvency in the year 2007. The situation was absolutely critical. More than 700 people could
have lost their jobs, and considering the fact that in the city where the firm was build this
organization among two others were the top hires, we can say for sure that a tragedy could have
happened.
Despite all of those negative facts, a new investor came and bought 51% of the company
shares. With the power that he know had in his hands, he managed to rebuild the entire entity
from the bottom. He fired some people at first to reduce the costs for a brief period of time. After
he took some research and dig deep into the problem he found out that the virus who was going
to destroy the company was the CEO. He immediately took actions and named as headquarters
two brothers of great potential.
After two years of activity as a reinvented entity, the company managed to pay all the
debts and register profit for the first time in a decade. The innovation came from the training
program that was founded in 2009. Every employee would have to pass a training session in
order to can start working in their department. In this way, the intensive productivity raised and
the costs were reduce to minimum.
The final stage in this hugely development was also the hardest. This one marked the
transition to the next level, intercontinental distribution. Until now they produced small
quantities of plywood, which meant small companies, but know all of that is ancient history.
Because of the good management, they were able to raise the produce quantity and automatically
they have attracted new, better and bigger clients.
4.2 Work schedule
Because of the fact that the production process is a 24/7 one, the work schedule is divided
in three reasonable for everyone shifts. This entire schedule has a very important meaning
because the system relies on the fallowing time division:
07:00-15.00 Morning shift
15.00-23.00 Afternoon shift
23.00-07.00 Night shift
Most of the employees are full time and there are working 5 days a week. At the end of
the working year they have to give feedbacks to the supervisors, and they will also receive a
feedback from them. In this way, a permanent communication is maintained between the
employees and the manager.

4.3 Budget
Every once a year the board of directors meet to discuss the allocated budget for the year
to came. Usually this meeting takes place in December and it could last more than 1 day,
depending on several factors for example: the demand, the scarcity etc. The budget is based
every year on the estimates provided by the department heads. Of course, adjustments can be
made if the situation impounds it. The budget consist in salary amounts, and production
expenses. The second is the largest cost because this reunite several secondary costs like for
example: resources, fuel, electricity, equipment maintenance etc.
With the year 2013 the budget increased constantly until now. Because of the increased
productivity and the high demand, the year 2015 registered the biggest budget allocated for
production in the last decade.

1) Cildro Plywood Budget

In the current year the budget allocated for production increased by 24% compared to the last
year.

4.4 Balance sheet

 Net turnover: From 2013 to 2014 the company net turnover increased by 675.525 while
from 2015 to present it increased by 1.744.469.

Achievments over the last 3 years

25

20

15

10

0
2013 2014 2015

Mil/lei

2) Achievement over the last 3 years

 5. Challenges
5.1 Challenge 1
As we all know, the wood resources are quite limited on the market. How is that
influencing the production process?
“Well, I have to admit that this is one of our biggest challenges. We use different kind of
wood for the production process. The quality of the product it depends on the customer’s budget
and needs. The most difficult products to make are the high quality ones because we need a
specific type of wood to create them that is very expensive and pretty hard to find and procure.
We are still working on ways to reduce the costs of this materials and also we are trying to
reduce the quantity used.”
After the interview we all went and talk to the production manager and with the wood
engineer. They explained as the problem with more details and we realized that is quite serious.
In order to make the most of the limited resources we came up with the next idea. When the
company is able to purchase a large quantity of wood, the process of preproduction will come
next. In other words, they should produce in advance certain kind of products, in order to at least
not slow down the production process.
5.2 Challenge 2
The company is willing to create an internship program for students or even young engineers.
In order to create a win-win situation for both the company and the students, we came up with
the idea of creating a 2-3 months summer internship. During the program the students will not
receive any financial benefits, but after internship will end, they will have the chance to become
full time or part time employees.
5.3 Challenge 3
The company activates on a quite exclusive market, with its own customers. Is this an
advantage or a disadvantage?
“Both. It represents a hugely advantage the fact that we are one of a few companies left that
create this type of product, so we have a minimum number of sales quaranteed each year. The
disadvantage, however, is the fact that the customers are limited, so to expand in this type of
market is pretty hard.”
After an intense research we came up with a new idea that could help the company. During
the production process, a lot of groundwood remains and its only use is to be burned in their
energetic central. Although, this is a smart call, still it remains a lot of material unused. Our idea
was to create wood pallets and sell them. In this way, the company could attack a more
approachable market and also their profit could increase.
 6. Conclusion
The wood based industry will continue to be a major contributor of export earnings and
employment. Through improvement in technologies, RND and intensive market promotion, the
industry is expected to expand further into specialized high value added products for wood
market. This business continues to grow each year as the budget statement shows being a great
contributor to the economy.