Operations Strategy at

Galanz

Presented to- Prof. Arun Kumar

Presented by- Group no.2
 Brief summary

• Galanz was founded in 1978 by Liang senior, father of Liang Zhaoxian

• Headquarter in Shunde, China
• Produced down feather products for overseas clients to earn foreign exchange
• 1990: Purchased microwave oven blueprint from Toshiba for USD
3,00,000
• 1992: Entered into new business of microwave oven
• Purchased magnetrons from foreign suppliers (Toshiba& Panasonic)
• 1997: Invested in R&D of magnetrons
• 2000: Designed and Produced magnetrons to support its own microwave
production
 Good practices

• Cost leadership as Order Winning Dimension.

• Free production line transfer
• High investment in R&D
• Maximum utilization of resources
• Use of Total Productive Maintenance process
• Strategic alliance with Wal-Mart and K-Mart
• Self sufficiency in core components manufacturing
 Bad practices

• Centralized Decision Makin

• Less co-ordination between R&D, testing, operation
• Exploitation of production capacities
• Parameters for forecast was not adequate
• No proper emphasis on PLC (Product life cycle)
• Ignorance of dat a records and compliances with code of practice
• No emphasis on international marketing strategies and toward cultural difference
in overseas market
 Problems

• Increase demand for branded products because of the competition in MNCs

• Handling of customer complaint
• Difficulties in handling cultural differences in overseas market
• Not immune to difficulties in maintaining high quality of technological output
• Synchronizing production with the R&D department became a problem
• Retrenchment by the suppliers
 Solutions

• Should follow Original Equipment Manufacturers – Original Design

Manufacturing – Original Brand Manufacturing
• Should increase production capacity of magnetron
• Should make small scale production of various product
• Scheduling maintenance of machineries a t regular intervals
• Should emphasize on brand building and adopt good marketing
strategies, overseas
• Should follow Decentralized Decision Making
Thank you