SUSTAINING GROWTH AT COLYTECH How to organize and manage growth in the dynamic Chinese market?
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Transcript of SUSTAINING GROWTH AT COLYTECH How to organize and manage growth in the dynamic Chinese market?
SUSTAINING GROWTH AT COLYTECHHow to organize and manage growth in the dynamic Chinese market?
www.colytech.com
Introduction of ColyTech Problem Definition
Analysis of ColyTech Design of a new Organization Structure
CONTENTS
Analysis of the Contract Manufacturing Business Unit Design of a Control and Evaluation Structure and Tool
Conclusions
www.colytech.com
1. INTRODUCTION OF COLYTECH
INTRODUCTION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ORGANIZATION STRUCTURE
ANALYSISCOLYTECH
Founded in June 2002, HQ in Shanghai
Joint Venture between:– Jiangdong Group from China – Meridien Technology from Singapore
Initially:– Six Business Development Units– 30 employees
PROBLEM DEFINITION
www.colytech.com
INTRODUCTION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
PROBLEM DEFINITION
ORGANIZATION STRUCTURE
www.colytech.com
Mission & Strategy
INTRODUCTION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
Mission
To be the essential bridge between customers & suppliers to provide the customer with innovative products, services and solutions
Strategy
Create a « fast growing company » by focussing on (potential) customers and entrepreneurship
PROBLEM DEFINITION
ORGANIZATION STRUCTURE
www.colytech.com
2. PROBLEM DEFINITION
How to prepare ColyTech for future growth?
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
How to achieve the flexibility and agility that is necessary to adapt to the constantly
changing environment?
ORGANIZATION STRUCTURE
www.colytech.com
3. ANALYSIS OF COLYTECH
Top-down: organization structure
Bottom-up: analysis of the different Business Development Units (BDU’s)
SWOT analysis of the overall organization
Improvement fields
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
www.colytech.com
Initial Organization Structure
Four Departments:
– Business Development– Research & Development & Engineering– Operations– General Administration
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
www.colytech.com
Business Development Units
International Business BDU– Mainly Contract Manufacturing– Consulting services– Assisting other BDU’s – ColyTech Network Alliance
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
REMARKS:– Large dependency on suppliers and
partners (quality, reliability)– Assuring value-add
ORGANIZATION STRUCTURE
www.colytech.com
Business Development Units
Mechatronics BDU– Agent for foreign Rapid Prototyping
and Rapid Tooling Systems– Agent for own
Rapid Prototyping Systems
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
REMARKS– Small niche market– Expanding product/services range– Synergy with Bureau Services BDU
ORGANIZATION STRUCTURE
www.colytech.com
Business Development Units
Bureau Services BDU– Offers Rapid Prototyping and
Rapid Tooling services to customers– Both suppliers and own resources– Focus on R&D in automotive sector
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
REMARKS– Complete range of products– Extensive experience– Offering value-add
ORGANIZATION STRUCTURE
www.colytech.com
Business Development Units
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
Electronics BDU
Factory Automation BDU
Automotive BDUORGANIZATION
STRUCTURE
www.colytech.com
SWOT Analysis
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
• Experienced people• Supplier & customer
networks• Total solutions
• Customer sharing• Expanding network • International markets
• Organization• Responsibilities &
control• Supplier dependency
• Shortage job market• Capital• Assuring value-add
Strengths Weaknesses
Opportunities Threats
ORGANIZATION STRUCTURE
www.colytech.com
Improvement Fields
Organization structure:
Facilitate flexibility, innovative power
Control and evaluation structure:
Linked with responsibilities
Quality:
Supplier assessment and selection
« performed by René Kleine »
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
www.colytech.com
4. ORGANIZATION STRUCTURE
INTRODUCTION Design criteria:– Flexibility– Innovative power– Fast time-to-market– Cooperation & Integration– Continuity
« Project based Matrix structure »– Business Units: long-term– Projects: short-term
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ORGANIZATION STRUCTURE
ANALYSISCOLYTECH
www.colytech.com
Horizontal Structure
INTRODUCTION Functional separation between Business Development and management of Business Units and Projects
R&D only deals with R&D tasks anymore Engineering, Customer Service and
Assembly in Shanghai moved to Operations Division
No changes at General Administration
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ORGANIZATION STRUCTURE
ANALYSISCOLYTECH
www.colytech.com
5. ANALYSIS CM BUSINESS UNIT
INTRODUCTION
Primary goal« The reliable offering of quality products with added value to its customers; at acceptable costs but still profitable for the company »
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
www.colytech.com
Aggregation level 1
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE Market
Contract Manufacturing Business Unitmaterials
resources
products
www.colytech.com
Aggregation level 1
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
IST• Offering flexible
solutions• Focus on growth
SOLL+ Offering global
solutions+ Consolidating growth
Problems:
- « Reliability » rather low- « Quality of working life » could be better
www.colytech.com
Aggregation level 2
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE Market
Contract Manufacturing Business Unitmaterials
resources
products
www.colytech.com
MarketContract
Manufacturing Business Unitmaterials
resources
products
Aggregation level 2
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTUREWO
resources
products
Project Execution
Offer & Acceptance
Order rejection
Customer Order
www.colytech.com
Aggregation level 2
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
ISTFocus on efficiency by:• Hiring more employees• Budgetting more money
SOLL• Shift to productivity increase• Globalization requires higher reliability
forecasted input
real input
outputinput
www.colytech.com
Aggregation level 2
INTRODUCTION Boundary conditions:– lack of skilled employees– lack of capital
Problems:– How to increase productivity?– How to increase reliability?
Solution:– Create control and evaluation structure
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
www.colytech.com
Aggregation level 3
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTUREWO
resources
products
Project Execution
Offer & Acceptance
Order rejection
Customer Order
www.colytech.com
6. CONTROL & EVALUATION
INTRODUCTION Establishing a productivity and reliability control and evaluation structure for the offer & acceptance function.
Establishing a reliability control and evaluation structure for the project execution function.
PROBLEM DEFINITION
CONCLUSIONS
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
www.colytech.com
Control & Evaluation Tools
INTRODUCTION Project Checklist– Tasks– Responsibilities– Dates– Approvals
Evaluation forms
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
www.colytech.com
7. CONCLUSIONS
INTRODUCTION Project Based Matrix Structure:– More flexibility– Better responsibility structure
Control and evaluation structure:– Productivity increase– Reliability increase
Recommendations:– Expand to other departments– Evolve into IT system
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
?QUESTIONS
INTRODUCTIONPROBLEM DEFINITION
CONCLUSIONSCONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTURE
ColyTech Manufacturing
Co., Ltd.
Customer Customer
Alliance Member
Alliance Member
Alliance MemberAlliance Member
Alliance Member
Customer
Alliance Member
Alliance Member
Alliance Member
www.colytech.com
Aggregation level 3
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTUREWO
resources
products
Project Execution
Offer & Acceptance
Order rejection
Customer Order
www.colytech.com
Aggregation level 3
INTRODUCTION
PROBLEM DEFINITION
CONCLUSIONS
CONTROL & EVALUATION
ANALYSIS CMBUSINESS UNIT
ANALYSISCOLYTECH
ORGANIZATION STRUCTUREWO
resources
products
Project Execution
Offer & Acceptance
Order rejection
Customer Order
