Ideas for the Presentation:-We need a short Outline concise! -We need a video and dynamic idea-We need an evaluation sheet for INVESTOR, how does this really work in Real Life? We need a break-even point analysis … -We need to determine a Target Market for our Product-We need to sell the idea in terms of COST and PROFITS Radar chart Investment Chart! -Put a picture of both flags here.
CabinetMakers, LLC, is an international company that operates in the United States and is seeking to invest in new markets in order to achieve an internationalization strategy that will help us to achieve and develop new products focusing in the production of a green cabinets line. We intend to develop the project “Green Cabinets for an Eco-friendly Initiative” focusing on utilizing 100 % green materials and using high quality and outstanding raw materials. Cabinets Maker, LLC commitment with the environment and effort to reduce C02 gas emission has open the door for new opportunities in other countries. This initiative of Green Cabinet and cost reduction are the main reason why in 2012 we decided to start sourcing and manufacturing Cabinets in Brazil. MembershipsCabinetMakers,LLC Association of the United States North Carolina Chamber of CommerceU.S. Chamber of Commerce in Brazil Project Name“Green Cabinets for an Eco-friendly Initiative”Brazilian PartnerPatmo Trade AgencyEntry ModeLimited Liability Company, LTDAManufacturing LocationCuritiba, Southern BrazilLogistics Third Party Partner (3PL)Menlo Worldwide LogisticsShip Port Location in BrazilParanaguá Port, Itajaí Port, San Francisco do Sol PortAssembly in North CarolinaLeland Industrial ParkShip Port Location in North CarolinaWilmington, NC State PortQuality AssuranceLeadership in Energy and Environmental Design (LEED®) MembershipsCabinetMakers,LLC Association of the United States North Carolina Chamber of CommerceU.S. Chamber of Commerce in Brazil
Show Video: We need a video! Maybe I will present it at the end! To leave a better impresion. http://www.youtube.com/watch?v=85BvmIGjmQQhttp://www.youtube.com/watch?v=6ENo8IN5zf8 why brazil! INTROhttp://www.youtube.com/watch?v=eapTqAIj3dYBrazil is an emerging economy, part of the BRIC economies (Brazil, Russia, India and China) which are considered not yet developed countries but fast growing. The Brazilian government has developed laws and regulations in order to enforce their industry sectors to use green energy; furthermore they support and invest in the creation of new models to innovate in renewable energy technologies. On the other hand, Brazil is one of the richest countries in natural resources; the Amazonas one of the treasures of Brazil attracts millions of tourists and foreign direct investment. These are some of the main reasons why we have selected Brazil as the perfect country to achieve our “Green Cabinets for an Eco-friendly Initiative” During the last few years our product development and design team has developed new innovative and creative family of custom, compact storage and durable cabinet’s models for different types of environments and customer needs (e.g. apartments, kitchens, bathrooms, and hotels). The reason to develop this compact and innovative model is due to the United States (US) economy situation which has force our distributors to seek for more acceptable prices and the end customer for small apartments and more compact spaces.
Our Project will manufacture in Brazil but will assemble in the U.S. Our USA-C™ Seals are a powerful marketing tool for companies to distinguish themselves from their competitors and reach the very consumers that are actively looking to buy domestic products and services. According to an Alliance for American Manufacturing 2011 poll; Over 90% of Americans are “favorable” or “very favorable” towards Made in America products. The poll also showed that 66% of Americans are feeling “very favorable” towards companies that manufacture in the USA, a percentage that surged in one year by 44%. Made in USA is more than a trend, it is a growing Movement!Assembled in USA Claims are valid for products with foreign components that have a substantial assembly process which principally takes place in the U.S. For a valid "assembly" claim, the last "substantial transformation" of a product must take place in the U.S. Products meeting these standards can be advertised as "Assembled in the USA". http://www.sba.gov/community/blogs/community-blogs/business-law-advisor/made-usa-labels-information-manufacturers-ret-0
As an entry market strategy we have decided to partner with a local counterpart in Brazil who will function as one of our main project stakeholder and one of our main supplier in Brazil. According to the Brazilian Company modes description, this mode of business consists in a private limited company engaging in commercial, industrial and service activities and has its bylaws registered with the board of trade. It has to be established at least by two partners. Shares will represent the participation of each partner in the company´s capital, with the company liabilities limited to their shares or quotas.Patmo Trade Company is located in the strategic region of the capital of Paraná State in Southern Brazil which is considered the centered of wood technology market in Brazil. This is the exact place to invest if you are looking for any wood product (e.g. plywood, flush doors, pine doors).After studying this partner we have decided to create a partnership because their focus on environment care, at this moment they are one of the biggest supplier of pine and eucalyptus. At the moment Patmo Trade Company has accomplished the certification by the government as an environmental friendly company taking care of the conservation of the tropical forest. For more information on Patmo, please visit their website PatmoTrade Company
This project will lease the necessary manufacturing facilities in Brazil to produce low-cost green cabinet’s components that will be assembled in North Carolina, USA. The green raw materials will be sourced in Brazil. These will be high-quality veneers and wood that are certified LEED® and will be environmentally friendly. Those parts will be shipped to the USA to be assembled, warehoused and sold to our distributors with an ‘Assembly in the USA’ label. The timeframe for this project will be one year. Curitiba is part of the Brazilian state of Paraná which is the largest and capital city of this formal state with an area of 431 km 2. Is part of Brazil south region, with an approximate population of 1.75 million. The city has a modern infrastructure and outstanding transportation system. The main International Airport is “Alfonso Pena.” The economy of Curitiba, Paraná is based on trade, the provision of services and processing industries, around Curitiba´s city and Industrial Park which has been an industrial area since 1970 with around 43 million square kilometers.According to Fazzano and Weiss (2004) Curitiba has accomplished outstanding improvement in their transportation system under their environmental protection strategy. Curitiba´s zoning structure follows a road system. Furthermore they indicated that this region has been designated as the ecological capital of Brazil in the 1990´s. The partnership with Patmo Trade Company and CabinetMakers, LLC, will consist on leasing a manufacturing facility at Curitiba Industrial Park where Patmo Trade Company, local partner will act as the consulting firm for the investment and also as the main supplier for the green cabinet’s raw materials. Patmo Trade Company will also assist in the coordination of logistics and the designation of a third party supplier to transport the cabinets’ parts.
Show Video: We need a video!Brazil is an emerging economy, part of the BRIC economies (Brazil, Russia, India and China) which are considered not yet developed countries but fast growing. The Brazilian government has developed laws and regulations in order to enforce their industry sectors to use green energy; furthermore they support and invest in the creation of new models to innovate in renewable energy technologies. On the other hand, Brazil is one of the richest countries in natural resources; the Amazonas one of the treasures of Brazil attracts millions of tourists and foreign direct investment. These are some of the main reasons why we have selected Brazil as the perfect country to achieve our “Green Cabinets for an Eco-friendly Initiative” During the last few years our product development and design team has developed new innovative and creative family of custom, compact storage and durable cabinet’s models for different types of environments and customer needs (e.g. apartments, kitchens, bathrooms, and hotels). The reason to develop this compact and innovative model is due to the United States (US) economy situation which has force our distributors to seek for more acceptable prices and the end customer for small apartments and more compact spaces.
Why North Carolina? According to North Carolina Chamber of Commerce the manufacturing industry is working very closely with the National Association of Manufactures which advocates the different needs of manufacturers and their employees always developing new solutions to improve the competitiveness of this powerful sector. North Carolina’s manufacturing industry ranks 5th in the United States. The state has the support of 500,000 employees and around 14.5% are employed by this industry. An important point is the contribution of this industry to North Carolina State Gross Domestic Product (GDP) of approximately 19.5%. These are some of the key motivation factors to establish our assembly plant in North Carolina. This assembly plant will serve as the facility used to assemble in the US the different cabinets parts built in Brazil; this will allow us to be able to obtain an “Assemble in the US” label which assure us a better quality image and better price strategy. After seeking for land available at the Leland Industrial Part of North Carolina, we have decided to buy land space of approximately 15 acres located at 2195 ME Mercantile Drive. The listing asking price is around US$ 975,000.00. After a number of negotiations we were able to obtain the land for the price of US$ 700,000 due to the difficult economic situation in the US at the time of investment. See Appendix A: Assembling Plant in the US location for land and infrastructure description.
Obtain LEED® Certification.Train 2 operations resources in Lean Manufacturing (e.g. green belt)Continuous improvement process investment of 2% total revenues after achieving ROI.Achieve the project in a 1 year time period under the 3.7 million budget.Achieve a 90% Customer Satisfaction Evaluation.Become a member of the Brazilian Green Building Council by November 2012.Become an active member of the CabinetMakers, LLC, Association in the United States by November 2012.
The managerial structure description focus on how CabinetMakers, LLC, will assign tasks allocation, coordination, and supervision of resources towards the achievement of this project. The project structure is mainly a balanced functional matrix where the Project Manager will have authority to control the project resources but power will be shared equally between the Project Manager and Functional Managers in Brazil and the United States. Taking into consideration the nature of this project “International” we have decided to maintain an informal communication channel (e.g. Outlook, Skype, ERP Chat) to constantly decentralize the matrix structure selected. A major issue of the structure is the allocation of resources through the matrix structure taking into consideration that “Share Resources” will be needed due to actual economic conditions. Nevertheless the managerial structure formulation has identified the need of recruiting a native Brazilian Project Manager for specific areas (e.g. engineering, safe and environment, legal functions, etc.) which require Brazilian expertise for the outstanding execution of the program. This new recruited Brazilian Project Manager will be trained by our Local Project Manager Representative who will form a Global Talent Group where knowledge transfer and training will be provided for the new team members. On the other hand, the Managerial Structure has also identified the need of recruiting native workers of Brazil to work in our innovative eco-friendly manufacturing plant to be built in Brazil. It is expected that the Human Resource Function develops a precise and concise training program to give these workers the needed knowledge to develop high quality cabinets.
The product design will meet the requirements for custom, compact storage cabinets for different environments from small apartments to kitchens, bathrooms, and hotels. We will make two separate designs, one traditional, and one modern (see figures 6 and 7). The design will incorporate the Green eco-friendly wood veneers from Brazil.Product Design Specifications:Material: Wood, Bamboo & Eucalyptus frame, sides, back, and doors with metal hardware and adjustable wood or particle-board shelvesStyles: Modern or Traditional (refers to door design and trim)Finish: Choice of paint or stain colorsDimensions: Choice of predetermined dimensions in increments of 2-inches
Evolution of forest area planted with Pine and Eucalyptus from 2004 to2009 (Source: ABRAF 2010:21)In Brazil Eucalyptus trees are ready for cutting at the age of about seven years, while intemperate climates, such as Finland, it can take up to 40 years.
I need the dates to the milestones
The overall Project estimated Project Cost will be $1.7 Million.This will include all project management, leasing and contracts to manufacture in Brazil, ship and assemble in USA the first cabinets to be sold.
The present value index is determined by dividing the present value of the cash inflows by the present value of the cash outflows. The higher the present value index, the better the investment alternative.Alternative 2 yields a higher return than alternative 1 and is the better investment alternative.In either case a positive ROI is achieved after year 3
Curitiba Ports Infrastructure: The industrial park has access to three different ports:1. Paranaguá Port 2. Itají Port 3.Sao Francisco do Sol PortThe Third Party Logistic designated is Menlo Worldwide Logistics, the reason to outsource the logistics part is to be able to focus on our core businesses “Green Cabinet” and to not focus on developing logistics strategies. The products will be shipped to the U.S. port of Wilmington, North Carolina, located on the U.S. East Coast. Important information about this special port is that is one of the few ports in the areas of North Carolina that has ample available storage areas and berths. It is vital to mention that all the possible different Ports to be used in Brazil and United States are owned by their respective Government State Ports Authority and offer facilities serving container, bulk, and break-bulk operations according to their websites descriptions. At this moment, CabinetMakers, LLC, supply chain strategy is to develop a green environment care influencing over our suppliers, 3PL, and distributors to commit with the environment and the new U.S. Government initiatives (e.g. US Environmental Protection Agency). Our sales distribution models is based on distributors who sell directly to building contractors and retail outlets (Ikea, Home Depot, Lowes, Sears) who in turn sell to end-customers.
As part of the project deliverables is to accomplish LEED® Green Cabinet Certification which consists in a universally accepted green building system. According to U.S. Green Building Council this certification gives third-party verification framework to produce green building design. Cabinets manufactured to be designated and marketable as Green needs to contain minimal off-gassing materials having low transportation footprints and sustainably harvested wood. The rating system is based in a point table including different weight for the different areas, see figure 8. According to Wave (n.a.) who is a Certified Green Professional, Vice President of Head Designer- Closet Factory indicates that Materials that are used in cabinets and closets can achieve a LEED® certification points in two areas:1. Indoor Quality - Indoor Environmental Quality2. Material Use - Material ResourcesLow emitting materials covers adhesives, sealants, paints, coatings, composite wood and Agra-Fiber products. The material resources cover recycled content, regional materials, rapidly renewable materials, certified wood.
A monthly risk assessment report in Brazil and US should be delivered to Project Manager by a team formed with key personnel Some risks that our team identified are above
The project may include risks and must be considered in the project plan. In order to develop a mitigation and Contingency Plan related to any risk, that risk must be identified prior to the start of the project. The Risk Assessment will be continuously monitored and updated all through the project life and monthly Risk assessment should be included in the status report.In the team project meeting, project manager should identify any new risk and agree on mitigation approaches. And he will convey recommendations of contingencies approaches, or more frequently, as required.
the purpose of this aspect is to assess the factory and put the outlines that improve the efficiency and profitability of the business. The evaluation team members should include a project team manager, a member from the Design department, a member from the Quality department, and a member from the Manufacturing department
Cabinet Maker Ppt Final 2
Cabinet Makers 11 25 June 2012 Team 4
Overview of the Project Project Scope Project Schedule Project Budget Project Risks Contingency Plans Project Evaluation Methods Conclusion References2 25 June 2012 Team 4
• High Operations Costs Labor Lack of Raw Materials Energy Leasing • Not Environmental Friendly manufacturing • Green Cabinets for an Eco- Friendly Initiative manufacturing in Brazil Project Reduced Costs Access to Raw Material Lower Energy Cost3 25 June 2012 Team 4
WBS Main DeliverablesCode1 Green Cabinets for an Eco-Friendly Initiative Project: 6,000 Units to be produce according to product design specifications.1.1 Project Management1.2 Manufacturing & Assembling Cabinets1.3 Project Cost Analysis: Scorecard1.4 Cabinets Product Design1.5 Marketing & Sales Plan1.6 Supply Chain Management: Logistics1.7 Quality Assurance1.8 Customer Relation Management12 25 June 2012 Team 4
o Reduce operation cost by 20%o Increase Market share by 10 %o Achieve a Return on Investment over 57% in the first year.o Recover total investment of 1.7 million in 4 years.o Obtain high 90% quality standards raw materials in Brazil from Patmo Trade Agency partner and others Suppliers.o Reduce production and shipping costs by 50 % outsourcing to 3PL Menlo Worldwide Logistics.14 Team 4 25 June 2012
LEED® Green Cabinet Certification Project Scope. According to U.S. Green Building Council this certification gives third-party verification framework to produce green building design.24 Team 4 25 June 2012
Natural Business policies disasters changes Exchange rate Quality issues fluctuations Poor Increment of shipping communication expenses across location Product damages while shipping from Brazil to the US25 25 June 2012 Team 4