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1. P R E PA R E D B Y –
G R O U P 2
Operation strategy at Galanz

2. Introduction
 Headquartered in Shunde, China, founded in 1978
 Produced down feather products for overseas clients
 Purchased microwave oven blueprint from Toshiba for USD
3,00,000 in 1990
 Entered into new business of microwave oven in 1992
 Purchased magnetrons from foreign suppliers (Toshiba and
Panasonic)
 Invested in R&D of magnetrons
 Designed and produced its on magnetrons to support its own
microwave production
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3. Company overview
 The largest microwave oven manufacture in the world
 Competed based on lowest cost through efficient utilization of
capacity and process improvement
 1990 : purchased microwave oven blueprint from Toshiba for
USD 300,000
 1992 : entered into new business of microwave oven
 1997 : invested in R & D of magnetrons
 2000 : designed and produced magnetrons to support its own
microwave production
 Combining OBM,OEM and ODM to achieve economy of scale
 60%-70% of the domestic in 2002 and 50% of the international
market share in 2007
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4. Good Practices
 Free production line transfer tactic
 Full utilization of production facility and labor resources:
Operating 3 shifts per day, 7 days a week for 365 days
 Investment on R&D
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5. Bad Practices
 3 levels of personnel: slow flow of information
 Production of customized products caused decline in
production
 Overlooked the importance of records
 Low cost efficiency achieved with low quality and less
variety
 Poor production planning
 Synchronization between production and R&D
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6. Problems and Solutions
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7. Suggestions
 Proper training of staff for the end customer
 Handling of customer grievances and providing after sales
services
 Adding in new varieties/models in microwave ovens
 Synchronizing production with R&D department
 More time for new product testing/development
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