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PRODUCTIONSTRATEGYThe case of Erowa AG12.12.12
GOOD MORNING. w.1IBus HS12: Production Strategy (Chapter 10) GMTZ09E: Ellen Girod
What do these companies have in common?                 Schweizer Fernsehen, 10 vor 10, 08.11.2012
#1 THE THEORY.              The main ingredients of production strategy.              #2 THE CASE.THE AGENDA.             ...
THE THEORY.
PRODUCTION STRATEGY.
Companys vision & mission  Companys philosophy                                        Continuous innovation               ...
Companys vision & mission      Companys philosophy                                            Continuous innovation       ...
Companys vision & mission         Companys philosophy                                                 Continuous innovatio...
Companys vision & mission         Companys philosophy                                                     Continuous innov...
Companys vision & mission         Companys philosophy                                                     Continuous innov...
MEET OUR CASE.
AutomatisationEROsion          Werkzeugbau (Toolmaking)
EROSION.
EROSION.
EROSION.
EROSION.
EROSION.
EROSION.
EROSION.
WERKZEUGBAU.
WERKZEUGBAU.
WERKZEUGBAU.
AUTOMATISATION.
AUTOMATISATION.
AUTOMATISATION.
AUTOMATISATION.
All over the world..                  300 employees in 12 subsidiaries and 22 agents                                      ...
Headquarter:Orenda Holding AG,   Büron (Lucerne),       Switzerland
Development & production facilities:        USA, Switzerland & China
Marketing & sales subsidiaries:USAEurope (France, Spain, Italy, Germany, Denmark, Poland)Asia (China, Japan, Singapore, In...
Foundation             1970
International                    distribution &                    marketing (US,                    Asia and Europe)Found...
International             Change into                    distribution &            corporate                    marketing ...
Development and                                                                   production facilities                   ...
HOW DID THEY MAKE IT?
FMC = Four step Manufacturing Concept               The aim to optimise the individual steps of manufacturing:FMC CONCEPT....
Erowa FMC movie
EROWASFIRM SPECIFICADVANTAGES.
SUCCESS STORY OF   # 1FSA : Their production concept: “Flexible                   Manufacturing Concept” as commitment to ...
EROWASCOUNTRY SPECIFICADVANTAGES.
SUCCESS STORY OF   # 1CSA : Delivery: they produce close to clients all over                   Europe                   Po...
CONCLUSION.
#1 PROFIT FROM THE CORE.           Focus on your corporate vision and strategy.           #2 COMPETITIVENESS.           Ma...
LET’S DISCUSS.
WHY PRODUCEIN SWITZERLAND?
SWISSNESS.Positive attributes such as: precision, reliability,stability, naturalness, multi-culturalism, accuracyand clean...
THE GOOD NEWS ARE..            WEF Global Competitivenes Index 2012-13
THE GOOD NEWS ARE..            Futurebrand, Countrybrand Ranking 2012
THE BAD NEWS ARE..             KOF Konjunkturprognose Oktober 2012
THE BAD NEWS ARE..           UBS Wirtschaftsprognose 06.12.2012
SF, 10 vor 10, Schweizer Industrie im Umbruch, 08.11.2012
Courage as key to succes?: ( standardized mass-products: ) innovative competitive products    SF, 10 vor 10, Schweizer Ind...
THANKS.QUESTIONS?The case of Erowa AG12.12.12
INSPIRED BY:•   International Business, Alan M. Rugman & Simon Collinson, FT Prentice Hall•   Going international, Paul Am...
VIDEOS.•   http://www.videoportal.sf.tv/video?id=b4bcee4c-e949-4904-b2dd-    8ecba3bbd46e;DCSext.zugang=videoportal_sendun...
Production Strategy (ZHAW Case HS12)
Production Strategy (ZHAW Case HS12)
Production Strategy (ZHAW Case HS12)
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Production Strategy (ZHAW Case HS12)

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Production Strategy (ZHAW Case HS12)

  1. 1. PRODUCTIONSTRATEGYThe case of Erowa AG12.12.12
  2. 2. GOOD MORNING. w.1IBus HS12: Production Strategy (Chapter 10) GMTZ09E: Ellen Girod
  3. 3. What do these companies have in common? Schweizer Fernsehen, 10 vor 10, 08.11.2012
  4. 4. #1 THE THEORY. The main ingredients of production strategy. #2 THE CASE.THE AGENDA. Facts & Figures about Erowa AG. FMC = Flexible Manufacturing Concept Five forces (or more) of Erowas success story? #3 CONCLUSION. A summary of lessions learned. #4 DISCUSSION. Why produce in Switzerland?
  5. 5. THE THEORY.
  6. 6. PRODUCTION STRATEGY.
  7. 7. Companys vision & mission Companys philosophy Continuous innovation Continuous improvement CompetitivenessPRODUCTION STRATEGY.
  8. 8. Companys vision & mission Companys philosophy Continuous innovation Research & development FSACSA Continuous improvement CompetitivenessPRODUCTION STRATEGY.
  9. 9. Companys vision & mission Companys philosophy Continuous innovation Research & development FSA CSA Continuous improvement CompetitivenessPRODUCTION STRATEGY. Foreign tradeReliable suppliers agreementsthroughout the supplychain Global sourcing Cooperations and alliances Closeness to Currency customers rates
  10. 10. Companys vision & mission Companys philosophy Continuous innovation Research & development FSA CSA Continuous improvement CompetitivenessPRODUCTION STRATEGY. Foreign tradeReliable suppliers agreementsthroughout the supplychain Global sourcing Cooperations and alliances Closeness to Currency customers rates Service orientation
  11. 11. Companys vision & mission Companys philosophy Continuous innovation Research & development FSA CSA Continuous improvement CompetitivenessPRODUCTION STRATEGY. Foreign tradeReliable suppliers agreements Inventory control Speedthroughout the supplychain Costs Manufacturing design Global sourcing Cooperations and alliances Logistics Flexibilty Closeness to Quality Currency customers rates Service orientation
  12. 12. MEET OUR CASE.
  13. 13. AutomatisationEROsion Werkzeugbau (Toolmaking)
  14. 14. EROSION.
  15. 15. EROSION.
  16. 16. EROSION.
  17. 17. EROSION.
  18. 18. EROSION.
  19. 19. EROSION.
  20. 20. EROSION.
  21. 21. WERKZEUGBAU.
  22. 22. WERKZEUGBAU.
  23. 23. WERKZEUGBAU.
  24. 24. AUTOMATISATION.
  25. 25. AUTOMATISATION.
  26. 26. AUTOMATISATION.
  27. 27. AUTOMATISATION.
  28. 28. All over the world.. 300 employees in 12 subsidiaries and 22 agents With over 100 clients in..Industry sectors: automotive, aerospace, medical, telecom, electronics Precision mechanics Mould industry: injection molds, stamping dies, bending tools
  29. 29. Headquarter:Orenda Holding AG, Büron (Lucerne), Switzerland
  30. 30. Development & production facilities: USA, Switzerland & China
  31. 31. Marketing & sales subsidiaries:USAEurope (France, Spain, Italy, Germany, Denmark, Poland)Asia (China, Japan, Singapore, India)
  32. 32. Foundation 1970
  33. 33. International distribution & marketing (US, Asia and Europe)Foundation 1970 1988
  34. 34. International Change into distribution & corporate marketing (US, form of a Asia and Europe) holdingFoundation 1994 1970 1988
  35. 35. Development and production facilities International Change into in US & China distribution & corporate marketing (US, form of a Asia and Europe) holdingFoundation 1994 1970 1988 2012
  36. 36. HOW DID THEY MAKE IT?
  37. 37. FMC = Four step Manufacturing Concept The aim to optimise the individual steps of manufacturing:FMC CONCEPT. # 1 STANDARDIZATION. #2 ORGANIZATION. #3 AUTOMATISATION. #4 INTEGRATION.
  38. 38. Erowa FMC movie
  39. 39. EROWASFIRM SPECIFICADVANTAGES.
  40. 40. SUCCESS STORY OF # 1FSA : Their production concept: “Flexible Manufacturing Concept” as commitment to productivity / efficiency -> competitiveness Porters rivalry among existing firms # 2FSA : Continuous innovation as tradition -> competitiveness Porters threat of new entrantsEROWA AG. # 3FSA : Quality of their goods & services: Company claim “More than you expect” as commitment to excellence in high end segment Porters threat of substitute products & Porters buyer power # 4FSA : Flexibility of their high-end goods: allows niche supply Porters threat of substitute products & Porters buyer power & Porters rivalry among existing firms
  41. 41. EROWASCOUNTRY SPECIFICADVANTAGES.
  42. 42. SUCCESS STORY OF # 1CSA : Delivery: they produce close to clients all over Europe Porters buyer power # 2CSA : R&D level and benefit from spillover of ETH, PSI, EMPA & Co. Resource Based View (resource of know-how hard to copy for e.g. Asia)EROWA AG. # 3CSA : High skilled / educated human capital Resource Based View (resource of know-how hard to copy for e.g. Asia) # 4CSA : High end partners & infrastructure throughout the supply chain Porters supplier power
  43. 43. CONCLUSION.
  44. 44. #1 PROFIT FROM THE CORE. Focus on your corporate vision and strategy. #2 COMPETITIVENESS. Make competitiveness your first commandment. #3 INNOVATION. Make a commitment to innovation.LEARNED.LESSIONS #4 EFFICIENCY. Never stop improving the efficiency of your processes & operations. -> through standardization, organization, automatisation & integration #5 LOCATION. Don’t produce in Switzerland unless you’re working in high- end segment for custom-made niche products.
  45. 45. LET’S DISCUSS.
  46. 46. WHY PRODUCEIN SWITZERLAND?
  47. 47. SWISSNESS.Positive attributes such as: precision, reliability,stability, naturalness, multi-culturalism, accuracyand cleanliness which are brought in connectionwith Switzerland. Quelle:
  48. 48. THE GOOD NEWS ARE.. WEF Global Competitivenes Index 2012-13
  49. 49. THE GOOD NEWS ARE.. Futurebrand, Countrybrand Ranking 2012
  50. 50. THE BAD NEWS ARE.. KOF Konjunkturprognose Oktober 2012
  51. 51. THE BAD NEWS ARE.. UBS Wirtschaftsprognose 06.12.2012
  52. 52. SF, 10 vor 10, Schweizer Industrie im Umbruch, 08.11.2012
  53. 53. Courage as key to succes?: ( standardized mass-products: ) innovative competitive products SF, 10 vor 10, Schweizer Industrie im Umbruch, 08.11.2012
  54. 54. THANKS.QUESTIONS?The case of Erowa AG12.12.12
  55. 55. INSPIRED BY:• International Business, Alan M. Rugman & Simon Collinson, FT Prentice Hall• Going international, Paul Ammann et al, Versus Verlag• Hidden Champions –Aufbruch nach Globalia, Die Erfolgsstrategien unbekannter• Weltmarktführer, Simon Hermann, Campus• www.erowa.ch• www.sf.tv• www.weforum.org/reports• www.futurebrand.com/wp-content/cbi/pdfs/CBI_2012-13.pdf• www.kof.ethz.ch/de/prognosen/konjunkturprognosen/• www.ubs.com/global/de/wealth_management/wealth_management_research/swiss _economic_forecast.html• www.invest-in-switzerland.com
  56. 56. VIDEOS.• http://www.videoportal.sf.tv/video?id=b4bcee4c-e949-4904-b2dd- 8ecba3bbd46e;DCSext.zugang=videoportal_sendungsuebersicht• http://www.videoportal.sf.tv/video?id=e0917e49-b8d0-43ff-86c7-d5c9d62fe785• http://www.videoportal.sf.tv/video?id=c1a40f0b-3abd-43ef-a5bf-5f8fb2c87a52• http://www.videoportal.sf.tv/video?id=b50c90e4-ab1d-4e5d-bdb9-298be73d3cc7• http://www.videoportal.sf.tv/video?id=24710b3e-5af9-4217-80c1-70621e024657• http://www.videoportal.sf.tv/video?id=8925084f-d5d4-4f1b-baa3-fff582e94fda• http://www.youtube.com/watch?v=kKU-5YtsgIo•

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