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Evaluation group project (v 1.0a)
- 1. Presented by Evaluation Group Bunting, T. Ezell, W. Kaser, D. Price, A. Wierzbicki, J. October 6, 2011 RPF Evaluation Group Project for Central Michigan University Dr. Patricia Kelley MSA 604
- 2. Manufacturing Operations Expansion Strategy RFP Review and Results October 2011
- 4. Customer footprint overlay to market view Big Planes Industries 2011 Sales orders are spread among 49 customers and 22 countries on five continents and have accumulated more than 4.5 million flight hours.
- 21. Global Strength and Perspective Asia EMEA North America Latin America Australia/ New Zealand New location: expand/sustain business over 5-10 years Global Deployment RFP Ranking 64 76 87 Mexico: Ranking/graded 64 Brazil: Ranking/graded 76 China: Ranking/graded 87 India: Ranking/graded 93 Result: India WINS the bid 93 Big Planes Multi- year plan: service customers in 22 countries Mexico Brazil China India *Global Deployment of those customers supports the new location needs to be outside of the US
- 25. Thank you October 6, 2011 RPF Evaluation Bunting, T. Ezell, W. Kaser, D. Price, A. Wierzbicki, J Central Michigan University Dr. Patricia Kelley MSA 604
Editor's Notes
- However, this is not a locked scale. If Big Planes makes the investment in operations the intent would be long-term with expansion over a 5 to 10 year period. Target would be original 60,000 sq. ft. of space for 180 to 200 employees but have ability to handle projected growth to more than 85,000 sq. ft. and about 400 employees over a 5-10 year period.
- Current environment calls for aggressive protection of business through diversification. To serve that need, Big Planes is targeting a location that offered inexpensive raw materials, had access to a diversely educated pool of employees, and was in a location that was not already saturated with airplane manufacturers, to aid in the growth expected within the host country’s market.
- There is a strong “relationship” business culture. Ie: We only give you our business if we know you and Big Planes doesn’t have those established relationships. The concern is that we would either need to hire people who have those (and how would we find out if they did) or figure out some way to buy those relationships. The educational environment is one of “pass the test” not “comprehend the material”, which would be a detriment to Big Planes. All China Federation Trade Union (ACFTU) has 230 million members and considered to be low to medium for level of CBA, but unity is high to medium. Confucianism: Senior or superior people are viewed with reverence by their juniors. This might pose a problem if we have young executives and old workers since that contradicts the concept of Confucianism. Also, this raises concerns over “male” considerations over females. China portrays their country as: An educated and skilled workforce able to meet the technological demands of Big Planes at a highly competitive cost Having invested vast resources to updating their infrastructure to aid in shipping and import/export to draw international business An economic advantage to Big Planes since the suggested location is in a Special Economic Zone (SEZ) **This was in the slide. Not sure it is necessary and also we need to keep the presentation consistent as we introduce all of the countries. Brazil/Mexico did not have an overview blurb. AP
- -Staffing and workforce There are ready and willing applicants available for all levels of need within Big Planes. -Facility – SEZ India has the necessary facilities and is proposing to locate our next Big Planes location in a Special Economic Zones to support a low cost initiative. -Shipping to EU is easy from the locations in India and this will create a new hub for Big Planes for manufacture. -IT support will enable further shaping and improvements in systems management with the existing link and network India already has with many U.S. companies. ** Once again – didn’t see this as completely relevant, but it is still here in case you need to verbally address it. According to a recent article in The Economist, “ India has some of the hardest working bureaucrats in the world, but it’s administration has an abysmal record of servicing the public.” Recent unannounced inspections revealed that 25% of teachers and 40% of public sector medical workers could not be found at work. The Indian government has since implemented computerized control measures to remedy the much publicized attendance problem of government employees. India’s Civil Service: Battling the Babu Raj. The Economist. Mar. 6 th , 2008.