Uploaded byEllen Girod
Production Strategy (ZHAW Case HS12)
The presentation discusses the production strategy of Erowa AG, a Swiss toolmaking company. It begins with an overview of the key aspects of production strategy, including a company's vision, philosophy of continuous innovation, and competitiveness. It then provides facts about Erowa AG, describing its flexible manufacturing concept and discussing its success factors. These include its commitment to productivity, continuous innovation, quality products, and flexibility. The presentation concludes with lessons learned, such as focusing on core competencies, prioritizing competitiveness and innovation, and improving efficiency. It emphasizes that companies should only produce in Switzerland for high-end niche products.
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Production Strategy (ZHAW Case HS12)
- 1. PRODUCTION STRATEGY The case ofErowa AG 12.12.12
- 2. GOOD MORNING. w.1IBusHS12: Production Strategy (Chapter 10) GMTZ09E: Ellen Girod
- 3. What do thesecompanies have in common? Schweizer Fernsehen, 10 vor 10, 08.11.2012
- 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?
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- 7. Companys vision &mission Companys philosophy Continuous innovation Continuous improvement Competitiveness PRODUCTION STRATEGY.
- 8. Companys vision &mission Companys philosophy Continuous innovation Research & development FSA CSA Continuous improvement Competitiveness PRODUCTION STRATEGY.
- 9. Companys vision &mission Companys philosophy Continuous innovation Research & development FSA CSA Continuous improvement Competitiveness PRODUCTION STRATEGY. Foreign trade Reliable suppliers agreements throughout the supply chain Global sourcing Cooperations and alliances Closeness to Currency customers rates
- 10. Companys vision &mission Companys philosophy Continuous innovation Research & development FSA CSA Continuous improvement Competitiveness PRODUCTION STRATEGY. Foreign trade Reliable suppliers agreements throughout the supply chain Global sourcing Cooperations and alliances Closeness to Currency customers rates Service orientation
- 11. Companys vision &mission Companys philosophy Continuous innovation Research & development FSA CSA Continuous improvement Competitiveness PRODUCTION STRATEGY. Foreign trade Reliable suppliers agreements Inventory control Speed throughout the supply chain Costs Manufacturing design Global sourcing Cooperations and alliances Logistics Flexibilty Closeness to Quality Currency customers rates Service orientation
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- 13. Automatisation EROsion Werkzeugbau (Toolmaking)
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- 28. All over theworld.. 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. Headquarter: Orenda Holding AG, Büron (Lucerne), Switzerland
- 30. Development & productionfacilities: USA, Switzerland & China
- 31. Marketing & salessubsidiaries: USA Europe (France, Spain, Italy, Germany, Denmark, Poland) Asia (China, Japan, Singapore, India)
- 33. Foundation 1970
- 34. International distribution & marketing (US, Asia and Europe) Foundation 1970 1988
- 35. International Change into distribution & corporate marketing (US, form of a Asia and Europe) holding Foundation 1994 1970 1988
- 36. Development and production facilities International Change into in US & China distribution & corporate marketing (US, form of a Asia and Europe) holding Foundation 1994 1970 1988 2012
- 38. HOW DID THEYMAKE IT?
- 40. FMC = Fourstep Manufacturing Concept The aim to optimise the individual steps of manufacturing: FMC CONCEPT. # 1 STANDARDIZATION. #2 ORGANIZATION. #3 AUTOMATISATION. #4 INTEGRATION.
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- 43. 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 entrants EROWA 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
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- 45. 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
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- 47. #1 PROFIT FROMTHE 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.
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- 50. SWISSNESS. Positive attributes suchas: precision, reliability, stability, naturalness, multi-culturalism, accuracy and cleanliness which are brought in connection with Switzerland. Quelle:
- 51. THE GOOD NEWSARE.. WEF Global Competitivenes Index 2012-13
- 52. THE GOOD NEWSARE.. Futurebrand, Countrybrand Ranking 2012
- 53. THE BAD NEWSARE.. KOF Konjunkturprognose Oktober 2012
- 54. THE BAD NEWSARE.. UBS Wirtschaftsprognose 06.12.2012
- 55. SF, 10 vor10, Schweizer Industrie im Umbruch, 08.11.2012
- 56. Courage as keyto succes? : ( standardized mass-products : ) innovative competitive products SF, 10 vor 10, Schweizer Industrie im Umbruch, 08.11.2012
- 57. THANKS. QUESTIONS? The case ofErowa AG 12.12.12
- 58. 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
- 59. 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 •