Operations and process Management
March 30th, 2011
Table of Contents Executive Summary 3 Issue Identification 4 Environmental and Root Cause 5 Alternative and/or Options 7 Recommendation and Implementation 8 Monitor and Control 10
Mr. Li has an opportunity with Unicon to direct it in a new focused direction. With its competitive advantage it has established with the Hong Kong Housing Authority (HKHA). I recommend pursuing the blanket approval process with HKHA. These efficiencies could prove beneficial for both parties as this will greatly reduce lead time and costs. Façade and slabs is the growing trend in the industry and will allow Unicon to take advantage of the cost savings that come with it. * No need for engineered documents, saving on time and engineering costs. * Job security * Operational efficiencies * Holding inventory * Reduced lead times * Product standardization * Increased quality
The tradeoffs that implied with this move is worth the risk of this approval process. This could be savings upwards to HK150,000 per block. An approximate saving of over 1 million based upon the 179 blocks per year projection from the HKHA. Once this approval is agreed upon and the contracts awarded. I recommend a detail review of Unicon current product lines and completely outsourcing the stair production line. After a 6th month time, I recommend we review our production efficiencies and look into expanding our production facility as our three remaining products are now made-to-stock.
There are several issues that need to be addressed that will determine how Unicon will be successful moving forward.
1. Should Unicon decide to increase its current plant space to be better prepared for future business, or take full advantage of the current boom in Hong Kong and not miss out on the current opportunities