Production and Operation

ManagementGalanz Enterprises Group Co.Ltd

Overview of Galanz1. Galanz was founded by Liang2. Galanz was a global garment industry producing feather products.3. In 1991, Liang decided to go for new opportunity.4. After analyzing and identifying the great potential in China, he switched

on to Microwave Oven.5. Galanz started with OBM (Original Brand Manufacture) in domestic

market, later started OEM (Original Equipment Manufacture), and in 2000 ODM (Original Design Manufacture) in overseas.

Case Analysis 1. Galanz became the leading company with objective of cost and

delivering quality product to its customers.2. The suppliers refused to supply the essential component i.e.,

“Magnetrons”3. By 2000, the company was able to design its own Magnetrons.4. Galanz faced shortage of demand by 9 million units in 2003.5. Outsourced to Japanese company in their own brand name, while

production technology was produced from Japan.6. Competitive players like Panasonic, Toshiba, Whirlpool

GOOD PracticeSelf manufacturing “Magnetrons”Reduction in production cost by

using cheap labor and landInvestment in R&DCollaborated with K- MART and

WALMART to promote products overseas

BAD PracticeNon-stop production(3 shifts/day 24*7 365 days/year)

Prototype Production

Hierarchical Practices (3 levels)

Problem & Solutions .

1. Increased demand

2. Retrenchment by suppliers

3. Handling of customer complaints

4. Handling cultural differences

1. Outsourcing of Magnetrons

2. Transfer from OEM to ODM

3. Investment in enhancing customer service

4. Adoption in Global Marketing Strategy

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