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RDB Case Study - Production

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by

Alejandra Mendoza

on 17 June 2013

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Transcript of RDB Case Study - Production

Relocation Analysis
RDB decides to open 12 small factories around the world mainly in:
RDB Case Study - Production
Royal Danish Bearings
Force Field Analysis
Cost & Benefit Analysis
Sonnia Batallas
Ma. Alejandra Mendoza
Damaris Morales
Gina Solorzano
David Torres
Anna Holstein
China
Brasil
India
Advantages:
Low costs of labour and manufacturing
Reduce response time and improve logistics
Subsequently:
Local Knowledge is required.
It was managed by 1 RDB Senior Manager from Europe and 1 local who is familiar with the language and culture
Considerations:
Selling the 2 megafactories in northern Germany & Sweden
Significantly downsizing the megafactory in Denmark
Driving Forces

Increases Competitiveness
Increased Production
Focused Core Activities
Restraining Forces
Training Staff Costs
Relocation Costs
Equipment Costs
COSTS
Implementing 12 factories in Brasil, China and India
Factories close to customer locations
A new innovation: Increase its spendings on research & development and examine the impact on the environment on its customers carbon footprint
Selling 2 megafactories & downsizing 1
BENEFITS
Demand for ball bearings
will increase
Reduce Response time and
improve logistics including
distribution and delivery
Shorten capital cycle
Less energy will be wasted
PEST Analysis

Political
RDB has social contracts between companies and gov. of Denmark
More laws and restriction to control the level of pollution for factories
Businesses use collective bargaining agreements to negotiate contracts with employees
Political
Economical
Economical
In Denmark and the rest of Europe there is a high labour cost
Demand for ball bearings is decreasing in Europe
Collapse of Icelandic banks (Kaupthing & Landsbanki)
Demand for ball bearings is increasing in Brasil, China and India
Social
Social
Employees enjoy working there in a very culturally homogenous environment
In society there is a more green tech aceptance, and a more green mindset
Population is against pollution
More pressure groups against factories
Technological
The ball bearing industry uses mechanical devices
High implementation of green technology in factories
There is an upgrade in the production and technology of all types of vehicles
5 Why's Analysis

Valdemar Holstein is not convinced about this new implementation
Why?
He's used to a very
traditional mentality
and these new
implementations
seems too
risky and will
bring lots of

Costs.
Why?
Anna doesn't have
the enough experience

about
actually
managing a
business
nor the

market
and will

have possible
complications
in the
upcoming future
Why?
The selling of 2 megafactories
seems like
a major
loss to
the income

and he
feels like
the social
agreements
shouldn´t
be ignored
Why?
Moving to far countries
like China, India and
Brasil will
complications
mainly for
the language
and culture
differences they
all have
Why?
He's used to not
paying attention to

the
pollution
and groups
that
did not
approved
of this
Solution
Anna implemented her ideas with a lot of
careful planning and this demostrated Valdermar
that she's able to manage this company, and also
as a result she was granted an award, preparing
RDB for a bright future.
Full transcript