1. As Mr. Li would you pursue blanket approval for facades and slabs? Why?

Yes I believe Mr. Li should definitely pursue this initiative because of the fact that a positive outcome outweighs by far the cost of a 4-month lobbying effort. Mr. Li expects that 80% of Union’s sales will come from HKNA projects, the government is forecasting a 179 block demand for next year alone in which 50% of this demand would require precast materials.

Unicon´s current capacity only sustains 7 blocks per year and accounts for a 35% market share along with 3 more competitors, which gives Unicon´s market leadership, current market production amounts 20 blocks per year and 2 more competitor´s are expected to arrive at year´s end. Having in mind this current market conditions with an uprising demand forecast for precast materials and the expected increase in competition the Blanket approval initiative would help the industry avoid the current 28 day burocratic government approval process by simply re-submitting the same approved projects thus reducing 1 month lead time giving them aprox 2 month extra capacity. Another crucial factor is cost, by getting approval they would save the expensive professional fees regarding the review process they would also achieve product standardization that would eventually lead to lower costs and thus help the industry players get in a good shape for this upcoming market expansion and meet the new government demands.

If Mr.Li achieves to persuade government to pass this initiative he must be aware that there is a risk involved, Unicon´s current leadership position could be threatened as product standardization reduces costs thus entry barriers will be reduced and new players will be able to enter the market therefore Mr.Li must quickly take advantage of Unicon´s unique position of being the pioneer of this initiative to try to get on the government´s good side as a competitive advantage and enable them to benefit as much as they can from this new 69 block demand that will be up for grabs.

2.What changes do you foresee to Unicon´s operations if the blanket approval is accepted by the HKHA?

By having the blanket initiative approved several factor´s in Unico´s operations will change, avoiding need for approval would enable them to shift from a made to order to a made to stock production in which they will need a demand forecast method and inventory management processes in order to avoid having work inventory built ups, also they need to enhance their current stocking space. Unico´s current operations are full book order operation oriented, but with the new upcoming demand and the blanket initiative approval will definitely test Unico´s ability to adapt their operational capabilities into a bigger and more demandign operation avoiding having idle times to meet this new production volume in operational efficiency. Mr.Li has to prepare their current facility with process technologies that would allow them standardize the process thus allow them to have a competitive production process,

Lead time inventory expansion

3-What steps would you take to increase production of slabs and facades? How would you implement your plan?

To increase production of slabs and facades I would do a pro and con analysis of the most viable options:

1.Expand 5,000 square meters to double capacity-Although this seems to be the best option because of the fact that it would avoid trade-offs in the current product lines and the advantage to adapt the new space with the needed production standards this option would be ready until August 1998 therefore Mr. Li and needs a short term solution to avoid missing this time to market opportunity. Event though this option doesn´t meet Unicon´s short term requirements I would recommend Mr.Li to keep this plan for the medium term and therefore prepare Unico to meet demand before the competition does.

2-Add a second shift-Assuming the company has the capacity to buy extra molds, pay the new wages and the necessary space to allocate this new capacity in their current 7500 facility adding an this extra shift would double their capacity to 50 and164 slabs fecades and slides respectively . The most important

si se puede pero el pedo es que tendría que comprar mas moldes y pagar mas lana

Re-allocate plant space-
Perdería sus productos pero

time react boom 2 products higher margin increase sales increase revenue partitioning walls 40% current sales, capacidad meter mas moldes y mas empleados asumiendo que hay

60
38 finishing
Unicon

to enable product standardization which in turn would reduce lead time thus volume would increase therefore a capacity in their production lines will be needed. Process standarization

Schedule demand forecast inventory mgmt. standardize processes lead time decrease cost standardized turn forces enhance process tech more competitive

3-

2.Yes blanket- 1st double shift (bottleneck en fabrica con moldes curing bottleneck) finishing y curing (50 façade slabs) para poder expand plant, re-allocate plant space
Final exam operations management

Pre cast benefits; reduce total costs in construction process, assembly time shortened, site construction simplified, site congestion reduced, reliance on skilled tradespeople reducedwich cost HK 1500 per day double during peak times furthermore reduction of onsite workers decreased the need for supervision and admin personel. Production not affected by traditional problems that beset the industry bad weather and unscheduled shortages of labor and equipment. Quality advancements superior.

On site benefits-precast required to resubmit general contractor required to resubmit, opportunities to redesign the project did not exist. Precast had to be specified by the architect had to be conform to standard dimensions to be economically viable, restrictions on creativity and originality that an architect could apply to overall building desing
1120/25=I block
3400/82=41