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Erstaunliche Autos
Recommendations for improving efficiency
By Rick van der Werf and Lennard Weiss
Consultants of Tompkins and Kosters
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Overview
 Problem?
 Recommended improvements
 Explain separate improvements
 Conclusion and Summary
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EA and its competitors
Marketshare EA v.s. competitors
45
40
35
30
25
20
15 EA
Average competitor
10
5
0
Q1 - Q2 - Q3 - Q4 - Q1 - Q2 - Q3 - Q4 - Q1 - Q2 - Q3 - Q4 - Q1 - Q2 - Q3 -
2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
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Problems
 Costs of production too high
 Productivity too low
 Costs of labour too high
 Supplier too expensive
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Visualisation
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Costs of Labour
Average hourly pay rates for assembly-line workers
60
50
40
Average hourly pay rates for assembly-
30 line workers
20
10
0
Germany India Belgium
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Overview of recommendations
 Cutting costs
 Increasing productivity
and efficiency
 Prolong the working week
 Move production to India
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A 7-billion cost-cutting programme
€2bn
€2bn Savings in improved sales
Labour costs
Reducing suppliers costs by 10%
€1bn
€2bn
Others
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Increasing productivity and efficiency
 Close Belgium plant
 Start production plant in India
 Pronlong working week
 Raw materials from China
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Prolong working week
 Higher productivity
 Lower average costs
 Over-time working
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Conclusion
 Seven billion cost-cutting Programme
 Close Belgium plant
 Move to India
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Thank you for your attention
Any questions?
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