Traditional operational and supply chain operations are often driven by speed, efficiency and cost reductions for large businesses to thrive on operations leverage. Products or services provided by suppliers and contract manufacturers are frequently normalized in prices and benchmarked against commodity prices. Sourcing/ purchasing functions often strive to engage and develop meaningful relationships with tried, tested and proven suppliers to meet the matching drivers of supply chain operations. Sourcing thrives on generating competitiveness amongst suppliers that enables the strategic negotiation of price- value reductions; the larger the pool of matching suppliers, the better the bargaining power of sourcing.
However, with increasing labor and wage costs of manufacturing in domestic markets, many suppliers of traditionally manufactured products have relocated their manufacturing operations to China to keep operating margins low. A shift in the competitive architecture is recommended for sourcing operations to access new areas of innovation. Exploratory frameworks for synthesizing innovation through suppliers include (1) Core-competence and R&D networks of the outsource supplier (2) Enabling design centricity of supplier’s products to target consumer profiles (3) Suppliers with new materials/ methods wanting to break into local markets, with a potential disruptive impact.
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Where lies the Innovator's Advantage in strategic sourcing?
1. Where lies the
Innovator‘s Advantage in
Strategic Sourcing?
An Intern‘s Perspective
“Outsourcing to Asia is overhyped in the short term,
but under hyped in the long term”- Daniel H Pink.
3. Possible Solutions to the
―Innovator‘s Dilemma‖?
Guillaume Tell- Overture (Gioachino RossiniWilliam Tell)
Antonio Pappano & Orchestra dell'
Accademia Nazionale di Santa Cecilia
A journey of explorative
expedition…
4. The Innovator‘s Dilemma in
Strategic Sourcing
The Innovator‘s Dilemma (Christensen, 1994), applied in context of
sourcing:
Competition driven by Commoditization
Preservation: Existing suppliers have access to resources and processes that
allow volume production of products at low overhead costs. Tried, tested and
proven suppliers are advantageous.
Specialized suppliers/ niche market suppliers can be unattractive to a
company, largely because of cost constraints and higher risks. (Dyer, 1996)
Market uncertainties- Product specifications (requirements of ‗jobs-to-bedone‘), market position of supplier and technologies, scaling up of production,
etc are difficult to access.
Relatively large investments of work and time to qualify and assess a new
supplier.
New business procedures entailing collaborations across domains- R&D,
Marketing, Sourcing, IP may be needed.
The Innovator‘s (proposed) solution in Sourcing.
Systems Innovation through Strategic Sourcing (aligned with the new
Competitive Architecture.
Innovating beyond Operations and Supply Chain
5. Outline
Defining Competitive Architecture
Systems Innovation through Strategic Sourcing
Change in the Competitive Architecture
Technology: The Core of Injection Moulding of Plastics
Industry: Moulding
Markets: Cost, opportunities and technological growth.
Innovating beyond operations and supply chain (Leverage supplier’s organizational architecture)
Leverage core competence and R&D synergies to acquire competitive advantage.
Enabling Design-Centricity of supplier’s products to target customer profiles.
Benchmark of Global Personal Protective Eyewear Suppliers.
Seek agile transition to new product platforms and combinations.
Conclusion
To Hunt or To Gather? Or......
Waves of Innovation
References
6. Defining Competitive
Architecture
/Competitive Architecture/- The broadest overview of a company in
the context of markets, its customers, history, products,
services and goals. It shows how external
organizations evolve with time.
patterns of
Traditional definition of competitive architecture is confronted with
a generation of transformational- disruptive or radical
innovations (new tech in old markets, old tech in new markets, etc)
If the company wants to remain competitive, the shiFt in drivers
across economic architectures and market architectures should
perpetuate and transcend to a change in organizational structures
and processes that matches the
DESIRES AND
NEEDS of the local commune.
7. Competitive Architecture
Transformational
Traditional
Customers
Economic Architecture:
Industry & Manufacturing Driven (Outsource
manufacturing to low-cost economies for
cost- competitiveness)
Supply-driven. Mass products.
Unit-price reduction achieved via
commodisation.
Mkting,
R&D
Materials
&
Processes
Sourcing
Supplier Management
and Relations, Brand
Driven
Economics-driven
Short term
Profits
Suppliers
Knowledge Driven, Creative Conceptualization
(Core-competence and open innovation,
knowledge hubs, emphatic design)
Market Architecture:
Demand-driven. Design and
customized for ‗one‘. Experience
based purchase.
Organizational
Architecture:
R&D,
―customer centered
innovation‖
Market and
Organizational
Driven
Long Term
Gains
8. Optimization in Supplier
Selection and Evaluation:
• Achieving cost reductions
through supplier management
and relations.
• Suppliers that are able to meet
• Delivery Timelines
• Manufacturability
Alignment
Product and equipment of
Specifications
6σ values
• Quality and reliability
• Financial and trade
solvency
• Finding the right supplier in a
competitive red ocean
Innovating beyond
Operations and Supply
Chain
Sustaining Operations and
Supply Chain
Systems innovation
through Strategic Sourcing
Creating leverage through
strategic Supplier partnerships
and Engagement
• (1) Leverage Core Competence and R&D
synergies to acquire competitive
advantage
• (2) Enabling Design-Centricity of
supplier‘s products to target customer
profiles
• (3) Seek agile transition to new product
platforms and combinations:
• Suppliers wanting to break into local
and regional markets
* N.B. Time to Market is still an
important consideration in assessment
• Specialized/ integrated suppliers in
home grounds
Suppliers who can create a
blue ocean
Invention is converting cash into knowledge.
Innovation is converting knowledge into cash. And
Value is converting cash into knowledge, multiplied in returns of kind to
the end-user.
(Through development and sourcing of “customer centric” products and services.)
9. Change in the Competitve
Architecture
Technology, Industries and Markets
10. Technology:
The CORE of Injection Moulding
FALLO ApproachFollow all opportunities
-Injection of plastic melt through shaped die by means of
pressure.
-Closed mold and die system
-High degree of technical expertise required for
production excellence.
Source: Plastics Engineering Handbook
11. Industry: Systemic
opportunities in Moulding
Emphatic Design
• Fit with customers.
*Ref: Frost
• Customization of
products to existing
customers of the
supplier.
Tackling the Niche Market
• Proximal access to regulatory
bodies speeds certification
• Proximal access to local
users enable design changes
to be quickly communicated
throughout Value Chain
Ref: (Quek, 2013)
Globalization
• Specialization and niche
creation suppliers
guarded against dilution
• Rising labor costs, &
lower margins
Generalists „forced‟ to
move to lost cost
countries
Vertically Integrated Suppliers.
(Knowledge expertise)
Versus
Horizontally Integrated Suppliers.
(Possible Network Advantages)
*Ref Dyer, JH (1996). Specialized supplier networks as a source
of competitive advantage: evidence from the auto industry
12. Value Chain Displacements:
Wherein lies new opportunities
for growth
Asia Pacific Injection Molding Outlook
2 factors driving the
Economics pushes
from a cost-based Outsourcing
plastics industry
general mold makers
Perspective:
(Frost, 2011):
that profit by volume
1. Competitive Prices
to China.
-Cost Savings of 40% - 70% possible,
2. Customized
Solutions
BUT
- Process of finding the right supplier Solution: 1. Find relevant suppliers/
of mold tool and mold material is
alternative who differentiate on less crowded
intense and the necessary input is
market spaces. Niche/ specialized suppliers
high (Quek,2013)
who are in tune with customer and market
needs.
2. Supplier‘s whose major businessesofferings are aligned with what the company
Question: Is there room for
would outsource for manufacturing (and
competitive ‗insourcing‘/
development).
global sourcing?
13. Market:
Cost Versus Profitability Concerns
(2012)
Solid red circles: Traditional economics driving decisions in organizations.
Yellow circles: Strategic and technological planning decisions within organizational
controls.
Dotted yellow circles: Relatively weaker factors of market influence.
14. Performance/ value
Benchmark of Technology
Evolution
Bioplastics
$590.9 million in
2011. Estimates this
to reach $1,075.8
million in 2018. (Frost)
Estimated
market sizeTBC
Basic
Polymer
Processin
g
& Injection
Moulding
Composite
materials
Market growth
(5-7%), Market
value of (12%)
(The plastics Industry:
Economic Overview)
Integrated Injection
Moulding
and Assembly.
E.g. Dual-shot injection
Moulding
3D Printing.
Estimates this to
reach $0.2- $0.6
trillion in 2025 (McKinsey)
Effort / Time
1940s 1970s
2000s
2013
15. Innovating beyond Operations
and Supply Chain
Leverage/ Acquire Supplier‟s Organizational Architecture in Innovation
Case Study: Suppliers of Plastics Injection Moulded Eyewear in Asia
17. Core-Competence Leverage
Brand A
Mapping of Relevant Core Competencies
Raw Materials
Polycarbo
nate
High Density
Poly Ethylene
Core Competencies
Design for
Manufacturing
R&D
End
Products
Optic
lenses
Safety
Spectacles
Filters
Versatile Coinjection
High production
turnover300 personnel 24-7
DistributionThermoplastic
Poly-Urethane
Products
Coating
Technologies
40 minutes driving from
Kaohsiung International
Airport (KHH) & Sea Port.
Coatings
Frames
*Strong knowledge assets in Polycarbonate processing
Laser
Optic
Goggles
Laser
Protective
Eyewear
18. Knowledge-In-Sourcing:
Access to R&D Networks
• Electrichromism goggles
• Apply voltage to change
opacity of the glasses
• Wide use of goggles/ safety
eyewear for different
environments
Products • Thermoplastic PolyurethanePolycarbonate Co-injection
• Concurrent/ Multilayed molding
• Single molding process
• Firm attachment of different
materials
Relevant R & D
Polymer co-injection
References:
http://www.google.com.br/patents/US7132167
Electrochromic
goggles
R&D
Technologies
• Multiple layered
polymer injection
molding
• Flexible
manufacturing of
multilayered products
• Concurrent
manufacturing and
assembly of goggles
Research
Partnerships
• Laser Application Technology Center
of Industrial Technology Research
Institute of Taiwan
• Nano Powder and Thin Film
Technology Center
19. (2) Enabling Design-Centricity
of supplier‘s products to target
customer profiles
From mass manufactured designs to (possibly) customized designs
Case: Brand B
20. Ethnographic StudiesLab Based Machining Workshop in NUS
Venue: Control & Mechatronics Lab 1,
EA 04-05/06
Department of Mechanical Engineering,
National University of Singapore
9 Engineering Drive 1
21. Ethnographic StudiesLab Based Machining Workshop in NUS
Venue: Control & Mechatronics Lab 1,
EA 04-05/06
Department of Mechanical Engineering,
National University of Singapore
9 Engineering Drive 1
22. Ethnographic studiesMaterials Lab in NUS
Cabinet housing the
storage of PPEs
Venue: Materials Lab,
E3-04-01
Department of Mechanical Engineering,
National University of Singapore
Engineering Drive 3
Safety Glasses
chosen because of
Design and Brand
Name.
Cleaned with alcoholic
wipes (Complementary
Assets) of the same
company
Centurion: Brand Leader in
Protective Goggles
23. Match Supplier Designs with
End User Desires
Target consumers may pay more for
(emotional) durable designs.
•Synergistic with Companies strong with
Brand and Market Premiums
“One cannot put a price tag on safety”Mr Jeridson Ong, Safety Officer, Office of
Safety, Health and Environment (OSHE),
NUS
Blue Ocean
Effectual
Design
Safety glasses from
Brand B
Effectuation
Transformational
Being emphatic in selection of designs
*Lead user studies are often necessary
Design
Form, Fit and Function
Durability
Standards
Managers/ Department offices make
decision here, based on budget and
durability.
•Company that competes on Market and
Brand Leverage lose on Price attractiveness
Compliance
Traditional
*Be
aware
of
―Standard
(C.f. Art of Standard Wars)
Wars‖
24. Benchmark of Global PPE
Suppliers
Focus on Transformational Competitive Architecture
- Design, Technology and Markets
25. Benchmark of Eyewear
Suppliers
Brand A
Brand B
(HK)
Brand C
Brand D
Brand E
Brand F
Industry
Status
OBM
ODM
OEM
OEM
VAR
VAR
Dominant
Product
Classes
Eyewear
Eyewear
Nil
Nil
Nil
Nil
Technology
Dual Shot
Injection
Moulding
Dual Shot
Injection
Moulding
Single Piece
Injection
Moulding
Single Piece
Injection
Moulding
Unclear
Unclear
Core
Competence
Polycarbonates,
Dual-shot
injection
molding &
Coatings
Design,
Anti-fog
coating
Manufacturing
Manufacturing
Distribution
Distribution
Technology
Benchmark
with Industry
Key
Pacing
Base
Base
Base
Base
*Generalized assessment, based on information presented on Company‘s website
26. Evaluation of Eyewear
Suppliers:
R&D
Leverage
Design
Leverage
Brand A
Brand B
Brand C
Brand
E
Brand D
Brand
F
Strong
Tenabl
e
Weak
Manufacturer
Safety Specialist
Leading technology
competence
Manufacturer
Safety Specialist
Following
technology
capabilities
Manufacturer
‗Me too‘
companies
General retailer/
DIY and big box
retailers
‗Laggards‘
27. Redesigning dimensions of
sourcing competitiveness.
Next wave of technologies that can disrupt the current supply
chain.
Do current suppliers have the capacity to innovate and remain
competitive?
Does sourcing have options to move on to suppliers of the next wave
of technologies?
e.g. Composites in packaging, biodegradable packaging.
Recall: Composites- 4-5% growth, faster than rest of plastics industry
, 12% in terms of total market value (Biron, 2013)
Fiber sewing of composite materials and fabrics,
L-glass versus S-glass for fibre optics transmission, etc.
Access to new markets and industries, e.g. defense and aerospace
through new suppliers.
28. (3) Seek agile transition to
new product platforms and
combinations
Sourcing for discontinuous innovations
29. Example: Filacon- Fiber
weaving of aerofoil panel
Technology
was a key
exhibit at
JEC
Composites
Asia 2013.
German company. Licensed fiber weaving machine to
Singapore Polytechnic. Has potential to replace the
manufacture of PPE equipment, such as Hardhats.
30. Filacon- Fiber Weaving Panel
Economic benchmarks for plastics and composites in terms of raw
materials and processing- Biron (2013), pp. 42-46
31. Benchmark of costings for
Carbon-fiber Woven Hardhats
Beware of
“The Innovator‟s Dilemma”
Cost: US$19.95
Red Carbon Fiber Hard Hat
Cost: US$69.95
Skullgard hard hats meet or surpass all
requirements for type 1 hard hats,
Excellent safety, comfort, and superb
design.
Standards:
Four point ratchet suspension - fully
SEI certified, and meet ANSI Z89.1
adjustable,
2003, Class G and ANSI/ISEA z89.1High-density polyethylene shell is
2009 standard requirements.
finished with a high-gloss Carbon
Can costs be minimized through
fiber look.
innovative measures such as
Standards:ANSI Z89.1-2003 Type 1, technological outsourcing?
Source:
Class C and G.
http://www.hatsrcool.com/
32. Cost-benchmarks for glassfibre reinforced composites
*Plastic additives and filler material costs are not reflected on chart.
Source: Biron(2013), pp. 43
Source: Biron(2013), pp. 47
Raw material costs may not see a
drastic increase as compared to
traditional plastics.
Higher price of composite products may be
attributed to other manufacturing and supply
chain factors.
33. ―Insanity is doing the same things
over expecting different results‖
- Albert Einstein
Innovation
Ecosystems
RIs Students
Knowledge
Hubs
Uni.
TTO
35. References:
Bengtsson, L., Von Haartman, R., & Dabhilkar, M. (2009). Low-Cost versus Innovation:
Contrasting Outsourcing and Integration Strategies in Manufacturing. Creativity and Innovation
Management, 18(1), 35–47. doi:10.1111/j.1467-8691.2009.00510.x
Biron, M. (2012). Thermoplastics and thermoplastic composites. In The Plastics Industry: An
economic Overview (pp. 32- 133) William Andrew.
Carpay, F, Hang, CC, Dan, Y. Management of Outsourcing R&D in the era of open innovation.
The 5th International Symposium of Management of Technology (ISMOT‘07), pp. 252-256.
Christensen, C. (1997). The innovator's dilemma: when new technologies cause great firms to
fail. Harvard Business Press.
Christensen, C. M., & Raynor, M. E. (2003). The innovators solution: Creating and sustaining
successful growth. Harvard Business Press.
Dyer, JH (1996). Specialized supplier networks as a source of competitive advantage: evidence
from the auto industry. Strategic Management Journal (17), pp. 271 – 291
36. References:
Howells, J., James, A., & Malik, K. (2003). The sourcing of technological knowledge: distributed
innovation processes and dynamic change. R&D Management, 33(4), 395–409. doi:10.1111/14679310.00306
Mahajan, S, et al (2012). Strategic Analysis of Engineering Plastics Market in Southeast Asia, Growth
in Automotive Industry will drive demand. Frost and Sullivan, Market Engineering.
Manyika, J, Chui, M. et al (2013). Disruptive technologies: Advances that will transform life, business
and the global economy. McKinsey Global Institute.
Nonaka, I. (1995). The Knowledge-Creating Company: How Japanese Companies Create the
Dynamics of Innovation: How Japanese Companies Create the Dynamics of Innovation. Oxford
university press.
Pink, DH (2008). A Whole New Mind. Marshall Cavendish Education.
Quek, A (2013). Asia Pacific Metalworking Equipment News. In The Mold and Die Industry to change
with the times. Pp. 54-56
Shapiro, C., & Varian, H. R. (1999). The art of standards wars.
Teece, D. J. (1986). Profiting from technological innovation: Implications for integration, collaboration,
licensing and public policy. Research policy, 15(6), 285-305
Yu, H (2011). Rethinking strategy to escape commoditization. A lesson from Mickey Mouse.
37. Stefan Choo
| Creative Analysis | Passion |
| Making a Difference|
Email: Stefan.JQ@gmail.com
https://www.facebook.com/StefanChoo
http://www.linkedin.com/in/stefanchoo
The End
Or is it really?
38. How to purchase?
Visit the website at
http://www.slingprint.com/innovato
rsdna
Or Scan the QR Code:
40. Outsourcing: Why outsource?
A creative conundrum
Slower time
to market,
↓ Costs
Lower costs
(but really so
in the long
term?)
Operate
Improving
Innovation
Capability
Innovate
Present/
Past
• Cost
• Economy of Scale
• Lower Wages
Capacity
Better
Products
• Redistribute resources
from non-core to
innovation activities
• Access to new, noncore Competencies
• Loss of Knowledge
Architecture
• Loss of Process
Architecture
Faster Time
To Market
• Acquisition of Product
and Process
Architecture
• Development of
Knowledge Architecture
Source: Bengstsson, L (2009)
41. Ref: Wanamaker, B (2013). When will plug and play medical devices and data be a reality? Extracted from the World Wide
Web. Clayton Christensen Institutehttp://www.christenseninstitute.org/when-will-plug-and-play-medical-devices-and-datafinally-be-here/#sthash.FHyIxJiH.dpuf on 20 Aug 2013.
42. Ethnographic StudiesLab Based Machining Workshop in NUS
Venue: Control & Mechatronics Lab 1,
EA 04-05/06
Department of Mechanical Engineering,
National University of Singapore
9 Engineering Drive 1
43. Ethnographic StudiesLab Based Machining Workshop in NUS
Venue: Control & Mechatronics Lab 1,
EA 04-05/06
Department of Mechanical Engineering,
National University of Singapore
9 Engineering Drive 1
44. Ethnographic studiesMaterials Lab in NUS
Cabinet housing the
storage of PPEs
Venue: Materials Lab,
E3-04-01
Department of Mechanical Engineering,
National University of Singapore
Engineering Drive 3
Cleaned with alcoholic
wipes (Complementary
Assets) of the same
company
Safety Glasses
chosen because of
Design and Brand
Name.
Centurion: Brand Leader in
Protective Goggles
47. Brand A
Quick Summary
Established in 1981. Started off with Polycarbonate optic lenses,
Poly-carbonate Infrared Lenses, welding filters, safety spectacles and
laser goggles.
OEM/ODM to OBM. (Tier 1)
SO9001 Certified, TUV Certified.
Claims to have passed global ANSI, CSA, CE, JIS and AS safety
standards (Likely to have passed, but bad website
representation)
Customers: Medical, Research, and recently
Military Personnel
**Comments: Display resolution on ISO Certificate is too small
48. Brand A
Sourcing Interests: Eyewear
Laser Protective Goggles
Core:
Injection molded
Laser filtered lenses
Complementary:
Customizable range of coatings for
anti fog, anti-scratch, etc
Safety Goggles
Core: Injection molded eyewear
UV/IR protection
Complementary:
Customizable range of coatings for
anti fog, anti-scratch, etc
Images obtained from:
http://www.tarokoint.com.tw/products.html
49. Brand A
SWOT Analysis
Strong Technology Competence
Polycarbonate‘s
durability, optical clarity, and ability
to be blended with other polymers contribute to the strong performance.
Distribution
Tier 1 Distributor
Close access to distribution
channels:
40 minutes driving from Kaohsiung
International Airport (KHH) & Sea Port.
S
W
O
T
50. Brand B Industrial Company
Pte Ltd
Safety/ Assurance
ISO 9001:2000 Certification in 2003
Core Technologies (Lens)
Fog free (Hydrophobic surface) machine
Hard coating
High vacuum deposition machines on lens
51. Brand B
Geographical Advantages
- Located 5 mins away from the Mission Hill Golf club in Guan
Lan, mainland China. Easy transportation ensures prompt
services.
Source of supplies/ raw materials
Materials are imported from the US, Germany and Japan.
Machinery / Production Process
From injection molding to packing- Stringent QC. 4 groups
different groups from engineering and QC departments
monitors the entire production procedure.
52. Brand B
Profile
Total area of :
2000 square meters
(21528 square feet)
Staff Details
Production Staff: 200 to 280
QC Staff: 20 to 29
R&D Staff: 5 to 9
54. Brand B
Range of Products: Safety Eyewear & Goggles- New Designs
Favorable
Designs!
New Safety Eyewear: Model 919B
• Soft rubber nose pads for superior
comfort and fit
High performance
• Stylized frames feature a cutting edge
design that's ideal for work and play
• Polycarbonate lens provides 99.9%
UV protection
• Dual lenses, wrap-around protection
• Anti-scratch or anti-fog coating
• Exceeds the "High Impact" level of the
ANSI Z87.1+ safety standards
New Safety Goggles: Model 981
• Unique 3-way adjustable temples give a customized
fit
• Ratch-it-fit adjusts lens angle
• P.V.C nose bridge for comfort and secure fit
• High performance polycarbonate lens provides
99.9% UV protection
Lightweight sport-frame styling
• Lens options include anti-scratch or anti-fog coating
• Integrated wrap-aroung side shields
• Exceeds the "High Impact" level of the ANSI Z87.1+
safety standards
55. Brand B
Range of Products: Safety Eyewear & Goggles- New Designs
Faceshields & Safety
Visors
Eyewear Accessories
(Complementary Assets to
Safety Spectacles/
Goggles
Hearing Protection /
Folding Earmuffs
23NRR
Welding Goggles
Earmuffs
Meets ANSI S3.19
requirements
23NRR
56. Brand B
Complementary Assets- Customizable range of
packaging
Blister
Card
Jumbo Box
for Multiple
Pdts
Packaging
PVC Box
57. Brand C
Tier 2 Supplier (OEM/ ODM)
Manufacturing- Eyewear Manufacturing in
Tainan, Taiwan. Rest of facilities for PPE
Manufacturing and Respiratory Manufacturing
Facilities in Xiamen, China and Donguan, China
Core competencies:
"dual-coat" lenses with different types
of coating on the outside and inside of the
lens, for example, hard coat on the outside & AF
on the inside.
Safety
Selection of Safety Goggles
ANSI, AS, ASTM, CE, CSA, NIOSH standards
compliant
ISO 9001 & ISO 14001 Certified
ISO14001 entails
Reduced cost of waste
management
Savings in consumption of energy
and materials
Lower distribution costs
Improved corporate image among
regulators, customers and the
public
Selection of Safety Glasses and
Eyewear
59. Brand D
Claimed core
competencies --- Lack
of understanding of core
competencies
Research &
Development
Production Process
Safety & Standards
Quality Assurance
Lack of Understanding of
Core Competencies
Our test procedures are
Certifications And
based on
Accreditations
USA-ANSI Z87.1
ISO 9001-.OCTOBER 1998
AUSTRALIAN
EUROPE-CE EN166
AUSTRALIA-AS/NZS1337
JAPAN-JIS T 8147
CANADA-CSA Z94.
STANDARDS…since 1995
CE
60. Brand D
Production Value Chain- Vague and Confusing
Design
Information and Process Flow
Machining???
Packaging
Safety Certifications
End of Line
Testing
Production
Finishing
Operations
62. Brand E
ISO 9001: 2000 certified in 2002
Claimed to be an OEM. More likely a VAR.
One of capabilities listed in OEM is Reverse Engineering
Many (NOT ALL) products meet European CE and U.S. ANSI/NIOSH standards.
Appears to be a mere distributor of products (middleman).
Seems to be a distributor associated with manufacturers across China.
Although mufflers were procured, the company offers a reasonable range of safety goggles and spectacles.
Source of suppliers unknown.
63. Brand E
Range of Eyewear Offered
Chemical Splash Goggle
SE1112:
Indirect ventilation, Polycarbonate Lens, Fits over personal
spectacles
• CE EN166, ANSI Z87.1
Impact Goggle
PC direct ventilation, Tough Polycarbonate Lens, Fits over
personal spectacles,
• ANSI Z87.1
Protective spectacles
Foldable sideshields with direct ventilation, Polycarbonate lens,
• ANSI Z87.1
Protective spectacles
Stylishly wraparound design frame with curve lens for a snug,
secure fit.
• ANSI Z87.1
Wide Range
of eyewear,
however
inconsistent
in terms of
compliance.
64. Brand E
Range of Mufflers Offered
SE1310:
Lightweight, snug fitted, adjustable headband
• CE EN352-1, ANSI S3.19
• SNR:27dB; NRR:20dB
SE1331:
Lightweight, padded headband
• No certifications
SE1340
Cushioned earcups, compact and portable
• CE EN352-1, ANSI S3.19
• SNR 30dB; NRR: 25dB
SE1348
Dual colored with double shell, compact and
portable
• Pending CE and ANSI clearance
Wide range
of mufflers,
however
inconsistent
in terms of
critical
certifications.
65. What influences Organizing
Decisions in PPE.
Search and analysis of
products available in market is
time consuming (1000 pdts on
market) Rebuys are the
most convenient and adopted
method
Clean slate is recommended
by Health & Safety Orgns.
Buyer develops new choice
criteria for product selection.
66. PPE Market Product SegmentsUser prefer e-Commerce
End users less
choosy in
selecting above
the neck PPE
products.
76. Drivers- Technical Improvement
Heat and moisture resistant polymers- such as PBT
are being increasingly used in industrial plastics
Creep resistant polymers.
Ultra-high molecular weight polyethylene being
used as hip-socket joint replacements for
prostheses.
Opacity- Poly (methyl methacrylate) (PMMA
compounds can scatter light more efficiently ↑
efficiency in lighting up surface and optical
displays
Polycarbonates- Tough and flexible
77. Drivers- Substitute to traditional
materials
Elimination of secondary manufacturing
steps Plastics superior choice to metals.
Many structural plastics match job
requirements in resistance against cracks,
deformation, breakage and corrosion
Weight considerations in transport &
automotive applications.
50% Volume for 20% weight.
Cheaper for supply chain shipping and
distribution
PMMA and PC replace glass for outdoor
and indoor applications. They are safer and
give flexibility in design.
78. Restraints to Engineering Plastics
Growth and Developments- Price
Sensitivity of Consumer
Raw material prices are steadily and
substantially increasing for Engineering
plastics since 2010.
Cost is passed on to consumers
A carry forward trend will push
customers away from engineering
plastics.
Income divide in Middle of Pyramid
(MOP) countries is vast; purchases in
finished products dampened due to raw
material prices.
79. Restraints to Engineering Plastics
Growth and Developments- Substitute
Materials
Price/
Performance Tradeoff –
Performance must meet
costs, or buyers will source
for alternatives
Improved performance of
substitutes hinder technological
advancement for plastics in
Southeast Asia.
Nylon (Polyamide, PA) often
substituted with Polyethylene/
Polypropylene
81. Plastics Processing
Machinery- Global Strategic
Business Report
Global
Global recession pushed plastics processing machinery manufacturing
services from West to East.
Brazil, China, India and Russia emerge in sales volume and manufacturer
revenues.
China replaced Germany as leading producer of plastics processing
machinery in 2009 with lower labor costs.
Industry
Shift towards complete production systems and highly automated systems
Construction products, automotive parts and packaging products form bulk
of plastics applications in developing countries.
Local market drives demand.
Machining Technology Lifespan in short.
Competition is based on speed, efficiency, low maintenance and intricate
decorating capabilties (Innovation 1).—
Which companies can do a ‗Blue Ocean Strategy‘?
Taiwan is ranked as Top 5 amongst manufactures and exporters of plastic
and rubber processing machinery.
Notes de l'éditeur
However, a hesitance to instigate change can cause some firms to ignore innovation completely, under the notion that innovation must be entirely driven from within, generating high cost outputs and resourcing pressures. Termed the “innovator’s dilemma”, this is a common phenomenon in which companies focus on the “safe”; on known quantities that don’t challenge established processes but continue to generate results in the short-to-medium term.
Symphony- Ability to look at the big picture, not just zoom in on the details.** Trade secrets versus patents*** The appropriabilityof the design and the networks
Cross-licensing of the
Conditions, assumptions, etc.
HuntingIs low cost sourcing sustainable?When is the tipping point when all local suppliers are ‘forced’ to relocate overseas?Is sourcing going to hunt endlessly in a red ocean?GatheringPlanting seeds in New Competitive ArchitectureIs there room for organic growth for both suppliers and Sourcing functions?‘Concept of abundance’Blue OceanNew capabilities may need to be nurtured outside of existing operations.
However, poor chemical resistance is a drawback. The other hurdle in increasing acceptance of PC, especially in the packaging industry is Bisphenol A, a raw material in PC production. It is considered an environmental estrogen that may cause human reproductive disorders.
Website doesn’t show product development flow from conceptualization to shipment.Non- existent presentation of how each phase is connected to the other.Bad website design reflective of structure of bad business processes?
SNR= Signal to noise ratio,NRR = Noise Reduction ratio
Points to note:Technologies are at a growth stage. - Technologies for sustaining and incremental innovation are present. - Incumbents should be aware potential disruption from below, especiallly when they strive for potential disruption.
Polymethylmetacrylate can serve as alternatives to Polycarbonate strength of chemicals are not