Essay on Unicon

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Module 4: Operations and Process Management | |
Lesson 11
Unicon Concrete Products (H.K.) Ltd Case Report

April 1, 2010

Executive Summary
Unicon is a major player in the flourishing Hong Kong market for pre-cast concrete products and Mr. Li, the deputy managing director is pursuing the idea of “blanket” approval for Unicon’s custom design concrete products with one of it’s largest customers, the Hong Kong Housing Authority. This proposition could offer savings to both Unicon and the customer but this could adversely affect the relations with other customers and the manufacturing operations. If Unicon is to stay competitive in the ever expanding market, management must have a plan to
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There are 14 stat. holidays per year.
Days available per year;
52 weeks x 6 days + 26 overtime days -14 stats = 324 days
Slab Production;
3400 per block/82.5 slabs/day = 41.2 per block of slab capacity -32/41.2 = 7.9 blocks foe slabs.
Facade Production;
1120 / block / 25 per day = 44.8 days/block for façade capacity =324/44.8 = 7.2 blocks for façade.
In the Hong Kong market facades and slabs are in the early stages of their product life-cycle, partitioning walls and stairs are more advanced stages. Partitioning walls were first produced in 1972 and unlike facades and slabs are produced in standard sizes using a module design. The old method of pour in place walls and floors are mature according to this case. Demand for precast is rapidly growing because of the Hong Kong construction market. As the markets grow we are expecting to see more modular designs and standard dimensions emerge. Unicon has to be careful since competitors from mainland China are expected to enter the market next year when barriers fall.
There are advantages and disadvantages of the blanket approval approach. Who will actually benefit from the cost reductions? It may not be Unicon since competitive pressures may force the pre-cast construction companies to pass on some of their savings. The Hong Kong Housing Authority (HKHA) might look for some sort of rebate from the general contractors, this will insure that the cost saving measure is includes in all projects. Unicon has to

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