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A PROJECT WORK IN AN ALUMINIUM PROJECT IN IKEA -- A PROJECT OF ALUMINIUM CATEGORY IN BA03

A PROJECT WORK IN AN ALUMINIUM PROJECT IN IKEA -- A PROJECT OF ALUMINIUM CATEGORY IN BA03. PROJECT OWNER: Joakim Hammar Kent Larsson. Presenter: Ma Qiang. THANKS TO All trading offices: CN, TW, TK, SL, SE Colleagues in BA 03, Managers of the Project KTH professors and classmates. AGENDA.

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A PROJECT WORK IN AN ALUMINIUM PROJECT IN IKEA -- A PROJECT OF ALUMINIUM CATEGORY IN BA03

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  1. A PROJECT WORK IN AN ALUMINIUM PROJECT IN IKEA -- A PROJECT OF ALUMINIUM CATEGORY IN BA03 PROJECT OWNER:Joakim HammarKent Larsson Presenter: Ma Qiang

  2. THANKS TO All trading offices:CN, TW, TK, SL, SE Colleagues in BA 03, Managers of the Project KTH professors and classmates

  3. AGENDA • Introduction • Time plan & TBS • PART I: Value Chain Mapping • PART II: Quality BenchmarkingResults & Implications • Process & methodology • Conclusion • Appendix

  4. INTRODUCTION • BA03 & I.Comp; KTH, Industrial Economy Faculty • Reason: • New metal, new field, growing business opportunities • Insufficient knowledge & strategy • Small player in big market • Cost conscious of IKEA • Expectation • Aluminum raw material (including scraps market)market condition; global quality benchmark; Environment impact; value chain mapping

  5. INTRODUCTION • Aluminium commodities, characteristics • Future metal, infinite recycling loop • Big varieties of alloy and functions; wide industrial applications • Raw material characteristics, • An active scraps and recycling market • Research focus & assumptions • Sliding doors & front doors (78% business) • 20-80% rules • Upper-stream part of the value chain part

  6. TASKS & TBS (Task breakdown structure)

  7. TIME PLAN

  8. PART I VALUE CHAIN MAPPING: By exploiting the upstream try to create new business models, or in other ways create improvements in its value system. EG. Getting closer to the suppliers, or let suppliers closer to sub-suppliers; creating new models

  9. PART I & III: FINDINGS • Major competitors and estimated market shares: Bauxite market • Countable world leading suppliers for raw material • Possible to use recycled 6063, but few suppliers and fewer examples so far in the market, like HYDRO • Due to the same/similar cost between pure alloy and scraps of good quality Raw material Markets and big players

  10. Alumina Market Primary Aluminium Market

  11. WORLD BAUXITE Australia 38.2%, Guinea 12.25%, Brazil 9.32%, Jamaica 9.28%, India 5.59%, China 5.59%, Venezuela 3.68%, Russia 3.18% and Kazakhstan 0.30%

  12. WORLD ALUMINIUM

  13. CHINA BAUXITE

  14. PRODUCTION COST STRUCTURE Critical part

  15. Part I & III: SUGGESTIONS • China & Russia are the only exceptions who do not follow the LME index; • Usually slightly lower in China, follows SHNMPI • Non-exportation restriction but might open next year • Controllable Cost saving VS non-controllablesenergy + transportation + material + labour • Opportunities:Factories closer to cheaper labour + Mine + rich Power Supply,SHANXI is of the most potential, Henan as well. • Risky to buy raw material by I-Comp (financial analysis, future market forecast, brief discussion in report)

  16. PART II

  17. PROCESS FLOW & METHODS Future State with EHS Icon & Material Line

  18. South China SAPA China West Europe Taiwan EMMI FOUNDER worldtop East Europe Population of IKEA Alu Sliding Door Front Door suppliers Jingcheng Huilong East China Lishida Run a Pilot Survey Carry out the main Survey Decide how to collect Replies Identify population and samples Define Question Aims Design Questionnaire Analyze the Data Questionnaire Designing Pool of Samples

  19. RESULTS

  20. National Quality Performance Average Regional Quality Performance Average

  21. Quality Benchmark Part B Process technique specification Benchmark of Aluminium Alloy Profile (regional) survey result

  22. RESULTS AND DISCUSSION Significance of the result New attempt in a new material field and a new domain for IKEA A demonstration of global performance, also regional’s Clear comparison both in a national and regional level, obvious difference in all levels Relevant reference regarding regional complains in the future Better targeting the problems or weakness from each supplier or each region A good sum of global perspective, good for over-all improvement

  23. RESULTS AND DISCUSSION Why not using weighted average based upon the business volume by each regional supplier? Technique Analysis 1. When using weighted average (average * % of business), the results reprents the average quality performance in the global market; it only shows the current quality level on the market 2. When just using average, results reprents the average awareness of the techniques, the attitudes from quality managers, the decision by strategy makers, which gaves us better insights of the individual status, as well as the global performance average.

  24. RESULTS AND DISCUSSION • Validation of the results • To reduce subjectivity, suppliers interviewed & surveyed including: • current suppliers • Former suppliers • Future suppliers • Peer check (since all suppliers are independent to each other) • Expertise check

  25. RESEARCH STRATEGY • Qualitative research strategy • the characteristic of the project • the available resources • the target of the project • exploratory, explanatory, descriptive • Multimethod design • qualitative procedures combined with quantitative procedures • combination of different sampling methods and, • different validation methods • Qualitative sampling methods • maximum-variation sampling • criterion sampling • convenience sampling

  26. METHODOLOGY • Literature review • Books, journals, EAA, website, publications, brochure etc. • Interview method • In-depth interviewing • Document studies • Using questionnaire • Limitation • Subjectivity of the data acquired; (by avoid interest-concerning questions) • “wish TO BE” VS “what really IS” in the answer • Language barrier (interviewees included: Slovenia, China, Taiwan, Sweden, Turkey etc.) • A new tempt; no-experienced; needs adding expertise and experiences

  27. Strength of interviewing Pro & cons of in-depth interviewing The nature of the population, sampling methods argument How to make a good questionnaire Meeting objectives Easy to understand & be answered Precise information Use open-ended questions to improve Piloting the questionnaire (pre-testing before sending out) METHOD ANALYSIS

  28. PART IV ENVIRONMENTAL IMPACT Pre-definedsetofenvironmentalimpactcategories

  29. ENVIRONEMT METHODS

  30. Efficiency Tool: Project Management Tool: Setting Objective, TBS (Task Breakdown Structure), planning, effcient Meeting, project control etc.

  31. PHASE I EXAMPLE:

  32. PHASE II EG.

  33. PROCESS & ACTIVITIES

  34. The sampling statistics: Validation SAMPLING STATISTICS Validation

  35. CONCLUSION • Value chain mapping as a tool (business strategy and technique) • Important communication skills • Difference in theory and reality, ideal situation can only get closer.. • Qualitative methods for carrying out exploratory and explanatory research • Quality benchmarking model designing attempt in a global context • Quantified methods combining qualitative study can help to achieve objectivity

  36. Appendix

  37. INTERVIEW QUESTION

  38. INDEPTH INTERVIEW QUESTIONSTERVIEW QUESTIONS

  39. Questions?

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