case study

1. Production and Operation
Management
Galanz Enterprises Group Co.Ltd

2. Overview of Galanz
1. Galanz was founded by Liang
2. Galanz was a global garment industry producing feather products.
3. In 1991, Liang decided to go for new opportunity.
4. After analyzing and identifying the great potential in China, he switched
on to Microwave Oven.
5. Galanz started with OBM (Original Brand Manufacture) in domestic
market, later started OEM (Original Equipment Manufacture), and in
2000 ODM (Original Design Manufacture) in overseas.

3. Case Analysis
1. Galanz became the leading company with objective of cost and
delivering quality product to its customers.
2. The suppliers refused to supply the essential component i.e.,
“Magnetrons”
3. By 2000, the company was able to design its own Magnetrons.
4. Galanz faced shortage of demand by 9 million units in 2003.
5. Outsourced to Japanese company in their own brand name, while
production technology was produced from Japan.
6. Competitive players like Panasonic, Toshiba, Whirlpool

4. GOOD Practice
Self manufacturing “Magnetrons”
Reduction in production cost by
using cheap labor and land
Investment in R&D
Collaborated with K- MART and
WALMART to promote
products overseas
BAD Practice
Non-stop production
(3 shifts/day 24*7 365 days/year)
Prototype Production
Hierarchical Practices (3 levels)

5. Problem & Solutions .
1. Increased demand
2. Retrenchment by suppliers
3. Handling of customer
complaints
4. Handling cultural differences
1. Outsourcing of Magnetrons
2. Transfer from OEM to ODM
3. Investment in enhancing
customer service
4. Adoption in Global Marketing
Strategy

6. Thank You