Presentation bo group 2
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Transcript of Presentation bo group 2
VCM-PUNVA-2ND SEM
FREDERIKKE LOUISE RISGAARD
VALENTINA T. DUMITRACHE
ASBJØRN GULDBORG
NERESHRATNAM RAMACHANDRAN MOORTHY
Agenda
Outsourcing to Flextronics (Outsourcing matrix +matrixes explained)
Outsourcing Process key elements
organizational level decision making
Resistance during process
Competences B&O need for new contracts major changes
Benefits for B&O and Flextronics pro’s and con’s
Current status
B&O
Flextronics
Factory in Skive
Outsourcing to Flextronics BY USING FLEXTRONICS B&O ARE SURE TO GET THE QUALITY THEY WANT.
A GOOD CORPORATION WHERE THEY GET THE IDEAS (INNOVATION) AND FLEXTRONICS HELPS THEM PRODUCING THE NECESSARY PARTS.
B&O IS IN-HOUSE/INVEST.
USAGE OF FLEXTRONICS KNOWLEDGE TO THEIR OWN BENEFIT.
IN FLEXTRONICS INTEREST, THEY GET A PLACE TO PRODUCE AND THE POSSIBILITY TO GAIN MORE KNOWLEDGE.
BECAUSE OF FLEXTRONICS KNOWLEDGE IT IS POSSIBLE TO MAKE MORE SPECIALIZED PARTS THAT ARE DESIGN TO B&O SPECIFICALLY
B&O IS LOCATED IN THE AREA SOURCE TO REDUCE COST, OR THAT IS WHAT THEY MEAN THEMSELVES. THAT IS ONE OF THE REASONS THEY GIVE TO WHY THEY HAVE STARTED TO PARTNERSHIP.
Outsourcing Process
Co
mp
eten
ce a
nal
ysis Benchmark
(org., tech)
History
Core Competences
Ass
esm
ent
& a
pro
val
Visit
Confidential Info
History
Check list (iso, csr, tech) C
on
trac
t N
ego
tiat
ion Capacity
Incentives
Risk Analysis
Penalties
Pro
ject
exe
./tr
ansf
er
Project Management
Timeline
Resources
Buget
Man
agin
g R
elat
ion
shu
p Performance
X-Ray (pro/con)
Re-negociate
Optimisation
Trust
Co
ntr
act
Term
inat
ion
Time Dep
Visualisation
Damage control
Final Assesment
Resistance during process
B&O is focused on quality , some parts of the management might not agree that they should give up control of core parts of their production.
Flextronics have a good reputation for quality products and streamline processes
plenty of reasons to go ahead with the outsourcing
BUT B&O might be able to create better quality themselves(however old facilities)
The case text does not state if Flextronics are going to take over the staff as well - safe to assume they do
Results : the staff is still as qualified, but Flextronics’ streamlined methods can produce the same products at a lower cost.
Competences B&O need for new contracts
agreement with Flextronics outsources the operation of the Skive facility
They have used the mixed and collaborative method of outsourcing (table 8.1 /8.3)
BEFORE B&O took care of day-to-day operation NOW an outsourced supplier
Consequences ?
frees up time and capital
employees- redundant or moved to other divisions
B&O will have to focus more on the regular quality control of Flextronics
maintain a wood relationship with them
Flextronics -big company hard to bully.
Other persuasive means from the purchasing department
smaller suppliers may be held in line with a more dominant approach.
Pro Con Pro Con
Benefits for B&O and Flextronics
Current status
B&OB&O have rethought their trateggies and formed partnerships with Car companies since 2004. They have had to let go of some suppliers and replace them with more convenient ones.
Current affairs can be found in their annual report 2014
http://az498215.vo.msecnd.net/static/files/annual_reports/BO_AR13-14_UK_FINAL.pdf
Latest press release title:
The Bang & Olufsen Sound System in the new Audi R8 will debut at the 2015 Geneva International Motor Show
FlextronicsThere is no trace about the partnership still exists however Flextronics Malaysia’s is now a current supplier
X-Flex’s only client
Flextronics has shifted and followed a new clientele since 2004
The latest Press release title :
Green Charge Networks Partners with Flextronics to Deploy Intelligent Energy Storage Nationwide
Factory in SkiveFlextronics closed its plant in Denmark in 2013, putting more 200 people out of a job. Now, according to a report by Skive municipality, around 80 of a total 212 former Flextronics employees have found jobs.
Read more: http://evertiq.com/news/21669
Questions?