The Study Of The Optimization Of The Operation Management For AIGI

Though fast development of sealing industry in recent years,businesses in the industry are not yet doing any better.Most seal-manufacturing companies face similar problems below listed 1.product ion capacity not improved at all-mostly small-sized enterprises running from more than a decade ago;2,weak in technical development-most of them have not owned R&D team themselves;3.weak in developing new products but strong in copying others-once any new products emerge the whole industry follows;4.Old products like winding pad and metal pad dominate the market.New products are rarely seen in the markrt,lacking of ability of developing and improving;5.Relying production planning more on skilled workers rather than technical standards and management system;far behind international level in terms of technical document,quality control plan,work guide and equipment management document.6.relying on outsourcing components with low level of self products supply.This article targets AIGI Environment Protection Co.Ltd as an individual study,using comparable analysis method,as well as quantitative and qualitative analysis method;to analyze its external and internal internal environment,in particular its business operation mode.The company in regard to the operation mode has following issues need to be resolved urgently,1.messed-up organization frame;currently company' s CEO leading senior managers for operation management,with more centralised authority but less productivity;2.performance getting worse and gross profit falling down.Though its turnover reaches one hundred million and nore yet it still sees a 20-25%reduction year by year;3.dramatic brain drain;by the end of 2016 there are 635 employees in the company and it was 1400 in year 2012,literally more than 55%of the staff left;4.Weak in Research and Development,work process not smoothly developed Current operation process that has not well developed results in insufficient production capacity after new products being released or leads to suspension of new products in light of incomplete technical documentation.5.Simple sales channel with high risk;AIGI company sets up representative offices at different locations while manufacturing products from its headquarters only,.without any middle companies involved,which leads to hi-gh running cost.7.With no clear goal in the long run.The staff is not clear about the company' s goal and there is no dedicated department established for business promotion and training;8.Shallow data analysis and non-sharing of data.There is dedicated department set up in the company dealing with orders and subsequent procedure till product delivery,with well-developed basic data.However system considers no data outlet which leads to difficulty in data analysis afterwards.Further due to accounts department not sharing data,sales department has to acquire data from client service department when it needs any.By using SWOT methodology,deep mining and research have been done based on company's current business model,to determine company' s advantage resource and core competencies:1.Price advantage.2.Culture advantage.3.Technology advantage.4.Advanced business model,etc,together with company's core competency,to build a creative business model that fits into company' s current situation.With the consideration of current domestic political,economical and social development status,deeply analyze AIGI situation,provide feasible innovative or creative proposal against company ' s operational flow,organizational hierarchy,business model,cost control and mechanism enhancement accordingly:1.Reinforce and adjust organization hierarchy,1)create and reinforce marketing department's functionalities.Setup market-oriented sales and future direction;2)Effectively integrate human resource department.Integrate loose human resource functionalities to a complete HR department,which focus on coordination of corperation and employees;2.Integrate research and development department,accelerate innovation.The most important optimization area in R&D is to ensure the pricing strategy alignes with company' s overall strategy,and provide requirements needed by company's product strategy,marketing strategy and sales strategy,also establish performance indicators:1)number of new products developed,2)sales of new products,3)number of now products in markets,4)cost and estimation ratio,5)Days of delay in development status.3.Mining potential to maximize the productivity.Internally focus on people management,device maintenance,supply chain,externally focus on supplier supply quality and timeliness control.4.Improve sale team.Exploit good sale's talents,utilize each individual' s advantage,improve sales capability.5.Rearrange departments duties.Redefine and improve the procedures of different departments,make the correlations,interfaces and responsibilities clearer.6.Enhance andshare information technology.Ensure,the timeliness and accuracy of internal/external information gathering,provide a mechanism to guarantee people can share information in time.And by using Fishbone Gasket' s development project landing,production and sales as example to verify AIGI competency can be enhanced thru operationalinnovation,in order to better and faster ada.pt market environment.