1 / 30

Creating Price Index for Aucksun

Creating Price Index for Aucksun. Kevin M. Vayda Bennie Jones Zhongwen Zhang Dongai Wu Zhenqing Pan. Overview of the past weeks. Problem Statement. Industry specialty （行业特点）. Core competency （核心竞争力）. Enhance performance （提高绩效）. Unique nature of product （产品的独特性）.

jolene
Download Presentation

Creating Price Index for Aucksun

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Creating Price Indexfor Aucksun Kevin M. Vayda Bennie Jones Zhongwen Zhang Dongai Wu Zhenqing Pan

  2. Overview of the past weeks

  3. Problem Statement Industry specialty（行业特点） Core competency（核心竞争力） Enhance performance（提高绩效） Unique nature of product（产品的独特性） Fairly reward the salesmen（销售人员的公平的奖励）

  4. Project Goals • To create a price index（建立一个价格指数） • To build up a mechanism to fairly reward Aucksun’s salesmen （建立一种公平奖励销售人员的机制）

  5. Basic information • Aucksun is established under the joint investment of Jiangsu Australia Industry Corporation and the Hong Kong Chang-Zheng, Ltd.（澳洋顺昌是由江苏澳洋实业(集团)公司和香港昌正有限公司共同投资设立） • The land area is about 24,000m2 with the construction area of 9,600 m2.（建筑面积是9,600 m2，使用面积是24,000m2 ） • Its production and processing capacity is attainably 132,000 tons per year, processing steel production 8,000 to 10,000 tons per month and aluminum 1,000 tons per month.（年生产加工能力可达132,000吨：钢铁加工能力为每月8,000到10,000吨；铝加工能力为每月1000吨。） • The inventory is 30,000 tons of steel and 2,000 tons of aluminum. （库存量有3万吨钢和2千吨铝。） • The current number of customers is about 300.（目前客户数量达300。）

  6. CEO VP VP Supporting Dept. Information Dept. Management Dept. Business Dept. Manufacture Dept. Service section Manufacture section Raw material section Quality management section Custom Clearance Dept. Human Resources Dept. Financial Dept. Organization Chart The old one The new one

  7. Orders with needed specifications from Aucksun Assessment and offer from the suppliers Inventory analysis and demand forecast Placement of consolidated orders Bargaining Earnest money deposit and letter of credit Barcode and Storage Inspection, Customs clearance and shipping Final payment Make contracts Operation---Purchasing Mode Regular Purchasing

  8. Operation---Manufacturing Mode

  9. Operation---Functional Module of ERP

  10. Preliminary Study

  11. The Steel Industry Customers need a middleman Order times are small Need more cooperation within depts.

  12. Requirements Make-to-order Optimize manufacturing process Budget control A code management system Take customs into consideration

  13. The Bonus System PBT Rewarding sales dept Fluctuating profits on steel

  14. Price Index System London Metal Exchange Mysteel Price Indices of China Indices and Aucksun

  15. Literature Review

  16. Literature Review • Eliminated some literature on inventory. • Reviewed new literature on price indices. • Created new format: • Risk • Supply Contracts • Price Indices

  17. Methodology

  18. Methodology • First Objective: Identify the problem. • Method: Examine Aucksun’s main risks: • Inventory • Supply • Price • Customer Segmentation • Method: Communicate with management.

  19. Methodology • Second Objective: Understand how indices are created. • Method: Study LME Index. • Method: Study existing steel indices and their relationship with the index we want to create. • Method: Examine risk factors that may influence the index we want to create. • Method: Determine which data will need to be collected. • Method: Collect data.

  20. Methodology Third Objective: Develop and implement an index for the current problem. Fourth objective: Evaluate the implemented index.

  21. Results and Findings

  22. The existing bonus system in Aucksun Price of productions: • The reset price reflects the changing raw material prices.（重置价格反映了原材料价格的波动。） • Although there are many other object factors in this formula, but they are stable in general.（尽管公式中存在多个影响因素，但是，相对来说，它们都是固定的。） • The △ stands for the added value of the products, and this is the exact factor that could be used to evaluate the performance of the sales employees.（△代表产品的附加价值，也是可对销售人员进行绩效评价的值。）

  23. Price index for aluminum productions LME index is a price index for aluminum. (伦敦金属交易指数是铝的价格指数。) To Aucksun ,the price of aluminum production is Price =LME + Processing Fee + △ △ is a value to measure the salesmen’s performance. (对于澳洋顺昌，铝产品的价格是价格= LME +加工费 +△， 其中△就是衡量销售人员绩效的值) But, what about steel productions?

  24. The existing index for steel price index • Myspic is short for Mysteel price indices of China. The price information used by Myspic is the daily concluded price in the market from seven big cities in China, they are Shanghai, Guangzhou, Beijing, Wuhan, Chongqing, Shenyang and Xian.（Myspic的信息来源于中国七大市场（上海、广州、北京、武汉、重庆、沈阳和西安）的当日价格汇总。）

  25. The existing index for steel price index Preset = MySpic Index * MySpic Index Price MySpic Index Priceis a value that Aucksun set depending on their experience.（Myspic指数价是澳洋顺昌根据其经验得出的值。）

  26. Other index——CRU • The CRU Steel Price Index is a “leading indicator of steel price trends.” There are eight indices are weighted and compiled to form the “CRUspi” indices. （CRU钢材价格指数是“领先的钢材价格趋势的指标”，权衡综合了八个指标因素。） • On the CRU website there is a “Market Analysis” page in which the monitors listed above can be examined. The analysis of these monitors also provides historical and statistical data on steel indices, along with written analysis by CRU’s full-time steel analysts with respect to market fundamentals and other important aspects. There is a new CRUspi “Futures” service at www.crumonitor.com which examines, in detail, forecasts for the steel indices for the future 18-24 months. （在CRU网站上有一个列有多个监测器的“市场分析”页面。这些监测器的分析还提供钢材价格的历史统计数据，以及CRU的实时钢材价格分析。这是CRU的“未来”服务，用于预测18~24个月后的钢材价格。）

  27. Results and Findings CRU Myspic … Existing index SPSS Index CPI of Home Applicants

  28. Future Plan

  29. Plan for Next Week

  30. Questions for Discussions 1.Is SPSS a suitable tool for the project? Or what tools will be useful，except SPSS? 2.What kind of help can we get from the master students? And Who is going to help us?

More Related