10 Areas of OM

3. 10 Areas of OM Goods and services design:List designs and manufactures interiors on land, sea and in the air. Means they build furniture for hotels and restaurants fitting throughout the world. They work inside boats designing the interior. Also they build lightweight Interior components for the civil aviation. Quality: List achieves differentiation by quality, projects are careful done and they consider every detail. Usually clients are less worried about the money than the final appearance.

4. 10 Areas of OM Process and capacity design: Since the 90’s big expansion List aquires a decisive competitive advantage through continual, ongoing research activity. At the centre of this research are composite constructions made of new materials and processing technologies that promise many new developments within the furniture industry in future. Location selection: The Headquater (Holding GmbH) is in Edlitz (Austria), but they have functions all over the world.For example the List Canada Inc. acts as a sales organ for aviation interior in North America. There is also some activity on Germany. Layout design: The layout of the products is based on the technology and on the wishes of the clients.

5. 10 Areas of OM Human resources and job design: 420 members are based on a holding company and six subsidiaries. List ideal is getting the best qualified professionals for the mainly design and producing workplaces. - List components & furniture -> 320 employees - List General Contractor GmbH -> around 56 people in various projects Supply-chain management: Many or Few suppliers -> It depends on the project. If they built the interior for 800 business jets they try to have the same suppliers for the whole project. Better Few suppliers -> long term and stability.

6. 10 Areas of OM Inventory: Every product is specific, which means that they produce only the necessary pieces for the product the clients have ordered. Scheduling: Every product has its own schedule, when a new project gets started they have to coordinate the timetable always focusing on the deadlines. This is one of the most important points to take care of delivering on time. Maintenance: All machines used in order to produce the product, have to be checked on a regular basis in order to guarantee a constant manufacturing process.

7. SWOT Strategy "As carpenters and philosophers we combine craftwork and a pioneering spirit in order to create extraordinary products on water, on land and in the air." List Mission Strengths Opportunities Optimized Strategy Design Weaknesses Threats Increment benefits

8. Strengths • High quality design • High experience on the market Weaknesses • Low client stability • High design and manufacturing time

9. Opportunities • Aviation sector is growing up • High personalized interiours Threats • Aviation companies build and design their own interiours. • Low client reachables

10. Forecasting Applications • Qualitative Methods • Quantitative Methods • Time Series Component • Why the Cyclical Component? • A Quantitative Method Example • Moving Average • Exponential Smoothing

11. Qualitative Methods Which Methods are used by List.at ? • Jury of executive opinion • Sales force composite • Delphi method • Consumer Market Survey “The project management includes planning, consulting, sampling and, ultimately, the ordering and control of the individual work areas.”

12. Quantitative Methods Quantitative Forecasting Associative TimeSeries Models Models Linear Moving Exponential Trend Average Smoothing Regression Projection

13. Time Series Component Cyclical Component -> 7-8 years of duration -> Why the cycle?

14. Why the Cyclical Component? Reasons for the strong industry growth in the past: • The positive development of the world economy • The increasing globalization of business activities increases the travel demand. • The wish for efficiency • The opening of new customer layers through Fractional Ownership Programs • The existence of a narrow secondary market for business Jets as well comparatively high prices for a demand overhang. • Approximately 38 % all business Jets are older than 20 years, make new acquisitions necessary. • The introduction of new technologies

15. Why the Cyclical Component? After 2001 a temporary growth stop as well as a decline of the sales numbers on the business Jet-Markt. Sundries factors provided for market growth • Extremely high investments of the boom phase temporarily reduced. • The after September carries 2001 cooled off world economic trends. • Attenuation of the important one american market on the basis of insecurity regarding this. Orders were partly delayed or were canceled completely. • From 2001 fell the prices for used business Jets until to 20 percent. Consequently, used Jets deliver a favorable alternative instead of new acquisitions.

16. Quantitative Method: Example “Compound Annual Growth Rate or cumulative annual growth rate is used to describe the growth over a period of time of some element of the business, usually revenue”

17. The Data Sets Shareowners Jet Fleet

18. Moving Average

19. Exponential Smoothing

20. Supply-Chain Management • Supply-Chain Strategy • Many Suppliers • Few Suppliers • Vertical Integration • Keiretsu Networks • Virtual Companies

21. Supply-Chain Management • Few and “happy” suppliers Wood Metal Stone

22. Supply-Chain Management • Suppliers features High quality Customized and vary products Small lots

23. Supply-Chain Management • Raw materials transformation in List

24. Supply-Chain Management • Small warehouses JIT delivery • B2B (Business-to-Business) e-commerce • Suppliers List RAW MATERIALS TRACKING SYSTEM

25. Supply-Chain Management • Costumers Necessities • Unique items • Custom-made items • High technology items Costumer Feedback

26. ANY QUESTIONS?