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Third Visit – GrandSun Lightbulb Plant considerations, Highlights

Third Visit – GrandSun Lightbulb Plant considerations, Highlights. 27 September, 2004. Special Success. Should work! Hrant Vardanyan’s highest motivation! And should work something big, tangible, producing something that people use everyday – VERY VISIBLE. Enthusiasm, dedication, DIGNITY.

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Third Visit – GrandSun Lightbulb Plant considerations, Highlights

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  1. Third Visit – GrandSun Lightbulb Plant considerations, Highlights 27 September, 2004

  2. Special Success • Should work! Hrant Vardanyan’s highest motivation! • And should work something big, tangible, producing something that people use everyday – VERY VISIBLE. • Enthusiasm, dedication, DIGNITY.

  3. Plant Specifics • The plant is old, but has very big capacity • Production is knowledge intensive: - quality;- research and innovations;- efficiency

  4. Plant Specifics • Research and development is the key • In the former Soviet Union there were few centralized institutes for lighting devices • We hope that from the quoted $10Msome portion should go for R&D

  5. Plant Specifics • Certainly, to compete with Philips, one need the following: • Proper R&D facility • A lot of outsourcing • A more developed infrastructure • However, all this is possible: if we start today, we will have something tomorrow.

  6. Plant Specifics • Different aspects of transportation, since the plant is really big • Actually many quality related issues in all workshops • Many optimization, layout and management issues at every corner • cleanliness requirements

  7. Plant Specifics • First of all: • Operation of such a huge plant is a challenge • hard to market, huge investment to recover • You cannot afford paying high salaries to most of the workers in the initial stage • Correct management – it takes time to get your RPM. Cyclic operation of the glass smelter. • Correct salary policy

  8. Plant Specifics – Losses, overheads • Where are the main losses of this huge plant? • What for the company have spent the mentioned $10M? • Property tax; heating, lighting, maintenance • Used glass production technology requires certain percentage, around 10%, of glass as input with the raw materials.

  9. Plant Specifics – Losses, overheads • CLEANLINESS: • Dirtiness does not allow to even think and see the important problems!

  10. Future success depends on • R&D investment (H2-s example, when in 3 years considerable advances are achieved through around a $1M investment). • CLEANLINESS • Marketing – being done, needs more... • A lot of IE implementations: layout, OR, quality control, management, certification...

  11. Infrastructure • What does this plant add to Armenian infrastructure? • Positive example of success in general and particularly in a high-tech area, albeit with mature, primitive technology. • Experience of specialists, knowledge. • Relatively “relaxed” quality issues, in contrast to Huntsman, where peoples’ lives depend on the quality of construction materials.

  12. You have to pay attention to: • %-age of the used capacities; • Times, production timecicle, • Yields, also: • PLEASE MENTION POTENTIAL IE PROBLEMS. E.G.: • OR; EOQ; • TRANSPORTATION; • SCHEDULING.

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