Videocon plans to enter the insurance sector, a growth area for the Indian economy. The company is in talks with three French multinational insurance companies for a possible joint venture for the same. The Indian economy is growing at a very healthy rate of over 8 per cent per annum.Traditionally consumer durables have grown at least three times the GDP growth rate.The company expects the domestic market to grow at least 20 per cent per annum.With the wide product range, an extensive distribution network and strong brand equity it is well positioned to lead the growth in this industry .
Videocon proposes to upgrade the facilities acquired from Thomson SA by adding new product lines including Slim Tube, Plasma, LCD and other flat panel displays. This acquisition is in tandem with an increase in its domestic CPT manufacturing capacity to 24 million pieces per annum (presently 17 million pieces) as well as additional capacity of five million pieces per annum from the alliance with BPL and JCT. It will help the Videocon Group to transform into one of the largest players in the world in integrated manufacturing of CPTs with CPT glass.The company intends to make investments of over EUR 391.18 million to meet these plans, and will source these funds from domestic or international markets at an appropriate time. In its Italian facility, the company has re-engineered the plant and it now assembles end products.
Videocon Industries in Italy
Get your grade
or your money back
using our Essay Writing Service!
Videocon acquired Thomson's CPT plant in Italy in January 2005.This facility has been re-engineered for end product assembly and employs approximately 1400 personnel. The company has deployed an assembly line for CRT, LCD and PDP TVs, with assembly of ACs and manufacturing of PDP panels expected to begin thereafter. The company also plans to set up units for packing boxes, thermacol, injection moulding and painting.
FACTORS OF SUCCESS:
Synergy with Eastern Europe
The strategic acquisition of a manufacturing facilityin Poland has provided Videocon with a fully integrated facility as well as experienced manpower. Being cheaper than other EU nations, Poland also acts as a low cost manufacturing base for the company in the EU.
Focus on R&D
R&D is an ongoing process for Videocon, due to the rapid obsolescence of technologies and products witnessed in this industry.The company has three product development centres located at China, India & Italy. It has recently applied for a patent for a low cost production process for the plasma panel manufacturing. In the LCD space, the company have signed a patent assignment agreement covering 70 patents with a major US corporation.
RANGE OF PRODUCTS:
A :Consumer Electronics:
Color televisions (CTVs),
B . White Goods
Personal care products, etc.
3. Moulded Luggage.
4. Clocks and Watches
5. Mobile Phones
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. In the context of capacity planning, "capacity" is the maximum amount of work that an organization is capable of completing in a given period of time. The phrase is also used in business computing as a synonym for Capacity Management.
A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers. The goal of capacity planning is to minimize this discrepancy. Demand for an organization's capacity varies based on changes in production output, such as increasing or decreasing the production quantity of an existing product, or producing new products. Better utilization of existing capacity can be accomplished through improvements in overall equipment effectiveness (OEE). Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities.
Capacity = (number of machines or workers) Ã- (number of shifts) Ã- (utilization) Ã- (efficiency).
THREE STEPS OF CAPACITY PLANNING AT VIDEOCON:
Always on Time
Marked to Standard
Videocon adopt process layout because the type of production is continuous. Process layout is suitable for the goods Videocon is producing. Videocon has adopted different - different assembly lines to assemble the goods. Company purchase some semi finished parts prom other organizations. In a production house more than one assembly lines work together with different different products and parts. The view of refrigerator assembly line is given below --
ASSEMBLING PROCSS OF TV AT VIDEOCON:
To assemble a television , television have to pass through many process.
.Exterior or housing,
. The picture tube
.The audio reception and speaker system.
5. testing and quality control
First of all a plastic body of television is pass to next process through conveying belts. Then the next level picture tube is assemble through expert mechanics after this transaction is install in the television body. The second last step is to install the audio system and speakers. The final step is to testing the TV set to ensure the quality. This way a television is assembled in the Videocon production houses.
Videocon is a ISO 9001:2000, ISO 9002, ISO : 14000 Certified company. It maintain the standard at international level. All the process of manufacturing is standardized according to the set by ISO.
VIDEOCON MAINTAIN QUALITY STANDARD IN FOLLOWING WAYS: ---
Involvement of people
System approach to management
PRODUCT RATING SYSTEM:--
Videocon also following the rating programs in their all kinds of product. It is essential by ISO to assign rate to their products. Now Videocon rating their products upto FIVE STARS.
INVENTORY SYSTEM ADOPT BY VIDEOCON : ----
Videocon adopted inventory control system to maintain quality. With the changing environment the inventory management system has also changed. Currently Videocon implementing SAP (System Application & products) to manage their inventories. SAP is a computer based application software to maintain the inventories.
With the help of SAT Videocon reduce costs for warehousing, transportation, order fulfillment, and material handling - while improving customer service. SAT can significantly improve inventory turns, optimize the flow of goods, and shorten routes within warehouse
or distribution center. Additional benefits of inventory management include improved cash flow, visibility, and decision making.
In stores Videocon use MIGO and purchase it use MI (Material Inwards). These are the some modules comes under SAP.
SUPPLY CHAIN MANAGEMENT
Supply chain management is a process of deliver the finished goods to the customer from suppliers. The supply chain management system is as follow:
Production planning is a very essential activity in production houses. Planning is the backbone in production process. A well planned production schedule make a smooth output of finish goods with less cost. There are four steps in the production planning adopted by Videocon-