1. UPV GROUP - project presentation -

2. Team members Eva Mollá Angela Podperova Rafael Boix Alejandro Cosa Lukasz Lampika

3. 1.Basic information Porcelanosa was founded in 1973 in Villarreal, Castellón (Spain). Activity: The production of ceramic tiles is the core activity that has consolidated one of Europe´s top international businesses.

4. Basic information Size: The Porcelanosa Group currently boasts a total of 410 showrooms in 72 countries, staffed by a team of 5.000 professionals and occupies 600.000 m 2 of facilities. Annual turnover currently stands at 1000 million euros, 69% of this sales are exports.

5. Basic information Organizational structure: Porcelanosa is structured like a Group, each company of the group is dedicated to a different product line. The other brands included in the group are:

6. Basic information Venis: makes the design ceramic tiles. Gamadecor: makes bathroom furniture and accesories. System-pool: makes pool-related products. Lantic colonial: makes hand-made ceramic tiles. Butech: its activity is related to materials used in placing ceramic tiles. Noken: makes bathroom furniture. Ceranco: makes the budget line of ceramic tiles.

7. Basic information Position in the market: Porcelanosa is an international company, one of the most important brands in ceramic tiles. The 69% of the sales are exports. Porcelanosa exports to: France, Italy, Germany…some more in Europe, USA and Arab countries.

8. Basic information Competitors: Spanish main competitors are Pamesa, TAU Ceramica, Keraben, Aparici, Grespania, Stylnul, Colorker... although Porcelanosa is the leader. In a European ranking Porcelanosa is the third important company, just overcome by Gruppo Marazzi and Gruppo Concorde.

9. Video presentation

10. 2.Products and services delivered to customers The main activity of Porcelanosa is the production of ceramic tiles, so ceramic tiles are the product Porcelanosa offers to customers. As a service, Porcelanosa transports its products to the customer. Also offers Customer Service info@porcelanosa.com to ask for information about any of their products.info@porcelanosa.com

11. Products and services delivered to customers Porcelanosas philosophy is based on offering to the customers guaranteed satisfaction. Porcelanosa is much more than just a brand name; it represents an entire lifestyle.

12. 3. Designing a new product: a new ceramic tile Basically, a ceramic company, when it decides to make a new ceramic tile they make a new design or use a new material.

13. Designing a new ceramic tile First, the company studies the market and decides where will be interesting to sell its news goods. Second, designers work about their ideas. These ideas must be appropiated for a new market and could be useful. For example, all buildings dont use the same ceramic tile.

14. Designing a new ceramic tile After this, they decide the quality of their products and then they decide where is the best place to make them and how to make them. Its the moment to make the product and to start to introduce in the market. This point is the most important: if the product has good quality but customers dont know about it, it will not sell. These aspects are analised in the OM decissions. We will deal with this in the presentation.

15. Designing a new ceramic tile The quality house is used when they decide how a new good is going to be. So, depending on where you make the product, its cheaper. The quality house is very important, so designers should know how to adapt aspects to customers needs.

16. Customer needs Designers must take customer needs into account when they design a new good. For example: Price Beatiful Resistance Cleanliness Non-slipping

17. Technology limitations Also, designers must think in the technical limitations and take this into account. Making process Quality materials

18. Quality House

19. 4. Ten Operation Management Decisions Quality management belongs to the top four most prestigious Spanish companies represents an entire lifestyle technology, quality and durability new modern design vs. traditional rustic looking products certified quality systems (UNE EN ISO 9001: 2000 standard) Service and product design Services - design consultation, samples, on-site visits and factory tour experienced contract managers offer product and application advice Products - create highly practical state-of-the-art products - beauty and originality

20. Supply – chain management company controls distribution, can ensure quality, speed and cost efficiencies across the entire supply chain. distribution centers can react to tight supply deadlines factory in Spain - direct to site Human resources, job design a team of 5,000 professionals teamwork and respect training for the various personnel to increase their own personal effectiveness and professionalism but also to reflect the quality ethos of the store

21. Location 410 showrooms in 72 countries Its main manufacturing facility is in Villarreal, Spain No two showrooms anywhere in the world are alike

22. Process, capacity design environmental certification ISO14001 Quality Innovation Environment 400 showrooms 60 countries Scheduling Flexible working hours and part-time working All the time looking for new employee Stabile production

23. Layout design Inventory design We know we can always do it better Learning first to do the right thing, and then to do those things right. excellence teamwork respect integrity innovation

24. Maintanance Encourage professional decision-making and responsibility from employees Team work training staff pay much attention to be in touch with all new technologies

25. 5. Forecasting for the new product Long term forecast: new designs sell for several years, and there should be replacement units in stock. In short term, the design process and manufacturing costs are known, since the process is always the same for every tile.

26. Forecasting First: current & past sales volume analysis

27. Forecasting First: current & past sales volume analysis

28. Forecasting Remarks Sales are quite stable, and more or less increasing its volume: time series forecast Most of the tiles are sold within Europe Big decrease of sales in USA: euro/dollar conversion rate?

29. Forecasting Trend component: it is the most important factor to forecast sales of the new tile The cyclical and seasonal components are not important Random component also are not very important (economy crisis, factory strikes,…)

30. Forecasting Sales rate is positive: lets keep the current trend 2008

31. 6. Ecommerce and your firm: benefits and limitations The kind of products Porcelanosa offers are not available for Ecommerce. Customers need to check the product physically to verify if colour, texture, ruggedness are exactly what they are looking for. The main possibility for Ecommerce is to ask for more quantity of a product that had already bought.

32. Thank you for your attention!!! =)