1. SUSTAINING GROWTH AT COLYTECH How to organize and manage growth in the dynamic Chinese market?

2. www.colytech.com Introduction of ColyTech Problem Definition Analysis of ColyTech Design of a new Organization Structure CONTENTS Analysis of the Contract Manufacturing Business Unit Design of a Control and Evaluation Structure and Tool Conclusions

3. www.colytech.com 1. INTRODUCTION OF COLYTECH INTRODUCTION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ORGANIZATION STRUCTURE ANALYSIS COLYTECH Founded in June 2002, HQ in Shanghai Joint Venture between: – Jiangdong Group from China – Meridien Technology from Singapore Initially: – Six Business Development Units – 30 employees PROBLEM DEFINITION

4. www.colytech.com INTRODUCTION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH PROBLEM DEFINITION ORGANIZATION STRUCTURE

5. www.colytech.com Mission & Strategy INTRODUCTION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH Mission To be the essential bridge between customers & suppliers to provide the customer with innovative products, services and solutions Strategy Create a « fast growing company » by focussing on (potential) customers and entrepreneurship PROBLEM DEFINITION ORGANIZATION STRUCTURE

6. www.colytech.com 2. PROBLEM DEFINITION How to prepare ColyTech for future growth? INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH How to achieve the flexibility and agility that is necessary to adapt to the constantly changing environment? ORGANIZATION STRUCTURE

7. www.colytech.com 3. ANALYSIS OF COLYTECH Top-down: organization structure Bottom-up: analysis of the different Business Development Units (BDU’s) SWOT analysis of the overall organization Improvement fields INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE

8. www.colytech.com Initial Organization Structure Four Departments: – Business Development – Research & Development & Engineering – Operations – General Administration INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE

9. www.colytech.com Business Development Units International Business BDU – Mainly Contract Manufacturing – Consulting services – Assisting other BDU’s – ColyTech Network Alliance ColyTech Network Alliance INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH REMARKS: – Large dependency on suppliers and partners (quality, reliability) – Assuring value-add ORGANIZATION STRUCTURE

10. www.colytech.com Business Development Units Mechatronics BDU – Agent for foreign Rapid Prototyping and Rapid Tooling Systems – Agent for own Rapid Prototyping SystemsRapid Prototyping Systems INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH REMARKS – Small niche market – Expanding product/services range – Synergy with Bureau Services BDU ORGANIZATION STRUCTURE

11. www.colytech.com Business Development Units Bureau Services BDU – Offers Rapid Prototyping and Rapid Tooling services to customersRapid Prototyping Rapid Tooling – Both suppliers and own resources – Focus on R&D in automotive sector INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH REMARKS – Complete range of products – Extensive experience – Offering value-add ORGANIZATION STRUCTURE

12. www.colytech.com Business Development Units INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH Electronics BDU Factory Automation BDU Automotive BDU ORGANIZATION STRUCTURE

13. www.colytech.com SWOT Analysis INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH Experienced people Supplier & customer networks Total solutions Customer sharing Expanding network International markets Organization Responsibilities & control Supplier dependency Shortage job market Capital Assuring value-add S trengths W eaknesses O pportunities T hreats ORGANIZATION STRUCTURE

14. www.colytech.com Improvement Fields Organization structure: Facilitate flexibility, innovative power Control and evaluation structure: Linked with responsibilities Quality: Supplier assessment and selection « performed by René Kleine » INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE

15. www.colytech.com 4. ORGANIZATION STRUCTURE INTRODUCTION Design criteria: – Flexibility – Innovative power – Fast time-to-market – Cooperation & Integration – Continuity « Project based Matrix structure » – Business Units: long-term – Projects: short-term PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ORGANIZATION STRUCTURE ANALYSIS COLYTECH

16. www.colytech.com Horizontal Structure INTRODUCTION Functional separation between Business Development and management of Business Units and Projects R&D only deals with R&D tasks anymore Engineering, Customer Service and Assembly in Shanghai moved to Operations Division No changes at General Administration PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ORGANIZATION STRUCTURE ANALYSIS COLYTECH

17. www.colytech.com 5. ANALYSIS CM BUSINESS UNIT INTRODUCTION Primary goal « The reliable offering of quality products with added value to its customers; at acceptable costs but still profitable for the company » PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE

18. www.colytech.com Aggregation level 1 INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE Market Contract Manufacturing Business Unit materials resources products

19. www.colytech.com Aggregation level 1 INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE IST Offering flexible solutions Focus on growth SOLL + Offering global solutions + Consolidating growth Problems: - « Reliability » rather low - « Quality of working life » could be better

20. www.colytech.com Aggregation level 2 INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE Market Contract Manufacturing Business Unit materials resources products

21. www.colytech.com Market Contract Manufacturing Business Unit materials resources products Aggregation level 2 INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE WO resources products Project Execution Offer & Acceptance Order rejection Customer Order

22. www.colytech.com Aggregation level 2 INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE IST Focus on efficiency by: Hiring more employees Budgetting more money SOLL Shift to productivity increase Globalization requires higher reliability forecasted input real input output input

23. www.colytech.com Aggregation level 2 INTRODUCTION Boundary conditions: – lack of skilled employees – lack of capital Problems: – How to increase productivity? – How to increase reliability? Solution: – Create control and evaluation structure PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE

24. www.colytech.com Aggregation level 3 INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE WO resources products Project Execution Offer & Acceptance Order rejection Customer Order

25. www.colytech.com 6. CONTROL & EVALUATION INTRODUCTION Establishing a productivity and reliability control and evaluation structure for the offer & acceptance function. Establishing a reliability control and evaluation structure for the project execution function. PROBLEM DEFINITION CONCLUSIONS ANALYSIS COLYTECH ORGANIZATION STRUCTURE CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT

26. www.colytech.com Control & Evaluation Tools INTRODUCTION Project Checklist – Tasks – Responsibilities – Dates – Approvals Evaluation forms PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE

27. www.colytech.com 7. CONCLUSIONS INTRODUCTION Project Based Matrix Structure: – More flexibility – Better responsibility structure Control and evaluation structure: – Productivity increase – Reliability increase Recommendations: – Expand to other departments – Evolve into IT system PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE

28. ? QUESTIONS INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE

36. www.colytech.com Aggregation level 3 INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE WO resources products Project Execution Offer & Acceptance Order rejection Customer Order

38. www.colytech.com Aggregation level 3 INTRODUCTION PROBLEM DEFINITION CONCLUSIONS CONTROL & EVALUATION ANALYSIS CM BUSINESS UNIT ANALYSIS COLYTECH ORGANIZATION STRUCTURE WO resources products Project Execution Offer & Acceptance Order rejection Customer Order