| Case Analysis-Dec 2018 | |
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Case Analysis-Dec 2018 Mon Dec 03, 2018 11:58 am | |
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Sun Dec 09, 2018 4:20 pm | |
| Key Discussion Points- Industry Specialist
Industry
Good potential/Growth phase High rise building will have a demand due to land constraints
How the Selection of supplier happens:
- Companies put supplier selection ads. You need to apply. - Web site is also an important tool to access the customers - Relationships with market participants is very important Massive Competition/ Huge negotiation happening Competition- No many companies in the country. But there is a huge competition. Because you have to depend on Civil contractors Now civil contractors also moving towards services So service companies should consider moving to civil construction work. But require cash
Costing includes: Material/Labour and OH. Right costing is required to make it profitable. Considering required fwd rates for costing is important as material arrives much later from the project bidding date. This may be applicable to other items as well. Also allocate required amount for normal loss/waste in the costing. Overhead - Accommodation/Lunch/Transport/Head office cost Interest cost is not considered for costing. But consider right amount of margin to cover interest cost Rs depreciation- Rs 1 per month is normally considered for costing. But it may not be adequate when you consider recent changes
KPIS Having positive Cashflows from a project (Advance/% of complete billing on time) Quick completion(Cost escalates/interest cost goes up)
Material Controls Have a good ERP in place including possibility of issuing jobwise material (BOQ) and restriction above initial estimates At least have a manual system backed by regular stock balancing/counts
Risk Management ICTAD Registration Fwd contracts for materials Owners having relationships with contractors/politicians - Relationship is very important to get business and get money - Creates a sustainability issue- Who does it?
Challenges Chinese companies- Difficult to face the competition They have access to low cost material/They get BOI benefit Labour- Really efficient compared to SL Very high tech being used, so cost is low
Challenge; Labour oriented. Skill labor is a challenge. They build a relationship with technical colleges and get students as MTs Civil contract- Mostly they require unskilled so they go to India/Bdesh
Going Out of SL Huge potential in S asia /africa
Power Panel- trip switch/bakers in an Industrial level Assemble and export- good opportunity. Mostly it is an assembly operation.
Grand Hytte- Possibility of recovering is doubtful
Contract Modification Companies go in to trouble. Shouldn't do any extra work without a Proper PO from the main contractor
Site engineers- At the beginning of the year they place orders un necessarily. Interest cost is high.
Always do a detail costing/not based on experience and benchmark figures Generally-Profit margin should be more than 15%
CSF Labour Efficiency Relationship with main contractor Effectivness of managing the project Risk management (safety)
Observations Revenue has grown but profit has not grown. Money tide up in non core business Inventory/debtors duration very high Comparison of USD deposit Vs Keeping in USD
Internal Improvements Business Processes needs to be sound Use more contract employee, not permanent people
When foreign party involved risk is lesser
They can merge with Civil Start other services-QS/Project Mgt/ Always do a detail costing/not based on experience and benchmark figures Generally-Profit margin should be more than 15%
HR plays a very important role. 5% retention- If you book it pay VAT/NBT now. GP 20%-25%
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Sun Dec 09, 2018 4:24 pm | |
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Isuru Kalhara
Posts : 2 Join date : 2018-09-17
| Subject: Re: Case Analysis-Dec 2018 Sun Dec 09, 2018 8:13 pm | |
| Hi friends
Please have a look:
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Electrical and Electronics industry in Sri Lanka: Performance and the Outlook for Growth
Sri Lankan Electrical and Electronics industry is progressively stepping into the Global Electronics Value Added Supply Chain with products and services gaining acceptance amongst the most important Global Market Leaders. The Electrical and Electronics industry in Sri Lanka grew significantly over the past 45 years and saw it being gradually elevated to the position a key manufacturing industry contributing towards export-oriented economic growth. Having started as a basic assembler of Consumer Electronics and products in early 1970s, Sri Lanka shifted towards Electronic Components and Assemblies in post 1977s. In 2017, the industry’s contribution to the total export revenue was US $371.48 million. According to the OECD classification of manufacturing industries, it falls under the medium high technology and high technology industries in Sri Lanka. The industry mainly caters for Automobile, Telecommunication, Consumer Electronics, Industrial Automation, IoT, and many other verticals.
The major companies in the sector perform their manufacturing operations within the export processing zones under the purview of the Board of Investment of Sri Lanka (BOI). The Sri Lanka Electronic and Electrical Manufacturers’ Association (SLEMEA) was established to support and strengthen the industry as a sector while obtaining necessary government support and has contributed, to a considerable extent, in promoting the sector growth.
The Sri Lankan exporters in Electronics / Electrical Industry are all ISO certified, committed towards protecting the environment, observe ROHS and WEEE regulations, decent labor in conformity with the ILO requirements. Employment generation in this industry is approximately 30,000 including top-caliber Researchers and Design Engineers. Currently, there are an estimated 75 companies engaged in Design Manufacturing and exporting of Electronic and Electrical products. The Industry has therefore found wide acceptance and is increasingly attracting sophisticated buyers from Electronics Manufacturing Services partners.
At present, the country becomes a center of excellence for electronics design and development and the industry move towards the emerging technologies as IoT, Robotics, Bio-medical, Analytics and to world known Research and Development. The top 10 exporting destinations are Switzerland, Maldives, United States, United Kingdom, Hong Kong, Japan, China, Bangladesh, India, and Germany.
Key exports from Sri Lanka are Noise Suppression Capacitors, Noise Suppression Coils, Seat Belt Sensors, Wire Harness, Airbag Sensors, Power Suppliers And Inductors, Transformers, Electrical Panel Boards, Electrical Switches and Sockets, Data Communication and Telecommunication Cables, Industrial Plugs, Machined Mechanical Components, Machined Component Assembly, Coil Windings on Non- Uniform Bobbins, Cable Harnessing, Surface Mounted Printed Circuit Boards, Automotive Harnessing, Seat Belt Safety Sensor Harness for Automobiles, Electrical Power Cables, Enamelled Winding Wires, LV Switch Boards & Modular Enclosures, and IoT Devices.
Strengths of Sri Lankan electrical and electronics industry are like Trade relations with Europe and proximity to Indian booming Electronic and Automotive Markets, Skilled middle tier technology workforce and intelligent and trainable labor in conformity with the ILO requirements, British Commercial Law System with English as the Business Language, European & Japanese Technology descent with matured investments, and Adherence to all international Standards with Cutting Edge Technology.
The SLEDB has created a Video Documentary on the Sri Lankan Electronics and Electrical Sector for the purpose of promoting the sector internationally. The video could be view from the following link: In 2007, the sector’s total earnings had amounted to US $371.14 million which declined to US $322.21 million in 2008. The earnings took a nosedive in 2009 to record US $187.5 million. Since then, the earnings have been growing in general with some fluctuations, though. The sector enjoys strong growth prospects considering the predicted growth for the Global Electronics Market.
In support of the long-felt need to establish a strong electronics industry in Sri Lanka, the University of Moratuwa Department of Electronic and Telecommunication Engineering submitted a proposal to the Government for the 2014 National Budget requesting an allotment for the setting up of a Facilitation Centre for Advanced Electronics Design (FCAED) to specifically support start-ups in Electronics and also carry out extensive capacity building related to state-of-the-art-Electronics Design Tools. The Government positively responded to this proposal, making it as a medium term initiative by providing a Rs. 160 million grant to set up the center, which is operational now.
Through the FCAED, start-up companies will be provided with a host of services for: Electronic Design Automation (EDA) tools for IC (Chip) design and PCB design; High-end FPGA development boards including ASIC Prototyping Boards; 3D Printing services for Product Enclosures; Work Space for Engineers (only limited number of seats); Dedicated hosting space for their designs with full protection; and training on advanced EDA tools.
Backed by these favorable developments in the Global Electronics Market and in Sri Lanka along with the EDB’s decision to prioritize promoting the sector along with a few other selected industries under the National Export Strategy being formulated for the next five years, its set for tremendous growth.
Source: Export Development Board
(Isuru Kalhara) | |
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csenanayake
Posts : 1 Join date : 2016-03-31
| Subject: Since this company is a service provider9sub contractor) there will be a agreement between the main contractor and Minerva and there won't be any agreement between minerava and the buyer? so is it ethical to do so? Fri Dec 14, 2018 9:34 pm | |
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Tue Dec 18, 2018 6:12 pm | |
| Minerva Engineering has run out capacity of its production of Power Panels. Due to this they buy same products from outside at a higher rate. But they have established Mirenva Exports to produce power panels to export markets.
My question is that; can Minerva Engineering buy required power panels from Minerva Exports. Is there anyway to do that. What are the impacts. Thank you Back to top Go down View user profile Send private message Send e-mail Isuru Kalhara
Posts : 2 Join date : 2018-09-17
PostSubject: Re: Minerva Export - production Sun 16 Dec 2018 - 17:08 Select/Unselect multi-quote Reply with quote Edit/Delete this post Delete this post View IP address of poster Since the BOI Law requires that Minerva Exports needs to export its almost all the production. As such there is no remaining production either to sell locally or rather to sell Minerva Engineering.
However, this case indicated (see P.7) that Minerva Exports requires to export its entire production.....
There is no other way to buy unless they get out from the BOI law. Then they have to bear taxes like VAT, etc in local market.
Thanks Isuru Kalhara Back to top Go down View user profile Send private message Send e-mail Dammike
Posts : 2 Join date : 2018-09-27
PostSubject: Re: Minerva Export - production Yesterday at 18:19 Select/Unselect multi-quote Reply with quote Edit/Delete this post Delete this post View IP address of poster Is Minerva Engineering suffering from Over capitalization issue? | |
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Tue Dec 18, 2018 6:13 pm | |
| Subject: Value Engineerng in MEP Sun 16 Dec 2018 - 16:23 Select/Unselect multi-quote Reply with quote Edit/Delete this post Delete this post View IP address of poster Mechanical, electrical and plumbing (MEP) systems are the life-blood of a building, which enhance functionality. However, the value of MEP works constitutes a large portion of construction cost. Due to increasing complex MEP systems and high cost, clients demand value for their money, while enhancing functionality. Value engineering (VE) is renowned as an approach for improving quality and functionality, while ensuring value for money. Therefore, this research investigates the application of VE to MEP works in Sri Lankan construction industry. A qualitative approach was adopted and three building projects, which have employed VE were selected for data collection through unstructured interviews, document review and observations. Subsequently, data were analysed using content analysis. The study revealed that the application of VE to MEP works has potential saving opportunities such as improvements in capacities, locations and material in MEP works. The challenges encountered include difficulty in identifying the possible scope for VE, poor attitude of people and lack of information. Most of the difficulties can be overcome if a formal value study process and a team with a trained facilitator is employed. The study recommends the use of VE to be more systematic and the awareness of the concept should be improved.
VE has been effectively implemented in many developed countries, and the concept has become more relevant to developing country like Sri Lanka with one reason being the absence of proper cost control techniques such as cost planning in Sri Lankan construction industry (Perera et al., 2003). Moreover, application of VE in Sri Lankan construction industry lacks systematic approaches (Karunasena & Gamage, 2017). The Authors further revealed that life cycle cost of a project is not considered before application of VE techniques and Sri Lankan contractors are forced to mainly focus on reducing cost through VE while time and quality is given relatively less consideration. Although there are few examples on the application of VE to structural components, there is lack of a study on the application of VE to MEP works in Sri Lankan construction industry. Hence, the study aims to investigate the application of VE to MEP works in Sri Lankan construction industry.
VE activities were initiated by the contractor by considering the requirements of clients to reduce the cost and enhance the value of the project. Cost reduction, high possibility of improvement and ability of choosing a variety of options were the major reasons for undertaking VE exercise for MEP works. According to A1, “since the project is an educational institute and the society’s attention is towards the project and reducing costs was a major concern”. Possible usage of developing technologies related to MEP works was another driver. Respondents also claimed that VE was the best method to reduce the project cost without affecting the functional requirements or without compromising the quality. B2 explained; “it was identified that the best way to reduce the cost without impacting the functional requirements was to do VE to MEP works”. The total number of active members in Case A, Case B and Case C are five (05), six (06) and seven (07) respectively, and each team was consisting of a team leader, designers, cost estimators and other specialists. Team leaders of both Case A and Case B were the chief MEP Engineer. In Case C, the team leader was the project manager. In Case A and Case C, VE workshops were conducted in the construction stage and pre-construction stage respectively whereas, Case C has conducted two workshops in pre-construction and construction stages. The duration of workshops has lasted from one (01) to ten (10) days.
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Tue Dec 18, 2018 6:29 pm | |
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Gayan123
Posts : 9 Join date : 2018-09-17
| Subject: Re: Case Analysis-Dec 2018 Wed Dec 19, 2018 7:40 am | |
| Please explain about Balance Score card Thanks Gayan | |
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Isuru Kalhara
Posts : 2 Join date : 2018-09-17
| Subject: Re: Case Analysis-Dec 2018 Thu Dec 20, 2018 9:52 am | |
| The balanced scorecard approach to performance measurement focuses on four different perspectives and uses financial and non-financial indicators. While it is important for organisations to measure and monitor their financial performance, there may be disadvantages to focusing solely on financial performance.
While it is important for organisations to measure and monitor their financial performance, there may be disadvantages to focusing solely on financial performance.
The balanced scorecard approach emphasises the need to provide management with a set of information which covers all relevant areas of performance in an objective and unbiased fashion. The information provided may be both financial and non-financial and cover areas such as profitability, customer satisfaction, internal efficiency and innovation.
Financial Perspective
Creating shareholder value to succeed financially (covers traditional measures such as growth and profitability with measures set through talking directly to the shareholders
Internal Business Processes
What processes must we excel at to achieve financial/customer objectives
Customer Perspective
How should we appear to customers? What do new and existing customers value from us? (cost, quality, reliability etc)
Innovation and Learning Perspective
How to create value and maintain the company's competitive position through improvement and change? (acquisition of new skills; development of new products)
Link these to Minerva!
Thanks Isuru Kalhara
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Thu Dec 20, 2018 9:55 am | |
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Thu Dec 20, 2018 4:16 pm | |
| Some Questions for you to practice report writing:
1. Carry out a comprehensive analysis on the current situation of Minerva Engineering and discuss Strategies to be adopted by the company to overcome strategic issues stemming from the above
(You may use appropriate models in your answer)
2. Analyze current financial position of the Company and recommend appropriate Financing strategies for the company for their future expansion.
3. Discuss Potential Supply chain issues that may encounter by the Company in the current economic and social context. Give your recommendations to overcome such issues.
4. Critically evaluate the compliance with accepted governance and ethical practices by Minerva Group
5. Analyse current HR issues and advise strategies that can be used to change the organization, motivate staff and reward them.
6. Recommend procedures which can be adopted to spot talent and managing them.
7. Evaluate current organization culture and how would it help in developing future strategy.
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Gayan123
Posts : 9 Join date : 2018-09-17
| Subject: Re: Case Analysis-Dec 2018 Sun Dec 23, 2018 9:05 am | |
| Does anyone wrote answers on Q 4, 6 & 7 mention above. Please share if you have | |
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Gayan123
Posts : 9 Join date : 2018-09-17
| Subject: Re: Case Analysis-Dec 2018 Sun Dec 23, 2018 3:22 pm | |
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Gayan123
Posts : 9 Join date : 2018-09-17
| Subject: Re: Case Analysis-Dec 2018 Mon Dec 24, 2018 9:41 am | |
| Please share the PESTEL analysis | |
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Gayan123
Posts : 9 Join date : 2018-09-17
| Subject: Re: Case Analysis-Dec 2018 Tue Dec 25, 2018 12:59 pm | |
| When we do a comprehensive analysis, Do we need to use one most suitable model or else 1 or 2 models for analysis and build strategy. Eg - SWOT analysis and Ansoff metrix for strategy Or SWOT and PEST then Ansoff metrix for Strategy
Last edited by Gayan123 on Tue Dec 25, 2018 1:59 pm; edited 1 time in total | |
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Akthar
Posts : 3 Join date : 2018-12-09
| Subject: Re: Case Analysis-Dec 2018 Wed Dec 26, 2018 8:08 pm | |
| Can any one explain whether we have to produce PESTEL analysis in the examination in order to show that Opportunity and Threat has been derived from such PESTEL? | |
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Akthar
Posts : 3 Join date : 2018-12-09
| Subject: Re: Case Analysis-Dec 2018 Wed Dec 26, 2018 8:13 pm | |
| Gayan, I believe as a development of Strategy we can use either TWOS matrix or else Ansoff Matrix not both and it's depend on the question they ask. | |
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Akthar
Posts : 3 Join date : 2018-12-09
| Subject: Re: Case Analysis-Dec 2018 Thu Dec 27, 2018 12:20 pm | |
| Dear Sir, Can you please tell me whether we have to develop PESTEL analysis and produce in the exam?
Thanks.
Regards, | |
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Fri Dec 28, 2018 9:56 am | |
| - Akthar wrote:
- Gayan,
I believe as a development of Strategy we can use either TWOS matrix or else Ansoff Matrix not both and it's depend on the question they ask. There is no limit to number of models. I clearly explained this during the class. You can use any amount of models as along as you generate sensible strategies and manage your time | |
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Fri Dec 28, 2018 9:59 am | |
| - Akthar wrote:
- Dear Sir,
Can you please tell me whether we have to develop PESTEL analysis and produce in the exam?
Thanks.
Regards, it depends on the question ask. For you to do a SWOT, obviously you need a PESTEL to Identify O and T. You can mention PESTEL factors in your SWOT analysis itself and link with O & T. | |
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Admin Admin
Posts : 189 Join date : 2016-02-29
| Subject: Re: Case Analysis-Dec 2018 Fri Dec 28, 2018 6:53 pm | |
| Hi All,
I to reviewed some of your reports:
Following are some observations relating to Q1 above. 1. Some have just listed SWOT factors, not identified strategic issues stemming from the above. 2. Not using models that we discussed to generate recommendations (Ansoff/Startgy clock/Tows etc) We discussed application of those models and gave some strategic options using those models.Please refer those answers and use them. You should use them in right context. | |
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| Subject: Re: Case Analysis-Dec 2018 | |
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| Case Analysis-Dec 2018 | |
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