500 words essay

Thailand plant launch

project for Tsingtao beer

PREPARED BY:

Chun Ho Au-Yeung – 5284801

Zhi Tang – 5150104

Alena Chernenko – 5337602

Andrew Young Ndyabawe – 5311026

Ni Haoming – 5266852

Outline

 Introduction

 TOWS analysis of Tsingtao beer

 Project scope statement

 WBS

 Network diagram

 The interests of stakeholders

 Possible resource conflict

Introduction

 Tsingtao is a Chinese company established in 1903 in Qingdao city of China.

 By 2014, the company has exported their product in more than 70 countries.

 Tsingtao is a world-renowned brand with good reputation

 Currently Tsingtao plans to set up a plant in Thailand.

TOWS of Tsingtao beer

INTERNAL STRENGTHS of

TSINGTAO

1. Exportation scale: 70 countries;

2. Reward gold medal at the

Munich Beer Festival;

3. Technology;

INTERNAL WEAKNESES of

TSINGTAO

1. The increase of labor cost in

China

2. Expansive logistic cost: losing

pricing advantage

EXTERNAL OPPORTUNITIES

1. Favorable geographic location

2. Free tariff, low taxation

3. Climate: rice, beer consumption

4. Emerging market: 64.4 million

SO “MAXI-MAXI” Strategy WO “MINI-MAXI” Strategy

Setting up the branch in Thailand

can contribute to enhance

competitive ability on export

markets by reducing the cost of

production and export

Going to Thailand will help to

overcome the rising labour

costs on domestic market by

using local force and to deal

with logistics distance

EXTERNAL THREATS

1. Exchange rates

2. Competition from other beer

brands

ST “MAXI-MINI” Strategy WT “MINI-MINI” Strategy

Thai currency (THB) can help to

overcome the unstable RMB

exchange rates

Launching production in Thailand

will give Tsingtao pricing

advantage to reduce

competition threat

Scope statement

 The objective of the project is to launch the

Tsingtao beer brewery plant in Thailand (Bangkok)

by 5 November 2017. The project is going to start

on 4 June 2014 and terminate within 1250 days.

The targeted budget of the project is estimated

to be 100 million US dollars.

Major deliverables and technical

requirements (1)

Deliverables Technical requirements

Piece of land • 100 000 m2

• in a well-developed industrial area

• close to transportation hubs

The building of the plant 50 000 m2

Warehouse • 1000 m2 of storage space

• With temperature and moisture control system

Machinery • filtering machines

• filling machines

• brewery machines (at least 3) with capability of

producing 100 000 liters a year each

• with pollution discharge system

Raw materials Thai high-quality rice

Major deliverables and technical

requirements (2)

Deliverables Technical requirements

Staff • 800 local workers (700 low-skilled workers with

general education and 100 high-skilled employees

with higher technical education)

• 10 expatriate supervisors (6 managers and 4

engineers with experience at Tsingtao)

Documentation according to Thailand government standard

Security system • Fire alarms, extinguishers, blankets and fire exits

• First-aid centre

• CCTV

Logistic system Experienced logistics partner company with various

load volume trucks

Milestones

Deliverables Day Date

Land purchased 50 day 24 July 2014

Documentation validated 485 day 3 September 2015

Machinery installed and tested 1175 day 23 July 2017

Security system installed 1175 day 23 July 2017

Raw materials delivered 1195 day 12 August 2017

Plant building accepted 1205 day 22 August 2017

Warehouse built and accepted 1205 day 22 August 2017

Staff hired 1220 day 6 September 2017

Logistics system arranged 1250 day 5 November 2017

Project start date: 4 June 2014

Duration: 1250 days

Project finish date: 5 November 2017

Factory ready to operate

1. Plan the project

1.1. Ensure the place for factory

1.1.1. Select the most

suitable place

1.1.2. Negotiate the price for land

1.1.3. Sign the contract

1.1.4. Make the payment

1.2. Obtain legal documents

1.2.1. Obtain construction

permit

1.2.2. Get land ownership

rights

1.2.3. Receive development

rights

1.3. Plan the budget

2. Build the premises (plant and warehouse)

2.1. Architectural planning and

designing

2.2. Construction

process

2.2.1.Obtain construction

materials

2.2.1.1. Select materials &

supplier

2.2.1.2. Purchase materials

2.2.1.3. Get materials delivered

2.2.2. Building

2.2.2.1. Build

Foundation

2.2.2.2. Build main structure

2.2.3. Engineering

works

2.2.3.1. Machinery installation

2.2.3.2. Pluming works

2.2.3.3. Electricity connection

2.2.3.4. Install security

systems

2.2.4. Acceptance

check

2.3. Hire the

construction contractor

3. Hire staff

3.1. Create job vacancies

3.2. Advertise job vacancies

3.3. Hold interviews

3.4. Train and instruct workers

4. Organize production

process

4.1. Obtain production recourses

4.1.1. Obtain production equipment

4.1.2. Obtain raw materials

4.1.2.1. Select suppliers

4.1.2.2. Sign supply

contract

4.1.2.3. Purchase raw

materials

4.1.2.4. Arrange delivery

4.2. Arrange packaging

5. Plan export logistics

5.1. Plan the route

5.2. Select transportation

mode

5.3. Select the carrier

WBS

Network Diagram

1.1.1.

1.1.3. 1.2.2. 1.1.2. 1.1.4.

1.3.

2.1.

1.2.1.

1.2.3.

2.3. 2.2.2.1.

2.2.1.1. 2.2.1.2. 2.2.1.3.

2.2.2.1.

4.1.1.

3.

3.1.

2.2.3.1.

2.2.3.4.

4.1.2.1. 4.1.2.2. 4.1.2.4.

2.2.3.2.

2.2.3.3.

2.2.2.2.

2.2.4.

4.1.2.3.

3.2.

3.3.

5.3. 5.2. 5.1.

3.4.

Factory

ready to

operate

Network diagram (1)

1.1.1.

0

30

0

0

Activity №

ES

DUR

LS

FL

1.3

0

1250

0

0

1.1.2.

0

40

0

0

1.1.3.

40

7

40

0

1.1.4.

47

3

47

0

1.2.2.

50

60

50

0

Legend

Network diagram (2)

2.1.

110

300

110

0

1.2.1.

410

75

410

0

1.2.3.

410

30

455

45

2.3.

485

100

625

140

2.2.2.1.

725

180

0

0

2.2.1.1.

485

90

485

0

2.2.1.2.

575

60

575

0

2.2.1.3.

635

90

635

0

Network diagram (3)

2.2.3.2.

905

60

905

0

4.1.2.2.

1155

5

1175

20

4.1.1.

725

150

995

270

2.2.3.3.

905

60

905

0

2.2.2.2.

965

180

965

0

4.1.2.1.

1145

10

1165

20

2.2.3.4.

1145

20

1155

10

2.2.2.1.

725

180

0

0

3.1.

1145

15

1150

5

2.2.3.1.

1145

30

1145

0

2.2.4.

1175

30

1175

0

3.2.

1160

60

1165

5

Network diagram (4)

4.1.2.2.

1155

5

1175

20

2.2.4.

1175

30

1175

0

3.2.

1160

60

1165

5

4.1.2.3.

1160

10

1180

FL

4.1.2.4.

1170

30

1190

20

3.3.

1160

40

1165

5

3.

1205

15

1205

0

3.4.

1220

30

1220

0 Factory ready

to operate.

OPENING DAY

(1250)

5.1.

1205

5

1215

10

5.2.

1210

5

1220

10

5.3.

1215

25

1225

10

Critical Path

1.1.1.

1.1.3. 1.2.2. 1.1.2. 1.1.4.

1.3.

2.1.

1.2.1.

1.2.3.

2.3. 2.2.2.1.

2.2.1.1. 2.2.1.2. 2.2.1.3.

2.2.2.1.

4.1.1.

3.

3.1.

2.2.3.1.

2.2.3.4.

4.1.2.1. 4.1.2.2. 4.1.2.4.

2.2.3.2.

2.2.3.3.

2.2.2.2.

2.2.4.

4.1.2.3.

3.2.

3.3.

5.3. 5.2. 5.1.

3.4.

Factory

ready to

operate

Stakeholders in Tsingtao beer brewery

Suppliers

Society

Government

Creditors

Shareholders

Customers

Employees

Managers

Owners

INTERNAL

STAKEHOLDERS

EXTERNAL

STAKEHOLDERS

Interests of stakeholders

Employees

Managers

Owners

Wages and salaries, job placement, job security

Job satisfaction, status, salary

Fame, wealth and profit maximisation

Suppliers

Society

Government

Creditors

Shareholders

Customers

Long-term contract, prompt payment, growth of purchase

Local jobs, local impact

Tax receipts

Interest and principal to be paid, maintain credit rating

Share price growth, profit growth, dividends

Reliable quality, value for money, product availability, customer service

Possible resource conflict

TIME

QUALITY COST

Tsintao beer brewery project

will have to meet the

completion deadline it has

setup.

Each task within the project

must be done with care and

should meet the projected

quality standard.

Tsintao beer brewery project

should not go over the cost

budget. It should also be able

to generate profit to pay back.

TIME

QUALITY

COST

Resources

 2014 Index of Economic Freedom (2014) Thailand [online] available from <http://www.heritage.org/index/country/thailand> [28 May 2014]

 China Daily (2011) Tsingtao Beer to open brewery in Thailand [online] available from <http://www.chinadaily.com.cn/business/2011- 10/18/content_13921604.htm> [21 May 2014]

 Doing Business (2014) Dealing with construction permits in Thailand [online] available from <http://www.doingbusiness.org/data/exploreeconomies/thailand/dealing-with- construction-permits/> [28 May 2014]

 Investvine (2014) Thai protesters threaten to close exchange [online] available from <http://investvine.com/thai-protesters-threaten-to-close-stock-exchange/> [28 May 2014]

 Maylor, H. (2010) Project management. 4th edition. Harlow: FT Prentice Hall

 Shenzhen Daily (2011) Tsingtao Beer opens factory in Thailand [online] available from <http://www.szdaily.com/content/2011-10/25/content_6173272.htm> [25 May 2014]

 Weihrich, H. (1982) The TWOS Matrix-A Tool for Situational Analysis. San Francisco: University of San Francisco

THANK YOU

Group contribution marking scheme Name Student

No:

A: 15

Attend all the

group

meetings/discuss

ions of all

formats (face-to-

face, skype,

email etc.)

B: 15

Quantity &

Quality of

individual

contribution in

terms of

discussion

C: 10

Provided

individual

contribution

promptly at

all time

(especially

written work

for in-group

use)

D: 30

Individual

coverage

of the

assignment

E: 30

Percentage of

the individual

written work

adopted by the

group

(considering

page of slides

adopted or word

account)

Total

AU Yeung

Chun Ho

5284801 15 13 8 25 26 87

Chernenko

Alena

5377602 15 15 9 28 30 97

Haoming Ni 5266852 15 12 8 24 24 83

Ndyabawe

Andrew Young

5311026 15 14 8 23 27 87

Zhi Tang 5150104 15 14 8 23 25 85

Group work diary

 3 group meeting were held to prepare for the presentation and every team

member attended all 3 meetings;

 Responsibilities:

 Chun Ho Au-Yeung – 5284801 - WBS;

 Zhi Tang – 5150104 – Introduction about Tsingtao beer and TOWS for

Tsingtao in Thailand;

 Alena Chernenko – 5337602 – Network diagram + preparation of the power

point presentation;

 Andrew Young Ndyabawe – 5311026 – Stakeholders, their interests and

potential resource conflict

 Haoming Ni –5266852 – Scope statement