EXECUTIVE SUMMARY
The Hong Kong Housing Authority (HKHA) have forecasted an average of one hundred and seventy-nine blocks in each of the next four years, fifty percent of which is in precast product, or approximately eighty blocks, and needed in the first year alone. Unicon’s capacity is only seven blocks, and our manufacturing methods are old and antiquated, using the most current batching manufacturing methods.
We experience long lead times with the approval process with the HKHA, which doesn’t allow us to forecast what products we need to manufacture in a timely manner to support the HKHA’s demands. If Unicon does not come up with a solution quickly, the industry will be opened up to manufacturers located outside of Hong Kong and Unicon will lose its competitive advantage.
The problem is not how to convince the HKHA to buy precast products, the problem is how does Unicon meet the huge demand and still remain competitive. The solution is expansion, and this is how I plan to do it.
• Add a second shift to the current day shift, doubling our current capacity
• Move to a lean manufacturing process and away from our current batch processing method. An analysis of the times involved for each step should be completed in order to determine the full impact, but estimate production of slabs and facades could double capacity further.
• Re-allocate plant space to solely produce slabs and facades and subcontract the manufacture of stairs and partition walls to an outside supplier. This doubles capacity as well, and finally
• Build an additional 5000 square meter plant expansion, in order to double capacity again. Plant will be up to full capacity by August 1998.
With these changes capacity will go from seven blocks to fifty-six block capacity at a minimum, and with experience and continuous improvement, Unicon will remain HKHA’s main supplier of slabs and facades for