1、,Key issues for joint-venture manufacturing in China,Some notes for operations in mainland China,Phased strategies for Manufacturing in China,License/Export into China,Assembly Limited Mfg.,Manufacturing,Sourcing/ Localization,Engineering/ Design Capability,Shanghai Volkswagen,Xerox,Johnson & Johnso
2、n,Polaroid, Motorola,IBM,Babcock and Wilcox (Boilers),Ericsson,Beijing Jeep,Rep Office,JV Start,JV Development,“Outsider,“Insider,General Strategic Trends,100%,0%,Take over Facility,Greenfield Site,Equity,Jeep,IBM,B&W,Polaroid,J&J,Motorola,Shanghai J&J,Why? Comfort with Environment Learning Decision
3、 Speed Management Control Diminished Value Added Growth/Investment Roadblocks Legal Changes,Xerox,Manufacturing in China: Key Issues,Sourcing Everyone wishes they had worked on it sooner Shanghai Volkswagen Need to expand capacity from 150k - 300k - 600k qualified suppliers are the primary constrain
4、t increasing regulation demanding local content Local Management Critical need for good local managers Shortage of managerial talent is a key barrier to growth,Manufacturing in China: Key Issues,Managing Ex-Patriates Still essential for key skills Burn-out a problem for everyone Best Practice: Give
5、them everything they need to be comfortable - its a sound investment long-term Picking the right people,Manufacturing in China: Key Issues,Workforce Expose to Western Practices through video and visits Only model many workers have is the Marxist/Maoist model “they pretend to pay us - and we pretend
6、to work” Training - especially in quality - critical and worthwhile Housing/Social cost remains the long-term problem Joint-ventures must legally take on the same responsibilities as the state, if people are no longer employed by the state Keeping good people becoming more difficult Scarcity and val
7、ue means that good people disappear after getting you on their resume Use local Chinese for Human Resource management,What to watch for.,Partnerships Start off being critical Value-added diminishes quickly - becomes a constraint Poor access to capital Difficult to expand as a 50-50 partnership Role of local government Importance seems to be inversely proportional to distance from Beijing look for new models (Suzhou) modeled on Singapore over (expensive) Shanghai and Guangdong,
