Longxi Machinery Works
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Executive Summary
Longxi has an amazing opportunity to capitalize on the growth of the multi-cylinder, diesel engine market. Problem is, the DGS (duo-gear shaft) is standing in the way of realizing this great opportunity. Longxi made a decision not to automate in the past; unfortunately this was the wrong decision. Not only does Longxi need to automate, but they also need to be more proactive and preventive in quality management.
Situation
Longxi, a state-owned enterprise, is a medium-sized machinery producer in China and it manufactures single and multi-cylinder engines. 4 big players account for 45% of the single cylinder engine market. Being one of them, Longxi controls 5% of this market. The sales of Multi-cylinder engines are much smaller and only comprise 15% of the single-cylinder market and Longxi's market share in this segment is only 2%. The machinery market in China is rapidly growing 10% each year and this trend is expected to continue at least until year 2000.
Single cylinder engines rather than multi cylinder with a ratio of 3:20 currently dominate the market...