AXA Projectv2

7/31/2019 AXA Projectv2

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POLITECHNIKA POZNASKA

INSTITUTE OF MANAGEMENT ENGINEERING

CORPORATE MANAGEMENT

AXA PROJECT

TEAM MEMBERS

HATEM AKKILAKUBLAY SEZGN YAIZ ALPAT RADOSAW KMITA

POZNA 2011


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Preface

In the following pages will present you first an overview of AXA Company, the bearing

manufacturer. Then you will be able to reach deeper analyses of the company.

During the making of the project we have met with the company dynamics of AXA and its

departments. We received help from either the brief information about AXA or the previous

lecture notes or internet while creating this project. A mixture of all of this data is in this

project, renewed and recreated. We hope you enjoy reading it.


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Table of Contents

Preface ............................................................................................................................................... 2

Description AXA ........................................................................................................................... 4

The main characteristic of SKF ................................................................................................... 4Specification of AXA company .................................................................................................... 4

SWOT Analysis ................................................................................................................................. 5

Strengths ....................................................................................................................................... 5

Weaknesses .................................................................................................................................. 6

Opportunities ............................................................................................................................... 6

Threats.......................................................................................................................................... 6

Porters 5 Forces Analysis ................................................................................................................. 7Bargaining Power of Suppliers ..................................................................................................... 7

Bargaining Power of Customers .................................................................................................. 8

Threat of New Entrants ............................................................................................................... 8

Threat of Subsitute Products ....................................................................................................... 8

Competitive Rivalry Within an Industry .................................................................................... 8

Organization Chart ......................................................................................................................... 10

Function Tree ................................................................................................................................... 11

Organization Chart of Marketing Department ............................................................................. 14

Function Tree of the Marketing Department ................................................................................ 15

Algorithm of Request For Quotation (RFQ) ................................................................................. 16

Work Consumption ........................................................................................................................ 19

Summary ......................................................................................................................................... 19


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Description AXA

AXA Company is a polish joint stock company which is involved in the production of steal

bearings. In the beginning AXA used old technology with lack of new and modern equipment

and using new technology in production so that is why it was clear that there must be a

strategic investor to modernize the company and the production which will lead to morequality and more production.

So many companies seemed to be interested to be strategic investors in AXA such as: SKF,

FAG, NSK, TIMKEN and KOYO. In further methodological assumption to the project we

assume that investor, which takes over AXA Co, will be SKF Group.

SKF group planned to make some changes in the organization strategy of AXA company so

that AXA company can easily integrate with SKF group and it is project organization scheme ,

in the same time that new organization strategy should be proper to AXAs internal and

external strategy conditions.

The main characteristic of SKF

SKF enterprise was founded in 1907 in Sweden. From the beginning, the most important value

was quality, research, technical project and marketing. Soon it became a leader in bearings

industry and nowadays has the same position. SKF is producing steel to its needs since 1916.SKF is a leader on steel market in manufacturing ball bearings. In 1990 the SKF enterprise took

over American company and entered the went to market with new group of products lip seal.

SKF concern is a joint stock company and has production of assortments in 80 places, 22

countries. It has own selling points in 50 countries and over 7000 external distributors and 4

dialers all over the world. Developing research work take place in SKF Engineering & Research

center in Netherland.

Specification of AXA company

SKF group in many different companies on the whole world produce products with follow part

of assortment:

Bearings and components

Sealings

Equipment and grease (smary)

Filtrations assets

Monitoring products of machine condition

Connection systems

Dislocate product line


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AXA Company focuses on the production of following bearings:

Single-row cylindrical

Railway bearings

Two-row cylindrical

Barrel

Cone

In Poland, the main recipients of the SKF bearings are manufactured companies from the

following branches of the economy:

Industry extractive metallurgy

Industry rolling-stock

Industry machine tools

Industry car

SWOT Analysis

SWOT analysis is considered to be one of

the most important methods of strategic

analysis.it is a useful method to diagnose the organization however, it is used as well in other

departments of the company like: marketing, production, finance.

The name SWOT stands for: Strengths, Weaknesses, Opportunities and threats. It involves

specifying the objective of the business or project and identifying the internal and external

factors which are supportive or unfavorable to achieving that objective.

Strengths

Good reputation of in the market.

Good position in the international market.

High quality products.

High skilled labor.

Developed research center.

Large capital.

Experience in projects implementations.

Modern machines are used in the manufacturing processes.


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Specialization for more quality.

Weaknesses

Our competitors are have more international positions, but AXA most of all of it is

production locates in Poland so that will give an advantage to our competitors .

Difficulties to gain more markets and customers.

Most of the machines used in the production were imported from outside so the

maintenance process highly dependent on foreign companies (subcontract system).

own renovation services production capacity, currently limited by almost non but the

employment amount .

Opportunities

Possibility of increasing the quantity and quantity of our products.

Expansion our market shares.

Diversity in our products.

Support from the Polish government and European Union.

Compatibility between all the departments which will affect the production process.

Continued global expansion - especially in the emerging markets.

Taking advantage of crisis in the industry in order to form the motor industry.

Threats

It is difficult to estimate power of absorption of bearings industry in the polish market.

Competition between us and the other competitors.

The economic crisis can lead to decreasing in purchasing our products.

Exchange rate can negatively affect the costs of raw materials.

Difference between the ball bearings we sell and the ball bearings used by polish

market.

Large diversity of ball bearing sizes used in Polish market.


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Porters 5 Forces Analysis

Porter's Five Forces is a framework for industry analysis and business strategy development

formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial

Organization (IO) economics to derive five forces that determine the competitive intensity and

therefore attractiveness of a market. Attractiveness in this context refers to the overall industryprofitability. An "unattractive" industry is one in which the combination of these five forces

acts to drive down overall profitability. A very unattractive industry would be one approaching

"pure competition", in which available profits for all firms are driven down to zero.

Three of Porter's five forces refer to competition from external sources. The remainders are

internal threats.

Porter referred to these forces as the micro environment, to contrast it with the more general

term macro environment. They consist of those forces close to a company that affect its ability

to serve its customers and make a profit. A change in any of the forces normally, requires abusiness unit to re-assess the marketplace given the overall change in industry information.

The overall industry attractiveness does not imply that every firm in the industry will return

the same profitability. Firms are able to apply their core competencies, business model or

network to achieve a profit above the industry average. A clear example of this is the airline

industry. As an industry, profitability is low and yet individual companies, by applying unique

business models, have been able to make a return in excess of the industry average.

Porter's five forces include - three forces from 'horizontal' competition: threat of substitute

products, the threat of established rivals, and the threat of new entrants; and two forces from

'vertical' competition: the bargaining power of suppliers and the bargaining power ofcustomers.

This five forces analysis is just one part of the complete Porter strategic models. The other

elements are the value chain and the genericstrategies.

Bargaining Power of Suppliers

Maintainingan ongoing relationshipwith suppliersguarantee for AXAtheContinuity of

production, which reflects positively on theconsumerrelationship, too.

The existence of a negotiating team and legal staff to contribute to promoting a strongrelationshipwithkeysuppliers, or to findnew suppliersin the worst conditions.

The acquisition of a greater proportion in the Polish and international market gives the

suppliers the motivation to provide the best offers forprices for AXA ,because of our

capacity in the market they can guarantee higher profitswithus.

AXA is planning to make the supplier switching costs relative to AXA switching costs.


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Developing a powerful competitive strategy which involves high quality , using

technology and affordable prices of our products will give us advantage over the other

companies.


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Organization Chart


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unction Tree

No. FUNCTIONFun

ctio

Result

Responsibility

Main

Contractor Supervision CooperationStandard

Tools

1 2 3 4 5 6 7 8

00. MEETING DEMAND FOR ROLLER

BEARINGS D DG DG DG BOARD

00.#.01. STRATEGIC MANAGEMENT D

DG DG DG BOARD

00.#.01.01. Strategic business planning S DG DG DG DF

00.#.01.01.01. Defining mission and company external

functions S DG DG DG GR

00.#.01.01.02. Formulation of strategic objectives S DG DG DG GO

00.#.01.01.03. Strategic analyses of development S DG DG DG GR

00.#.01.01.04. Formulation of division strategy in

compliance with SKF Group strategy S DG DG DG GO

00.#.01.01.06. Development of technical, economic and

organizational programmers to implement

strategy S DG GRD DG GR

00.#.01.02. Periodic analyses ofstrategy

implementation and formulation ofcorrectiveactions S DG GO DG DF,GRD

00.#.02. DEVELOPMENT OF MANAGEMENT

ORGANIZATION

SDG GRD DG DF,GRD

00.#.02.01. Management information system

development

SG

GMI GMI GR

00.#.02.02. Legal service S G

GL GL GR

00.#.03. HUMAN RESOURCES MANAGEMENT S GH

GHR DG DG

00.#.03.01. Human resources planning S GH

GHR GHR GR

00.#.03.02. Recruiting and selecting new employees T GH

GHR GHR GR

00.#.03.03. Training and developmentemployees

and managers T GH

GHR GHR GR

00.#.03.04. Motivation system development S GH

GHR GHR GR

00.#.03.05. Appraising employee performance T GH

GHR GHR GR

00.#.04. ECONOMIC CONTROL S DF DF DF DG

00.#.04.01. Controlling S DF FC DF DG

00.#.03.02. Book keeping O DF FB DF GR

00.#.03.03. Finance management S DF FF DF DG

01 MARKETING, SALE OF PRODUCTION S DM

DMS DG DG

01.01. Marketing T DM

MM DMS GR

01.02. Sale of products T DM

DS DMS GR

01.02.01. Quality management T DM

GQ DMS GRD,GMI,DT

02 PRODUCT AND PROCESS DEVELOPMENT S DT DT DG DG

02.01. Product development S DT TPD DT GRD,GMI

02.02. Production process development S DT TP DT GRD,GMI

02.02.01. Technological process planning of forgingproduction T DT TPR DT GRD,GMI

02.02.02. Technological process planning

preparation of ring production T DT TPR DT GRD,GMI

02.02.03. Technological process planning ofrolling

components T DT TPR DT GRD,GMI

02.02.04. Technological process planning of cagesT DT TPR DT GRD,GMI

02.02.05. Technological process planning of

stabilizing rings T DT TPR DT GRD,GMI

02.02.06. Technological process planning ofspring

rings T DT TPR DT GRD,GMI

02.02.07. Technological process planning of

bearing assembly T DT TPR DT GRD,GMI


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02.02.08. Technology of heat and chemical

treatment, technology of washing and

preservation T DT TPR DT GRD,GMI

02.02.09. Mechanization and automatization of

production process T/O DT TPR DT GRD,GMI

02.03. ORGANIZATION OF PRODUCTION

PROCESSS DT TPR DT GRD,GMI

02.03.01. Adaptive design of the production

structure and layout T DT TPR DT GRD,GMI

02.03.02. Monitoring and verification of

organization of work stations O DT TPR DT GRD,GMI

02.03.03. Examination of active and idle time and

production cycles T DT TPR DT GRD,GMI

02.03.04. Adaptive designing and implementing of

the logistic system in the production

cycle T DT TS DT GRD,GMI

02.03.05. Adaptive designing and implementing

solutions regarding quality inspection

stations in the production cycle S DT TS DT GRD,GMI

03 PRODUCTION S DT DT DG DG03.#.01. Master planning, monitoringand

regulation of production of bearings S DT TP DT GRD,GMI

03.01. Production ofcomponents S DT TP DT GRD,GMI

03.01.#.01. Scheduling of production T DT TP DT GRD,GMI

03.01.#.02. Job dispatching, monitoring and

evaluating the stands in production T DT TP DT GRD,GMI

03.02. Production of cylindrical bearing S DT TP DT GRD,GMI




03.03. Production of taper bearings S DT TP DT GRD,GMI


03.03.#.02. Job dispatching, monitoring andevaluating the stands in production T DT TP DT GRD,GMI

03.04. Production of spherical bearings S DT TP DT GRD,GMI




04. MATERIAL PURCHASING S DT DT DG DG

04.01. Division of material assortment to be

individually purchased by each unit0 S DT MP DT TP,DS

04.02. Planning of purchases T DT MP DT TP,DS

04.03. Placing orders T DT MP DT TP,DS

04.04. Audits of suppliersT DT MP DT TP,DS

04.05. Negotiation of delivery terms S,T DT MP DT TP,DS

04.06. Signing of supply contracts T DT MP DT TP,DS

04.07. Scheduling and control of deliversO DT MP DT TP,DS

04.08. Control and acceptance of invoices for

raw materials delivered T DT MP DT TP,DS

04.09. Handling complaints concerning

deliveries T DT MP DT TP,DS

04.10. Stock controlT DT MP DT TP,DS

04.11. Waste material management T DT MP DT TP,DS

05.03. MAINTENANCE OF FACTORY FIXED

ASSETS S DT DT DG DG

05.03.01. Keeping the central records and

certificates of fixed assets S DT TM DT TP,G


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05.03.02. Technical preparation ofredevelopment

and repairs S DT TM DT TP,G

05.03.03. Planning of maintenance and repairs S DT TM DT TP,G

05.03.04. Ordering repairs T DT TM DT TP,G

05.03.05. Planning of consumptionsand

inventories of spare and materials

needed for repairs T DT TM DT TP,G05.03.06. Preparing of annual statistical reports on

equipment and maintenance T DT TM DT TP,G

05.03.07. Maintenance of machines, equipment O DT TM DT TP,G

05.03.08. Maintenance of buildings and

installations T DT TM DT TP,G

05.01.09. Purchasing of new machines and

equipment S DT TM DT TP,G

05.01.10. Installation of new machines and

equipment S DT TM DT TP,G

06 PROVISION OF TOOLS S DT DT DG DG

06.01. Planning of consumption , inventories

and demand for T DT TO DT TP,GMI,GRD

06.02. Order workshop supports T DT TO DT TP,GMI,GRD06.03. Planning and control ofmanufacturing

special tools T DT TO DT TP,GMI,GRD

06.04. Engineering preparation of special tools T DT TO DT TP,GMI,GRD

06.05. Tools warehouse managing O DT TO DT TP,GMI,GRD

07. STORAGE RESOUCES S DT DT DG DG

07.01. Storage resources S DT MSs DT TP

07.01.01. Storage of new materials and ready parts

manufactured by cooperation partners T DT MSs DT TP

07.01.02. Storage of ready parts and subassemblies

manufactured by cooperation partners T DT MSs DT TP

07.01.03. Storage of tools O DT MSs DT TP

07.01.04. Storage of materials for maintenance O DT MSs DT TP

07.01.05. Storage of spare parts for transportation O DT MSs DT TP

07.01.06. Storage of office materials and

equipment O DT MSs DT TP

07.01.07 Storage of housekeeping materials O DT MSs DT TP

07.02. TRANSPORTATION OF RESOURCES O DT MSs DT TP,TS

07.02.01. Transport planning S DT MSs DT TP,TS

07.02.02. Ordering transportation and control S DT MSs DT TP,TS

07.02.03. Management of company transportation S DT MSs DT TP,TS

08. ADMINISTRATION SERVICE T DF DF DG DG

List ofAbbreviations

DG-GENERALDIRECTOR TPD-PRODUCTDEVELOPMENTDEPARTMENT

GRD-ORGANIZATIONALDEVELOPMENTDEPARTMENT TPR-PROCESSDEVELOPMENTDEPARTMENT

GMI-MANAGEMENTINFORMATIONSYSTEMDEPARTMENT TS-OCCUPATIONALSAFETYDEPARTMENT

GL-LEGALOFFICE TP-PRODUCTIONDEPARTMENT

GHR-HUMANRESOURCESDEPARTMENT MP-PURCHASINGDEPARTMENT

DF-FINANCEDIRECTOR TM-MAINTENANCEDEPARTMENT

FC-CONTROLLINGDEPARTMENT TO-TOOLSDEPARTMENT

FB-BOOKKEEPINGDEPARTMENT MSw-SALESWAREHOUSE

DMS-MARKETING&SALESDEPARTMENT DS-SALESDEPARTMENTDT-DIRECTOROFDEVELOPMENTANDTECHNICALSERVICE DQ-QUALITYCONTROLDEPARTMEN


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Organization Chart of Marketing Department


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Function Tree of the Marketing Department

No. FUNCTION Func.

Level

Result

Responsibility

Main

ContractorSupervision Cooperation Standard

Tools

1 2 3 4 5 6 7 8

1

MARKETING,SALE OF

PRODUCTIONAND SERVICE

0 DG DG DG DG

1,01Director ofProductMarketing

1 VPM DMC VPM DMC

1.01.0ProductManagers

2 DPM RCA DPM RCA

1.01.0.1ProductRequirements

3 PM LPM PM PRM

1.01.0.2Positioning /Pricing

3 PM MPM DPM,SPM LPM,SPM

1.01.0.3ProductLifecycle

3 PM PRM DPM,SPM SPM,MPM

1.01.0.4 Sales Support 3 PM PM MPM,PM RCA

1.01.0.5 Management 3 PM PM DPM,VPM DPM

1.01.1Research andCompetitiveAnalysis

2 DPM SPM DPM,PRM SPM,PM

1.02Director ofMarketingCommunications

1 VPM DPM VPM RCA,DG

1.02.0 Corporate 2 DMC CS DMC MPM

1.02.0.1 Public Relations 3 CO PCP CO CPA

1.02.0.2 Advertising 3 CO CPN CO SB,CS

1.02.0.3 AnalystRelations 3 CO CPR CO CS

1.02.1CreativeServices

2 DMC CO DMC PR

1.02.1.1 Brand Identity 3 CS CO CS,DMC RCA,CPA

1.02.1.2 Web Production 3 CS SB CS,DMC SB,CS

1.02.2 Programs 2 DMC PE DMC,CS SB,CS

1.02.2.1 Shows / Events 3 PR PL PR DMC,PL

1.02.2.2LeadGeneration

3 PR PCP PR,CO,DMC PE,SB

1.02.2.3Channels /Partners

3 PR SB PR,CO,DMC PE,CPR


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Algorithm of Request For Quotation (RFQ)


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Work Consumption

No. FUNCTION

Unit

execution

time needed

[hours]

The annual

frequency of

operations

[per weak]

The annual

time of doing

the

operations

[per year]

Result responsibility

1 2 3 4 5 6

1MARKETING, SALE OFPRODUCTION ANDSERVICE

2 2 200 DG

1,01 Director of Product Marketing 1 2 100 VPM

1.01.0 Product Managers 15 5 3750 DPM

1.01.0.1 Product Requirements 3 10 1500 PM

1.01.0.2 Positioning / Pricing 3 5 750 PM

1.01.0.3 Product Lifecycle 3 4 600 PM

1.01.0.4 Sales Support 3 9 1350 PM

1.01.0.5 Management 3 6 900 PM

1.01.1Research and CompetitiveAnalysis

2 1 100 DPM

1.02Director of MarketingCommunications

1 2 100 VPM

1.02.0 Corporate 2 3 300 DMC

1.02.0.1 Public Relations 3 15 2250 CO

1.02.0.2 Advertising 3 12 1800 CO

1.02.0.3 Analyst Relations 3 13 1950 CO

1.02.1 Creative Services 2 2 200 DMC

1.02.1.1 Brand Identity 3 2 300 CS1.02.1.2 Web Production 3 4 600 CS

1.02.2 Programs 2 3 300 DMC

1.02.2.1 Shows / Events 3 4 600 PR

1.02.2.2 Lead Generation 3 2 300 PR

1.02.2.3 Channels / Partners 3 5 750 PR

Summary

In every section of this project, it is possible to find one aspect about the company AXA. In the

project we talked about the organization structure of AXA Company, function tree of the

company. Detailed structure analysis of the Marketing Department of the company, was

presented in the project by showing the organization chart and the function tree along with

work consumption table.

Documents

AXA Projectv2