Tuesday, February 21, 2012
Morning: IBM Engineering Technology
Stanley Fletcher| MBA Student
In the morning on the second day it was cloudy and a little rainy. After a great breakfast we headed over to IBM. Upon first arriving it seemed that no one was there, but after waiting a few minutes our host appeared and we headed into the conference room to see a presentation. Below are the presentation notes in Cliff-note form.
About IBM: IBM stands for progress.
IBM is a values-based enterprise of individuals who create and apply technology to make the world
Today, about 400,000 IBMers around the world invent and integrate hardware, software and services to help forward-thinking enterprises, institutions and people everywhere succeed on a smarter planet.
Around 20,000 IBMers in China alone.
Trying to build up the global enterprise in providing global support.
Within this building there System and Technology lab and CDL China Development Software. 800-1000 people
Over 2,000 employees in Shanghai.
IBM celebrated 100 years as a corporation in 2011.
Over the last 2 decades IBM pioneered the science of information, reinvented the modern corporation, and made the world work better.
Global Integrated Enterprise (GIE) is how IBM structures their company. Utilizing the best skills from each country for the position within the company. Eg. Using Thailand for a global call center because they’re able to support Japanese and Korean customers language and culture.
Dedication to every client’s success
Innovation that matters – for our company and for the world.
Trust and personal responsibility in all relationships.
Changes information technology – Focus on open technologies and high-value solutions
Changes in client needs – Deliver integration and innovation to clients
Changes in world markets – Become the premier globally integrated enterprise
They run a Linux based OS.
Offices in every country but headquartered in Shanghai.
2008 performance numbers:
Markets Growth Markets
percent of ibm geographic revenue
5 10 economic growth
2 10 revenue growth in local currency
Global Technology Services – Provide outsourced IT infrastructure services and business process services
Global Business Services – professional services and application outsourcing services
Systems and Technology – advanced computing, storage and semiconductor technology and products
Software – middleware that enables clients to integrate systems, processes and applications, as well as computer operating systems
Global Financing – financing solutions that can be customized to address specific IT needs, from competitive rates to flexible payment plans and loans
S&D and Research – sales and research, development and intellectual property
organizations provide a wide spectrum of client support and additional value.
1911 revolution in china
1934 installed the first IBM system in Xiehe Hospital
1979 First IBM S/370 sale to Shenyang Blower Works and Reform and Open Policy
1992 Established IBM China holding company
2001 Global Integrated Enterprise
2008 Beijing Olympics and Smarter Planet – city and traffic planning
2010 Shanghai Expo
2011 IBM Centennial and 12th Chinese 5-year plan (China releases its business plan every 5 years indicating the direction the country is to take.) New energies and aerospace are the focus for the next 5 years. By aligning your companies goals with the countries you can be entitled to tax breaks and subsidies. So aligning your Chinese company with research into new energy or aerospace endeavors would be advantageous.
IBM invests heavily in their employees through extensive training in teamwork and leadership skills.
Global value based system focused on integrity is what helps IBM achieve their goals. Regular reminders are flowed down to employees regarding integrity and having the same level of integrity in China as in US or any other country.
10% growth minimum planned for the company
Align with China’s Growth Agenda.
- Strategic Experiment
- 1979 Invest to Learn
- first S/370 in China
- Rep office in Beijing.
- Strategic Investment.
- 1989 Invest to Grow in China
- PC Manufacturing
- IBM China – first WOFE
- China Research Lab
- University Relations
- i. Working with universities to train students on products so that they can use the products when they graduate and enter the industry, e.g. banking industry
- Full Integration
- 1999 Invest to grow for IBM
- China Development Lab
- Consulting & Infrastructure Services
- Global Delivery
- China’s Partner
- “New Era” 2009 Invest to Partner with China
- Consultants in service economy
- i. Better government management
- ii. Better fundamental facilities
- Transformation partners in main industry
- i. Bank, telecom, utility, public services, transportation
- Regional economic development
- i. Geo expansion in keeping with national planning
- Bridge between china and world
- i. Execution service investment
- ii. China’s transformation
- China’s leading position in global economy
- i. Develop local talents
- ii. Set up leadership center in China: GRIC, IEG, etc.
- Consultants in service economy
IBM has established branch offices in 31 cities in China. Mainly along the east coast. There is one branch office in Urumqi. Free trade shows are in cities along the east coast, half of which are held in Shanghai.
Businesses are pushing west to expand factories.
1000+ employees in Global Innovation Center
2400+ employees in Global Delivery Center
2000+ employees in Slales and Services
Growth Markets – Latin America, middle east and Africa, Australia, Europe, India.
100 Million people moving to urban cities every year.
5.9 billion is
87% of the worlds population
$6.3 TRILLION IS REAL gdp GROWTH 2009 TO 2015 OVER 55% OF THE WORLD gdp GROWTH.
Making Markets – Prioritized 20 countries expanding beyond major cities
Infrastructure Development –
Educational support – cultivate talent for China
Since 1995, IBM worked closely with the Ministry of Education and higher educational institutions to support education development in China.
● Accumulated donation: RMB 1.56 billion
● Awarded “outstanding contribution award” from Ministry of Education for eight consecutive years
● Partnership with over 60 universities on talent development and research projects
● Sponsored over 100 shared…
New CEO – first female CEO in the company’s history.
IBM heavily supports education, training and promotion from within; ranging from core competencies to management and leadership training.
The full details of the
presentation are documented in my video blog which will be uploaded shortly.
After the presentation we left and headed to our next stop… Lunch!
We learned dining etiquette for a formal business lunch in China. This is also captured in the pending video portion of this blog. Our good friend, Yifan Tang, did an amazing job explaining the nuances and rules of fine lunch dining.
IBM Videos--Stanley Fletcher, MBA Student
Afternoon: Metso Automation
Stanley Fletcher| MBA Student
After an enourmous lunch we headed over to METSO for a presentation and tour of the company. Metso
has to be the cleanest place of business I’ve ever entered. The first thing that comes to mind when you enter the doors is that you’d feel perfectly fine eating right off the floor, or any surface inside the building for that matter.
After we made our way upstairs to the conference room we were treated to a presentation of the company. The summary of key points is detailed below.
China office locations: Beijing Office | Jinan Service | Office Shanghai
- Sales and service branch
- Supply center and component factory
- Engineering and training office
1970 Project deliveries to China
1991 SAIC agreement WaiGaoQiao first max DNA delivery and Shanghai-Neles Jamesbury Valve…
Factories in USA, Brazil, Spain, China, Helsinki.
Helsinki – Large size parts
Shanghai – small sized parts.
Growth in pieces, less than 1000 in 2006. In 2011 more than 11,000. Projected almost 14,000 in 2012.
Metso Technology center inauguration ceremony 5/28/2010.
FC Operations in Shanghai
Location – Shanghai,| WaiGaoQiao Free Trade Zone, China
Automation flow control business unit, shanghai plant
Shanghai component factory
Shanghai supply center
30,000 square meters.
249 Permanent employees (213 plant, 8 sourcing, 13 project unit, 15 product line)
Total 271 employees.
Top assembly and testing of control and on-off valves for neles, jamesbury, mapag, snj and 3rd party products. Also assembly of spare parts and customer acceptance testing performed here.
Lean manufacturing and lean project keeps running.
Assembly and machining capacity has been increased by 50% in 2011
Assembly and machining efficiency stayed on a good level
Assembly and machining LT stayed at the good and controlled level
CN workstation keep running
Visual management system has
been built up in 2011
5S system has been consolidated in 2011
- Product engineering support.
- Customer order engineering
- Product engineering
- R&D function
- Valve technology center
Project engineering and execution functions
Global sourcing functions
- Shipment consolidation
- Customs clearance
- Execute RTD actions according to global action plan
- PDM maintenance of fixed products
- Execute productivity actions for fixed products
- Participate in technology development projects
Valve Technology Center (VTC)
Technical Product …
2012 key targets and actions:
Maintain and improve quality
On time delivery 90%
Meet sales system lead times in offering and deliveries
Continue productivity programs
Lean op model implemented in entire plant
30% capacity increase
2009-2011 year over year increase of sales and revinue.
Valves 1 inch valve valves to 24 inch
Baffle valve 3-40 inches
After being fed more details than I could manage to compile, we were invited on a tour of the facility. No cameras were allowed so the video blog portion ends there.
This facility was leaned out. When I say lean I’m referring to a common industry practice of minimizing wasted movement and products. Everything on the shop floor was neat and organized. The forklifts moving about seemed almost to be on some kind of synchronized schedule carrying empty pallets one way and products another.
Again, the cleanliness of the place was astounding. There were people on the factory floor walking around mopping and cleaning what was already
spotless. I imagine they must hire at least 5-10 full time staff members just to clean day and night to maintain the cleanliness I saw there and in the rest of the building. The operation in this company appears to be completely clean and efficient, inside and out.