Bmx Cycle Solutions
Question # 1
What business is LCI in? What are the key success factors? How operations can contribute?
LCI BUSINESS:
LCI was founded in 1994 by Mr. Sheikh Ubaidullah, a Former Chairman of Pakistan Cycle Cooperative Society Limited. LCI is located at Ferozpur Road, eighteen miles south of Lahore Pakistan. LCI marketed its bicycles under the brand name of Leader bicycles.
LCI was in bad shape and financially bankrupt , all shops run by one supervisors , its production was practically zero when Managing director at Descon Mr. Razaq Dawood acquired LCI in June 1999. He hired new 6 engineers since 1999 in following departments like production planning, production scheduling, inventory control and quality control to set up all the necessary systems and procedures in order to turn LCI around.
In May 2002 Five bicycles –manufacturing companies (competitors) existed in market, combined capacity of these companies producing bicycles were 580,000bicyles per annum, and all were running at or near capacity, the competition was very tough. Up to May 2002.
LCI was producing 60,000 bicycles/annum, in May 2002, LCI started producing manufacturing its new product named BMX cycles, for betterment in this new product, after a year-long negotiation with Hercules of England, Decscon acquired from them the manufacturing and technology right, in Pakistan, for the very popular BMX cycle, Hercules also agreed to send engineers to Lahore for ten-week periods in order to help in set up the plant, tooling and train the staff.
KEY SUCCESS FACTORS: * Senior Management of LCI wanted to introduce the BMX Cycle in market before competitors, and Mr. Mansoor Waraich, Senior Planning Engineer, had a lot of pressure by the top management of LCI to complete this huge production of BMX Cycles. That massive production was carefully planned and all the processes where closely monitored and upgraded. * Mr. Razaq Dawood, Managing Director, of Descon, took over the LCI in very bad shape , and he
What business is LCI in? What are the key success factors? How operations can contribute?
LCI BUSINESS:
LCI was founded in 1994 by Mr. Sheikh Ubaidullah, a Former Chairman of Pakistan Cycle Cooperative Society Limited. LCI is located at Ferozpur Road, eighteen miles south of Lahore Pakistan. LCI marketed its bicycles under the brand name of Leader bicycles.
LCI was in bad shape and financially bankrupt , all shops run by one supervisors , its production was practically zero when Managing director at Descon Mr. Razaq Dawood acquired LCI in June 1999. He hired new 6 engineers since 1999 in following departments like production planning, production scheduling, inventory control and quality control to set up all the necessary systems and procedures in order to turn LCI around.
In May 2002 Five bicycles –manufacturing companies (competitors) existed in market, combined capacity of these companies producing bicycles were 580,000bicyles per annum, and all were running at or near capacity, the competition was very tough. Up to May 2002.
LCI was producing 60,000 bicycles/annum, in May 2002, LCI started producing manufacturing its new product named BMX cycles, for betterment in this new product, after a year-long negotiation with Hercules of England, Decscon acquired from them the manufacturing and technology right, in Pakistan, for the very popular BMX cycle, Hercules also agreed to send engineers to Lahore for ten-week periods in order to help in set up the plant, tooling and train the staff.
KEY SUCCESS FACTORS: * Senior Management of LCI wanted to introduce the BMX Cycle in market before competitors, and Mr. Mansoor Waraich, Senior Planning Engineer, had a lot of pressure by the top management of LCI to complete this huge production of BMX Cycles. That massive production was carefully planned and all the processes where closely monitored and upgraded. * Mr. Razaq Dawood, Managing Director, of Descon, took over the LCI in very bad shape , and he