International Appliance Manufacturing 2007

Germany ((Kinkel/Lay/Jung Erceg 2004, S. 22ff; Sommer/Haug 2004, page. 8ff.). Just take a look at the Chinese market, where it is so attractive with lower wages and strong demand. Anyway, a detailed consideration reveals that for example the raw material price in China stays on top of the world’s market price level, rising transportation costs, difficulties in finding true qualified specialists which result to more expensive expenses (Roland Berger, 2005). To make things worse there is the lack of legal security and the “Know how steal“ problem.(Ernst & Young 2006). So actually, the cost advantage in a low-wages country diminishes, and furthermore we have to include the rising cost of complexity due to business relocation, which sums up to the “Total Cost of Ownership” that we have to take into consideration. In an investigation carried out by Arthur D. Little from Switzerland, we realize that (for example) a production relocation to Bulgaria is only feasible, if the labor wages cost exceeds 50% of the production cost. In conclusion we might think of alternatives to production relocation. The following list, arranged in priority order again, gives the suggestions. • • • • • • • Development of high technology products/ Innovation Automation of inland production Concentration on the core business/ Specialization Lower the labour wages To develop new business fields Upgrade service/support Cooperation in production and sales seen as the key to secure a business location, in order to maintain fully or at least partially the operation of the current business location. This statement corresponds with the results from Jung Erceg. She refers this connection to the potential when optimizing existing inland business location. These potentials should be ascertained itself already in a forefront of making international location decisions, because the potential foreign location represents a better planned and optimum form compared to the German locations, where last time their actual condition probably only in seldom cases can be regarded as “optimum” (Jung Erceg 2004, S. 132. For existing locations they can adopt the following field of modernization with respective variables (Jung Erceg 2004, page 136ff.): • • Technology: stability, automation, flexibility, performance boost Personal: working structure, qualification and personnel management instrument Organization: company organization structure, process organization, vertical integration Product design: modularization, market adaptation, innovations and actions taken and anticipation for manufacturer defined? In this part should the question be explained, how the suppliers handle the current events ( e.g. Electrolux). Suppliers were asked if the knowledge gained from examples like the relocation activities of Electrolux will have an impact on their attitude towards relocation, investments, or new locations. The answers are apparently contradictory, because on the one hand of the results from the survey suggest that the suppliers from the current development with Electrolux cannot influence their current thoughts on the “relocation” topic, although on the other hand one knows exactly that this could be necessary, if one doesn’t want to destroy the manufacturer-supplier relationship. The contradiction between “No current activities” and “Negative influence for the relationship” can be interpreted in such a way, that one disclaims the relocation topic as “not concern” for so long, until the “current action needed” does exist. In other words, an active, prognostic, preventive search for location by the supplier through the • • Aspect B: Reactions behaviour from the suppliers’ perspective- measures In other words, p r o d u c t i n n o v a t i o n and p r o d u c t i o n r a t i o n a l i z a t i o n are Figure 6: Do suppliers expect any support from the OEMs in case of relocation? 12 International Appliance Manufacturing 2007

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Contents White Goods- made out of Germany Customer Benefits from Coil Coating Products with “Metal Looks” In Mould Labelling for the Appliance Industry Only Pay for What You Need with Trimmed Concept for Appliance Manufacturers New Lighting Trend in the Oven Innovation in Light and Design- An Introduction Influence of Recycled Material on the Mechanical Performance and Stabilization System of GB355WG Why Choose a Fast Diode Mosfet in a Three-Phase Inverter Topology Providing Six-step Current Commutation Appliance Motor Control Made More Efficient, Cost- Effective Through Sensorless FOC Control Save, Bright and Spotlessly Clean Stainless Steel Strip is Stepping Out with the Launch of Sandvik Decorex New Hot Melt Silicone Sealant Technology Reduces Time, Costs for Appliance Manufacturers IR Touch Controls- The 4th Generation Coil Coating Ensures White Goods at Leading Edge Design Coil Coating Ensures White Goods at Leading Edge Design New material Solutions That Help Satisfy Consumer Wants, Producer Needs and Regulatory Musts for Tomorrow’s Appliances Welcome to the Chinese Century Multibase PPμ Talc Switches and Sensors Rise to the Challenge Development by SKF of Value Added Solutions (VAS) for Washing Machine Applications Silicon Adhesives for Display Cabinet Construction Instantaneous Hot Water for Beverages A Very Small Real Time Scheduler for Both Cost Effective Home Appliance Controllers and Higher Level Firmware Development Dishwasher Circulation Pump Evolution Nucleated PP Opens the Door to Improvements in Design and Productivity of Molded Appliance Articles Energy Saving Solutions for Home Appliances Sensors Sensors Sensors and No Way Back An Integrated Driver for LED Panel Renders the Traditional MCU Obsolete Integrating Hall-effect Magnetic Sensor Technology into Modern Household Appliances High Efficiency, Low Cost BLDC Evaperoator Fan Motor with a Soft Magnetic Composite Stator and Bud TM Controller Household Dishwashers Energy Consumption Reduction- A Success Story Novel fan Design Offers Energy Savings to Refrigeration Market

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