Title: Creating Price Index for Aucksun
1Creating Price Index for Aucksun
- Kevin M. Vayda
- Bennie Jones
- Zhongwen Zhang
- Dongai Wu
- Zhenqing Pan
2Overview of the past weeks
3Problem Statement
Industry specialty(????)
Core competency(?????)
Enhance performance(????)
Unique nature of product(??????)
Fairly reward the salesmen(??????????)
4Project Goals
- To create a price index(????????)
- To build up a mechanism to fairly reward
Aucksuns salesmen (???????????????)
5- Basic information
- Aucksun is established under the joint investment
of Jiangsu Australia Industry Corporation and the
Hong Kong Chang-Zheng, Ltd.(????????????(??)??????
???????????) - The land area is about 24,000m2 with the
construction area of 9,600 m2.(?????9,600
m2,?????24,000m2 ) - Its production and processing capacity is
attainably 132,000 tons per year, processing
steel production 8,000 to 10,000 tons per month
and aluminum 1,000 tons per month.(?????????132,00
0??????????8,000?10,000?????????1000??) - The inventory is 30,000 tons of steel and 2,000
tons of aluminum. (????3????2????) - The current number of customers is about
300.(???????300?)
6Organization Chart
7Operation---Purchasing Mode
Regular Purchasing
8Operation---Manufacturing Mode
9Operation---Functional Module of ERP
10Preliminary Study
11The Steel Industry
- Customers need a middleman
- Order times are small
- Need more cooperation within depts.
12Requirements
- Make-to-order
- Optimize manufacturing process
- Budget control
- A code management system
- Take customs into consideration
13The Bonus System
- PBT
- Rewarding sales dept
- Fluctuating profits on steel
14Price Index System
- London Metal Exchange
- Mysteel Price Indices of China
- Indices and Aucksun
15Literature Review
16Literature Review
- Eliminated some literature on inventory.
- Reviewed new literature on price indices.
- Created new format
- Risk
- Supply Contracts
- Price Indices
17Methodology
18Methodology
- First Objective Identify the problem.
- Method Examine Aucksuns main risks
- Inventory
- Supply
- Price
- Customer Segmentation
- Method Communicate with management.
19Methodology
- Second Objective Understand how indices are
created. - Method Study LME Index.
- Method Study existing steel indices and their
relationship with the index we want to create. - Method Examine risk factors that may influence
the index we want to create. - Method Determine which data will need to be
collected. - Method Collect data.
20Methodology
- Third Objective Develop and implement an index
for the current problem. - Fourth objective Evaluate the implemented index.
21Results and Findings
22The existing bonus system in Aucksun
Price of productions
- The reset price reflects the changing raw
material prices.(????????????????) - Although there are many other object factors in
this formula, but they are stable in
general.(?????????????,??,????,????????) - The ? stands for the added value of the products,
and this is the exact factor that could be used
to evaluate the performance of the sales
employees.(??????????,?????????????????)
23Price index for aluminum productions
LME index is a price index for aluminum.
(????????????????) To Aucksun ,the price of
aluminum production is Price LME Processing
Fee ? ? is a value to measure the salesmens
performance. (??????,??????? ?? LME ??? ?,
???????????????)
But, what about steel productions?
24The existing index for steel price index
- Myspic is short for Mysteel price indices of
China. The price information used by Myspic is
the daily concluded price in the market from
seven big cities in China, they are Shanghai,
Guangzhou, Beijing, Wuhan, Chongqing, Shenyang
and Xian.(Myspic????????????(????????????????????)
????????)
25The existing index for steel price index
Preset MySpic Index MySpic Index Price
MySpic Index Price is a value that Aucksun set
depending on their experience.(Myspic?????????????
?????)
26Other indexCRU
- The CRU Steel Price Index is a leading indicator
of steel price trends. There are eight indices
are weighted and compiled to form the CRUspi
indices. (CRU???????????????????,????????????) - On the CRU website there is a Market Analysis
page in which the monitors listed above can be
examined. The analysis of these monitors also
provides historical and statistical data on steel
indices, along with written analysis by CRUs
full-time steel analysts with respect to market
fundamentals and other important aspects. There
is a new CRUspi Futures service at
www.crumonitor.com which examines, in detail,
forecasts for the steel indices for the future
18-24 months.
(?CRU???????????????????????????????????????????
,??CRU????????????CRU?????,????1824?????????)
27Results and Findings
CRU Myspic
Existing index
SPSS
Index
CPI of Home Applicants
28Future Plan
29Plan for Next Week
30Questions for Discussions
1.Is SPSS a suitable tool for the project? Or
what tools will be useful,except SPSS? 2.What
kind of help can we get from the master students?
And Who is going to help us?