Osram Sylvania Case Study
February 15, 2015
Osram Sylvania – Global Business OSRAM SYLVANIA continues to affirm its position as a global lighting leader, introducing innovative products that deliver energy savings, reduce impact on the environment and provide operational cost savings to end users. Innovation drives our growth and helps us maintain a strong patent portfolio of cutting edge lighting solutions.
OSRAM SYLVANIA is the North American business of OSRAM AG of Germany, one of the world's largest manufacturers. The company manufactures and markets a wide range of lighting products for business and industry, consumers, for the automotive industry, and for the computer, aerospace and other major industries worldwide. …show more content…
Osram sent employees over to Juarez to train them on the process and equipment so the transition went smoothly. Although there was a language barrier, and cross-cultural training the transition went well and on schedule. Over the last ten years, most areas were now fully automated, working with less employees and managing with a more diversity team. More skilled labor and management who understood the business cycle. Most of Osram business cycle would increase at the end of August, which they called “in lighting season”. The cycle would start to decrease in February and run at a steady pace. In July, most of the plants in US would have a one or two week shut down to keep inventories down.
Assembled parts and products are now also being offshored from US to be finished in China and Mexico. Assembled parts from Germany that were finished in US are now offshored to China. Example: they have done testing on the glass to get it from China instead of Central Falls RI. Parts from York, PA have tested and are receiving them from China as …show more content…
The biggest challenges they face is the quality of products made to standards, but to international standards not to the way of the US. Example: In review of some rework where a trailer with product from Juarez Mexico caught on fire, viewed and sorted the product in is entirely. Some of the defects seen not related to the fire damage, we would never pass here in the US. With that, issue management might take place along with a legal audit and possible alternative dispute resolution. Issue management faced another challenge when this article below made this US announcement. MANCHESTER, N.H. —One of the biggest manufacturing employers in the state, Osram Sylvania, has announced that it will be closing its Manchester facility. The facility will close in September, resulting in 139 workers losing their jobs.
Its part of a group of closings that include plants in Central Falls, Rhode Island with 88 workers and York, Pennsylvania with 70 plus