Analysis and optimization possibilities for RijnPlant China co (summary)

ME2110-10

– J.G. Engbers 1365517

2

Abstract

The Dutch greenery sector is leading in the world. Dutch companies are expanding to the BRIC

countries. Since the Diamond of Porter isn’t as well developed in the BRIC-countries as in the

Netherlands, an evaluation is required. The analysis of Diamond of Porter for the Dutch greenery

sector shows much competitive advantages. Only the primal factor conditions, like the weather,

are sometimes more appropriate in other countries.

An important aspect that influences the business of a company is the cultural difference. A

company needs to cope with these cultures, because it can and will influence the possibilities for

success. With the use of a Hofstede analysis, the cultural differences between the Dutch and

Chinese culture were compared. In every index of the analysis the culture turned out to be

completely the opposites of each other.

RijnPlant China is producing single rooted plants and 9cm pot plant anthuriums for the Chinese

market. This production takes place in a greenhouse in Donghai statefarm, nearby Shanghai. A

controlled environment is necessary for the grow process of anthuriums, in order to ensure an

efficient growth and a high quality product. Problems in environment control occur, due to the

poor quality of greenhouse systems. Regular maintenance and inspections can lead to an

increased reliability.

The input for RijnPlant China is the single rooted plants which are imported from the

Netherlands. These plants are grown to a finished product for the Chinese market. Unfortunately

the reliability of the supplying partner, RijnPlant Breeding, is lacking. The plants are often not

delivered on time or in the right quality, quantities and varieties, altogether this leads to

production and customers’ deliverance instability. Due to firm obligations changing to another

supplier isn’t an option, but decoupling of input is possible by producing the single rooted plants

in China, by cutting multiplying.

During the internship all processes were observed and it was seen that employees execute a lot

of different tasks, but also in different ways. To improve productivity and quality, working

methods need to be standardized. This can be achieved by creating standard work places for the

processes and by introducing standard work instructions. Especially, for the new process “cutting

multiply-ing” standardized work methods with work instructions need to be developed, since

accuracy is necessary.