Improving profitability in saint gobain abrasives VN

      MBQP PM4 Stu udent nam me: NGU UYEN VA AN CHI Subbject: IMP PROVING PROFITA ABILITY IIN SAINTT- GOBAIN N ABRASIIVES VN MASTE ER FINAL L PROJEC CT Maaster in Busineess Quallity and d Perforrmance Managgement Ho Chi Min nh City (20144)            MBQP PM4  Suubject: IM MPROVIN NG PROFITTABILITY IN SAINTT  GOBAIN N ABRASIVES VN NGUYEN V VAN CHII  MASTEER FINA AL PROJEECT  MASTER R IN BUSIN NESS QUA ALITY AND D PERFORM MANCE M MANAGEM MENT  T Tutor’s n name: D Jacqu Dr ues Marttin Ho H Chi Minnh City (20144)       Statement of authentication I hereby declare that I have written the present thesis independently, without assistance from external parties and without use of other resources than those indicated The ideas taken directly or indirectly from external sources (including electronic sources) are duly acknowledged in the text The material, either in full or in part, has not been previously submitted for grading at this or any other academic institution Ho Chi Minh City; June, 2014     Acknowledgements On this exciting course I had the opportunity to meet people from different cultures, backgrounds I would like to thank all the professor and all the people who helped and supported me during this course Firstly I would like to thank Dr Jacques Martin had helped to introduce the knowledge of this course and co-ordinate with other professor to guide us in professional methods And I would also like to thank for all support from Dr Christina Koutra, Dr Jean Philipp Pireaux, Dr An Le Quang, Dr Antigoni Papadimitriou, Dr Michel Brotto, Dr Pierre Crapanzaro, Dr Paolo Braguzzi, Dr Rohan Wright, Dr Gaetan Dartevelle, Dr Vallat David that they have given to me throughout my time at University Secondly I would like to thank Open University had supported all facility, documents,… to us to study well, especially I would like to thank Mrs Hien, She has co-ordinated well and supported to us to complete this course on time and get more knowledge and experiences Thirdly I would like to thank our team, Mr Phuc, Mr Tuan, Mr Quang Anh, and other classmate had helped and supported me a lots in almost subject I hope we continue keeping the contact and become a good friend in the future       Table of Contents Description page number Statement of authentications Acknowledgments Contents List of abriviations and/or symbols I Introduction and Saint-Gobain Abrasives profile II Sales analysis II.1 SWOT Analysis II.2 PEST Analysis II.3 Strategic in 2014 14 II.4 Sale history 17 III Break-even point analysis and how to get its in 2014 22 III.1 Break-even point definition 19 III.2 Break-even point in 2013 25 III.3 Break-even point in 2014 27 IV Improvement recommendations 37 V Conclusions 38 VI Reference list / Bibliography 39 VII Annex 40 List of abriviations and/or symbols R00 Net sales : Revenues R25 Total COGS: Cost of goods sold R31 Mfg Variance: Manufacturing Expense R32 Exception MFG EXP & Income: Other income R51: Marketing, Customer Service, Product Management & Sales Force       I   Introduction The purpose of this report is to provide you the overview of my organization with the convenience and difficulty and the challenge that we are facing with my business in Viet nam market And in this report I would like to analysis the sale number and the loss/profit after some years we invest in Viet nam Especially I would like to use my knowledges and experience to improve the profit in this business when we are still lossing money after having Coated Abrasives Plant in Long Thanh plant Saint-Gobain Abrasives is a sector of Compagnie de Saint -Gobain, a multinational corporation with headquarters in Paris, France Saint-Gobain operates more than 1,000 consolidated companies in 46 countries, employs over 170,500 people, with annual sales of over $33 billion Saint-Gobain companies lead the world in a number of engineered materials market segments, including advanced ceramics, abrasives, insulation, containers, packaging, high-performance plastics, and building materials Saint-Gobain Abrasives has manufacturing capabilities in 39 countries Our research and development teams are continually upgrading our product offering based on market needs and new technology Our goals are to solve grinding and cutting user problems, increase productivity, and provide a lower total grinding and cutting cost Saint-Gobain Abrasives is the overall Full Line technical leader in the abrasives industry The company manufactures and markets with Bonded, Coated, Super abrasives, construction products and Thin Wheels Norton, a brand of SAINT-GOBAIN, is the world leader in abrasives - providing solutions for industrial manufacturing and maintenance, auto repair, construction, and the home improvement market Whether you want the highest productivity with the lowest total cost or simply consistent performance at a low initial price, Norton has the best product for all your grinding, cutting, sanding, blending, finishing and polishing needs I would like to introduce about business in Viet nam In August 2011, We had opened a new plant and located at Long Thanh Industrial Part in Dong Nai Province Viet Nam, 40km         far from HCM city Until now with approximately more than years operation Mainly objectives of this plant is manufactured and distributed all kind of abrasives products in Saint-Gobain Group in Vietnam market We are still newly in Vietnam Market, so beside increase sale number we also have responsible to give awareness of Norton products to consumers for long term strategy Some general information above just provided an outline of my company and you can access to website: www.SaintgobainAbrasives.com for more additional information about our company business Main products distributed in Vietnam: To serve the Viet nam market, we distributed almost Abrasives Products in Viet nam, like Bonded Abrasive for Automotive industrial, Coated Abrasive for Wood and metal application, Thin wheel is for Cutting and Griding metal or inox Construction products for Construction application and a lots of other products come from other country to supply to Viet nam In over the World The products of Saint-Gobain is the top products of market as below table So we are proud of our safety products and bring more profit to end-user and customer Below table are the products that Saint-gobain contributed in Vietnam market         II Sales analysis (use SWOT and PESTEL) Sale revenue historical and target in 2014 II.1 SWOT analysis   Firstly, I would like to determine my organization's strong points: STRENGTHS Our company has excellent R&D Saint-Gobain has invested so much on R&D, in 2007 we invest 345 million euro for R&D center, and following estimate every month, we have new investment of new field or new products in over the world That is the reasons and one of the most important key is design and technology Being on the edge of design and technology has allowed Saint-Gobain to become a good selection of customer and end-user Every year, our R&D department has released so many new improvement products All of them are big customers and very famous brand names in industry As a result, that brings us a lot of business for Saint-Gobain every year and make our brand name becomes more famous With all of that, our products own high competitive properties in the market We are just a branch of Group, but we got a lots of benefit from the investment and products and we believe in our products and can believe to introduce to customer         Our company has good quality system All customers come to our factory to visit every times they feel very comfortable and believable on our quality systems and safety ways We got good comments from customer on my side of organization, 5S We have all procedures for all process with person in-charge and quality control we have verification procedures to make sure we can contain if any non-conforming product go to our customers Besides that, doing training and carrying out continuous improvement activities are daily activities in our company of management people We focus on our plan to make sure all of our people focus on quality Our company has excellent human resources All member in Viet nam team are working for Saint-Gobain Vietnam almost more than years and some of them joined with us from the beginning time when launching our facility They almost graduated from well-known college or university with more than years That is strong point of my company because human resource is one of the leading factors lead our company to be successful To keep all management people staying with us for a while is not easily Our management board always tries their best to create good and comfortable working environment for all of staffs to develop their working skills and their talents Because of that, I strongly believe that our company has very good environment for people not only work and develop carrier opportunities but also build the re elationship/friendship/team work for all of us All departments in us are working closely with each other Every time we need support, we can access related people to get help easily Some Experts from SAP system or Products manager often go to Vietnam to work with us, training for us monthly and some of us went to source plant for training as well in the case need about products or technical Especial Vietnam team, we have normally daily meeting, we can show the issue and get advice or solution from the boss or other staffs, so we can solve the issue as soon as So I believe that we are existing good friendship in this business Our company has well-known brand name and becoming more and more famed Looking to our website, you can perceive the data charts show that our products is the number one or one of the leader abrasives in over the world We are the first place and our main competitions are 3M and Noritake in the second and the third place         respectively We are still on the process to make our brand name become more and more famous We have good customer service Not only delivery schedule on time and good quality, but also the service for customer after the customer bought our products If any defect or issue, customer can contact to our quality department to double check and we will investigation right away and have replacement for our customer in the case we see that is our mistake even one or two shafts We also create the report to keep track and evaluate satisfaction of our customers Secondly, I would like to determine my organization's weak points: WEAKNESSES The customer design requirement good products but cheap, they always like compare our products with China products and they offer the price is not so good so that also really challenges our company to be more success, keep our competitive without influence to our business profit We are new in Viet nam market, can say that we are retail business We work with distributor, we also work with customer and end-user to sell products or expand the market So we need the big human to call them or visit them and negotiate with them And we must show to them all the evidence related to quality, performance, technical support Almost Wood and furniture company are China and Taiwan they only like their product Chinese people always like their local manufacturers satisfied their requirements; it is very hard for us to enter to those kinds of markets We need to more marketing and make more study on their hobbies/ their favorites For now, I still not see our company have more approach on these matters I think they are on process and we can see the result on couple years later Thirdly, I would like to determine my organization's OPPORTUNITIES: The routine of new products nowadays is becoming shorter and shorter - that tendency is taking place on every field of manufacturing with no exceptional We need innovation and upgrade our products as soon as we can to satisfy our customers That means if we can have good plan on products development and we have good plan to dominate markets We will have a chance to increase our competitiveness and good business I strongly believe that Norton products can be adapted in this field We are     33     As you know, promoting our brands and products is very important for our business Customers, industrial customers in particular, care very much about our brand’s reputation, and it is critical to keep that reputation at a high level We have decided to triple our Marketing budget this year, this year we will participate directly to at least industrial exhibition in each SEA country, We are also launching other Marketing initiatives, such as creating a new corporate website, and a corporate brochure Saint-Gobain Abrasives participated in MTA Vietnam 2014 in Ha Noi, one of the most important industrial fairs in South East Asia More than 120 visitors were interested in our products All product managers helped our team in Vietnam to prepare this event IV.6 Survey customers We will resurvey customer to know our current products performance and services and price also And we will know where Norton products stand and what we need to improve in the next year or some next year in the long strategy And also ask them for their requirement from us From that we can improve the service and products performance and then can satisfy their requirement IV.7 Training to sale team to know how to approach to potential customers To build a strong sale team that can negotiate with the customer We need to ask Products Manager of each business come to Viet nam often to the training the technical and products application and how to solve the issue on products when doing the sale Or we can send some of sale man go to the source plant to the chain to produce the raw material or finish goods products Moreover we will ask HR local to the training sale skill to them like talk, present and negotiate with customer IV.8 Make a survey on staff if they have any ideas to grow the business and whether we need to improve     34   Generating Question If you Answser (short answer) are   Note the responsible person in the company, which wishes would you like to first? 2.What is the best things need to improve to your job get the highest performance? 3.Which is the things don’t you like about your current job? Culture/people question 1.Do you feel comfortable when talking with your supervisor or boss about the job? 2.Is your boss qualification is ok? 3.Is your boss friendly ? 4.Do you get the training or coaching to well your job? Does your job plan per daily/weekly? 6.Does your team accept the poor people? IV.9 Do partner:     Answer(Yes/No) qualification   35   With a new and potential company, new customer, new products, new services, new market BA/SA: reduce lead-time TW: reduce lead-time, review price and brand position, consistence in quality CP: offer larger range of products: medium to premium price Access more to direct key end-users: marketing and commercial issues Retail market: marketing-communication needs to let people know more about NORTON brand For the current customer, we will continue keeping the relation ship and have plan to work with them to develop the Norton products in Vietnam We will find more potential or new customer in new area to introduce products And will have long strategy with them and maybe introduce the new products or new field of SaintGobain products to Vietnam for new distributor if possible That mean we can expand the market and increase the sale volume IV.10 Diversify To get more market and adapt the requirement from customer We plan will import more products from other Saint-Gobain in over the world to sell in Vietnam like more special disc, flap disc, beartex, and we will convert some of them in Vietnam plant So the customer will have much more choices and we can expand the market and customer also to get more profit for business IV.11 Quality and safety Improving the quality of products is one of our strategy and objective We will set up more the procedure to control the quality of products in the process from incoming material to final To make sure all of products before delivering to the customer to be check 100% quality pass and no issue no complaint from them We also the training to operators They are the person in charge to check the quality of products on process So need to help them to understand the important of quality to products We also focus on safety on process, that is first our priority we control the safety by wearing the uniform and safety equipment We will build a safety culture in our business So the customer or visitor go to visit our site They can believe in our products and our performance and it creates more competitive advantage to competitor and help the customer change and keep their mind with safety products and safety process       36   IV.122 Stock levvel To gget more profit p we need n to clear stock, inn particulaar R206 (990K EUR) and R243 (25K K EUR), H231 H (20k EUR) E In our o stock of raw mateerial, We are a having keep k somee old with w over years It is a not so o good quality produ ucts, so wee have to clear c all off them m by selling promotioon to custoomer Moreover now w we normaally keep the t trading g stockk for distriibutor Wee import frrom other country annd stock in n our plantt in or monnth for theem It’s not n good for f financee managem ment So we will work w with h distrributor to let them keeep stock for fo us or caan share 500% of stockk keeping for us and d Sainnt-Gobain Below B tablle is the ressult after we w somee action to reduce stock IV.133 Training g to Distribbutor To hhelp the disstributor’s sale team have enough knowleedge of prooducts or teechnical off prodducts to inttroduce to customer We have to the training t to o them Noormally wee havee meeting with w them every mon nth And we w will be together t with them too solve thee any issue if haave complaain from cuustomer And A each month wee have traiining from m sale manager and a Produucts manag ger to sale force of distributor d Our objective is to o becoome a expeert of this field f We can c go to D Distributor site to the training and helpp to soolve the prooblem andd can go to the custom mer site dirrectly to heelp them trraining thee       37   operators how to use the well our products and maximize the profit of products and how to use it in safety way IV.14 Be flexible KPIs service As you see in the below table of delivery time to customer In 2012 the delivery on time is not so good, so we get so much complaint from customer on it, especially it happen to BA products import from China In 2013 we had improved so much and done so much action to improve it Like control the PO date, control the schedule from source plant and negotiate with customer about the delivery time, normally we need to to 12 weeks to finish one order for BA So we negotiated with customer with maximum is 12 weeks for sure, however we will send goods to customer sooner if the goods arrive soon We also need be flexible on some case Can be shipped totally or partial to customer in case of they need the goods in urgent or we can the outsourcing from other supplier with the quality control IV.15 WCM approaching World class manufacturing is our strategy and objective in next years Saint-Gobain has build WCM of some plant in over the world like USD, Canada, Thailand That is competitive advantage of us So Vietnam will have plan to build WCM to control the healthy and safety well or can control the risk prevention And can get all objective as the below pillar of our objective       38   V Conclusion: I can say that Saint-Gobain is still new in Vietnam with years Every our manager come to Vietnam, all of them say that Vietnam is potential market so we strongly believe in their eyes We still loss in 2013 but as above my action plan We strongly believe that we can get the objective and get profit in 2014 and the next time We still have so many difficult things to to pass but with the human resource we can work closely and together pass this hard time We also have long strategy to develop the Norton products in Vietnam so our big boss and our local team will work together and following the strategy and objective We can gain more 10% the market share and get more profit VI Reference list / Bibliography Aubrey, C.A and Felkins, P.K (1988), Teamwork: Involving People in Quality and Productivity Improvement, American Society for Quality Control (ASQC) Press, Milwaukee, WI Bernard Marr (2006), “StrategicPerformance Management”, ButterworthHeinemann, Oxford Mary Beth Buckman and James Buckman(2013) The Corning Journey to PerformanceExcellence: Innovation SpanningThree Centuries Herzberg, F., Mausner, B., &Snyderman, B B (1959/1993) The motivation to work New Brunswick, NJ: Transaction Publishers       39   Robert D Buzzell and Bradley(1987) The PIMS Principle: Linking strategy to performance(New York,NY:Free Press, 1987) Robert M Grant(1991)The resource – Base Theory of competitive advantage(California, spring 1991) Buzzell, Robert D., Bradley T Gale, and Ralph GM Sultan "Market share–a key to profitability." Harvard Business Review 53.1 (1975): 97-106 Anderson, Eugene W., ClaesFornell, and Roland T Rust "Customer satisfaction, productivity, and profitability: differences between goods and services." Marketing science 16.2 (1997): 129-145 Narver, John C., and Stanley F Slater "The effect of a market orientation on gbusiness profitability." The Journal of Marketing (1990): 20-35 10 Russo, Michael V., and Paul A Fouts "A resource-based perspective on corporate environmental performance and profitability." Academy of management Journal 40.3 (1997): 534-559 11 Ali, Abdul, Robert Krapfel, and Douglas LaBahn "Product Innovativeness and Entry Strategy: Impact on Cycle Time and Break even Time." Journal of product innovation management 12.1 (1995): 54-69 12 De Kok, A G., K H Van Donselaar, and Tom van Woensel "A break-even analysis of RFID technology for inventory sensitive to shrinkage." International Journal of Production Economics 112.2 (2008): 521-531 13 Blanchard, Benjamin S., Wolter J Fabrycky, and Walter J Fabrycky Systems engineering and analysis Vol Englewood Cliffs, New Jersey: Prentice Hall, 1990 14 Ekren, Orhan, Banu Y Ekren, and BarisOzerdem "Break-even analysis and size optimization of a PV/wind hybrid energy conversion system with battery storage–a case study." Applied Energy 86.7 (2009): 1043-1054 15 Lewis, Virginia L., and Neil C Churchill "The five stages of small business growth." Harvard business review 61.3 (1983): 30-50 16 Global Benchmarking Center, “Pricing Effectiveness Global Benchmark Study,” Deloitte Consulting LLP, August 2011 17 Global Benchmarking Center, “Pricing Effectiveness Global Benchmark Study,” Deloitte Consulting LLP, August 2011     40     18 Global Benchmarking Center, “Pricing Effectiveness Global Benchmark Study,” Deloitte Consulting LLP, August 2011 19 Based on The 2011 Shift Index (Deloitte Development LLP) of Compustat data; Impact estimated based on the average Fortune 1000 company 20 Global Benchmarking Center, “Pricing Effectiveness Global Benchmark Study,” Deloitte Consulting LLP, August 2011 VII Annex Annex Cost element in 2013(Fixed cost)  Cost  Cost Element  Cost  Element  Desc  Center  Non stock mat 2141225 HR/IT/ADMIN  60613000  Oil  Cost Center Desc  ALL  Cost  Operati  Actual  type  ons  Expense                              Fixed  R31                             2141225 HR/IT/ADMIN  60614000  Steam Charges  ALL  Fixed  R31  ALL  Fixed  R31  Vietnam  Fixed  R51  ALL  Fixed  R31   SITE COSTS  Fixed  R31  Vietnam  (69.18)                           2142500 Sales Force  60640000  Office&IT supplies  281.48                         2141225 60640000  Office&IT supplies  10.00                         2141225 HR/IT/ADMIN  60640000  Office&IT supplies  0.45                            2142500 Sales Force  60634000  EHS Expenses  5.23                              2141225 HR/IT/ADMIN  60634000  EHS Expenses  2.56   Fixed  R51  25.09   Fixed  R52  1.18   2143200 Vietnam General  60640000  Office&IT supplies  Mgmt  Other  2141225 HR/IT/ADMIN  60670000  consumables  Gal subcont 61110000  Security      ALL                             Fixed  R31                        2141225  SITE COSTS  6.44   Fixed  R31  276.00   41   Gal subcont 61130000  Cleaning  Gal subcont 61140000  Other  Gal subcont 61140000  Other                          2141225  SITE COSTS  Fixed  R31                        2141225 HR/IT/ADMIN  ALL  Fixed  R31  Fixed  R31  Vietnam  Fixed  R51  Vietnam  Fixed  R51  ALL  Fixed  R31  Vietnam  Fixed  R51  Mgmt  Fixed  R52  Prodn.Supp (Fix  Fixed  R31  Maintenance 61510000  building  Maintenance 61520000  machiner  Mainten 61530000  Mold/tools  Ins. prem 61610000  Multirisks  Professionnal  62230000  fees  Professionnal  62230000  fees  Professionnal  62230000  fees  62240000  Audit, consulting       SITE COSTS  Fixed  R31  Fixed  R31  Fixed  R31  Fixed  R31  Fixed  R31  Fixed  R52  503.91                         2143200 Vietnam HR  12.50                         2143100 Vietnam Finance  1.41                            2141225  SITE COSTS  0.38                              2141225 HR/IT/ADMIN  ALL  5.28                              2141225 HR/IT/ADMIN  ALL  1,769.66                              2141225 HR/IT/ADMIN  ALL  25.48                      2141225 61330000  Other rentals  21.12                            2141111 61330000  Other rentals  43.38                            2143200 Vietnam General  61320000  Car rentals  23.09                            2142500 Sales Force  61320000  Car rentals  331.99                            2141225 HR/IT/ADMIN  61320000  Car rentals  503.99                         2142500 Sales Force  61240000  Car lease  348.62                         2142500 Sales Force  61220000  Office lease  (34.59)                        2141225  SITE COSTS  106.39   Fixed  R52  233.31                            2143200 Vietnam General  Mgmt  Fixed  R52  31.76   2141225 HR/IT/ADMIN  Fixed  R31                        42   fs    ALL (15.37)                            2141225 HR/IT/ADMIN  62260000  Other fees  ALL  Fixed  R31                             2142141 62260000  Other fees  Customer Service  Fixed  R51  Marketing  62310000  expenses  Mgmt  Fixed  R52  Fixed  R51  Vietnam  Fixed  R51  ALL  Fixed  R31  ALL  Fixed  R31  Travel & Hotel  62510000  exp  Travel & Hotel  62510000  exp  Travel & Hotel  62510000  exp  Travel & Hotel  62510000  exp  Vietnam  Fixed  R51  Fixed  R31  Customer Service  Fixed  R51  Fixed  R51  Fixed  R52  Customer Service  Fixed  Vietnam  R51  THP travel  62520000  expenses  THP travel  62520000  expenses      Mgmt  Fixed  R51  Fixed  R52  21.92                              Fixed  R31  8.66                            2142500 Sales Force  Vietnam  72.21                            2141225 HR/IT/ADMIN  ALL  5.88                            2143200 Vietnam General  62515000  Airfare Travel Exp  33.11                              2142500 Sales Force  62515000  Airfare Travel Exp  8.63                            2143200 Vietnam General  2142141 62515000  Airfare Travel Exp  0.34                              2142500 Sales Force  Mgmt  4.80                              2142141 Vietnam  89.48                              2141225 HR/IT/ADMIN  ALL  1.70                            2142500 Sales Force  62480000  Other freight  4.13                              2141225 HR/IT/ADMIN  62480000  Other freight  12.87                              2141225 HR/IT/ADMIN  62330000  Gifts  9.25                            2142500 Sales Force  62310800  Other makt. exp.  0.13                              2142500 Sales Force  Vietnam  1.03                              2143200 Vietnam General  62260000  Other fees  1.76   Fixed  R51  27.01   43   THP travel  62520000  expenses                             2143200 Vietnam General  Mgmt  Fixed  R52                             2141225 HR/IT/ADMIN  62540000  Entertaining costs  ALL  Fixed  R31  Mgmt  Fixed  R52  ALL  Fixed  R31  Telecommunicati 62620000  ons  Vietnam  Fixed  R51  Fixed  R31  ALL  Fixed  R31  Vietnam  Fixed  R51  Mgmt  8.92                              2143200 Vietnam General  62621000  Mobile Phone  28.95                              2142500 Sales Force  62621000  Mobile Phone  15.66                            2141225 HR/IT/ADMIN  62621000  Mobile Phone  5.58                            2141225 HR/IT/ADMIN  ALL  58.20                              2142500 Sales Force  62610000  Postage  11.89                            2141225 HR/IT/ADMIN  62610000  Postage  0.23                            2143200 Vietnam General  62540000  Entertaining costs  25.61   Fixed  R52  4.98   Fixed  R31  (2.63)  2141111 62840000  Training  Prodn.Supp (Fix                             2143100 63540000  Other Taxes  Vietnam Finance  Fixed  R52                        2141111 64211000  Salaries  Prodn.Supp (Fix  Fixed  R31  ALL  Fixed  R31  Customer Service  Fixed  R51  Vietnam  Fixed  R51  Salaries   Soc  64211500  funds  64211500  Salaries   Soc      Mgmt  Fixed  R52  1,081.37                         2141111 Prodn.Supp (Fix  445.37                      2143200 Vietnam General  64211000  Salaries  176.68                         2142500 Sales Force  64211000  Salaries  3.13                         2142141 64211000  Salaries  610.30                              2141225 HR/IT/ADMIN  64211000  Salaries  1.00   Fixed  R31  148.40   2142141 Customer Service  Fixed  R51                           44   funds  Salaries   Soc  64211500  funds  Salaries   Soc  64211500  funds    51.42                        2142500 Sales Force  Vietnam  Fixed  R51                           2143200 Vietnam General  Mgmt  Fixed  R52  Prodn.Supp (Fix  Fixed  R31  Customer Service  Fixed  R51  Vietnam  Fixed  R51  Health care  64510000  contribu  Health care  64510000  contribu  Health care  64510000  contribu  Mgmt  Fixed  R52  Fixed  R31  Fixed  R51  Fixed  R52  Miscellenous  64830000  expense  Miscellenous  64830000  expense  Various  65150000  concessions  ALL  Fixed  R31  Fixed  R31  Fixed  R31  Fixed  R31  Depr 68112400  Plant&Machinery  Depr 68112400  Plant&Machinery  Depr  SITE COSTS  Fixed  R31  Fixed  R31  Fixed  R31  2141300 Warehouse,  R2t5  68112400  Plant&Machinery      Shipping  32.53                         2141225  SITE COSTS  30.70                            2141110 Quality  277.51                            2141225 68112000  Depr Buildings  0.40                         2141225 HR/IT/ADMIN  ALL  4.15                              2141225 HR/IT/ADMIN  ALL  66.25                              2141225 PLT MGMT/SUP  OH  3.04                            2141225 HR/IT/ADMIN  64730000  Canteen  1.59                              2143200 Vietnam General  Mgmt  53.06                              2142500 Sales Force  Vietnam  164.88                            2141225 HR/IT/ADMIN  ALL  50.90                         2143200 Vietnam General  64231100  Salaries Bonus  14.12                            2142500 Sales Force  64231100  Salaries Bonus  48.12                            2142141 64231100  Salaries Bonus  80.52                            2141111 64231100  Salaries Bonus  139.21   Fixed  118.14                              3.70   45   Depr Transport  2141300 Warehouse,  R2t5  68112500  Equip  Shipping  85.33   Fixed                           2141111 68112600  Depr Office equip  Process.Engg  Fixed  R31  OH  Fixed  R31  ALL  Fixed  R31  Vietnam  Fixed  R51  Mgmt  Fixed  R52  OH  8.33                            2141225 PLT MGMT/SUP  68112700  Depr Furnishings  25.97                              2143200 Vietnam General  68112600  Depr Office equip  2.56                            2142500 Sales Force  68112600  Depr Office equip  67.30                              2141225 HR/IT/ADMIN  68112600  Depr Office equip  13.55                            2141225 PLT MGMT/SUP  68112600  Depr Office equip                             Fixed  R31  48.12                      Total Fixed Expense  8,769.52   Annex 2: Cost element in 2013(Variable cost) Cost  Cost Element  Cost  Cost Center  Cost  Operati  Actual  Element  Desc  Center  Desc  type  ons  Expense   Non stock mat 2141111 Utilities  60610000  water  Non stock mat 60611000  electr  (variable)  2141111 Utilities  (variable)  2141200 64211000  Salaries  2122   Slittiing  2141200 2122   Narrow  64211000  Salaries  Belts  2141200 2122  Wide  64211000  Salaries  Belts  2141200 64211000  Salaries  64211000  Salaries      e  / Dis  R31  e  R31  R31  R31  R31  92.135714                Variabl R31  101.679985                  Variabl e  95.342887                  Variabl e  69.253216                  Variabl e  80.87                  Variabl e  10.48                            Variabl 2122 Joint Prep  e  2141201 2122   Packing                           Variabl R31  10.592493     46 Salaries   Soc  64211500  funds  Salaries   Soc  64211500  funds  Salaries   Soc  64211500  funds  Salaries   Soc  64211500  funds  Salaries   Soc  64211500  funds  2141200 2122   Slittiing  2141200 2122   Narrow  Belts  2141200 2122   Wide  Belts  2141200 / Dis  2141200 64231100  Salaries Bonus  2122   Slittiing  2141200 2122   Narrow  64231100  Salaries Bonus  Belts  2141200 2122   Wide  64231100  Salaries Bonus  Belts  2141200 64231100  Salaries Bonus  Depr 68112400  Plant&Machinery  Depr / Dis  2141200 2122   Slittiing  2141200 2122   Narrow  68112400  Plant&Machinery  Belts  Depr 2141200 2122   Wide  68112400  Plant&Machinery  Belts  Depr 68112400  Plant&Machinery  2141200 68112600  Depr Office equip  2122   Slittiing  2141200 2122   Narrow      e  91012000  CA: Labor  Belts  91012000  CA: Labor  2141200 2122   Wide  R31  R31  R31  R31  R31  R31  R31  R31  R31  15.721070   0.613380                         R31  242.13                            Variabl R31  28.06                         Variabl R31  152.34                         Variabl R31  185.80                              Variabl R31  4.22                         Variabl e  8.945965                     Variabl e  8.586825                  Variabl e  8.700048                     Variabl e  3.301320                     Variabl e  33.623027                     Variabl e  30.477801                     Variabl e  31.437170                  Variabl e  22.481299                  Variabl e                   Variabl 2122 Joint Prep  e  2141200 91012000  CA: Labor  e  2122 Joint Prep  e  2141200 R31  Variabl 2122 Joint Prep  e  2141201 2122  Packing  64231100  Salaries Bonus  e  2122 Joint Prep  e  2141201 2122  Packing                 Variabl R31  (19.54)                        Variabl e  R31  (12.09)  Variabl R31                        47   Belts 2141200 91012000  CA: Labor  / Dis  2141200 91012100  CA:Machine  2122   Slittiing  2141200 2122  Narrow  91012100  CA:Machine  Belts  2141200 2122   Wide  91012100  CA:Machine  Belts  2141200 91012100  CA:Machine  / Dis  Total Varible Expenses         Variabl                       R31  e  R31  R31  R31  R31  (57.55)                           Variabl R31  (3.93)                           Variabl e  (71.58)                        Variabl e  (179.14)                        Variabl e  (2.12)                      Variabl e  (19.65)                           Variabl 2122 Joint Prep  e  2141201 2122   Packing  91012100  CA:Machine  (15.21) 2122 Joint Prep  e  2141201 2122   Packing  91012000  CA: Labor    e R31  (0.08)  855.91  ... solve grinding and cutting user problems, increase productivity, and provide a lower total grinding and cutting cost Saint-Gobain Abrasives is the overall Full Line technical leader in the abrasives. .. profit in this business when we are still lossing money after having Coated Abrasives Plant in Long Thanh plant Saint-Gobain Abrasives is a sector of Compagnie de Saint -Gobain, a multinational... at a low initial price, Norton has the best product for all your grinding, cutting, sanding, blending, finishing and polishing needs I would like to introduce about business in Viet nam In August