<map version="0.9.0">
<!-- To view this file, download free mind mapping software FreeMind from http://freemind.sourceforge.net -->
<node CREATED="1303657162660" ID="5kkjbv4reqeminian9k0t7cu0m" MODIFIED="1303657162660" TEXT="Scotts Spreader &#xd;&#xa;Sourcing Decision">
<node CREATED="1303657162660" ID="0a3lj4k7h1psjcg0v6ujr8t4ne" MODIFIED="1303657162660" POSITION="right" TEXT="Business Opportunity">
<node CREATED="1303657162660" ID="6vg2e7qdepof2g7lufgd7aa2ns" MODIFIED="1303657162660" TEXT="Move Production to China"/>
</node>
<node CREATED="1303657162660" ID="6gbacd9ii97ubqg52akcd85dmo" MODIFIED="1303657162660" POSITION="right" TEXT="Alternatives">
<node CREATED="1303657162660" ID="736h2topuhv73tunccaacs9ide" MODIFIED="1303657162660" TEXT="Remain in the US">
<node CREATED="1303657162660" ID="68vq9t727q3ihdm3btuc8j88s0" MODIFIED="1303657162660" TEXT="Was the right decision in 2000"/>
<node CREATED="1303657162660" ID="6uqllpa5ghvi5032l7kdbs9kvm" MODIFIED="1303657162660" TEXT="Productivity improvements 6% cost reductions"/>
<node CREATED="1303657162660" ID="2gs648k5om1q8tk5h8nv1m103p" MODIFIED="1303657162660" TEXT="Productivity improvements 6% reductions over next 5 years"/>
<node CREATED="1303657162660" ID="60i6h4o7afav4js37i9bv56vd0" MODIFIED="1303657162660" TEXT="190 employees">
<node CREATED="1303657162660" ID="3r7k40b7iomvorgrv7p79vbu9a" MODIFIED="1303657162660" TEXT="Trained in lean management">
<node CREATED="1303657162660" ID="2n9egrhvcduj11c4ho092usj4i" MODIFIED="1303657162660" TEXT="Workforce-driven improvement projects"/>
</node>
<node CREATED="1303657162660" ID="7u5hqrkgkfoqgni6foc500tild" MODIFIED="1303657162660" TEXT="Being trained as machine technicians"/>
<node CREATED="1303657162661" ID="0sf0umuedv21gbdvb1pi69upr0" MODIFIED="1303657162661" TEXT="Significant general/manufacturing Skill"/>
<node CREATED="1303657162661" ID="502kqkkmuj07f1lq0ftn0l4cbk" MODIFIED="1303657162661" TEXT="Quality Manager = Design Engineer"/>
<node CREATED="1303657162661" ID="7ebhs2457s231vtqcrun6inpq3" MODIFIED="1303657162661" TEXT="Carefully managed impressions/attitudes"/>
</node>
<node CREATED="1303657162661" ID="3mbenfasq5e3odq1gnof3nsc55" MODIFIED="1303657162661" TEXT="Automation efforts in progress">
<node CREATED="1303657162661" ID="3aqq037q0favp0gjjhtf1q5gh1" MODIFIED="1303657162661" TEXT="Cut landed costs">
<node CREATED="1303657162661" ID="49u6m9b65ie1nchbahg622mbeg" MODIFIED="1303657162661" TEXT="Comparable to China"/>
</node>
</node>
<node CREATED="1303657162661" ID="15dgpgmfjeqa0dol73jrrla328" MODIFIED="1303657162661" TEXT="Higher Electricity Costs">
<node CREATED="1303657162661" ID="00dhmosrgk9in2bjib3iqnh0nn" MODIFIED="1303657162661" TEXT="Offset by shipping costs"/>
</node>
<node CREATED="1303657162661" ID="4ilpp1r7rvkqct5r727kvi4uga" MODIFIED="1303657162661" TEXT="In-mold Labeling">
<node CREATED="1303657162661" ID="3aq4sct4dlk1hd1f7bs3hfu2jr" MODIFIED="1303657162661" TEXT="Key part of planned marketing campaign"/>
<node CREATED="1303657162661" ID="0a1pkp8bu36sje391o6636gt4d" MODIFIED="1303657162661" TEXT="Opportunity to apply to other Scotts products"/>
</node>
</node>
<node CREATED="1303657162661" ID="1obb2s2nctgaf48g7po0otnmes" MODIFIED="1303657162661" TEXT="Outsource to China">
<node CREATED="1303657162661" ID="6i95ct58ku7quahv6l2i6qpdjk" MODIFIED="1303657162661" TEXT="Already outsource complex components"/>
<node CREATED="1303657162661" ID="2btv07hombhsf5m2sn5s25bat4" MODIFIED="1303657162661" TEXT="Injection moulding = easy">
<node CREATED="1303657162661" ID="5cj4jnsgn02ni7ur3eqj0du7da" MODIFIED="1303657162661" TEXT="Many suppliers"/>
</node>
<node CREATED="1303657162661" ID="06g5go9hfvqvj2ifh3dfbatia2" MODIFIED="1303657162661" TEXT="In Mold Labeling">
<node CREATED="1303657162661" ID="57clvp9bejgccf7puv3t80b5vg" MODIFIED="1303657162661" TEXT="Would require technology transfer"/>
<node CREATED="1303657162661" ID="5gqlsmc04tj5pub04lqm7g4cku" MODIFIED="1303657162661" TEXT="Would require Scotts to provide machinery"/>
<node CREATED="1303657162661" ID="7qvhit1rqo2jrk41rh05vmcutt" MODIFIED="1303657162661" TEXT="Would require new molds"/>
<node CREATED="1303657162661" ID="61bmkd0s4ek6u0flp7r18nq7fd" MODIFIED="1303657162661" TEXT="$400K In new molds if moving to China"/>
</node>
<node CREATED="1303657162661" ID="1l9lk84bs4lj91tori8kn4pidp" MODIFIED="1303657162661" TEXT="Labor Rates">
<node CREATED="1303657162662" ID="4fejj8o12ie7mjbm710vlqmggl" MODIFIED="1303657162662" TEXT="$0.91/Hr"/>
<node CREATED="1303657162662" ID="2p77kffu4f27vicrtqclgbd7cp" MODIFIED="1303657162662" TEXT="Increasing 40% (or more) or next 5 years"/>
</node>
<node CREATED="1303657162662" ID="16ciekkiof8nvq1ge784ile61b" MODIFIED="1303657162662" TEXT="Productivity">
<node CREATED="1303657162662" ID="6rlkul1v76l849kqga1pqc0jb6" MODIFIED="1303657162662" TEXT="Somewhat Lower"/>
</node>
<node CREATED="1303657162662" ID="561m2pq8oeu20ohhl4msv7g16u" MODIFIED="1303657162662" TEXT="Freight Costs">
<node CREATED="1303657162662" ID="50klhhafjbcj893g85tjaimi4m" MODIFIED="1303657162662" TEXT="$8 Million Annually">
<node CREATED="1303657162662" ID="4ii8m0p30scc9reghc79udpgt2" MODIFIED="1303657162662" TEXT="Less a percentage of the $1M current"/>
</node>
<node CREATED="1303657162662" ID="7cvmkk4npc9aj8u0hqvvev1trf" MODIFIED="1303657162662" TEXT="Increasing at 3% rate"/>
</node>
<node CREATED="1303657162662" ID="5ns821fq6k7jleh4bcukd97m00" MODIFIED="1303657162662" TEXT="Lead time">
<node CREATED="1303657162662" ID="0dntrjk52sljn4e31n3ljp0jfh" MODIFIED="1303657162662" TEXT="8 weeks of inventory stockpile"/>
</node>
<node CREATED="1303657162662" ID="31d005hqpk4djpaqgju0b9ovtf" MODIFIED="1303657162662" TEXT="Transition costs"/>
<node CREATED="1303657162662" ID="16erns8kv94ojc79sngnk83fqm" MODIFIED="1303657162662" TEXT="Travel costs/ management time"/>
<node CREATED="1303657162662" ID="2kl42kv2hkmoto81nbgs8beh02" MODIFIED="1303657162662" TEXT="Weekly Conference calls w/suppliers"/>
<node CREATED="1303657162662" ID="7ls0qgmh42g08avtqkdaiepp5e" MODIFIED="1303657162662" TEXT="Delayed detection of quality issues"/>
<node CREATED="1303657162662" ID="7n44cpknf27bntigmcdd05tr14" MODIFIED="1303657162662" TEXT="Currency Risk"/>
<node CREATED="1303657162662" ID="44geuqfm9jf24si91ktv59em97" MODIFIED="1303657162662" TEXT="Political Risk"/>
</node>
<node CREATED="1303657162662" ID="4t6gao2iuj7t0h0p4j8pedhtt8" MODIFIED="1303657162662" TEXT="Direct investment in China">
<node CREATED="1303657162662" ID="4qlnrlr92g922c9aiuep9fcued" MODIFIED="1303657162662" TEXT="$8 Million Costs"/>
<node CREATED="1303657162662" ID="3aru107s3crcqsdc7ug8427spc" MODIFIED="1303657162662" TEXT="One Year to accomplish"/>
<node CREATED="1303657162662" ID="3d2fmoa59o86ucjlb8r2nl37m4" MODIFIED="1303657162662" TEXT="Offered direct control"/>
<node CREATED="1303657162662" ID="6rvdb2s7e9m0nkfok7d2je4nrm" MODIFIED="1303657162662" TEXT="Currency Risk"/>
</node>
</node>
<node CREATED="1303657162662" ID="0520f3q7f8n9pvd1ouu1jvsmo4" MODIFIED="1303657162662" POSITION="right" TEXT="Benefits"/>
<node CREATED="1303657162663" ID="3fd4f2nf5f5ro408bodkhbmjnn" MODIFIED="1303657162663" POSITION="right" TEXT="Costs"/>
<node CREATED="1303657162663" ID="72l33qde9u5789hag5l4hc6lo1" MODIFIED="1303657162663" POSITION="right" TEXT="Financial Analysis">
<node CREATED="1303657162663" ID="3if1djldbo39stm3hdq7p1keft" MODIFIED="1303657162663" TEXT="Discount rate 15%"/>
<node CREATED="1303657162663" ID="37pulo4rkhaj4u9udl9h5napdf" MODIFIED="1303657162663" TEXT="Capital improvements investment $500K Annually (US Plant)"/>
<node CREATED="1303657162663" ID="4a0t2qg94rch09qd51qfp1pun0" MODIFIED="1303657162663" TEXT="Capital improvements investment $300K Annually (China Plant)"/>
<node CREATED="1303657162663" ID="55lln045dhhrenkp4jf8mlsu3j" MODIFIED="1303657162663" TEXT="$400K In new molds if moving to China"/>
<node CREATED="1303657162663" ID="4chd6h3kmnb6mgnldneigmno9q" MODIFIED="1303657162663" TEXT="$460K increased inventory to offset lead time"/>
<node CREATED="1303657162663" ID="3o2fot1puvtqvuahv0vb5nos5i" MODIFIED="1303657162663" TEXT="Plastic Resin - same cost world over">
<node CREATED="1303657162663" ID="7f2508q49675qpb6a3v26h9dje" MODIFIED="1303657162663" TEXT="Regrind process savings $100K annually"/>
</node>
<node CREATED="1303657162663" ID="1gsod9upnbg3sisqsjcbbttk37" MODIFIED="1303657162663" TEXT="Us Production Facility">
<node CREATED="1303657162663" ID="32dslkufqo64p31ra837e771gc" MODIFIED="1303657162663" TEXT="Labour Costs">
<node CREATED="1303657162663" ID="0olta7m5bu0km8kpdbtc6qi10s" MODIFIED="1303657162663" TEXT="195 X 2080 * 16.25"/>
<node CREATED="1303657162663" ID="6pobi4pdgmquokebpfrb5kl8a1" MODIFIED="1303657162663" TEXT="16 X $125,000"/>
<node CREATED="1303657162663" ID="6rvhgf76iaau3d2orjs90u8jmp" MODIFIED="1303657162663" TEXT="Increasing at 3% annually">
<node CREATED="1303657162663" ID="20gnkhgiquujaj9j5qem7srbl9" MODIFIED="1303657162663" TEXT="Offset by production improvements for the next 15+ years"/>
</node>
</node>
<node CREATED="1303657162663" ID="4tcqf6ujq3ab7pij7fvqdi42tn" MODIFIED="1303657162663" TEXT="Electricity Costs">
<node CREATED="1303657162663" ID="5umrjno2tffn7nphqla0um3le0" MODIFIED="1303657162663" TEXT="8M Kilo-watt Hrs">
<node CREATED="1303657162663" ID="00mfh72q4v6hlom0kk1ug8c9i7" MODIFIED="1303657162663" TEXT="$0.16/Kilo-watt hr"/>
<node CREATED="1303657162664" ID="1890elu9f6jarjnj2lccdl9e3l" MODIFIED="1303657162664" TEXT="$0.025 surcharge per hour for 3 years"/>
</node>
<node CREATED="1303657162664" ID="7sd54rj9nepgrudj3lqbdl0n01" MODIFIED="1303657162664" TEXT="Costs expected to increase 50% by 2017">
<node CREATED="1303657162664" ID="4bbv40t1ae4vsj8cs64pda69rr" MODIFIED="1303657162664" TEXT="Partially offset by process improvements"/>
<node CREATED="1303657162664" ID="07c4h3jketro0s2t43t01giv9h" MODIFIED="1303657162664" TEXT="Net increase 25% over 10 years"/>
</node>
</node>
<node CREATED="1303657162664" ID="1s8g9pqd8bbcklhf7l003gme99" MODIFIED="1303657162664" TEXT="Overhead costs">
<node CREATED="1303657162664" ID="06uengcmc3gl3o41rfelg8sptn" MODIFIED="1303657162664" TEXT="$1 Million">
<node CREATED="1303657162664" ID="48k08v74gco1oblpn5c2ps35io" MODIFIED="1303657162664" TEXT="Would revert back to corporate"/>
</node>
<node CREATED="1303657162664" ID="02an47d23ac8km02allg9e0stj" MODIFIED="1303657162664" TEXT="30% of manufacturing costs (direct labor/electricity)"/>
</node>
</node>
</node>
<node CREATED="1303657162664" ID="62rgv1d9fvkmh50rb5pm4eud4m" MODIFIED="1303657162664" POSITION="right" TEXT="Assumptions"/>
<node CREATED="1303657162664" ID="5lq5a34cmb5tnd0n2d8k1pp79f" MODIFIED="1303657162664" POSITION="left" TEXT="Sensitivity Analysis"/>
<node CREATED="1303657162664" ID="4rtclq66c0b7uqj6kac58dm9t6" MODIFIED="1303657162664" POSITION="left" TEXT="Project Description"/>
<node CREATED="1303657162664" ID="5q36nagfdl9n5ej9rc600f1bc9" MODIFIED="1303657162664" POSITION="left" TEXT="Implementation Plan"/>
<node CREATED="1303657162664" ID="1tbboj847akh8b1lt135ugr345" MODIFIED="1303657162664" POSITION="left" TEXT="Recommendation"/>
</node>
</map>
