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Intern Benchmarking inom affärsenheten Global Services

Fogelström, Marcus (2005) MIO920
Production Management
Abstract
This Master Thesis has been done at Business Unit Global Service at Ericsson Ltd in Stockholm. It is written by a student who is studying a Master of Science in Electrical Engineering and it is done in co-operation with the institution of Production Management at Lund Institute of Technology. The Master Thesis examine whether it is possible to make a general cost distribution, towards which each Market Unit should work for each Product Area, especially Systems Integrations, at Business Unit Global Service.
Today Global Service consists of nine different Product Areas and is working in 24 different Market Units. It is therefore very difficult to get a good view over how the costs are distributed within these groups. Many of these Market... (More)
This Master Thesis has been done at Business Unit Global Service at Ericsson Ltd in Stockholm. It is written by a student who is studying a Master of Science in Electrical Engineering and it is done in co-operation with the institution of Production Management at Lund Institute of Technology. The Master Thesis examine whether it is possible to make a general cost distribution, towards which each Market Unit should work for each Product Area, especially Systems Integrations, at Business Unit Global Service.
Today Global Service consists of nine different Product Areas and is working in 24 different Market Units. It is therefore very difficult to get a good view over how the costs are distributed within these groups. Many of these Market Units have their business in countries where the costs for salary and premises are much lower than in other countries such as Sweden and USA. To get better control over the costs and to be able to compare these in a more fair way, Ericsson has through this project made some Internal Benchmarking towards all Market Units and has collected all the relevant information needed for all the different costs. This material has then carefully been analyzed and evaluated so that Ericsson can improve their business as much as possible and become more competitive.
The main task for this Master Thesis is to investigate if it is possible to find a common cost structure for all Market Units, but the main focus will be on Product Area Systems Integration. What is it that affects how the cost distribution looks like, and does lower costs, such as in the low costs countries, automatically give a better result? This is also some of the questions that will be analysed during the project and will help to get a good final conclusion.
The result of this research shows that the cost distribution between the different Market Units vary a lot. In some Market Units, the cost for the salary is about 5 to 10 % meanwhile in other Market Units it is about 70 % of the total costs. It is also difficult to see any differences in the result between Market Units in Low Costs Areas and Market Units in High Costs Areas. The result shows that those Market Units which have high costs also have the best result.
To be successful and find the reasons to why some Market Units show better result than others, it is important to keep working according to the Balanced Scorecard model and search for the reasons behind the results that we can see today. If this is done thoroughly and you find these factors to success which later can bee applied to the rest of the organisation, Ericsson will find the cost structure which they are searching for.
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Please use this url to cite or link to this publication:
author
Fogelström, Marcus
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
other publication id
05/5239
language
Swedish
id
2006316
date added to LUP
2011-06-29 15:13:43
date last changed
2011-06-29 15:13:43
@misc{2006316,
  abstract     = {{This Master Thesis has been done at Business Unit Global Service at Ericsson Ltd in Stockholm. It is written by a student who is studying a Master of Science in Electrical Engineering and it is done in co-operation with the institution of Production Management at Lund Institute of Technology. The Master Thesis examine whether it is possible to make a general cost distribution, towards which each Market Unit should work for each Product Area, especially Systems Integrations, at Business Unit Global Service.
Today Global Service consists of nine different Product Areas and is working in 24 different Market Units. It is therefore very difficult to get a good view over how the costs are distributed within these groups. Many of these Market Units have their business in countries where the costs for salary and premises are much lower than in other countries such as Sweden and USA. To get better control over the costs and to be able to compare these in a more fair way, Ericsson has through this project made some Internal Benchmarking towards all Market Units and has collected all the relevant information needed for all the different costs. This material has then carefully been analyzed and evaluated so that Ericsson can improve their business as much as possible and become more competitive.
The main task for this Master Thesis is to investigate if it is possible to find a common cost structure for all Market Units, but the main focus will be on Product Area Systems Integration. What is it that affects how the cost distribution looks like, and does lower costs, such as in the low costs countries, automatically give a better result? This is also some of the questions that will be analysed during the project and will help to get a good final conclusion.
The result of this research shows that the cost distribution between the different Market Units vary a lot. In some Market Units, the cost for the salary is about 5 to 10 % meanwhile in other Market Units it is about 70 % of the total costs. It is also difficult to see any differences in the result between Market Units in Low Costs Areas and Market Units in High Costs Areas. The result shows that those Market Units which have high costs also have the best result.
To be successful and find the reasons to why some Market Units show better result than others, it is important to keep working according to the Balanced Scorecard model and search for the reasons behind the results that we can see today. If this is done thoroughly and you find these factors to success which later can bee applied to the rest of the organisation, Ericsson will find the cost structure which they are searching for.
V}},
  author       = {{Fogelström, Marcus}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Intern Benchmarking inom affärsenheten Global Services}},
  year         = {{2005}},
}