Saint-Gobain ContainersINTRODUCTION 3 BACKGROUND 3 STUNNING FIGURES 4 GLASS MANUFACTURING PROCESS OPERATIONS 5 RAW MATERIALS 5 CASTING 6 CONDITIONING 6 FORMING 7 ANNEALING 8 INSPECTION 9 PACKAGING 10 CONCLUSION 10 Introduction Saint-Gobain Containers is a leading glass packaging company in the food and beverage industry. With more than 4,000 employees and 14 locations in North America, Saint-Gobain Containers has proven to be a major leader in its industry. Ranking first in the European market and second globally, Saint-Gobain Containers has demonstrated an excellent operations management base. Having a good operations management chain usually comes from another aspect of the company that is passed on as it expands, which is exactly the case with Saint-Gobain Containers. Background Saint-Gobain Containers comes from a large group of manufacturers in similar industries. The underlying company is simply Saint-Gobain. Saint-Gobain was created in 1665 by Colbert and built the Hall of Mirrors at the Castle of Versailles (Saint-Gobain). This group contains many different sectors; such as glass, ceramic, plastic, cast iron, reinforcements, abrasives, building materials, pipes and plaster. The following diagram illustrates how much the production of Saint-Gobain Containers affects: (Saint-Gobain Containers is the packaging industry) • SALES BREAKDOWN BY SECTOR IN 2005 (Provided by www.Saint-Gobain.com) As you can see the The packaging sector of this large manufacturer chain represents only a small part of their extensive product range. Staggering figures Overall, Saint-Gobain operates in over 50 countries around the world. Saint-Gobain employs a workforce of over 200,000. This is a very high figure compared to the 4,000 employees of Saint-Gobain Containers. Saint-Gobain is one of the largest leading materials companies in the world and is listed on the public stock markets in Paris, London, Frankfurt, Zurich, Brussels and Amsterdam. In 2005 Saint-Gobain had a turnover of over 35 billion euros, which translates into a net profit of 1.3 billion euros. Saint-Gobain Containers accounts for 11% of these figures, which is impressive given its size. Employing just 2% of Saint-Gobain's workforce and accounting for 11% of its entire revenue is impressive. The following figures help illustrate Saint-Gobain Containers' cash flow on a more direct level: KEY DATA• SALES (in millions of euros)• OPERATING PROFIT (in millions of euros) (provided by www.Saint-Gobain.com )As you can see that their operating costs are relatively small compared to their overall income. Operating costs consumed only 9.6% of cash flow, making the process very efficient.