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Problem Solution: Kuiper Leda

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Introduction

Running head: PROBLEM SOLUTION: KUIPER LEDA Problem Solution: Kuiper Leda Fredrick Marshall Jr. University of Phoenix MBA550 October 20, 2008 Introduction Kuiper Leda, Inc. is an electronic components manufacturer of Electronic Control Units and Sensors for the auto industry. The company currently has a plant that assembles Electronic Control Units (ECU) and a production line dedicated to microchips. Kuiper Leda currently added another production line for Radio Frequency Identification Devices (RFID) tags. Kuiper Leda is aggressively adding new technology in anticipation of being able to meet the growing demand in the automotive industry. The 21st century corporate environment is distinguished by competition, complexity, and change. To prepare for the upcoming changes, Kuiper Leda has hired a new VP of Supply Chain Management who is charged with making decisions that affect the companies supply chain operation. The new VP will have to immediately consider how to meet the increased demand for products under the current output conditions. As the company grows, the VP will need to understand demand management and how to streamline Kuiper Leda's supply chain operations. The new VP will need to identify key drivers of the supply chain from raw materials to finished goods. Situation Analysis Issue and Opportunity Identification There is a difference between forecasting and the Just In Time (JIT) ...read more.

Middle

Dell's decision to sell computers built from components produced by other manufacturers has relieved Dell of the burden of owning assets, research and development risks, and the burden of managing a large workforce. At the same time, Dell only produces to order and thus keeps no finished goods inventory. These business decisions have allowed Dell to grow more rapidly than its competitors and maintain only eight days of inventory. Lean services premise is that the production of an item can be controlled and minimized to reduce excess cost of holding inventory. Home Depot (HD) has been actively pursuing computer-based inventory controls. Inventory controls allow the company to order only what is estimated to be stocked on the floor of a store. By upgrading the technology of ordering inventory for the retail store, HD has implemented a lean production philosophy. Management at Hewlett Packard realized that the inventory levels that the company was carrying were being devalued weekly. This devalued inventory made management reconsider the method in which inventory was ordered and stored. "HP had no control over component prices, but it could control how much inventory it was holding" (Callioni, Montgros, Slagmulder, Wassenhove, Wright, 2005, p. 2). HP changed its supply chain by "reducing the number of nodes in the supply chain, consolidating manufacturing facilities, taking possession of components ...read more.

Conclusion

The production manager is the one who would be responsible. The RFID's deliverable time table is based upon a quarterly plan. The production manager is the one who would be responsible. Evaluation of Results Kuiper Leda is establishing a schedule to meet the growing demand for its products by developing and increasing its assembly plant to accommodate new growth within the company with the next twelve months and this can be measured by the production of a new facility. Kuiper Leda will develop a Demand Management plan that covers forecasting, order entry, order promising, brand warehousing requirements, interplant orders, and service parts requirements. This goal can e measured by assigning task to appropriate personal and reviewing monthly with a target start date within eight months. Kuiper Leda will streamline its suppliers to best fit with the supply chain of the company. This can be measured by having only the suppliers that match the supplier evaluation parameters. The target start date is within six months. Conclusion Kuiper Leda is on the road to obtain the required ingredients to establish efficient supply chain operations. By following the supporting evidence from other companies across several industries in managing the supply chain, the historical data has proven correct. As long as Kuiper Leda outsources only non-strategic activities they should be able to gain market share in the future with the completion of a new manufacturing facility. ...read more.

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