Kuiper Leda
...Analysis: Kuiper Leda
Kuiper Leda Incorporated (KL) is a relatively small company that manufactures Electronic Control Units (ECU's) and Radio Frequency Identification Device (RFID Tags) for the automobile industry. They focus on the quality of their product and delivery responsiveness and their clients include automobile manufacturers and Original Equipment Manufactures (OEM). Midland Motors, a well-known large company has signed a year-long contract with KL as a supplier for all their ECU's and RFID Tags. KL need to organize their structure to increase the daily capacity to handle Midland Motors order of 250,000 Electronic Component Units and 35,000 Radio Frequency Identification Device tags. KL also need to decide whether to outsource all or part of the component needed.
Situation Analysis
Issue and Opportunity Identification
Kuiper Leda is a small electronics components manufacturer that specializes in Electronic Control Units (ECU) and sensors for the automotive industry. Kuiper Leda currently produces 250 RFIDs and 1,250 ECUs in one day of production. The company recently received an order from Midland Motors to supply 250,000 Electronic Control Units (ECU) along with 35,000 Radio Frequency Identification Device (RFID) tags. Midland Motors is a large company which maintains a close and long-lasting relationship with their vendors; it would be a devastating decision to turn their order down. The present order is above the existing capacity level of the KL plant to handle. The situation presents KL with the opportunity to develop a plan to strengthen their reputation in the industry by increasing their capacity levels. One of the fundamental responsibilities of operations management is to provide the capability to satisfy the future and current demand.
Kuiper Leda lacks an effective Inventory Management to handle properly the increase in demand of...
View Full Essay
