Problem Solution: Kuiper Leda
...CQM
January 23, 2007
Problem Solution: Kuiper Leda
Supply chain management is becoming and organizations most powerful business tool in reducing cost while improving production and customer satisfaction. Managing the supply chain is transforming the way manufactures purchase raw materials, run production, and distribute final products.
Kuiper Leda's present production capacity is insufficient to meet the additional demands/requirements needed to fill a contract with Midland Motors. Kuiper will need to increase its production of Radio Frequency Identification and Electronic Control Units, or outsource part if not all the production to fill present and future contracts.
To further complicate the situation, Kuiper Leda's production planning, inventory tracking, and supply chain management systems are inadequate to meet the demands of increased production. The following will cover Kuiper Leda's problems and define recommendations to enable Kuiper's success.
Situation Analysis
Issue and Opportunity Identification
Up front it appears that the problem Kuiper Leda is facing is caused by an opportunity to grow and take on more and larger customers, but further analysis demonstrates a poor or lack of an effective inventory, supply management, and production plan.
Perhaps the greatest issue for Kuiper Leda is being able to meet the production demands necessary to take on and retain a contract with Midland Motors. If Kuiper Leda is successful it will be able to grow within its industry. Kuiper Leda's present production capacity is insufficient to meet the demands/requirements of Midland Motors. Based-on a 365 day production-year, Kuiper Leda will need to increase its production of Radio Frequency Identification (RFIDs) by 39% and Electronic Control Units (ECUs) by 55%, or outsource the production to make quantity and quality requirements.
To win the...
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