Hewlett-Packard Company: Network Printer Design for Universality
HP-Network Printer SGSCMF-003-1999
Stanford Global Supply Chain Management Forum
SGSCMF- 003-1999
August 10, 1999
Hewlett-Packard Company: Network Printer Design for Universality
Introduction Sarah Donohoe, manufacturing engineering manager of the network laser printer division at Hewlett-Packard Company (HP), listened intently to her colleagues at the project review meeting for the development of their latest new product. With Sarah at the meeting were Jane Schushinski, marketing manager, Leo Linbeck, head of product design, and David Hooper, the controller of the division. The main topic for this meeting was the decision of whether or not to use a universal power supply for the next generation of network laser printer, code-named Rainbow. Previously, printers in the North American and the European market have distinct power supplies and the associated fusers in the main engine of the printer. For North American printers, a 110 volt power supply was installed. For European printers, a 220 volt power supply was added. This printer engine was built by HP’s manufacturing partner in Japan. Due to the long lead time for engine manufacturing, HP had to specify the requirements of the two types of printers at least fourteen weeks ahead. The time that it takes the Japanese partner to commit the printers for shipments, the transportation times and customs clearance totals about 4 weeks. Hence, if a universal power supply is used, then HP would have the flexibility of postponing the specification of the printer engine by at least two months in planning process. Consequently, the production team believed that universal power supply can enable HP to better respond to the changing demand in the individual markets and reduce its inventory costs. Linbeck had begun the meeting by reviewing a fax he had received from the Japanese partner. “We have been asking our partner for a universal power supply and fuser for a long time. Now, when we are about to finalize our design of the
Stanford Global Supply Chain Management Forum
SGSCMF- 003-1999
August 10, 1999
Hewlett-Packard Company: Network Printer Design for Universality
Introduction Sarah Donohoe, manufacturing engineering manager of the network laser printer division at Hewlett-Packard Company (HP), listened intently to her colleagues at the project review meeting for the development of their latest new product. With Sarah at the meeting were Jane Schushinski, marketing manager, Leo Linbeck, head of product design, and David Hooper, the controller of the division. The main topic for this meeting was the decision of whether or not to use a universal power supply for the next generation of network laser printer, code-named Rainbow. Previously, printers in the North American and the European market have distinct power supplies and the associated fusers in the main engine of the printer. For North American printers, a 110 volt power supply was installed. For European printers, a 220 volt power supply was added. This printer engine was built by HP’s manufacturing partner in Japan. Due to the long lead time for engine manufacturing, HP had to specify the requirements of the two types of printers at least fourteen weeks ahead. The time that it takes the Japanese partner to commit the printers for shipments, the transportation times and customs clearance totals about 4 weeks. Hence, if a universal power supply is used, then HP would have the flexibility of postponing the specification of the printer engine by at least two months in planning process. Consequently, the production team believed that universal power supply can enable HP to better respond to the changing demand in the individual markets and reduce its inventory costs. Linbeck had begun the meeting by reviewing a fax he had received from the Japanese partner. “We have been asking our partner for a universal power supply and fuser for a long time. Now, when we are about to finalize our design of the