Ps4 Executive Summary

Recommendations Finalizing our thoughts regarding reducing Sony’s cycle / lead-time ends with recommending testing the simplified process at one of their smaller production factories. Go achieve full functionality; I forecast this process to be fully operational at this one factory within 1 - 3 years of testing. With the assumption that minor delays and challenges may arise, this timeframe will more than likely be shortened once implemented at other production factories. Furthermore, this time will include the span consisted of newly negotiated terms with supply chain partners, if needed, to ensure full clarity and communication along all ends of the supply / value chain. As all of these objectives are being completed, the payback period
back to Sony will begin. The lower costs due to the simplified and more efficient processed will overtime earn Sony back the investment it poured into its operations. Likewise, this will compliment both customer service and internal growth within the company. With the lessened time to takes to produce a brand new gaming console and simplified supply chain, Sony can increase its customer service rating by allocating the newly attained resources it has left over from the simplifying process. Nike, an American multinational corporation, has set themselves apart from the competition by not only offering exclusive clothing and shoe products, but also utilizing their supply chain it to utmost efficiency. Nike had worked to eliminate waste, lost time, and lost material from its processes as part of its sustainability agenda (Leach 2012). As their factories adopted these lean approaches, Nike’s defect rate dropped 50% lower than at the factories where the lean approaches were not implemented (Leach 2012). Furthermore, these changes showed 40% quicker lead-time and increased productivity by 10 – 20% (Leach 2012). By making these changes and adopting new approaches to their supply chain, Nike has shown that they can operate at efficient levels, concluding their dominance within their industry. Concluding our efforts to align both supply chain S&OP goals with Sony’s corporate business plans also involves the possibility of testing these major changes on a smaller scale initially before issuing it company-wide.
With the strong position that the company is in compared to some of its previous years, I believe this strategy to be financially sound. The PS4 is one of, if not, the most profitable product / service that Sony retails, and is only going to get better. Now with the complexity of this plan compared to my first strategy, the forecasted timespan to fully employ this tactic should be between 2 – 3 years. A major upside to making the PS4 the focal point of Sony’s operations is the new amount of growth it is going to experience. Focusing more resources on expanding the capability of their gaming console will hopefully allow for it to penetrate new markets, allowing for more growth, and obtaining new amounts of profit. Chiesi Pharmaceutical, a European pharmaceutical company that operates globally, set out to improve some of their key objectives by approaching their S&OP such as product launches, changes and availability, design and implementation, and synchronizing supply and demand (Padilla 2009). As a result, some benefits that arose from this newly appointed enactment including a reduced risk of stock outs, reduced inventory levels by 15%, better sales plan visibility (quicker responsiveness), increased forecast accuracy by 22%, and an improved MAPE by 30% (Padilla 2009). Having these goals and strategies all aligned together not only provides clarity throughout the supply chain, but also saves money & resources while making procedures more efficient as a
whole.