Operations Management- II
Spin Master Toys had to launch its First Electronics Product, E-Charger. They had to choose a supplier from Wai Lung and Wah Shung. Spin Master considered many factors before taking this decision which is given in excel below.
S.No.
Factors
Weights
Wai Lung
Wah Shing
Rating
Weighted
Rating
Weighted
1
Reputation
9%
2
0.18
4
0.36
2
Capacity
12%
4.5
0.54
2
0.24
3
Quality Levels
15%
3.5
0.525
4.5
0.675
4
Capability in Engineering
11%
2
0.22
4.5
0.495
5
Capability of the factories' Chinese Suppliers
10%
3
0.3
4.5
0.45
6
Speed to the market
20%
4
0.8
2.5
0.5
7
Costs
8%
4.5
0.36
3.5
0.28
8
Tooling time needed
10%
2.5
0.25
2.5
0.25
9
Attention to the company
5%
4.5
0.225
3.5
0.175
Total
100%
3.4 3.425
Rating : 1 to 5
Wah Shing has higher rating then Wai Lung. So Spin Master will choose Wai Shing as his supplier.
Working Note:
Reputation:
Wai Lung had prior experience of making electronic products so it will add more reputation to Wai Lung Manufacturing Co.
Capacity:
Wai Lung Manufacturing Co. is running at capacity of 40% so it has 60% capacity to utilize and they will not begun many projects in the future whereas Wah Shing already running at 70 to 80% of capacity so will give maximum 25%(Average) capacity to E-chargers.
Quality Level:
Wai Lung Manufacturing Co. did not has any prior experience of making electronic product as compare to Wah Shang which had been one of the supplier for major companies.
Capability in Engineering:
As Wai Lung did not has any prior experience so their Capability in Engineering will be less than as compare to Wah Shang.
Capability of the factories' Chinese Suppliers:
Wah Shang had prior experience of electronics device so in the case Capability of the factories' Chinese Suppliers they will definitely have upper hand as compare to Wai Lung.