Background Glenn Northcott is a purchasing planner in Rondot Automotive. Their Jackson‚ Mississippi plant manufactures an average of 7million small motors which they distribute to their OEM customers. Their purchasing organization which has a hybrid structure is comprised of two groups—strategic purchasing (dotted-line reporting to purchasing manager) and plant purchasing department (straight-line reporting to purchasing manager). Currently‚ they are being pressured to cut down their plant costs
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arrived at his office on Monday‚ July 1‚ 2009‚ to review end-of-year sales‚ several matters commanded his attention. The most urgent was that sales of his Toy Company were growing more than anticipated and it had already stretched his production capacity. To meet further sales growth projections‚ he needed to decide on an alternative. His company was founded in 1980 with a mission to “reach children’s imagination and bring out their creativity.” He called these toys as “Learning Toys.” The keys
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consumption‚ supply and demand figures and cost price and production value gross margins are also provided. The report focuses on global major leading industry players providing information such as company profiles‚ product picture and specification‚ capacity production‚ price‚ cost‚ production value and contact information. Upstream raw materials and equipment and downstream demand analysis is also carried out. The Lipstick industry development trends and marketing channels are analyzed. Finally the
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the off-spec plywood blanks received from Finnish supplier. * The rejection of the batches by Volvo as they haven’t met the quality constraints imposed by them. * The demand for the finished goods is around 1400 units/week while the ideal capacity of plant excluding wastages is only 1250 units/week; this mismatch is of a greatest concern for the Sunwind in the present scenario. * The trend of the major manufacturers like Toyota who are working on “Less” suppliers’ model to increase the
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Detailed in the Indalex Ltd. case analysis‚ current production is stretched to the limit‚ creating a capacity constraint to meet future forecasted demand; hindering the firms objective of a real growth rate of ten percent annually. The issue of deciding on a capacity expansion plan‚ given uncertainty about near term economic projections was presented. Indalex concentrates on a competitive priority of service quality‚ where flexibility and quality are more of a priority than price. This is described
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The Goal The Goal‚ by Eliyahu Goldratt is a novel focused on the challenges and improvement of operational efficiency. The book is about Alex Rogo‚ a thirty something year old‚ probably has an undergraduate degree in engineering and an MBA. He is married with 2 children‚ working as an executive for UniCo for the past 15 years. He began his career as project engineer‚ now works as a plant manager of manufacturing factory in Bearington‚ his home town. His boss is Bill Peach‚ division manager at the
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system‚ (trying to “guess” what will sell) to a reactive system (knowing what is required and producing it). 2. Work with suppliers to reduce delivery times and minimum order quantities. This will include both raw material lead time and production capacity. Hong Kong is a much more mature manufacturing environment. They have embraced better manufacturing practices that allow for a higher quality product with a shorter turnaround. Because of these practices‚ they are able to more rapidly tool up for
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barriers are high‚ companies be- come locked into an unprofitable industry where overall demand is static or declin- ing. The result is often excess production capacity‚ which leads to even more intense rivalry and price competition as companies cut prices in the attempt to obtain the customer orders needed to use their idle capacity and cover their fixed costs.10Com- mon exit barriers include the following: ● Investments in assets such as specific machines‚ equipment‚ and operating facili-
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market feedback‚ Sport Obermeyers’ “guest list” should include both large and small retailers and both urban and resort retailers. b. Decrease lead times for both raw materials and finished goods‚ thereby allowing more time to utilize existing capacity. Since the business strategy should emphasize Dependability more than Cost‚ lead-times can be reduced using some or all of the following methods: -Choose suppliers of raw materials more on the basis of D than C. -Expedite orders through information
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New Balance Athletic Shoes | Case Study | | | 1. How important is continued product innovation to New Balance’s ability to compete in the marketplace? What timing and seasonal factors come into play? Who are the New Balance’s key suppliers and partners in the innovation ecosystem? What role do competitors play? Discuss the interdependencies and risks inherent in this marketplace in the context of Adner’s article? 1. Continued product innovation is a key to competitive success due to
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