option #3‚ the PCB In-sourcing proposal. What is the benefit? What is the risk? How do you compare this proposal to option #1 and #2? Benefit: a. Better performance in management‚ quality and delivery. When PCB is in-souring facility‚ the management team of Stryker Corporation can directly control the production process‚ which is more efficient and could obtain better quality in products. Secondly‚ when the production of PCB is in-sourcing‚ it will be much easier for Stryker Corporation to
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Stryker Corporation: In-sourcing PCBs Table of contents: Executive summary 1. Introduction 2. Analysis of current position 3. Analysis of new project 3.1 Methodologies and processes of Valuation 3.2 processes of Valuation 4. Conclusion References Appendices A & B Executive summary: The executive for Stryker Corporation recently considered setting up own factory to produce Printed circuit boards (PCBs) – a key electronic component of many of Stryker instrument’s medical products
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MEMORANDUM TO: Board of Directors Stryker Corporation DATE: July 15th‚ 2011 SUBJECT: In-sourcing PCBs Project Recommendation The purpose of this memo is to disclose the business evaluation for the three proposed options regarding PCBs sourcing strategy. The analyzed options are: 1. To maintain the current basic sourcing policy but with improvements in the acquiring methodology of key materials. 2. To establish of a partnership with a single supplier to improve quality. 3
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case for option #3‚ the PCB In-sourcing proposal. In Option#3‚ Stryker choose to manufacture its own PCB in its own facility. If Stryker take the Option #3: * Facility: The proposed facility would manufacture all of the various types of PCBs required by Stryker Instruments. * Timeline: 1) For part of 2004-2005‚ Stryker would be both manufacturing PCBs and buying from outside suppliers. 2) Beginning in 2006‚ Stryker would be manufacturing all of the PCBs by itself. * Advantages
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Insourcing is a business practice in which work that would otherwise have been contracted out is performed in house. Drivers: the most common is to keep core competencies in house. It is argued that if a company outsources a core competency‚ it can lose control over that competency or lose contact with suppliers who can help it remain innovative in relation to that competency. Other factors that weigh in favor of insourcing having an IS service or product that requires considerable security or
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Stryker Corporation: In-sourcing PCBs 1. State the Business Case for #3 Option# 3 has several benefits that make it the most viable option of all. Here are the following benefits: * This option promises a higher degree of control over quality and delivery. These developments will help reduce the logistic losses. * The initial expenditure (manufacturing costs) will be tax deductible‚ enabling Stryker to lower its tax obligation in the initial
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manufacturing costs that Stryker would have due to producing the PCBs in-house. The difference between the decreased purchases and the costs incurred from manufacturing represented excess cash flow freed up from insourcing the product. The difference between decreased purchases and manufacturing costs were actually negative in 2004 and 2005 and were not recognized as positive cash flows until 2006 when decrease in purchased from suppliers exceeded Stryker’s manufacturing costs for the PCBs. Those costs savings
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Printed Ckt Board Types of PCB (I) Single Side (II) Double Side (III) Multi Layer (V) Flexible PCB * Single Side ( 1 layer ) :- The insulating substrate contains ckt pattern on only one side. Which is called as solder side. The other side is called component side. * Double Side (2 layer) :- Double side means the ckt pattern is present on the either side of the insulating material ckt pattern both on component side & solder side. * Flexible Cards :- Flexible
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Case 1: Stryker Corporation: In-sourcing PCBs State the business case for option #3‚ the PCB In-sourcing proposal. What is the benefit? What is the risk? How do you compare this proposal to option #1 and #2? (2 points) Option #3 is the project for Stryker to manufacture its own PCBs in its own facility. Benefits: This option allows Stryker to control over the products’ quality and delivery in highest degree. The company can supervise every process of the production line to get every product
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Stryker Corporation Deciding whether to keep outsourcing or in-source PCBs Stryker Corporation has 3 different options regarding the supply of needed PCBs. Option 1: contemplates the fact of keeping the same suppliers but with significant changes in order to assure continuous supply of PCBs and quality. No investment is needed. Option 2: establishing a partner with a single supplier. This way there would be a sole supplier for Stryker established in a new facility near them‚ this would give
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