AEM437 - Assignment 3_Solutions

AEM437 - Assignment 3_Solutions - AEM 437: Assignment 3...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
AEM 437: Assignment 3 Herman March 25, 2008 CASE ANALYSIS: MILLER SQA 1. In 1982, Miller SQA sought to recycle the used furniture of its parent company, Herman Miller, in order to allow it’s customers to trade in old furniture for new furniture. With this innovative business idea, there was a need for Miller SQA to generate a new business model. The following analyzes each component as it relates to Miller SQA: Value Proposition : When analyzing the value proposition of Miller SQA, it is important to understand what customer problem Miller SQA was attempting to solve and how big of a problem this was to the customer. When large companies, that were Herman Miller’s core customer base, were ready to update their work spaces, they wanted a way to recover some of the capital they had previously invested. A solution to this problem was the development of Miller SQA and its refurbishing segment. Later on the subsidiary moved into the field of providing new furnishings for smaller firms. As such, the value proposition became simple, quick, affordable furniture – Simplicity in process of product selection and ordering; quick response time to delivering orders; and the ability to provide these services at an affordable price. Market Segmentation : After identifying a clear value proposition, targeting a specific market establishes what must be done in the technical domain. The business model of Miller SQA targeted small- to medium- sized organizations seeking to buy office furniture products. Customers of Miller SQA highly valued attributes such as ease of ordering, accessibility, product availability, responsiveness and dependability. As such, Miller SQA had to provide a service that catered to the needs of a smaller company that may not have the knowledge base for complex ordering processes or necessary capital. The focus switched from a product- centered approach of production to an order-centered approach to production that better suited the needs of their new customer base. Several systems emerged: Z-Axis, PMC, ERP, EnSync, Supply Net, which enabled the ease of ordering, production and delivery of Miller SQA furniture. Value Chain : The value chain began with the Z-Axis software. Because Z-Axis was developed specifically for Miller SQA, it gave the subsidiary a huge advantage in the marketplace for the sales representatives and dealers that used it. The customer utilized the order entry and order status programs as well as images/models produced by AutoCAD. Within two hours, the customer received confirmation, complete with shipping and installation dates. The Enterprise Resource Planning system and Expert Scheduling module identified the framework for manufacturing and critical component material availability. EnSync allowed for each order to be built in one sequence. SupplyNet created supplier delivery and quality performance scorecards in order to monitor how well they were meeting the standards of Miller SQA. Finally, the product(s) was delivered and installed in the customer’s office.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

AEM437 - Assignment 3_Solutions - AEM 437: Assignment 3...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online