Hewlett-Packard:
DeskJet Printer Supply
Chain
Coordinated Product and Supply Chain Design
BACKGROUND
HP was founded in 1939
William Hawlett and David Packard
In 1990, 50 operations, Revenues of $13.2
billion and Net income of $739 million
Six Products Groups
The Peripheral Group was the 2nd largest
◦
Printers, Plotters, Magnetic Disks, Terminals
PRINTER MARKET
In 1990, 17 million units of workgroup and
personal printers, $10 billion
40% impact/dot matrix
40% laser
20% inkjet
By 1990, customers became aware of inkjet
printers (cheap and high quality)
HP and Canon pionereed ink-jet technology
The DeskJet Printer
Introduced in 1988
In 1990, sold 600,000 units, $400 million
Mission statment:
To become the recognized world leader in low cost
premium quality printers for offices and homes
Main division is located Vancouver
Consolidating four divisions
Colorado, Idaho, California, Oregon
Manufacturing Printer
In 1979, Manufacturing Cycle is 8 to 12 weeks
3.5 months of inventory
In 1981, Just-in-Time strategy had been
introduced
Reduced inventory from 3.5 months to 0.9 months
However, this strategy and production system
were not used efficiently.
Bob Foucoult: “We were all dressed up but no one to
take us to the dance”
”
Manufacturing Printer
In 1988, this innovetive product line was used
effectively, with new model “DeskJet printer”
With this new model, nearly-letter-quality
resolution is obtained and standard paper was
used.
HP has already had knowledge and
implementation for the ink-jet technology and
also streamlined manufacturing process
All these capabilities gave the HP chance become
the market leader in the ink-jet printer market.
