OPERATIONS MANAGEMENT Case Analysis: HP DeskJet Printer Supply ChainGROUP 6 Anand M P 1811183 | Angushman Sharma 1811206 | Aditya Jalan 1811174 | Ayush Jain 1811172 | Gloryna Dilbung 1811161 | Soumyajit Ghosh 1811166
1. How is HP operating currently? Discuss your answer in terms of (i) its strategic vision about the market, (ii) its product design, and (iii) its logistics. Are these three aligned? If yes, how? Not specific to the current case, name 5 main major challenges that a global company like HP usually faces? How do they tackle them? (i) Strategic vision about the market- With the increasing sales of computers as a personal commodity, the company is closely tracking this increase in US, Asia-Pacific and Western Europe. Inkjet printers being cheaper than and as good as the more expensive laser printers, has made customers demand more of these with little product loyalty. The market for inkjet printers is headed by HP in US, while other companies are doing better in Japan and European countries. HP is currently trying to become the recognized world leader in low cost premium quality printers for printed communications by business personal computer users in offices and homes. (ii) Product design- the manufacture and sale of premium quality and low cost inkjet printers that are customizable according to the needs and specifications of consumers in different geographies (iii) Logistics- After the printers are manufactured in Vancouver division, they are modified to fit the specifications of the three regions. The finished products are shipped to the Distribution Centers which store the inventory and send the printers to retailers. 2. What does HP wants to achieve? What is its operational goal? HP’s mission is to become the Recognized World Leader in Low Cost Premium Quality Printers for Printed Communication by Business Personal Computer Users in Offices and Homes. Its operation goal is to maintain the optimal inventory levels at distribution centers (DC) so that it can meet the uncertainties in demand and at same time preventing the pile up of products. 3. What is the root cause of the current problem?