UofP - MBA550 - Individual Assignment - Paper - 05-20-06

UofP - MBA550 - Individual Assignment - Paper - 05-20-06 -...

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Situation Analysis 1 Situation Analysis and Problem Statement: Kuiper Leda Robert Sikes MBA550 Dr. June Maul May 20, 2006
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Situation Analysis 2 Situation Analysis and Problem Statement: Kuiper Leda This paper will illustrate the overall situation with Kuiper Leda identifying challenges and opportunities. It will further describe key stakeholders, the desired end state, goals, and develop a problem statement. Situation Background Kuiper Leda—an electronic components manufacturer—specializes in the production of Electronic Control Units (ECUs) and sensors for the automotive industry. Recently, Kuiper Leda added Radio Frequency Identification Devises (RFID) Tags to its line of products. With revenues reaching $400 million in just ten years, Kuiper Leda is a formidable competitor in the electronics industry. However, Kuiper Leda has worked with small customers and realizes that growth sustainability entails larger customers with return business. Subsequently, an Original Equipment Manufacturer (OEM), Midland Motors, placed a large order for ECUs and RFID tags with an aggressive turnaround time (University, 2006). Due to a sudden increase in requirements, my job as the new Vice President of Supply Chain Management will be to (1) decide if we should accept the order, (2) make a suitable margin, if accepted, and (3) whether or not both products can be manufactured in-house or outsourced partially or in its entirety (University, 2006). Issue Identification Kuiper Leda is confronted with several challenges that could impair positioning the company for growth sustainability. Currently, Kuiper Leda is struggling to meet the demands of a large customer due to ineffective or poor inventory control and supply chain management. Without key measurements that tie inventory control directly to financial performance, Kuiper Leda will not be able to meet customer demand (Chase, 2005). Customer demand is another critical issue that will directly influence Kuiper Leda’s supply chain. The business buying “impulse” could be to overstock items for future demands
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Situation Analysis 3 and, in the situation with completing a large order, the issue of producing products in-house or outsourcing could cause negative organization linkage, impulse decision-making, and a breakdown in performance measures (Lee, 2000). However, demand forecasting, Just in Time inventory replenishment, supply chain visibility, and an e-business strategy can be the first-steps toward Kuiper Leda identifying opportunities and potential solutions. Opportunity Identification Demand Forecasting Demand forecasting is critical in understanding the buying patterns of customers (Cottrill, 2002) and predicting future demand for products of a business organization (Gung, 2002). In order for demand forecasting to be effective, it must identify and describe current and future competitive landscapes, frame purchase/usage decisions in meaningful ways, generate forecasts for contingencies, anticipate demand among different market segments, and calibrate
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