Gap Analysis: Kuiper Leda
MM has provided KLI with a production schedule by quarter showing quantities needed and the lead time required. KLI does not have the capacity to manufacture both products in house and make the lead times. The decision was made to outsource the ECUs to an E-Portal supplier and manufacture the RFIDs in-house.
The remaining portion of the paper contains three sections: situation analysis, end-state goals, and gap analysis of KLI’s demand crisis. The situation analysis will discuss existing issues and opportunities along with stakeholder perspectives. End state goals will cover the vision statement of KLI. Finally, the gap analysis portion will make suggestions on how to achieve the end state goals.
Issue and Opportunity Identification
KLI does not appear to have a business model to follow. The large order from MM has placed the existing production equipment over capacity. KLI can outsource the ECUs and produce the 35,000 RFIDs in addition to the normal production. KLI is not in a position to decline the order from MM because of the significance of the relationship that can be established. MM is a major supplier to major car manufacturers and they have a reputation for bringing other customers into their supply chain network.
Stakeholder Perspectives/Ethical Dilemmas
“Organizations…create barriers to supply chain process.” (Craig, p. 1, 2004.) The internal goals of KLI can create a sub optimization of the supply chain process by being too restrictive when negotiating payment terms or being too quick to make the sale could jeopardize existing relationships with customers and suppliers. The communication between the sales force and the production team are crucial. A big sale may not be the best for the business if it puts production way over capacity. Suppliers rely on components being delivered within the given lead time to fulfill the orders they have pending. The supplier’s customer rely on the completed...