Running head: GAP ANALYSIS: KUIPER LEDA
Gap Analysis: Kuiper Leda
University of Phoenix
Problem Statement: Kuiper Leda
Kuiper Leda (KL) is an automotive equipment manufacturer that assembles electronic control units (ECUs) and sensors. The company has been in business for 10 years and they have recently begun to manufacture Radio Frequency Identification Devices (RFID) as well. Kuiper Leda has recently received an order for 250,000 ECUs and 35,000 RFIDs from Midland Motors. Midland Motors has had unprecedented business and as it is a large auto major, an order from them would benefit Kuiper Leda (Simulation, 2008). It is critical that KL produces quality products and delivers them to Midland on time. The order is urgent and Kuiper Leda will need to manufacture and supply higher volumes over its regular orders. The existing capacity at Kuiper Leda is insufficient to handle the increased load on the plant and Kuiper will need to find ways to meet the sudden increase in requirements (Simulation, 2008). Kuiper must decide whether to manufacture one or both products in-house, or outsource some of the production load.
Issue and Opportunity Identification
Kuiper Leda is neither accurate nor efficient in its sales forecasting. Forecasts are vital to every business organization and for every significant management decision. Forecasting is the basis of corporate long-run planning. In the functional areas of finance and accounting, forecasts provide the basis for budgetary planning and cost control. Sales forecasting or demand management is one of the major principles of inventory management. “Production and operations personnel use forecasts to make periodic decisions involving process selection, capacity planning, and facility layout, as well as for continual decisions about production planning, scheduling, and inventory” (Chase et al, 2006). It is advisable for Kuiper Leda to ask some vital questions: will the expected...