Problem Solution: Kuiper Leda
The 21st century corporate environment is distinguished by competition, complexity, and change. With the globalization of markets and rapidly increasing foreign competition, supply chain management is becoming an organization’s most powerful business tool in reducing cost while improving production and customer satisfaction. Supply chain management is also transforming the way companies purchase raw materials, run production, and distribute final products.
Kuiper Leda, Inc. (Kuiper) is an electronic components manufacturer, specializing in the production of Electronic Control Units (ECU’s) and sensors for the automotive industry. After finding success with this niche during the past 10 years, the company has recently entered into the Radio Frequency Identification Device (RFID) market and has been in production for six months.
This new capability has caused notice from Midland Motors and they placed an urgent, substantial order for ECU’s and RFID’s; an amount that exceeds Kuiper’s current daily production capacity. To complete this order to Midland’s specifications and time frame, Kuiper needs to determine the best way to undertake this order while meeting the production needs of orders already in the pipeline as their current capacity is insufficient to meet the additional demands. To further complicate the situation, Kuiper’s production planning, inventory tracking, and supply chain management systems are inadequate to meet the demands of increased production.
Situation Analysis
Issue and Opportunity Identification
There are several issues and challenges facing Kuiper Leda and for each issue and challenge there is an equal opportunity. Each opportunity that Kuiper Leda faces can be used as a bridge in the growth of the organization. Identifying the issues and opportunities for Kuiper Leda will help in the creation of the end-state vision.
The issue being faced by Kuiper Leda is whether to be manufacturing both...