Kuiper Leda Gap Analysis

Gap Analysis: Kuiper Leda

The challenges faced by Kuiper Leda are based management, stakeholders, and an expansion into increased production capacities. In order to increase production Kuiper Leda will find it necessary to put into practice a new business strategy which will include implementing an inventory management system, better forecasting future sales, outsourcing the production of components, reduction in its supply chain, and the creation of an overseas central distribution center.

Situation Analysis

Issue and Opportunity Identification

Up front it appears that the problem Kuiper Leda is facing is caused by an opportunity to grow and take on more and larger customers, but further analysis demonstrates a poor or lack of an effective inventory and production plan.

Properly managed, Kuiper Leda will be able to take the problems laid before it and turn them into opportunities such as:

1. Improved delivery and capacity management through the use of modern software.

2. Increased sales and the building strong relationship with Midland Motors and other unnamed customers for future sales.

3. More accurately forecast production requirements.

Stakeholder Perspectives/Ethical Dilemmas

Ethical dilemmas are unavoidable when a company introduces change at the level that Kuiper Leda will be in order to grow and attract new customers. The key stakeholders in this situation include the company's senior management, customers, employees, and suppliers. Kuiper Leda will be increasing production and managing costs through the use of outsourcing, central warehousing, reduction of operating costs through decreased supply streams, and implementation of an inventory management system. The dilemmas Kuiper Leda will be facing will be the production of a quality product on time and in required volume, because Kuiper's present capacity is far below production requirements; increasing production without the workforce being forced to work excessive overtime; and reducing its overhead through the reduction of its supply stream.

End-State Vision

Kuiper Leda needs to increase capacity in order to accept an order from Midland Motors. In order for Kuiper Leda to meet the demands of increased production it will need to increase capacity internally and externally through the use of outsourcing. Although Kuiper Leda will need to step up production to meet the demands of Midland Motors the real problem is supply chain management. Kuiper Leda will need to implement a scalable supply chain management program which will incorporate the purchase of raw materials, outsourcing components, internal manufacturing, distribution, demand forecasts, required inventory levels, and future safety stock levels. By intergrading a scalable supply chain management program Kuipler Leda will be able to provide its customers with reliable information and availability of a product as well as performing an Available-to-Promise check.

Gap Analysis

At present Kuiper Leda is not able to adequately manage its supply and distributions chains, nor is Kuiper capable of managing its in-house production and inventory. In order for Kuiper Leda to become successful it will need to:

1. Develop an inventory management plan to deal with excess stock and inventory.

2. Upgrade the present distribution system.

3. Implement a system to better forecast demands.

4. Reduce overhead costs through the reduction of the supply stream. (University of Phoenix. 2004).

5. Kuiper Leda needs to become more proactive in managing the volatility of the supply and demand chains by synchronizing the demand for Kuiper's products with its production capabilities while optimizing resource usage and maximizing throughput (Made2Manage. 2005. p. 1).

Conclusion

The challenges faced by Kuiper Leda are based around management, stakeholders, and an expansion into increased production capacities. In order to increase production, Kuiper Leda will find it necessary to implement a new business strategy which will include implementing an inventory management system which integrates a scalable supply chain management program that is capable of forecasting future sales. Kuiper Leda should outsource the production of components to meet the volume requirements set forth by increased sales. In order to keep production cost low and improve margins, Kuiper Leda will want to reduce its supply chain, and create an overseas central distribution center.

References

Chase, R., Jacobs, F., & Aquilano N. (2006).Operations management for competitive advantage, 11th edition. New York: The McGraw-Hill Companies.

i2. (2002). i2 Demand management. Retrieved January 23, 2008, from http://www.i2.com/assets/pdf/datasheets03/PDS_demand_management_v6_pds7148_0803.pdf

i2. (2006). Collaborative supply execution. Retrieved January 23, 2008, from http://www.i2.com/solution_library/ng_p_Collaborative_Supply_Execution.cfm

Made2Manage. (2005). M2M SCM overview. Retrieved January 24, 2008, from http://www.made2manage.com/made2manage/content/productguide/scm.pdf

University of Phoenix. (2004). Operations management inventory

Table 1

Issue and Opportunity Identification

Issue Opportunity Reference to Specific

Course Concept

(Include citation) Concept

Kuiper Leda must decide whether to manufacture the ordered parts in-house or outsource some of the work. The right decision could lead to record revenues. "Many companies are achieving significant competitive