Mba 550 Kuiper Leda Problem Solution

Running head: KUIPER LEDA PROBLEM SOLUTION

Kuiper Leda Problem Solution

Paul G. Johnson

University of Phoenix

. Kuiper Leda Problem Solution

Introduction

Kuiper Leda being a medium based electronics supplier will align inventory to increase production of ECUs and RFIDs while decreasing costs of inventory with effective operations management. Decreasing the operations management will increase revenue for stakeholders and allow Kuiper Leda the necessary tools for its future growth. Kuiper Leda Inc. needs to find ways to optimize operations management practices while minimizing additional cost to ensure future profitability and expansion.

Problem Definitions

Kuiper Leda's future growth will depend primarily by vision by the management team and proper forecasting of inventory to meet manufacturing within the plant operations and outsourcing models. Kuiper Leda must be lean in inventory but keen on insight.

Describe the Situation

Kuiper Leda will keep its operations management and inventory in check by direct observation of its inventory and positive order control. Kuiper Leda should lend them to provide a decrease in production, expenditures in operation and transportation of supplies to its customers by centralization of the company coupled with the increased production levels within the plant operations.

Issues

Kuiper Leda's issues are constraints in the production, operations and growth of the company. They must face the future of its operational management and warehousing distribution by looking at managerial growth, resources and the timeliness in order to meet the large demand placed upon them by their automotive customer.

* Ineffective inventory management

* Supplier base too large

* Limited production process and production capacity

* Lack of logistics

* Timeliness of product delivery

Opportunities

Effective inventory management and increased production within its own facility would keep traditional costs down. This process coupled with a centralized warehouse to keep transportation cost low, management of inventory with just-in-time process action, and increasing its forecasting capability to decrease outsourcing and increase revenue for the stakeholders.

* Development of an effective inventory management program

* Develop an effective distribution center

* Reduce cost associated with inventory

* Improve inventory logistics

* Implementation of total quality management (TQM)

* Streamline suppliers

* Maximize outsourcing to lower production cost

Issues and Opportunities Identification

Issues

Opportunities

Reference to Specific

Course Concept

* Limited production process and production capacity

* Production capacity of the warehouse * Increase from future constraints

* Lot for lot production schedules

* Forecasting of inventory for just-in-time to maintain effective inventory controls * "Regardless of whether an organization is involved in a total manufacturing operation, including design, or only inspection and testing process, it can develop a quality management system based on one of the ISO 9000 requirements standards" (Chase, Jacob, and Aquilano, 2006, ch 8, pp. 52).

* Lack of service plan and product delivery

* Increase from future constraints

* Quality control measures to ensure accountability

* Decrease cost for outsourcing and inventory

* Implementation of total quality management (TQM)

* "Quality improvement approaches described so far are more or less inward looking. They seek to make improvements by analyzing in detail the current practices of the company itself" (Aquilano, Chase & Jacobs, 2005, ch 8, pp. 60)

* Inventory management ineffective

* Increase communication with suppliers to prevent delays in product to increase production * "At the next level in the decision-making process, tactical planning primarily addresses how to efficiently schedule material and labor within the constraints of previously made strategic decisions." (Chase, Jacob, and Aquilano, 2006, ch 8, pp. 25).

* Lack of logistics * Improve inventory logistics

* "Many companies are achieving significant competitive advantage by the way they configure and manage their supply chain operations" (Aquilano, Chase & Jacobs, 2006, ch 1, pp. 5)

Alternative Solutions

In order for Kuiper Leda to maintain the opportunities and increase shareholder wealth they must do several things in order to complete the circle. They must maintain a lean inventory model, create forecasting and establish a central distribution process in order to cut costs and increase production. With this in mind, they must also train the employees in six sigma example in order to maintain the level process. They will do this by implementing these processes:

* Establish an efficient supply chain management plan

* Implement an effective inventory management system

* Establish a centralized distribution facility

* Create a functional forecasting system

Validation

Supply Chain

Inventory