Gap Analysis: Kuiper Leda
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Gap Analysis: Kuiper Leda
The challenges that Kuiper Leda Inc., faces are managing the logistics of inventory management, from the raw material stage to delivery of the completed product. The ability to manage production schedules efficiently is an important component keep all deadlines and commitments with its customers, which bring into play the options of expansion to increase product production capacities. Often companies need to manage various types of inventory in a way that will optimize inventory while enabling them to remain competitive.
Kuiper Leda, Inc. is an electronic components manufacturer that specializes in the production of Electronic Control Units (EUC) and sensors for the automotive industry. Kuiper Leda clients include automobile manufacturers and Original Equipment Manufactures (OEM) for the automotive industry (Supply Chain Simulation).
To increase production Kuiper Leda will need to put into practice a new business strategy with will include, implementing an inventory management system, better forecasting for future sales, establish new relationships with business for outsourcing the production of components, reduction in the supply chain, and the creation of an additional central distribution center.
Situation Analysis
Issue and Opportunity Identification
Through the running of the required simulation, the following information was gathered to outline the problems Kuiper Leda is facing caused by the growth in the customer base, which will require increase product production. An analysis of the inventory management and production plan demonstrates the lack of an effective process. The opportunities that need to be address:
Improve delivery and capacity of management with modern software.
Increase sales by building stronger relationship with Midland Motors and other customers.
Accurate, consistent and effective forecasting of productions requirements.
Stakeholder Perspectives/Ethical Dilemmas
When change is introduced within a business, ethical dilemmas are unavoidable. Key stakeholders include but are not limited to the senior management, customers, employees and suppliers. The decision to manage the increased productions and cost through outsourcing, and a centralize warehouse allows Kuiper Leda to reduce operating costs through decreased supply streams, and implementation of an inventory management system. The dilemmas Kuiper Leda is facing are: production of a quality products on time and in required volumes. The current capacity is below production requirements. Next, how will Kuiper Leda increase of production without making creating additional stress on the workforce, and handle the reduction of the supply stream?
End-State Vision
Kuiper Leda vision is to see increase capacity in production to accept the 250,000 ECUs from Midland Motors. In order for Kuiper Leda to meet the demands of this production, it will need to increase capacity internally and externally with outsourcing. Kuiper Leda will also need to accelerate production to meet the demands of Midland Mothers the real problem is supply chain management.
Gap Analysis
The process of managing the supply chain has changed considerably in the past few years. Technologies such as Web services, mobile and wireless computing, Web portals, business intelligence, and radio-frequency identification are being deployed in significant ways at a growing number of large companies, after a period of tight budgets hindered many implementations (Bob Violino, 2004).
Upgrade the present distribution system: The effective supply-chain manage requires tight systems integration with suppliers.
The Gap: companies that have achiever complete systems integration with suppliers are in the minority: only 15% of executives say their systems are integrated. Better integration could help improve the timeliness and accuracy of shipments.
Lack of visibility: Product visibility and tracking are essential elements of effective supply-chain management. Once Kuiper Leda outsources the production of the ECUs visibility of the chain will enable both the supplier and the customer to have real time information on their purchase.
The Gap: Having greater visibility into where products are at any moment is the main reason company strive to improve their supply-chain management.
Reduce