Kuiper Leda
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Problem Solution: Kuiper Leda
Kuiper Leda has become one of the worlds largest provider in the automotive industry for Electronic Control Units (ECU). Located in the Republic of Novamia, Kuiper Leda has recently added a new product to their line, the Radio Frequency Identification Devices (RFID). Due to the strong background in technology Kuiper Leda has been able to advance in to the international market. The company has been working with smaller companies and even though they are smaller than most of their competitors, they have been known for delivering on time and producing quality products. That is why they have been asked to produce a large order of Electronic Control Units (ECUs) for American Original Equipment. Midland Motors has also placed their annual order and they have stated that their order is urgent. Kuiper Leda needs to decide if it would be better to work on the in their facility or whether to decide if they outsource the production.
Kuiper Leda needs to find and implement a plan in which they will be able to deliver the requested products to their customers in the requested time. It is also very important to know that if the high production is profitable. By implementing a supply chain management theory and the Six Sigma model, Kuiper Leda can be expected to fulfill their orders. Another method that Kuiper Leda could use to be in good standing with their customers is to set up some type of ordering system. Whether it be an Inventory Ordering System, Independent Ordering System, or a Just In Time System.
It is up Kuiper Leda to decide what method they should implement and fits their needs. Would it be easier to outsource most of their products and take a loss if the products are poor quality and manufactured incorrectly? Or would it a wiser choice to let the customers know before hand that their order demands will not be met and they need to cut back on the orders.
Situation Analysis
Issue and Opportunity Identification
Kuiper Leda is faced with the decision of taking on the new offer which will not only place them as one of the leaders in the manufacturing business, but will also increase their profits. There are a couple of issues, however, that they need to resolve beforehand. One of the issues that needs to be addressed immediately is the raw materials inventory. The warehouse is overflowing with boxes of raw materials that have not been accounted for and this in turn has been affecting the companys accounting. Another issue that Kuiper Leda is facing is if they will be able to get the products to their customers on time. They need to design and implement production schedules that will enable them to meet the demands of their customers without over working their employees and their cash flows.
Kuiper Leda needs to design and implement a system for their raw materials inventories. By implement a supply chain management system Kuiper Leda will be able to serve their customers needs better and have a consistent flow