Kuiper Leda Supply Chain Defense
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Running head: KUIPER LEDA SUPPLY CHAIN DEFENSE
Kuiper Leda Supply Chain Defense
Toni-Rae Garcia
University of Phoenix
Kuiper Leda Supply Chain Defense
In order for any company to become a supply chain leader it takes efficient processes, people, technologies, leadership, and discipline. Businesses rely on suppliers for inputs that are required to manufacture their products. Companies need to manage their production schedules efficiently in order to keep their commitments to their customers. Kuiper Leda Inc. (KLI) is an electronic components manufacturer that specializes in the production of Electronic Control Units (ECU’s) and sensors for the automotive industry. Its clients include automobile manufacturers and Original Equipment Manufacturers (OEM”S) for the automotive industry.
KLI has recently entered into another product line Radio Frequency Identification Devices (RFID’S) that has enabled KLI to make progress into the global market. Having said this, this paper will describe KLI’s inventory and supply chain management style as well as measures that they must take in order to keep up with the increased demand for the ECU’s, requested by of a client of theirs, Midland Motors.
Kuiper Leda Supply Chain Defense
The process of buying new material for suppliers, manufacturing the product, and delivering it to the customer needs to flow seamlessly without any interruptions. Any interruptions in this process can throw a company’s production activities out of sequence which means that businesses need to have adequate inventory for the finished product. They also need to be in a position to handle fluctuations in inventory levels. For example, in the scenario Kuiper Leda Inc., the company is faced with an increased order of ECU’s for Midland Motors- an American Original Equipment Manufacturer. Midland Motors has placed an annual order of 250,000 ECU’s and 35,000 RFID’s to facilitate inventory control in their factory. A minimum quantity of both products must be delivered each month. KLI decides to hold tight to its supply chain process in order for the order to be complete, efficient, and acceptable by their end user Midland Motors.
With KLI’s six step process they are sure to cover all areas for a well managed process keeping up with the quick change in demand and sound lead times. Starting at the first stage 1) production phase KLI has a clear direction of revenue, closing inventory, and capacity utilization target for the year. This first step is important in order for the company to calculate the average production per quarter. This is a sound business practice because
Next step is having the Master Production Schedule in place (MPS). By having this in place KLI is able to lay the foundation to capacity planning. This is excellent to have in place because KLI must be able to plan for the additional orders coming through from Midland while keeping up with the already existing ones. By having this plan in place it helps to ensure a clear idea of the capacity required to produce and deliver the products under the required timeframe.
Third, the materials requirement plan (MRP) for KLI is a specific breakdown of the individual requirements for components for a product. This plan helps to arrive at the gross requirements of the project.
Fourth, once the company has the MRP plan in place they still do a capacity detail check. This takes into consideration work in progress, machine load factor etc. Once all is in place production activity control (PAC) must be managed. PAC monitors inputs to the productions process and the resulting output. This is crucial for KLI for the simple fact that they must produce a certain amount of products within a given timeframe of one year. By having this system in place it is able to track the lead time and adjust its process where necessary. The PAC is a daily or weekly plan that is synchronized to production requirements.
Once the product is manufactured, checked, packaged, and sent to the recipient KLI’s supply chain shows that they have covered all areas to deliver a quality product on time. By following these six steps to an efficient supply chain KLI’s customers will be compelled to hold value in the company.