Ques. 1) Based on the risk factors associated with the Bugabyte and the Bugabyte Lite, which product do you think Grunwald and Vogel will recommend as the best candidate for assembly outsourcing? Ans: The present case is based on Managing Procurement and Global Sourcing. Here in the present case the company Metrovox purchases the components for Bugabyte and Bugabyte lite from the suppliers in China. Afterwards the assembly of both the product is done at German assembly plant. Now due to recent development of the video capable in Bugabyte there is delay in production which contributes to 30 percent late delivery rate. Due to this reason the management decide to outsource the assembly process to one of the suppliers. They hired the services of Grunwald and Vogel to reduce the percentage of late delivery rate. The risk factors include in outsourcing the assembly process are as below: a)
Quality: The details product specification and independent quality control inspection must to done for maintain the quality of the product. b)
Ethical concerns: The code of conduct of the company reputation or avoid consumer protests and boycotts c)
Patent Protection: The intellectual property right, might there is the chances of copying the patent. According to my point of view the Grunwald and Vogel will recommend the Bugabyte as the best candidate for assembly outsourcing. The reason is that due the recent development there is delay in production and as the demand is increased upto 300 percent for the first year so for the further production the company need to manufacture the product without any delay rate. Also the sale of Bugabyte Lite stable since past two years so the company will easily manage the production of it without any delay.
Ques. 2) Based on Grunwald and Vogel’s decision, what will be the benefits and disadvantages of outsourcing the assembly function? Ans: The benefits and disadvantages of the outsourcing process are as under in general: No.
Please join StudyMode to read the full document