IS602 Evening MBA Spring 2015 --- Domestic Auto Parts Case 4/20/15 Adam Razak, Ivy Liao, Rodney Rodriguez, and Chenghao (Chuck) Zheng
1. Who are the shareholders and what do they want?
2. What are the shareholders’ expectations in the following areas?
a. Revenue growth
b. Asset utilization
c. Cost improvement
1. What do customers want? How does DAP create value for them? Products delivered on time and on spec, Long-term, mutually beneficial relationship with their suppliers, Superior, technology-sophisticated products from a supplier with a superior reputation and image in the industry. 2. Who are the customers?
Original equipment automakers and large retail chains
1. What internal processes are most important for creating value for DAP’s shareholders and customers?
Learning and Growth
1. What specific skills and capabilities for DAP’s people need in order to excel at the critical internal processes (identified above). Just-in-time alignment, manufacturing knowledge to reduce downtime, open relationship with customers to address their needs. 2. What other objectives can you identify to improve the human, information, and organization capital of DAP if it is to succeed with its strategy? Connect employees on an online platform so they can communicate regardless of geographical location, an online suggestion & crowdsourcing platform for individuals to share their own product ideas and suggestions for other departments.
Increase Return on Capital Employed
Increase top-line revenue by 50%
Innovation and Customer relationships
Reduce Unit Costs
% Productivity Improvement
Increase Asset Utilization
% Capacity Utilization (90%)
Better utilize the Capital assets
Upgrade asset base
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