Supply Chain & Operations Analysis
Case Study #2
Recently, Wallace and his staff reviewed the business strategy in the manufacturing division. After revision, it became obvious that the marketing, engineering, and manufacturing strategies should be updated. The shipper Company has diversified into three separate divisions now, being the Electrical Products Division, the Materials Division and the Advanced Products Division. EPD produced a variety of circuit boards and other electrical products for mass markets. The MD produced laminated plastic materials that were sold to EPD, APD and outside customers. the APD manufactured specialty products to customer order. Sales and profits for the Advanced Products Division have been somewhat erratic. They produce their main product, the aerostat, only twelve times a year, which accounts for about fifty percent of APD's sales.
There will be a heavy emphasis on marketing strategies that will require extensive market research, market development and sales distribution systems. The company will need to concentrate heavily on planning and they must have the patience to focus on their strategies to see them through for future success. APD plans to gradually add higher volume products for multiple customers. By doing this, changes will be needed in manufacturing to be able to compete in the new setting. The purpose of this case is to see the changes in manufacturing that are associated with the change in the company's long-‐term strategy. Also, it makes it
known that it is important to integrate all of the aspects of operations for success.
1. What objectives should be adopted in manufacturing with respect to cost, delivery, quality
One objective that should be taken into account when dealing with quality is the reducing of flaws and maintaining high product standards. Physical inspections should be conducted