Case Study : Soup King 's Supply Chain

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Soup King has expanded its base of operations across the globe and into a new product line. With this rapid expansion of our product, there are severe quality issues that must be promptly addressed with our production line. Addressing issues like this will help reduce our COGS and increase the efficiency of Soup King’s supply chain. Following the strategic management process (specifically the OGSM model); this plan will define our supply-chain objectives of our company within the next 7 years. Following this initial stage, our plan will follow corporate-set goals by setting effective strategies along the way. Finally, to lead the continuous improvement of our process for the future, we will quantitatively measure the success or failures…show more content…
This will follow the same standard used in six sigma (or 3.4 parts per million opportunities in our production line). Rather than make incremental changes at the moment, our company will employ the Kaizen method for continuous improvement of our supply chain processes. This simple, yet effective strategy will help address our waning productivity on the line. We cannot neglect the fact our production rate is only operating ay 90% efficiency. By increasing efficiency, we can increase our output quantity, which should have a direct effect on top-line revenues. To consider what needs to be improved, we should evaluate the Theory of Constraints. The three major constraints for Soup King’s production are 1) the type of equipment we use to produce our product, 2) the people operating the equipment, and 3) our set policies/computer-programed instructions. While Soup King does not fully follow the lean-system (the reason being we are not further consolidating out facilities), that does not mean we can’t incorporate its strategy of removing waste and inefficiencies are stemming from in the production line. Starting with the equipment, we are producing a product mix of chicken noodle and tomato soup. With two products, it is infeasible to have both products packaged on the same line. We need to conduct internal benchmarking tests at each of our plants to see if bottlenecking is slowing down our supply chain. If we alternate production

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