H C Starck Case Essay

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H. C. Stark Inc. Case 1. Why are the lead times so long? H. C. Stark Inc. invested in the SAP R/3 Enterprise Resource Planning software for the company but, only the finance dept. uses the software while the production, scheduling, shop floor scheduling and raw material orders and are still processed manually. These departments still believe in using the paper method of processing the transmittal of the sales orders from customers to the operations department. This process is longer than incorporating the software to accomplish the same tasks. Starck doesn't make full use of the functions in SAP R/3. In fact, schedule misses were mostly due to equipment failure. Mike from the sales dept stated there was an "informational…show more content…
“Breakdown” is done on the large mill in a free-rolling mode, and brings it to as thin as 1/8 inch. From 1/8 inch down is “finish” rolling, which is done in tension. Starck may considering investing another large mill so that no breakdown needs to be done, which could save time for production. Customer demand and product preference should be focused on to produce more of what the customer wants and to allow for stock reduction. 3. What are the costs from reducing the lead times? Jamie Finchbaugh of Industryweek.com states "Reducing lead time isn't about capacity. The amount of work that can get done is usually still the amount of work that can get done. What lead time does is deliver the request sooner to whomever needs something done." The benefits from reducing lead times are the edge in the marketplace. The company may become the leader on providing metallurgical products made from Tantalum while increasing sales numbers and established customers. Reducing lead times leads to delivering faster; giving Starck a competitive advantage. The drive and quest to lead-time reduction also forces Starck to eliminate other wastes throughout the plant. References Flinchbaugh, J. (2012, December 17). Lessons from the Road: Reducing Lead Time Changes Everything. Retrieved April 02, 2016, from http://www.industryweek.com/ McDonald, Stan C..

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