Case Study SCMMS II – Hilti – Gearing the Supply Chain for the Future
1. Evaluate the three scenarios proposed by the project team along the lines of the criteria presented in the case
2. What would be your recommendation to the board in the current situation of world economy in December 2011
1. The project team has proposed three scenarios for Hilti’s management board which all have the potential to help the company compete in an ever more competitive and cost-driven environment. Hilti has still the competitive advantage over most other important industry players, because it has a very high-quality approach and is able to charge 30% premiums for their products. The first approach the project team has
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The one-time cost would be relatively high since relocation of machines and production lines is a costly effort. The company need to find a way of transferring the human capital for the necessary steps in a way that it socially acceptable but producing the plastic parts doesn’t involve a huge amount of specialized workers so it would be possible to do that in a socially acceptable way which is one of the premises on which decision’s at Hilti are build. Another important question is if the plants can source the materials necessary to produce the plastic parts in a high enough quality locally. The supply chains in china and Hungary have been established for a long time but just for the parts needed at that time and now that the plants need to produce small plastic parts first in order to assemble them a flexible and high quality sourcing chain has to be designed that delivers the same quality and quantity that the German plant sources now in the “existing system structure”.
The third scenario is the most drastic and most cost-effective alternative. It doesn’t at all take existing structures into account but clears out most of the existing system of plants and moves all Western European production to Hungary. “Greenfield” impacts 45% of COGS but in order to do that the facilities in Mauren (Liechtenstein), Kaufering & Strass (Germany) and Thüringen (Austria) would have to be closed. This would be a big change for the local company Hilti and a step it
2. What is the business reason(s) for completing this project? How are they compelling for the improvement team and the management team? How are they tied to strategy?
When implementing project 1, you face technical and market risk. How would you assess the risks embedded in Project 1?
There are three types of analysis that have been used in determining project feasibility which are operational, technical, and economic. All three are important in determining this.
Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay
Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.)
Using the scenario information supplied, the candidate will undertake a cost-benefit analysis for high-priority change requirements, undertake a risk analysis, identify barriers, and develop
2. Determine the project benefits, organizational readiness, and risk culture of the company in the case study. Provide justification for your response.
However, as a new member with a new product, electronic product in North American market, the reputation is also an important attribute. Especially, quick delivery time is a key attribute for this company, due to the demand of quick delivery in all markets. Moreover, the manufacturing process of the new product, electronic product, on which our company will definitely focus, has a lot demands. Such as, technology, innovation and quick delivery time even the ability to make the product be the first one appearing in the market (other company, which is developing the same product, may become our competitive opponents). Especially, technology is predicted to play the most important role in the manufacturing process. On the other hand, the traditional cost system has a lot of limitations. Traditional costing system focuses on the cost reduction and the efficiency, particular the products with relatively few standardized components; Clifton, however, produces a wide range of airplane components. In addition, nonfinancial aspects of
The value delivery option is another component that supports the supply chain. Providing attention to the changes within consumer demands that will aid in rapid production of consumer products. In order to gain a larger view of the said component it is vital that the value-based method must be clearly understood. Based on the findings of (Feller, A., Shunk 2006).the ability to realign the structure of the supply chain, this process will allows the supply chain to sustain its effectiveness by adopting to changes in consumer necessities with merchandises of larger value. A diversified supply chain is constructed to match the overall components of the chain with customers need in mind. But if this construction of the supply chain doesn’t match the needs it will make nearly impossible for the organization to provide said products and services to the consumer.
An effective supply chain is the key to creating business value, and with expansion on the horizon. Good planning and willingness to adapt to changes are key to maximizing our results. In order to do this we have come up with a plan that will make Lady Americana mattresses a household name in our target expansion markets. In the state of Oklahoma, Lady Americana has already become a brand that has a bed in almost every home. The current systems in place are effective for todays operations, below are some challenges and recommendations to improve upon this to create an effective supply chain, that will grow with you as your business does.
Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also
Richard Dana Associates (RDA) was brought in by the owners of a family-owned business with complex relationship issues at a time preceding an anticipated leadership transition. Following individual and group coaching sessions, RDA was able to help the leadership separate personal issues, and codify practices through formal policies to allow the leadership group to focus on business issues without personal complications. At the end of RDA's engagement, the client was well-positioned to begin developing a transition plan.
4. In a service supply chain, the (explicit) cost of information is higher than in a product
including distributors and suppliers. From the person who gets original wood from a tree to the